The 2025 State of the Corporate Law Department Report from Thomson Reuters reveals a legal landscape in flux—one where general counsel (GCs) are redefining their roles, rethinking value, and embracing new models of legal service delivery. Among the most resilient and adaptive models is the Outside General Counsel (OGC) approach, which continues to gain traction across industries.
The Value Imperative
“Value” is the dominant theme of the 2025 report. It was mentioned three times more often in interviews than in the previous year [1]. GCs are no longer just legal advisors—they’re strategic enablers, risk managers, and operational partners. The report identifies four pillars of value:
- Effectiveness: Delivering high-quality legal advice aligned with business strategy.
- Efficiency: Serving the business cost-effectively, often through technology and AI.
- Protection: Managing risk and regulatory compliance.
- Enablement: Helping the business grow through strategic legal support [1].
“GCs must ensure that they add value through the quality of their legal advice and interactions with stakeholders.” — Thomson Reuters [1]
This framework aligns perfectly with the OGC model, which offers continuous, strategic legal support without the overhead of full-time in-house counsel.
Cost Control and the Decline of the Billable Hour
GCs are under pressure to do more with less. The report highlights a surge in cost-control initiatives, including panel reviews, rate negotiations, and the use of alternative legal service providers (ALSPs) [2].
“Cost control is a higher priority than ever, with more departments willing to go beyond the billable hour.” — Thomson Reuters [2]
This shift is driving interest in fixed-fee and hybrid pricing models, which are central to most OGC arrangements. These models offer predictability, transparency, and alignment of incentives—qualities that traditional hourly billing often lacks.
The GenAI Disruption
Generative AI (GenAI) is reshaping how legal work is performed—and priced. According to Thomson Reuters, GenAI is prompting GCs to revisit the fundamentals of legal service delivery [3].
“Many cannot afford the rate increases that outside counsel have been requesting… it’s nearing crisis proportions.” — Jason Winmill, The Buying Legal Council [3]
While AFAs currently account for 15–25% of billings at sophisticated law departments, GenAI may accelerate their adoption. Routine legal tasks—employment matters, real estate transactions, IP filings—are ripe for automation, making them ideal candidates for OGC-style engagements.
Strategic Alignment and Enablement
GCs are increasingly expected to enable business growth, not just mitigate risk. The report emphasizes the need for legal departments to align with corporate vision and mission [1].
OGC providers, especially those embedded in client operations, are well-positioned to deliver this kind of strategic value. They offer continuity, institutional knowledge, and the flexibility to scale with business needs.
Conclusion: OGC Is Not a Trend—It’s a Transformation
The Outside General Counsel model is not a flash-in-the-pan. It’s a strategic response to the evolving demands of corporate legal departments. As GCs redefine value, control costs, and embrace technology, OGC arrangements offer a compelling blend of expertise, efficiency, and enablement.
“GCs are redefining the function of their departments in strategic terms.” — Thomson Reuters [4]
References
[1] 2025 State of the Corporate Law Department Report ... - Thomson Reuters
[2] 2025 State of Corporate Law Department report | Thomson Reuters
[3] Will alternative fee arrangements be the new pricing model for AI ...
[4] Rise of AI and Explosion in Data Volumes Weigh ... - Thomson Reuters