Case Study: AIG saves $200M and slashes outside legal spend with Onit's business process management platform

Leveraging the Ops Function to Tame the External Spending Beast

AIG created a single Global Legal Operations Center to manage the company’s massive external legal spend—more than $2.4 billion annually across 1,200 law firms and 90 countries—and to bring consistency to firm selection, pricing and matter outcomes. To achieve scalable, transparent processes and real-time reporting, AIG implemented automated workflows and reporting supported by Onit’s business process management platform alongside tools like SAP Ariba and DocuSign.

Using Onit’s platform to automate firm management, RFPs/reverse auctions and reporting, the LOC paired technology with analytics, alternative fee arrangements and competitive sourcing to drive measurable savings. The program produced hourly panel rate reductions of 2–32%, cut discovery costs 40–60%, delivered roughly 20% savings on AFAs versus historic hourly fees, and helped AIG realize more than $200 million in legal cost savings in 2014.

AIG

Aaron Katzel

Head of Global Legal Operations Center