Research & Insights

The budgeting season is a critical time for General Counsels (GCs) and Heads of Legal, Compliance, and Policy functions in large enterprises. Risk-heavy industries—such as BFSI, pharmaceuticals, energy and technology—require a balanced budget that effectively supports legal risk management, compliance oversight and governance obligations.
This playbook provides a structured approach to budgeting, covering:
A well-structured legal and compliance budget typically includes the following key expense areas:
1.1 Talent Hiring & Retention
1.2 Secondments & Flexible Resourcing
1.3 External Advisory (Law Firms & Experts)
1.4 Compliance & Regulatory Monitoring
1.5 Legal Technology & Process Automation
1.6 Training & Development
Global best practices suggest the following distribution for legal and compliance budgets:
Category | Allocation (%) |
---|---|
Talent & In-House Legal | 45–55% |
External Advisory | 30–40% |
Compliance & Risk | 5–10% |
Legal Technology | 5–10% |
Training & Development | 3–5% |
Secondments & Contingency | 0–5% |
Problem: Increasing legal costs due to multiple law firm engagements.
Solution: Implemented legal spend analytics software, streamlining external billing.
Result: Saved 20% annually by eliminating redundant legal expenses.
Problem: High external legal costs due to an oversized law firm panel.
Solution: Reduced firms on retainer and implemented an Request For Proposal-based legal spend model.
Result: Cut law firm spending by 50% without sacrificing quality.
Problem: Rising RBI scrutiny and penalties due to inefficient compliance monitoring.
Solution: Introduced automated compliance tracking and hired a dedicated team.
Result: Reduced regulatory fines by 60% within two years.
Legal and compliance leaders must advocate for proactive budgeting to safeguard organisations from legal risks while optimising efficiency. By leveraging industry benchmarks, data-driven insights and a structured approach, legal teams can secure necessary funding and drive long-term value.
Our consulting services help legal departments optimise budgeting, talent strategy and compliance frameworks. Contact us today!