International ambitions grow at UK law firms

HSBC UK, in partnership with Briefing, today releases their annual Law Firm Strategy and Investment research for 2024/2025. The report, now in its fifth year, surveys strategic leaders across the UK legal market about their operational and organisational priorities and challenges, providing a comprehensive view of the key trends shaping the sector.

The report, which spoke to 95 senior law firm leaders, reveals a significant increase in their confidence, with 84% of firms with an international footprint planning further expansion.

This confidence extends to firms operating solely in the UK, with 13% now planning to establish an international presence, more than double the figure from the previous year (6%).

Firms identified Europe (47%) and North America (34%) as the regions outside the UK where they were prioritising for growth over the next three years.

Despite this optimism, the report highlights ongoing challenges, particularly in sourcing and retaining talent. This issue was identified as the top challenge by 59% of leaders planning any form of strategic growth, far ahead of concerns around changing regulation (12%), profitability (12%), and geopolitical conflict (16%).

The research also indicates a shift in the perceived disruptors within the legal market. In 2024, leaders are most wary of other law firms investing more effectively in technology, with 77% identifying this as a potential source of disruption. This marks a significant change from 2023, when the ‘war for talent’ was seen as the primary disruptor.

Victoria Ritchie, Head of Professional and Business Services at HSBC UK, commenting on the findings said: “As we approach the middle of an extraordinarily challenging decade, it’s encouraging to see such a high proportion of leaders at firms of all sizes signalling confidence in the market outlook. With HSBC’s global footprint and international network, its especially pleasing to see how law firms are increasingly ambitious to expand internationally.

“However, as firms look to seize growth opportunities, they face ongoing challenges in finding and retaining the best talent. Despite these challenges, these leaders’ responses suggest their firms are determined to forge ahead, investing in technology-based transformation and increasingly setting targets for business environmental sustainability and social responsibility.”

The full report, including a detailed breakdown of the findings, is available at Professional Services | Sector Teams | HSBC UK

Media enquiries to:

Neil Fleming 07384792051 neil1.fleming@hsbc.com

Email: UKPressOffice@hsbc.co.uk