According to a new report from legal consultants BTI Consulting Group, spending on outside counsel will continue to drop next year. In 2008 spending on oustide counsel averaged out at $20.8 million. This year outside counsel spending average out to $18.5 million and next years average is predicted to by $17.7 million.

Corporate law, real estate law, IP law and tax law groups will be hit the hardest as companies strive to handle more of that in house and the economy remains soft. Regulatory law practice groups can expect to see an increase, however, as companies look for more cost efficient ways to comply with regulations.