10 Key Contract Management Stats

1. As per IACCM research, "Poor Contract Management Costs Companies 9% — Bottom Line"

2. Most of the large organizations have anywhere between 20,000 to 40,000 contracts on an average [Source: Price Waterhouse Coopers]

3. 65% of major projects 'fail' or severely under-perform, with average cost overrun of 80%. [Source: 2013 study by the European Commission]

4. On an average more than 10 percent of all executed contracts are lost due to file-and-forget tendency.

5. As per Gartner, Contract Lifecycle Management (CLM) has the potential to become USD 2.8 bn+ solution market in the U.S. alone.

6.  Ineffective governance of provider contracts can cause value leakage ranging from 17% to 40%. [Source: KPMG Research]

7. As per an EY report, an organization can save anywhere between 5 to 15 percent of contract spend by creating commercially efficient contracts and managing them effectively throughout the operation lifecycle and minimizing the waste in business activities with suppliers.

8. Top performing organizations have an average cycle time of 8 days for contract review and approval as against laggards which tend to have an average cycle time of 47 days. [Source: Aberdeen Group]

9. 60 percent of corporate litigation are related to contract disputes. [Source: Unknown]

10. Despite all of the above, less than 20 percent procurement departments currently deploy an automated, digital contract authoring tool. The number is higher for contract repository installations and as per various estimations stands anywhere between 40 to 50 percent. However, the adoption of technology for contract enforcement is less than 10 percent.