While contract complexity and volume grow, navigating the contract lifecycle can feel like an evermore steep, uphill battle as organizations juggle inefficiencies, risks, and costly disputes. In the face of these challenges, understanding the landscape of contract lifecycle management becomes essential for driving strategic decisions and operational improvements. To that end, here are 20+ of the latest statistics, trends, and informed predictions in the contract management space.
20+ Contract Lifecycle Management Statistics
The Pain of Contract Mismanagement
1.) Poor contract management costs businesses 9% of their annual revenue.1
2.) Up to 40% of a contract’s value can be lost without close governance.2
What You're Missing Out On
3.) Contract lifecycle management software can reduce the contract lifecycle time by half, administrative overhead by 25%-30%, and improve compliances by 55%.3
4.) Automating contract management can accelerate negotiation cycles by 50% and reduce inaccurate payments by 75% to 90%.4
5.) A business can save up to 2% of its annual cost by utilizing contract management.5
What Business Professionals Are Saying
6.) 65% of legal practitioners say wasting time on administrative work is their main complaint.6
7.) Only 12% of legal departments surveyed are using AI tools in their processes.7
8.) 43% of legal departments use e-signature technologies.8
9.) 70% of suppliers claim that half of their customers do not have systems in place for supplier collaboration.9
10.) Approximately 85% of companies still rely on manual processes for contract management, highlighting a significant opportunity for digital transformation within this field.10
Other Facts About the Contract Management Landscape
11.) The healthcare sector accounted for 11.8% of the global contract management software market share in 2020.11
12.) The average cost of managing a contract manually is $6,900, but this can increase significantly for more complex contracts.12
13.) A business with 1000 employees spends around $2.5 to $3.5 million on searching for lost documents or recreating them.13
14.) The average time to complete a contract review and approval process is 42 days.14
15.) The overall value of the contract lifecycle management software market was approximately $1.86 billion in 2020.15
The Future of CLM: Predictions, Projections, & More
16.) This market is projected to reach USD 2.9 billion by 2024, according to a report by MarketsandMarkets Research Pvt. Ltd.16
17.) Forrester, meanwhile, projects the contract management software market to be worth $12 billion by 2025.17
18.) Nearly 50% of businesses expect AI to lead to significantly improved efficiency in contract management within two to three years.18
19.) Businesses using sophisticated contract analytics systems will reduce human contract review by 50% by 2024.19
20.) By 2024, manual efforts for reviewing and drafting contracts will be reduced by 50 percent.20
Contract Management Software Solution Stats
21.) CobbleStone Software Boasts a 97.5% percent customer satisfaction rate.
See why by booking a free demo of CobbleStone Contract Insight today!
*Legal Disclaimer: This article is not legal advice. The content of this article is for general informational and educational purposes only. The information on this website may not present the most up-to-date legal information. Specific guidelines on unilateral contracts are governed by state law. Readers should contact their attorneys for legal advice regarding any particular legal matter.
