Councils emulate private practice models in modernisation drive

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  • I am a director in a legal services consulting company, GCL Consulting Ltd from NZ. I have read with interest the article on local government inhouse legal services and the various approaches being taken. We have worked with the 6 largest New Zealand councils and various others in reviewing and designing inhouse legal services. In our experience insourcing can deliver comparable services at 45% of the cost of outsourcing. In addition there are signifcant qualitative benefits generated at no extra cost. Typically, for the councils we have worked with (as well as central government clients), when expressed as a return on investment produced, the net savings can range from 65% to 84% of the investment on inhouse (the net savings = reduction in law firm fees less all inhouse salary / overheads). The level of return can vary and depends to a large degree on the purpose, function, scale and legal work of the inhouse team.
    Philip Griffiths

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  • Can Councils emulate (or even come close to emulating) private practice salaries in the modernisation drive? has anyone seen the Law Society Gazette council vacancies recently? a joke!

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  • Its highly unreasonable to expect local government lawyers to adopt a private practice work ethic if Councils cannot even come close to competing with the private sector in terms of salaries. All this theorising about how effective this new model can be is futile when you overlook this fundamental problem.

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