Contract Logix Publishes “Contract Management in the Business Services Industry: Roles, Tools, Challenges & Obstacles”
New Research Study Uncovers the Contract Lifecycle Management Environment at Human Resources, Management Consulting, and Other Business Services Sectors
Lowell, MA – Contract Logix – a long-time developer of contract lifecycle management (CLM) software solutions – announced today the publication of a study of contract management professionals from numerous business services sectors regarding the tools they use, the challenges they encounter, and the obstacles that prevent them from optimizing their contract lifecycle. Entitled “Contract Management in the Business Services Industry: Roles, Tools, Challenges & Obstacles,” the study stems from a survey of 264 individuals who are responsible for creating, editing or managing contracts at their organizations but do not use purpose-built contract lifecycle management software.
One of several concerning findings of the study is that nearly one in four contract management professionals in the business services industry either doesn’t know that contract management software exists, or doesnt know what to look for in a solution, so they continue to struggle with a variety of tools and manual processes.
This study found that the most commonly used tools in manual contract management across all respondents were spreadsheets and email.
Other findings of interest include:
- The majority of individuals responsible for contract management at business services companies have general administration roles.
- The lack of visibility into the scope of contracts was the most frequently cited challenge.
- Finance and Information Technology lead the functional areas that would be involved in the selection of contract management software within business services organizations.
Business services organizations typically struggle with standardizing language and clauses and with tracking the performance and obligations of their contracts when trying to use manual tools. They are often faced with failure to reconcile dollars and cents, payments, and missed dates, which may have monetary consequences. The money saved by mitigating these risks may, in many cases, be enough to pay for a purpose-built contract management solution.
“Contract Lifecycle Management software can help solve all of these challenges,” notes Timothy Donaghy, Chief Product Officer at Contract Logix. “As the CLM software marketplace matures, we expect these obstacles for business services companies to be reduced.”
“Contract management is increasingly recognized as a critical competence in delivery of improved business results, tackling costly issues such as missed deadlines, failure to meet contract terms and disputes over scope. Without automation, these common challenges will persist, causing businesses to erode profit and lose competitiveness. This report shows the scale of the problems within the business services sector and should be a call to action for anyone who cares about the future of their business,” according to Tim Cummins, President and CEO of the International Association of Contract and Commercial Management .
Per Gartner’s Nigel Montgomery, who covers the CLM space, “If you are unsure whether you are facing a contractual risk, you likely need to invest in CLM.”*
To download all the results of the study, including those specific to human resources, staffing, management consulting and other business services sectors go here: https://www.contractlogix.com/2017/02/download-contract-management-in-the-business-services-industry/
*Gartner, Hype Cycle for Procurement and Sourcing Solutions, 2016, 02 August 2016
For more information on CLM solutions by Contract Logix, visit https://www.contractlogix.com