Many companies are now investing in contract management software to augment their contract management processes in a way that provides greater visibility and mitigates risk, while automating some of the more time-consuming steps in these processes.
Two essential considerations when purchasing a solution are:
- How much money are you investing in the solution?
- What value return will that investment bring back to your business?
Teams of Legal and Contracts specialists and Sales teams are directly impacted by adopting ContractPod® as your contract management solution. If you’re working with an internal legal team, you’ll see an increase in their output – because they’ll be spending less time on time-consuming tasks involved in the contracts process; and, if you’re working with an external legal team, you’ll see savings reflected in the number of billable hours they spend on your work.
After you implement ContractPod® as your contract management solution, your sales reps will spend less time overseeing the negotiation and signing process, and more time seeking out new business.
Quotes regarding contract management software ROI:
Goldman Sachs estimates that companies spend almost 5% of their revenue to track agreements after signing a contract. ompanies using contract management software can reduce annual contract management expenses by 20% – 50%.
Source: Goldman Sachs
PricewaterhouseCoopers has found that 12% of a company’s total annual costs may be devoted to contract management and administrative tasks.
Source: Pricewaterhouse Cooper
CM Analysts say about contract management software: 1-2% improvement in revenue; 50% reduction in contract cycle times;25% improvement in contract renewal rates; 55% improvement in contract compliance.
(Source: Forrester and Aberdeen)
The IACCM estimates that 9.2% of an organisation’s revenue is potentially lost due to poor contract lifecycle management (CLM). They add that commercial and contractual issues are the primary cause in over 70% of troubled relationships with buy and/or sell side vendors.e.
(Source: International Association for Contract & Commercial Management)
ContractPod® CLM: approximately 150% to 200% payback in one year:
It makes sense that a wise investment for any company is one that returns the initial investment within a few months. Companies which have implemented ContractPod® CLM tell us that it can deliver a 150% to 200% payback within a year .