Indian Law Firms Restructure: From Individual Rainmakers to Collaborative Institutions

COURTKUTCHEHRY SPECIAL ON NEW TRENDS IN INDIAN LAW FIRMS

“Indian Law Firms Restructure: From Individual Rainmakers to Collaborative Institutions”

“Shift from ‘eat-what-you-kill’ to lockstep models driven by client needs and global competition”

“Young lawyers to benefit from mentorship, fairer career paths, and stronger institutional culture”

By Our Legal Reporter

New Delhi: January 04, 2026:

India’s legal industry is undergoing a structural transformation. Top law firms are moving away from the individualistic “eat-what-you-kill” compensation model, where partners are rewarded solely for the revenue they generate, toward lockstep and hybrid structures that prioritize collaboration, mentorship, and institutional sustainability.

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This shift is driven by client demands for integrated services, succession challenges, and global competition. For young lawyers, it means clearer career paths, better training, and more equitable opportunities.

This course correction, is supported by insights from global consultants and legal analysts, reflects pressures from clients, talent dynamics, and the entry of international firms into India.

Why the Shift is Happening

1. Client expectations have evolved
   • A decade ago, clients hired firms for discrete matters handled by individual practice groups.
   • Today, sophisticated clients demand integrated services across multiple practices and jurisdictions.
2. Succession challenges
   • Under the old model, client relationships belonged to individual partners.
   • When partners retired or left, clients often moved with them, threatening firm stability.
3. Talent retention
   • Young associates and junior partners now evaluate firms based on mentorship, training infrastructure, and clear partnership pathways.
   • Toxic silos created by individualistic models discouraged collaboration and growth.
4. Global competition
   • With international firms entering India, local firms must align with global standards to attract talent and clients.
   • Global firms like Linklaters and Clifford Chance have already adopted modified lockstep systems.

New Models Being Adopted

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• Modified lockstep: Partners are rewarded not just for revenue but also for contributions like mentorship, practice building, governance, and client relationship expansion.
• Hybrid structures: Firms balance performance-linked pay with institutional incentives, ensuring rainmakers are recognized while collaboration is encouraged.
• Institutional focus: Firms like Shardul Amarchand Mangaldas, DSK Legal, and Trilegal have successfully implemented these models, creating multi-generational institutions rather than collections of individuals.

Comparison Table: Old vs New Law Firm Models

Implications for Young Lawyers

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1. Clearer career paths
   • Lockstep models provide transparent progression toward partnership.
   • Associates can see how contributions beyond billable hours are valued.
2. Better mentorship and training
   • Partners are incentivized to invest in junior lawyers’ growth, creating stronger teams.
3. Fairer opportunities
   • Young lawyers are less dependent on aligning with a single rainmaker.
   • Institutional culture ensures equitable distribution of work and recognition.
4. Exposure to integrated practices
   • With clients demanding cross-practice solutions, young lawyers gain multi-disciplinary experience early in their careers.

Wider Impact on Legal Practice in India

• Institutional sustainability: Firms are building structures that outlive current partners, ensuring continuity.
• Global integration: Indian firms are aligning with international standards, making them more attractive to foreign clients and investors.
• Reduced toxicity: Moving away from silos reduces unhealthy competition among partners.
• Innovation in practice: Collaborative models encourage firms to invest in technology, AI, and new practice areas.

Expert Views

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• Pallavi Shroff (SAM): “Our compensation model preserves performance differentiation while incentivizing institutional behaviour”.
• Anand Desai (DSK Legal): “Partners are not just rainmakers; they must mentor juniors and build cohesive firms”.
• Moray McLaren (Lexington Consultants): “Globally, firms are moving toward rewarding group effort over individual effort”.

Conclusion

The restructuring of Indian law firms marks a turning point in the country’s legal landscape. By moving away from the “eat-what-you-kill” model and embracing lockstep and hybrid structures, firms are prioritizing collaboration, mentorship, and institutional growth.

For young lawyers, this transformation promises clearer career paths, better training, and fairer opportunities. For the profession, it signals a shift toward global competitiveness and sustainable institutions.

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