UK’s top 200 law firms are embracing business services, a trend that reveals a shift in mindset towards a more corporate structure. Firms are investing in business development, marketing, and human resources, with a median spend of 13.5% of total revenue. This investment is paying dividends, with firms reporting increased profitability and growth. The largest firms are leading the way, spending up to 17% of their revenue on business services, while smaller firms lag behind, spending only 9%.
A significant finding is the correlation between business services expenditure and profitability. Firms that invest more in these services tend to be more profitable. Despite this, there is a disparity in the level of investment across the sector. The top 100 firms invest an average of 15.6% of their revenue in business services, compared to just 9.8% for firms ranked 101-200.
There’s also a trend towards a more diversified workforce, with non-lawyers now making up 60% of staff in the top 200 firms. This shift is driven by the need for a broad range of skills to support the complex operations of modern law firms. The growth of business services in law firms is a clear indication of the sector’s evolution towards a more corporate model, underlining the importance of a diverse skill set and the value of investment in business services.
Go to source article: https://www.thelawyer.com/issues/28-november-2016/uk-200-business-services-2016-key-findings/