When costs are up and budgets are down, in-house lawyers are stuck doing more with less – again.

Managing legal spend is no longer a nice-to-have skill. It’s essential. Especially when unpredictable fees can wreak havoc on your forecast. In this blog, we’ll run through six practical ways to take control of your legal budget – while still getting the support you need, when you need it.

Why the pressure’s on

Let’s not sugar-coat it – this year’s been a financial whirlwind. Overheads are climbing, inflation is biting, and timekeeper rates rose 5.1% in 2024 alone – the second-highest jump in over a decade. That’s on top of a 9.1% growth in law firm billing rates across the market, with top-tier lawyers now charging up to $3,000 per hour. The cost of external legal support is climbing fast – and your budget isn’t. At the same time, 69% of in-house lawyers are facing moderate to significant pressure to cut costs, prompting a renewed focus on efficiency. Meanwhile, 75% of corporate law departments are prioritising legal tech to streamline work and improve workflows. And yet, many GCs are still being asked to justify the value of legal altogether. In other words: you’ve never had to prove your worth with so few resources. So, how can you keep your spend in check, without compromising on quality? And how can you make your impact crystal clear?

1. Set clear expectations (and stick to them)

External support should make your life easier – not more expensive. The best way to avoid fee surprises? Nail down expectations from day one. Agree exactly what will and won’t be done, who approves what, and how things are charged. Get it in writing, and revisit it regularly. Many firms have internal ways of working that aren’t always shared up front – meaning you could be charged for work you didn’t ask for, didn’t approve, and didn’t know was happening. Not great. By setting firm boundaries, you’ll avoid friction, invoice shock, and crossed wires – and build trust in the process.

2. Demand regular fee updates and breakdowns

With billing rates hitting record highs, transparency isn’t a nice-to-have – it’s a must. A strong firm should never be vague about costs. Regular fee updates and clear breakdowns help both sides manage expectations and keep your budget on track. Work with firms that embrace this as standard. Agree up front how often you want updates, what those updates should include, and where your budget ceiling sits. If a provider won’t engage with this kind of transparency, it’s a red flag.

3. Build a “Legal Front Door”

If legal requests are coming at you from all angles, a Legal Front Door is your new best friend. It’s a simple intake process – whether that’s a form, a ticketing tool, or even a shared inbox – that helps triage legal work efficiently. Your front door should reduce noise by streamlining incoming requests; route matters to the right person (or team); filter out work that can be self-served via templates or playbooks; and help you track the volume and type of requests to show value. It’s just as useful for managing requests from external counsel too. It keeps things centralised, cuts down on admin, and ensures the right matters go to the right place – without wasting time or budget.

4. Empower teams to self-serve

Not every legal request needs a lawyer. Self-service tools – like FAQs, templates, and automated workflows – can handle everyday issues quickly and efficiently, without dragging you into the weeds. With 75% of law departments investing in legal tech to simplify processes, there’s never been a better time to get started. Set clear rules and risk thresholds. Train teams to use your templates properly. Use contract playbooks to guide decision-making. And build internal resources that free you up to focus on strategic, high-value work. It takes some effort up front, but once it’s embedded, you’ll wonder how you ever lived without it.

5. Ditch inefficiencies

Legal ops can be a black hole of clunky systems and dusty workflows. But inefficiency isn’t just frustrating – it’s expensive. Take a step back and ask: what’s slowing us down? What’s being repeated unnecessarily? What could be automated, outsourced or simplified? Even modest changes – like ditching legacy software, fixing broken workflows, or clarifying responsibilities – can make a huge difference to productivity and spend. In a year where businesses are pushing harder for value, clunky processes are no longer defensible.

6. Review your governance and approvals process

Approvals are a necessary evil – but they don’t have to be a bottleneck. If every NDA, contract, or policy needs to land on your desk, it might be time to rethink the process. Adopt a risk-based approach. Define what doesn’t need a legal review. Empower teams to act on standard matters within clear boundaries. And loop in your external provider for low-risk, high-volume work (at a fixed cost, ideally). 41% of European legal departments are now mandating alternative fee arrangements (AFAs) when briefing law firms – a clear sign that predictability and efficiency are top priorities. The aim? Maximise the value of your time – and make sure your budget is spent where it actually matters.

Summary

Legal costs are rising fast – but so is the pressure to deliver more for less. By setting clear boundaries, demanding transparency, embedding better processes, and streamlining the way work flows into your team, you can take real control of your legal spend. None of these strategies require perfection – just progress. And each one is a step toward a more efficient, valued, and cost-conscious legal function.