In the last year, the Big Four demonstrated that they are prepared to increase investment as they seek to capitalise on the legal sector by building out their legal departments and offering clients integrated legal services.
鈥淥ur strategy is very much rooted in the needs of the client to be offered solutions and not just advice,鈥 says Emily Foges, lead partner for Legal Managed Services at Deloitte. 鈥淭he vision for Deloitte Legal has always been that you bring together high-quality legal advice with legal management consulting, legal managed services and legal technology. This way, you can provide a complete end-to-end service to the client and achieve the outcomes they are looking for鈥 鈥
The focus on 鈥渟olutions rather than advice鈥 and combining legal advice with legal management consulting and legal technology鈥 seems to be paying off for the Big Four.
Just over a year ago 桔子视频 published a special report: "Are the Big Four reshaping the future of legal services?", challenging misconceptions that these accounting firms are going after the same types of work as top tier law firms. The report interviewed business leaders from the Big Four, top law firms and academics about everything from legal technology, to new and traditional business models, to talent attraction and retention.To demonstrate just how rapidly the Big Four are investing in their legal services offerings, we've done another deep dive into their activities over the last year.
Some key changes over the last year include substantial increases in salaries offered to newly qualified lawyers, 鈥渙nce-in-a-generation growth strategies鈥, and key appointments in legal departments.
In May 2022, announced their plan to double the size of its UK legal practice by the end of 2024. KPMG UK partners backed CEO Jon Holt鈥檚 拢300m 鈥榦nce-in-a-generation鈥 growth strategy.
The growth strategy is set to see KPMG hire 220 new lawyers - including 45 new partners and directors.
To bolster its legal services, has upped the salaries of newly qualified (NQ) lawyers to heights of 拢90,000 a year. This comes after PwC announced in January that it plans to double the size of its UK legal business over the next three to four years.
This 拢18,000 a year increase, in the midst of the war for talent in the UK鈥檚 legal sector, matches the salaries offered by top-ranking UK law firms.
has more than doubled its UK lawyer headcount, tripled the number of partners, and made some significant appointments in the last two years.
Download the 桔子视频 Big Four report
In April 2022, Deloitte appointed Peggy Pauwels as a new partner in its Legal Management Consulting (LMC) team. Deloitte announced that Peggy would focus on the consumer and TMT industries and also lead the LMC team鈥檚 talent management programme as the LMC team continues its rapid expansion.
鈥淧eggy鈥檚 strong focus on transformation means she brings a unique set of skills and experiences that bridge the legal and commercial world within the contract lifecycle鈥, said Jack Diggle, Global Lead Partner for Deloitte鈥檚 LMC practice.
Peggy鈥檚 appointment follows the March 2022 appointment of as a partner in Deloitte鈥檚 legal data privacy practice. Cavan previously held an in-house legal counsel role with Apple.
The increased investment in human capital is paying off as the Big Four continue to attract NQs and senior lawyers with years of legal experience, placing them in a position to offer a wide range of specialist services.
鈥Initially, ALSPs were more focused on higher-volume, lower-complexity activities a company might outsource, such as manual, volume-based document review in support of M&A or litigation work. But now the types of services that are offered have moved much higher up the complexity curve,鈥 says Juan Crosby, partner and NewLaw leader at PwC.
Matt Doughty, chief operating officer at DWF, believes that the Big Four are 鈥渃ompeting by bringing together lawyers with consultants and technology experts in a way many traditional law firms are unable to.鈥
commented: 鈥淐lients in the consumer sector are facing a unique set of legal opportunities and challenges in a post-pandemic world. Many are looking to digital to join up physical space with online, with important legal decisions for consumer business leaders to make鈥.
The appointment of Cavan Fabris comes at a time when 鈥渢he need for legal services across every type of digital risk is greater than ever. The consequences for not getting it right could be highly disruptive with long-lasting impact, and our clients need the specialist legal, technical and industry knowledge that these areas demand鈥, commented Michael Castle, Managing Partner for Deloitte Legal.
Investments such as the appointments of Peggy Pauwels and Cavan Fabris place Deloitte in a strategic position to meet clients鈥 needs for specialist legal, technical and industry knowledge, providing an end-to-end service.
Peggy Pauwels鈥 appointment brings an entirely different skill set. She brings 25 years of experience as a lawyer and expertise in commercial contract management and business transformation.
鈥淲ith her consumer and TMT specialism and in-depth operational understanding of these businesses, Peggy is well-placed to build out LMC鈥檚 legal offering to clients operating in these specialist areas, which often demand their own unique challenges鈥, says Jack Diggle.
Amanda Brown, the first KC from a Big Four Accounting firm, explains the benefits of a broad, multi-disciplinary team by using an analogy of purple paint.
鈥淗istorically, clients who wanted integrated business, accounting and legal advice (purple paint) had to buy each of those offerings separately (blue and red paint)鈥.With a multi-disciplinary firm, clients can buy the exact shade of purple they need and receive colour advice and, where necessary, an ombre purple wall鈥.
On doing things differently, Anup Kollanethu, UK Head of Legal Managed Services at EY, says, 鈥淢ore in-house teams are now starting to see how their peers within the business are operating, and there is almost an acceptance they have to adapt and use a different approach.鈥
Besides making inroads in a world traditionally reserved for law firms, is the Big Four鈥檚 investment in 鈥減roviding a different kind of offering鈥 causing a mindshift into how things could be done?
The increase in fee earners at the Big Four over the last two years speaks for itself.
Amanda Brown KC sums it up: 鈥淲orking at a Big Four presents opportunity plain and simple.鈥
鈥淥pportunity to develop as a lawyer. Opportunity to understand where the law fits into the real world of business. Opportunity to complement and fit with the skills of other disciplines. Opportunity to be stretched, encouraged, supported, and grow. Opportunity to have fun along the way.鈥
Download the Big Four report here for an indepth overview of how they're transforming legal services.
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