Harvard Business Review cites that inefficient contract management is causing organizations to lose up to forty percent of the value of a given deal owing to the challenges encountered. Inefficiencies of traditional contract management have led to several issues like missed deadlines, compliance and regulations violations, missed renewal dates and renegotiation terms, difficulty in finding and retrieving contracts, liability of errors due to paper-based processing of contracts.
For example, organizations will not be able to see how complex outsourcing agreements were written in the past or view how a certain clause was written across different divisions without a central base of contracts. It takes an enormous amount of manpower for businesses to create, edit and finalize contracts. Organizations also face difficulty in organizing, managing, and updating their numerous contracts.
By leveraging technology, businesses are able to overcome many challenges related to contracting. In the near future, it is extremely important for businesses to have effective and efficient contract management. Gartner reports 2019 states that manual effort for contract review will be reduced by 50% by 2024, due to the adoption of AI-based contract analytics solutions. Ninety percent of multinational global enterprises will have contract lifecycle management solutions implemented by 2023.
In this article, we will see how 3 major trends technologies are helping the world of contract management and the evolutionary stages of ECM (Enterprise Contract Management Software).