Contract Management Statistics


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Steve Goldstein
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Contract Management Statistics 2023: Facts about Contract Management are important because they give you more context about what’s going on in the World in terms of Contract Management.

LLCBuddy editorial team scanned the web and collected all important Contract Management Statistics on this page. We proofread the data to make these as accurate as possible. We believe you don’t need to check any other resource on the web for Contract Management Facts; All are here only 🙂

Are you planning to form an LLC? Thus you need to know more about Contract Management? Maybe for study projects or business research or personal curiosity only, whatever it is – it’s always a good idea to know more about the most important Contract Management Statistics of 2023.

How much of an impact will Contract Management Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your Contract Management related questions here.

Please read the page carefully and don’t miss any words.

Top Contract Management Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 35 Contract Management Statistics on this page 🙂

Contract Management “Latest” Statistics

  • You may reduce typical contract expenses by automating the drafting procedures and saving up to 70% of your attorney’s time using AXDRAFT.[1]
  • While just 12% of administrative staff used contract management software, it may assist in balancing the workload so that attorneys can focus on other duties.[1]
  • It is crucial for businesses to be aware of the location of their contracts since, in the U.S., contract disputes account for 64% of cases in state courts.[2]
  • Between 55% and 70% of firms lack efficient contract management systems.[2]
  • Contracts, in 80% of cases, regulate business activities. For every dollar spent on legal services, external expenses account for 46 cents.[3]
  • 37% of businesses spent more than $750,000 on legal technology in 2018.[3]
  • According to Aberdeen Research, automation may cut administrative expenses related to contracts by 25% to 30%.[3]
  • PricewaterhouseCoopers analysts said that by using contract management, a corporation might save up to 2% of their yearly expenditures by preventing errors.[3]
  • 50% faster-negotiating cycles reduce incorrect payments by 75%–90%.[3]
  • Gartner forecasts that implementing AI-based contract analytics will cut human work for contract assessment by 50% by 2024.[3]
  • With a CAGR of 13.5% during the projected period, the worldwide contract lifecycle management market is anticipated to reach $845 million in 2022 and $3 billion by 2032.[3]
  • 80.8% of in-house attorneys were required to assist in contract management by only reading and preparing papers, according to the ACC’s 2019 Benchmark Survey.[3]
  • The North American contract lifecycle management market would expand at a stunning 10% CAGR.[3]
  • According to research from the International Association for Contract & Commercial Management, poor contract management is believed to cause 92% of revenue losses.[3]
  • Using automated contract management solutions to increase contract accuracy and compliance, businesses might save 2% of their overall yearly expenditures, according to PWC.[4]
  • 46% of contract management experts feel that working together on contracts is difficult since there are so many manual activities.[5]
  • According to Gartner, a lawyer spends 25% to 40% of their time on non-legal work, which results in 27 million dollars in lost productivity.[6]
  • Businesses risk losing up to 40% of a contract’s value without strict contract control, according to a KPMG study of outsourcing vendors.[6]
  • According to Aberdeen Group’s estimations, best-in-class organisations have 78% of their contracts in a searchable central repository, compared to 34% for the others.[6]
  • According to Forrester and Aberdeen, digitizing contract administration can potentially increase compliance by 55%.[6]
  • According to Forrester and Aberdeen, the time to approve a contract decreases by 82% from the standard 3.4 weeks.[6]
  • According to the Journal of Contract Management, 71% of companies can’t find at least 10% of their contracts.[6]
  • According to a World Commerce and Contracting study, poor contract management procedures cost organisations an average of 9% of annual sales.[6]
  • Businesses utilizing sophisticated contract analytics systems will reduce human contract review by 50% by 2024.[7]
  • Poor contract management loses businesses 9% of their yearly income.[7]

Contract Management “Other” Statistics

  • 57% of businesses don’t retain a list of all the third parties they share sensitive information.[1]
  • Only 12% of LDS questioned in the CLOC 2019 State of the Industry Report reported adopting ai technologies in their operations.[1]
  • CLOC discovered how prepared attorneys are to adopt digital identities. In their daily business activities, 43% of LDS use e-signature technologies. 27% are happy in every way.[1]
  • Even though using automated procedures for IT risk data collecting and reporting is the most proactive approach to risk reduction, only 18% of firms do so.[1]
  • By 2023, 40% of I&O teams in major companies will utilize AI-enhanced automation, increasing IT efficiency and enabling more agility and scalability.[3]
  • High user adoption rates are supported by the platform’s 100% adjustable features and contemporary, intuitive user interface with minimum training.[3]
  • Over 68% of legal departments now rank digitizing manual operations as a high priority.[5]
  • According to a Global Legal Survey, 65% of legal practitioners said that wasting time on administrative work is their main complaint.[6]
  • This is more than twice as many businesses as those that fall outside of the top 25%.[6]
  • Contract formation, negotiation, and approval account for 18% of a company’s sales cycle.[7]

Also Read

How Useful is Contract Management

First and foremost, contract management provides a structured framework for defining obligations, responsibilities, and terms of a contract. This structured approach helps in setting clear expectations for both parties involved in the agreement, ultimately reducing the chances of misunderstandings and disputes. By defining key deliverables, timelines, and consequences of non-compliance upfront, contract management lays the foundation for a successful partnership.

Moreover, contract management plays a crucial role in risk mitigation. By identifying potential risks and vulnerabilities in a contract, organizations can take proactive measures to mitigate them before they escalate into larger issues. This can help in ensuring compliance with regulatory requirements, minimizing financial losses, and protecting the organization’s reputation.

In addition, contract management helps in fostering better relationships with stakeholders. By maintaining open communication, resolving conflicts promptly, and upholding ethical business practices, organizations can build trust and credibility with their partners. This, in turn, can lead to long-term partnerships, increased collaboration, and mutual growth opportunities.

Furthermore, contract management can streamline processes and improve efficiency within an organization. By centralizing contract information, automating workflows, and tracking key performance metrics, organizations can enhance their operational efficiency and make informed business decisions. This can ultimately lead to cost savings, resource optimization, and improved overall performance.

Another key benefit of contract management is enhancing accountability and transparency in business dealings. By documenting all relevant information related to a contract, organizations can hold both parties accountable for their commitments and actions. This can help in reducing the chance of disputes and legal battles down the line, ultimately saving time and resources.

Overall, contract management is not just a necessary administrative task but a strategic function that can drive significant value for organizations. From reducing risks and fostering better relationships to improving efficiency and accountability, contract management plays a crucial role in enhancing business outcomes and safeguarding organizational interests.

In conclusion, contract management is an indispensable tool for organizations looking to navigate the complex landscape of modern business dealings. By adopting a systematic approach to managing contracts, organizations can unlock numerous benefits that can help them stay competitive, mitigate risks, and achieve their strategic objectives.

Reference

  1. axdraft – https://blog.axdraft.com/contract-management/contract-management-in-numbers/
  2. contractpodai – https://contractpodai.com/news/contract-management-needs-3-stages-maturity/
  3. webinarcare – https://webinarcare.com/best-contract-lifecycle-management-software/contract-lifecycle-management-statistics/
  4. contractlogix – https://www.contractlogix.com/contract-management/determine-roi-contract-management-software/
  5. docusign – https://www.docusign.com/blog/contract-management-trends-watch
  6. gatekeeperhq – https://www.gatekeeperhq.com/blog/the-benefits-of-contract-management-in-numbers
  7. intelagree – https://www.intelagree.com/blog/the-cost-of-contracts-why-choose-an-ai-based-contract-management-platform

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