Contract lifecycle management solutions have seen wide adoption over the last five years, so much so that they’ve developed a market capacity worth more than a billion dollars. By 2024, the global market for contract lifecycle management software is estimated to increase to $2.9 billion*.
Why is there such a substantial increase?
Contract lifecycle management solutions offer a significant return on investment. They allow companies to capture, automate and analyze the entire contract lifecycle from initiation through approval, compliance and renewals. By eliminating data silos, automating workflows and reducing the overall time spent, a contract lifecycle management solution drives business value.
In this first of three blog posts, we dissect our latest whitepaper and look at what to expect from a contract lifecycle management solution. The posts will discuss everything from signs that you need one to how to select the right solution for your business.
If you’re the type of person who likes to skip to the front of the line, you don’t have to wait. You can download the entire whitepaper here. For everyone else, let’s begin.
Is it Time to Change How you Handle Contracts? Consider these Indicators.
Contract lifecycle management poses significant challenges, especially when you consider that the process for most companies extends across multiple departments, geographies, versions and external participants. Complex processes that are handled manually can lead to risks and too much time spent on low-yield tasks like following up or locating a contract version. The cumulative impact of these factors can cost your organization an immense amount of time and money.
Here are five signs that your company should explore a new approach.
- Inability to Make Changes
How does your company manage changes over the entire lifespan of a contract, from the first draft through renewals? Are the processes and technologies involved flexible enough to anticipate and accommodate renewal data, pricing changes and emerging legal requirements?
- Information Silos and Manual Processes
A business can impair contract management progress if it lacks a centralized, accessible location for contract information that tracks changes in real-time. Human error, bottlenecked contract cycles and limited process control – typical in many corporations when it comes to contract management – increase risk dramatically.
- Inconsistent Legal Language
Contracts depend on approved and consistent language. Gaps in standardized language introduce risk and confusion. If your contracts consistently have language consistency issues, it may open the door to unexpected risks.
- Struggles between Timeliness and Risk
Lawyers, who work to reduce risks, prefer to review contracts in detail. Sales professionals, who have the job of closing deals, have an interest in getting contracts through quickly. If your company is experiencing friction like this, it likely needs a better approach to contract lifecycle management.
- Lack of Insight into Contract Processes and Variables
When corporate legal doesn’t have insight into contract terms, obligations and value, it cannot ensure the business is getting the right value for deals, and money may be lost.
The Benefits of Contract Lifecycle Management Solutions
A contract lifecycle management solution – a combination of software and services – gives businesses unparalleled visibility into and control of their contract portfolio without sacrificing speed or time. It illuminates the journey of individual contracts from the initial request to managing obligations. It also applies technology and business best practices to the process to such as financial reporting, operational efficiency and overall contract compliance.
Ready for more information? Our next blog post of this series, coming out next week, will cover how to choose a solution. Until then, here are ways to explore these solutions and how they will impact your company:
- Onit whitepaper: What to Expect from a Contract Lifecycle Management Solution
- Hear about the multiple award-winning contract lifecycle management transformation put into place by Pearson, Morae and Onit.
- Request a demo of Contract Lifecycle Management from Onit
* Markets and Markets: Contract Management Software Market by Component, 2019