In the last few months, you must have repeatedly seen or heard about Contract Lifecycle Management (CLM), either on social media or through your colleagues. CLM as an industry is growing at a rapid pace, and as per market research by Fact.Mr, the projected global market size for CLM by end of 2022 is US$ 845 Mn. CLM market is forecasted to grow at a CAGR of 13.5% for the next decade.
But first, what does Contract Lifecycle Management mean? In simple words, it is managing and streamlining the contracts to have control over various activities of the business. The value that CLM provides goes beyond end-to-end contract management, rather it is how the relationship between two entities is maintained and if the highest potential of that relationship can be reached. As mentioned in an article by Icertis, with a company’s growth, the complexity of contracts multiplies, necessitating a proper system that caters to all emerging needs of the business.
This surge in demand has been confirmed by Gartner, where they saw a 40% increase in CLM inquiry volume in 2020. Further, CLM software providers garnered multiple rounds of fundins in 2021, including Indian-based #SirionLabs which raised $44mn in its Series C round. This brings us to – what is it about CLM that has brought everyone under its spell?
- Disruption = New Learnings
When the world came to a standstill for almost 2 years, companies were acquainted with the risk of contract failure and had to undergo the tedious task of renegotiating most of the contracts. Businesses around the world are moving at an uncertain pace, which means an unknown amount of derived demand and simultaneous contracts, hence the ones who are the quickest – win. CLM provides the functionality to make the most of the surge in demand, be it through subcontractors or be it service level agreements while keeping the whole organization in loop.
2. Super Efficient = Super Power
CLM makes each step of the process quicker, easier and more accurate. It specifies timelines, automates repetitive tasks, divides workload through workflows, and provides clear visibility to all concerned stakeholders. In other words, it helps organizations avoid the most common contract difficulties while making the process more transparent.
3. Cost-Saving = Revenue Gaining
Managing risk, and being on the toes when it comes to compliance has become increasingly important with the rapid change in global policies and regulations. When contracts go unmanaged, the chance of potential litigation and reputational damage increases. Further, as the repetitive tasks are automated and streamlined, the workforce can channel their skills and time towards the company’s growth contributing to higher revenue.
It is time that organizations let CLM do its magic.
Stay tuned and Follow Cacti Global to know which CLM software provider is the most suitable for your unique company.