Even amid difficult economic conditions, China's in-house legal profession has still matured above and beyond expectations. The increased complexity of the legal and regulatory environment, along with generally tighter control of costs, has provided a great opportunity for in-house lawyers to demonstrate their strategic value.
While the 2010 ALB China In-house Survey found that 68% of the polled in-house departments have less than 10 legal staff, nearly half said their departments have grown over the past 12 months.
Sami Farhad, vice president & general counsel of eLong.com, has a good vantage point for the evolving profession in China as a US lawyer. "Over time, as companies in China become larger, engage in more complex financial transactions and have more international exposure, businesses are becoming more sophisticated and recognising that a strong in-house legal team can support the healthy growth and development of the company, while avoiding costly risks and disputes," said Farhad. "Now, many in-house legal departments have built up strong internal expertise in the areas of law which significantly impact their companies. The perception of in-house lawyers as not doing interesting or challenging work is now largely outdated."
In addition to the steady increase in numbers, many in-house departments now have more tiers of staff than in the past and in-house counsel roles have expanded into new non-legal areas, such as compliance, risk management and company secretarial responsibilities.
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The size of your in-house team
1-10
|
68%
|
11-20
|
12%
|
21-50
|
13%
|
51+
|
7%
|
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Over the past 12 months your in-house team has
contracted by 1-20%
|
13%
|
contracted by 21-50%
|
5%
|
grown by 1-20%
|
27%
|
grown by 21-50%
|
14%
|
grown by 50+%
|
7%
|
remained the same size
|
34%
|
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Top three areas of expertise in-house teams most need to develop:
1. legal risk management
2. contract review
3. regulatory and compliance
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*To find out more about the issues in-house legal departments face in 2010 and how their external service providers should adapt their offerings accordingly, please see the full 2010 ALB China In-house Survey Report published in the April edition of the ALB China magazine.