Behind Microsoft’s Attack on the Billable Hour

Microsoft recently announced it plans to reduce the amount of outside legal work it pays for on an hourly basis down to just 10 percent in the next two years.

That means it plans to move 90 percent of its legal spend into alternative fee arrangements -- up from around 55 to 60 percent today, according to David Howard, a deputy general counsel spearheading the change.

Howard said that Brad Smith, the company’s president and chief legal officer, asked him to rethink how Microsoft could gain the best value from its law firms, and he spent the past year studying the topic.

As part of a ...