The cost of setting up an in-house legal department or outsourcing legal services is always a challenging question for many businesses. Which option best optimizes the budget while still ensuring legal compliance? Which model helps minimize risks without hidden costs? This article provides a comprehensive overview to help you make an informed decision.
When a business begins to expand, the need for legal risk management increases significantly, making an in-house legal department seem like a “secure” solution. However, the cost of establishing an in-house legal team goes far beyond salaries and often includes many additional expenses that business owners may not anticipate.
The most visible cost is the fixed monthly personnel expense. An experienced legal officer typically earns between VND 15–30 million per month; hiring a legal manager or in-house lawyer can be significantly more expensive.
In addition to salaries, businesses must also cover:
Social insurance, health insurance, and unemployment insurance
Bonuses, employee benefits, and professional training
Office space, equipment, and legal software
As a result, the total cost of maintaining an in-house legal department often far exceeds the initial salary estimates.
A major limitation of an in-house legal department is its limited scope of expertise. One or two legal staff members cannot fully cover areas such as investment, tax, labor, contracts, intellectual property, and dispute resolution.
When issues arise beyond their expertise, businesses must still hire external lawyers, leading to double costs. Moreover, if legal matters are handled inefficiently, companies may face fines, lawsuits, or missed business opportunities—costs that are difficult to quantify immediately.
In a rapidly changing legal environment, many businesses are turning to outsourced legal services as a more flexible and cost-effective solution.
Unlike the in-house model, outsourced legal services are typically offered through fixed monthly service packages or on a case-by-case basis. This allows businesses to better control their budgets without long-term personnel expenses.
Key advantages include:
No costs for insurance, training, or employee benefits
Payment only for services actually used
Easy expansion or reduction of service scope
Notably, outsourcing provides access to a team of specialized lawyers rather than reliance on a single individual.
When comparing the cost of in-house versus outsourced legal services, many businesses focus only on expenses. However, the real value lies in effective risk prevention.
Outsourced lawyers often have extensive experience handling real-world situations, from contract disputes and tax audits to corporate restructuring. They not only resolve issues but also help prevent risks from the outset, saving significant costs in the long run.
To make the right decision, businesses must realistically evaluate both models—not only in terms of short-term costs but also long-term strategy.
For small and medium-sized enterprises, the cost of establishing an in-house legal department can consume a large portion of the operating budget. Outsourcing, on the other hand, allows access to high-quality legal services at a much lower cost.
For large enterprises, an in-house legal team may be necessary for daily operations, but it still cannot fully replace external lawyers in complex matters such as M&A, foreign investment, or major disputes.
In a volatile business environment, legal needs fluctuate. Establishing an in-house legal department means fixed costs—even when workload decreases.
By contrast, outsourcing allows businesses to:
Expand services during major projects
Reduce costs during stable periods
Stay up to date with the latest legal regulations
This flexibility is a significant advantage as corporate legal requirements become increasingly complex.
Based on extensive experience working with domestic and international clients, DEDICA Law believes there is no “one-size-fits-all” model—only the most suitable solution for each stage of development.
DEDICA Law offers outsourced legal services tailored to each business’s actual needs, including:
Ongoing legal advisory services similar to an in-house legal department
Contract review, drafting, and negotiation
Investment consulting, company formation, and M&A
Dispute resolution and litigation support when necessary
Businesses not only save on in-house legal costs but are also protected by a team of highly experienced lawyers.
If your business is:
Bearing excessively high in-house legal costs
Facing recurring legal risks
Preparing for expansion, fundraising, or foreign investment
Then outsourcing legal services is a strategic move to reduce costs, enhance legal security, and focus on core business activities.
Comparing the cost of in-house and outsourced legal services is not just a financial calculation—it is a strategic decision that directly impacts sustainable business growth.
Contact DEDICA Law for tailored legal solutions for your business.
📞 Hotline: (+84) 39 969 0012 (WhatsApp, WeChat & Zalo support)
🕒 Working hours: Monday – Friday (8:30 – 18:00)
Contact us today for a free initial consultation with our professional legal team
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