The Big Four accounting firms continue expanding their legal services offerings

The Big Four accounting firms continue expanding their legal services offerings

In the last year, the Big Four demonstrated that they are prepared to increase investment as they seek to capitalise on the legal sector by building out their legal departments and offering clients integrated legal services. 

ā€œOur strategy is very much rooted in the needs of the client to be offered solutions and not just advice,ā€ says Emily Foges, lead partner for Legal Managed Services at Deloitte. ā€œThe vision for Deloitte Legal has always been that you bring together high-quality legal advice with legal management consulting, legal managed services and legal technology. This way, you can provide a complete end-to-end service to the client and achieve the outcomes they are looking forā€¦ ā€œ

The focus on ā€œsolutions rather than adviceā€ and combining legal advice with legal management consulting and legal technologyā€ seems to be paying off for the Big Four.  

Just over a year ago UUĀćĮÄÖ±²„ published a special report: "Are the Big Four reshaping the future of legal services?", challenging misconceptions that these accounting firms are going after the same types of work as top tier law firms. The report interviewed business leaders from the Big Four, top law firms and academics about everything from legal technology, to new and traditional business models, to talent attraction and retention.

To demonstrate just how rapidly the Big Four are investing in their legal services offerings, we've done another deep dive into their activities over the last year.  

Some key changes over the last year include substantial increases in salaries offered to newly qualified lawyers, ā€œonce-in-a-generation growth strategiesā€, and key appointments in legal departments. 

Investing in human capital

In May 2022, announced their plan to double the size of its UK legal practice by the end of 2024. KPMG UK partners backed CEO Jon Holtā€™s Ā£300m ā€˜once-in-a-generationā€™ growth strategy.  

The growth strategy is set to see KPMG hire 220 new lawyers - including 45 new partners and directors. 

To bolster its legal services, has upped the salaries of newly qualified (NQ) lawyers to heights of Ā£90,000 a year. This comes after PwC announced in January that it plans to double the size of its UK legal business over the next three to four years. 

This Ā£18,000 a year increase, in the midst of the war for talent in the UKā€™s legal sector, matches the salaries offered by top-ranking UK law firms.  

has more than doubled its UK lawyer headcount, tripled the number of partners, and made some significant appointments in the last two years. 

Download the UUĀćĮÄÖ±²„ Big Four report

Deloitte makes a number of key appointments 

In April 2022, Deloitte appointed Peggy Pauwels as a new partner in its Legal Management Consulting (LMC) team. Deloitte announced that Peggy would focus on the consumer and TMT industries and also lead the LMC teamā€™s talent management programme as the LMC team continues its rapid expansion.

ā€œPeggyā€™s strong focus on transformation means she brings a unique set of skills and experiences that bridge the legal and commercial world within the contract lifecycleā€, said Jack Diggle, Global Lead Partner for Deloitteā€™s LMC practice. 

Peggyā€™s appointment follows the March 2022 appointment of as a partner in Deloitteā€™s legal data privacy practice. Cavan previously held an in-house legal counsel role with Apple. 

The increased investment in human capital is paying off as the Big Four continue to attract NQs and senior lawyers with years of legal experience, placing them in a position to offer a wide range of specialist services.

Investing in ā€œa different kind of offeringā€

ā€œInitially, ALSPs were more focused on higher-volume, lower-complexity activities a company might outsource, such as manual, volume-based document review in support of M&A or litigation work. But now the types of services that are offered have moved much higher up the complexity curve,ā€ says Juan Crosby, partner and NewLaw leader at PwC.

Matt Doughty, chief operating officer at DWF, believes that the Big Four are ā€œcompeting by bringing together lawyers with consultants and technology experts in a way many traditional law firms are unable to.ā€

commented: ā€œClients in the consumer sector are facing a unique set of legal opportunities and challenges in a post-pandemic world. Many are looking to digital to join up physical space with online, with important legal decisions for consumer business leaders to makeā€. 

The appointment of Cavan Fabris comes at a time when ā€œthe need for legal services across every type of digital risk is greater than ever. The consequences for not getting it right could be highly disruptive with long-lasting impact, and our clients need the specialist legal, technical and industry knowledge that these areas demandā€, commented Michael Castle, Managing Partner for Deloitte Legal.

End-to-end service

Investments such as the appointments of Peggy Pauwels and Cavan Fabris place Deloitte in a strategic position to meet clientsā€™ needs for specialist legal, technical and industry knowledge, providing an end-to-end service.

Peggy Pauwelsā€™ appointment brings an entirely different skill set. She brings 25 years of experience as a lawyer and expertise in commercial contract management and business transformation. 

ā€œWith her consumer and TMT specialism and in-depth operational understanding of these businesses, Peggy is well-placed to build out LMCā€™s legal offering to clients operating in these specialist areas, which often demand their own unique challengesā€, says Jack Diggle. 

Amanda Brown, the first KC from a Big Four Accounting firm, explains the benefits of a broad, multi-disciplinary team by using an analogy of purple paint.

ā€œHistorically, clients who wanted integrated business, accounting and legal advice (purple paint) had to buy each of those offerings separately (blue and red paint)ā€¦.With a multi-disciplinary firm, clients can buy the exact shade of purple they need and receive colour advice and, where necessary, an ombre purple wallā€.

On doing things differently, Anup Kollanethu, UK Head of Legal Managed Services at EY, says, ā€œMore in-house teams are now starting to see how their peers within the business are operating, and there is almost an acceptance they have to adapt and use a different approach.ā€

Besides making inroads in a world traditionally reserved for law firms, is the Big Fourā€™s investment in ā€œproviding a different kind of offeringā€ causing a mindshift into how things could be done?

Are the ā€œlawyersā€ buying in? 

The increase in fee earners at the Big Four over the last two years speaks for itself.

Amanda Brown KC sums it up: ā€œWorking at a Big Four presents opportunity plain and simple.ā€ 

ā€œOpportunity to develop as a lawyer. Opportunity to understand where the law fits into the real world of business. Opportunity to complement and fit with the skills of other disciplines. Opportunity to be stretched, encouraged, supported, and grow. Opportunity to have fun along the way.ā€

Download the Big Four report here for an indepth overview of how they're transforming legal services. 


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About the author:
Dylan is the Content Lead at UUĀćĮÄÖ±²„ UK. Prior to writing about law, he covered topics including business, technology, retail, talent management and advertising.Ā  Ā Ā Ā