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Cost Recovery in 2016
2016 is in full swing and we will soon be conducting the 2016 Mattern & Associates Cost Recovery Survey. We've been conducting this bi-annual survey since 2004 and, during that time, it has become an industry resource for tracking the cost recovery practices of law firms across size and geography.
As we try to predict what the 2016 survey will reveal, it is useful to keep in mind the overall macro environment in which law firms are operating: A growing global market while, domestically, firms are experiencing flat demand, increasing client pushback on fees and other charges, increasing competition from non-legal sources, in-house departments and an increase in outsourcing. All these factors should influence a firm's overall cost recovery strategy.
In 2016, we predict the Mattern & Associates Cost Recovery Survey will show that the cost recovery “marketplace” will continue to be broken into two camps: First, those firms that are proactive about maintaining this expense recovery stream and are adjusting their strategy to the current workplace and marketplace, and second, those that are letting this 3%-4% of revenue of which this stream comprises to slip away.
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