Leading London-based law firms are reforming their system of hourly charges as they come under fire from clients who feel they are paying too much at a time of soaring legal industry -profits.

Leading firms told the Financial Times that they were offering alternatives to hourly rates and making more use of costcutting business practices, such as putting services offshore. The shift highlights growing external pressures on the legal profession to change, after a period of dramatic earnings growth achieved through expanding internationally and exploiting the corporate takeover boom.