Going the distance

Foreign law firms face new hurdles in the race to build India practices. Do they have the stamina to stay the course? George W Russell reports from Bangalore

With international financing severely crimped and billions of dollars worth of deals on hold, the international legal industry is facing its worst crises in decades. One of the few bright spots, relatively speaking, is India, which has so far avoided the darkest shadows cast by the worst global economic conditions since the 1930s.

That could put renewed pressure on India practice groups around the world to pick up the slack as law firm revenues plunge elsewhere. “Diversity, both in terms of practice area and geographic capability, remains an important element for law firms in terms of riding out the inevitable ups and downs of the business cycle,” says Greg Conway, head of the London office and a member of the India practice group at Simpson Thacher & Bartlett.

Indeed, many firms look upon geographical adaptability as a key advantage. “We believe that diversification – in areas in which we have core strengths and in areas that are not as badly hit by the global economic crisis as the US and Europe – preserves the health of our firm,” says Talat Ansari, partner and chair of the India practice group at Kelley Drye & Warren in New York.