With the year drawing to a close, I’m taking the opportunity to reflect on what I’ve observed and learned throughout 2025. Through conversations, data analysis, and real-world challenges, certain themes have consistently surfaced, providing signals of how legal operations is evolving and what truly shaped this year. These insights also set the stage for what’s next, and in my next blog, I will share where I believe we’re headed in 2026.
In 2025, legal operations continued the evolution from a tactical function into a strategic business partner, defined by a multi-faceted approach to cost control, stronger vendor collaboration, and a proven ability to deliver measurable value. The year was marked by intense pressure from rising costs and an accelerated mandate for legal departments to prove their strategic importance.
This review summarizes the key lessons learned and the strategies that helped legal ops teams adapt and thrive in a year of rapid evolution.
How did legal operations approach cost control in 2025?
This year reinforced that cost management is a strategic imperative, not just a line item. With average partner rates in key markets surpassing $1,000 per hour, legal departments were pushed to scrutinize every dollar spent.
This required a more sophisticated approach to spend management, which included:
- Adopting alternative fee arrangements (AFAs): Shifting away from the traditional billable hour.
- Implementing competitive bidding: Ensuring costs were market-appropriate.
- Enforcing stricter budget accountability: Requiring more discipline from in-house teams.
Success came to those who balanced fiscal discipline with strategic investment. It wasn't just about cutting costs but about optimizing value. This required a deep understanding of which legal matters demanded top-tier firms and which could be handled more efficiently by smaller providers or internal resources.
True resilience was found not in blanket cuts, but in thoughtful, data-informed resource allocation. And as conversations around benchmarking gained traction in 2025, many legal departments began exploring how comparative insights could sharpen those decisions. One of the biggest challenges was managing rising outside counsel costs while simultaneously proving the strategic value of the legal department to the broader business.
How did legal operations evolve into a strategic partner?
This year didn’t mark a new shift in responsibilities; it marked a stronger stride. Legal operations continued its evolution from tactical day-to-day operations to becoming a strategic business partner, but with more confidence and impact than ever. Teams leaned into their consultative role, influencing decisions on risk, growth, and strategy in ways that felt less like support and more like leadership.
Like an engine room powering the entire ship, legal ops is now the operational backbone enabling the legal department to navigate complex business waters. This evolution is the direct result of professionals demonstrating their value through data and process improvements. By providing the C-suite with clear metrics on legal spend and efficiency gains, legal ops earned its seat at the strategic table.
What changed in vendor management this year?
Vendor management in 2025 became less about procurement and more about a partnership that builds cost control into the relationship. Legal departments moved away from transactional relationships toward building collaborative alliances with law firms, grounded in mutual goals and shared data, and aided by technology.
Best practices that gained significant traction this year include:
- Structured performance reviews: Moving from ad-hoc feedback to scheduled business reviews with top-spend firms to align on goals and performance.
- Strategic panel curation: Using historical data to build and manage a curated panel of preferred firms, ensuring alignment on rates, diversity, and service expectations.
- Clear expectations: Establishing robust billing guidelines and engagement letters to create a foundation of transparency from the start.
Why was peer collaboration important for legal ops in 2025?
Some of the most valuable insights from 2025 came from peer-to-peer collaboration. Gatherings like our Feast & Forum roundtable and Amplify Local Connect events provided a unique and confidential space for legal ops professionals to share real-world challenges and solutions. These discussions confirmed that while every organization is different, the core challenges of cost control, vendor management, and demonstrating value are universal.
The key takeaway is that no one is stranded on an island. The legal operations community is a powerful resource for benchmarking, problem-solving, and professional growth. The willingness of leaders to share both successes and failures created a powerful learning environment.
Frequently asked questions
Q: What was the biggest challenge for legal operations in 2025?
A: One of the biggest challenges in 2025 was managing rising outside counsel costs while simultaneously proving the strategic value of the legal department to the broader business.
Q: How did legal departments balance cost-cutting with quality?
A: Successful departments used a data-informed approach to resource allocation, identifying which legal matters required premium firms and which could be handled more efficiently by smaller providers or in-house teams to optimize value.
