What is it?
Outside Counsel Management and Rationalization (OCR) is an approach adopted by many leading corporate legal groups to improve quality and reduce costs. OCR is designed to select and utilize optimal outside counsel for diverse legal needs.
Employing a structured process, outside counsel is objectively evaluated and tested against viable “market alternatives”, and favorable economic terms are obtained. Typically, management processes are established to ensure the program’s elements are implemented and both quality improvements and savings are realized.
Why is it important?
Most law departments spend upwards of 60% or more of their budgets on outside law firms, usually amounting to tens of millions of dollars each year. Most are also under extraordinary pressure to reduce legal costs while maintaining the highest quality of legal service to their organizations. But they don’t know how to break away from the old, often ineffective ways of managing outside counsel.
What to look for in an Outside Counsel & Financial Management Solution?
Security and privacy are always a major concern with financial tools. Additionally, look for how the tools integrate with your existing tool portfolio. Reporting and analytics will be extremely important. Also determine whether data is gathered in real time or whether incremental updates is sufficient (daily, weekly, etc.)