For my in-house counsel friends, here is a great article from Law360 on ways to demonstrate and quantify your value to the company and resist the drive to outsource legal services. 

Four key elements:  there are some tasks that you can do more cost effectively; you know and understand the business better; you are more accessible; and you are able to manage outside legal costs.

There is also a good discussion on the merits of charging-back legal fees to individual departments within the company.