Microsoft Announces Plans to Nearly Phase Out Billable Hour
Bloomberg Law reports that Microsoft hopes to shift 90 percent of its legal work into alternative fee arrangements within two years — in an effort to move away from the billable hour.
Microsoft has been re-evaluating how it works with law firms, according to David Howard, a corporate vice president and deputy general counsel at the company.
“It made several key decisions in the process, including to hire more law firms on a retainer basis and to work more closely with them on their diversity,” reporter Gabe Friedman writes. “[Howard] also said the company is rapidly moving away from the billable hour, and named a dozen law firms that have embraced alternative fee arrangements, such as fixed fees, that Microsoft views as its strategic partners.”
