Interesting video from the Wired GC focusing on why the historical billable hour model will not survive current deflationary pressures in its current form:

http://www.wiredgc.com/2009/02/01/deflation-and-the-billable-hour-wired-gc-tv/

The moral of the story: cut costs and improve value. The way some firms decide to cut costs should be of great concern, however, since it may not be understood by firm management where cost cutting will be most effective.