Roughly 75 percent of corporate general counsel nationwide indicated that their law departments are facing budget cuts next year, according to a survey by legal- industry consultant Altman Weil.

Most of the cuts will be targeted at outside law firms, Newtown Square,Pa.-based Altman Weil said. The average cut will be 11.5 percent.

The survey said 15.6 percent reported that budgets would increase by a smaller percentage in 2009 than in prior years.

Altman Weil conducted the survey of the top lawyers at companies in November. It included responses from 115 general counsel.

General counsel said outside- counsel costs and the unpredictable nature of legal spending were the top two concerns about 2009.

"The current economic environment may be the tipping point that causes general counsel finally to demand real financial accountability from their law firms or to start moving work to firms that are more flexible," Altman Weil principal Dan DiLucchio said.

About 65 percent of general counsel said that they would bring more legal work in-house next year as a budget-cutting method; 53 percent plan to switch some current work or cede new work to lower-priced outside counsel; and 50.5 percent will require more alternative fee arrangements.

Internally, 31 percent of general counsel said they would make cuts in lawyer and administrative staff head count, 21 percent plan to cut paralegal positions, 29 percent plan to reduce lawyer compensation, 19 percent will reduce staff compensation, 31 percent plan to reduce lawyer bonuses and 22 percent will cut departmental staff bonuses as well. In terms of administrative spending, 61 percent said they would reduce spending on events and training and 35 percent will delay a technology purchase.