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Unformatted text preview: industry of publicly traded companies. The recession has put tremendous pressure on law firms. An
article in the Economist magazine (May 5, 2011)
states that “ever-growing profits are no longer
guaranteed. Nor, for some firms, is survival.” Work
on mergers and acquisitions has dried up. Clients
are scrutinizing bills and challenging the convention of paying by the hour. Firms are adapting by
charging flat, capped, or contingent fees. All of this
puts pressure on profits. According to an annual
survey by the National Law Journal, the 250 biggest
firms pink-slipped more than 9,500 lawyers in
2009 and 2010. They also deferred hiring. This left
new graduates in a glutted market. Indeed, many
law school graduates do not even go into the legal
profession. A new niche, “legal-process outsourcing firms,” which do not advise clients but do routine work such as review documents, puts further
downward pressure on the demand for traditional
law firms. These outsourcing firms can be located
anywhere in the world.
The PBS Comm...
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This note was uploaded on 02/11/2013 for the course MGMT 231 taught by Professor Yu during the Spring '13 term at Bauder.
- Spring '13
- The Lottery