Gone are the days when businesses and the legal fraternity had to handle the lifecycle of contracts manually. Today, the competitive business world relies on contract lifecycle management software. This is among the fastest growing industries in the last decade.
The industry’s growth can be attributed to the ever-increasing demand for agile contract management solutions and the changes in compliance. It’s also interesting to note that the lockdowns, containment measures, and work-from-home initiatives have spurred the demand for remote contract management solutions.
What are CLMSs?
For starters, contract lifecycle management software tools are cloud-based or on-premise solutions designed to manage the entire contract management process and allow for collaboration between the parties involved. Contract lifecycle management software streamlines the creation, control, signing, archiving, and monitoring of contracts. These platforms boast the latest smart technology, including e-Signatures which allow users to sign legally binding contracts online.
Industry Statistics and Forecasts
There’s no doubt that the contract management software industry has been growing exponentially, especially during the ongoing pandemic that has forced companies to embrace remote working.
When it comes to industry statistics and forecasts, the future looks bright for the industry. According to a feature on Business Wire, the contract management software industry is projected to grow at a compound annual growth rate (CAGR) of 13.5% from 2019 – 2024, from $1.5 billion in 2019 to $2.9 billion in 2024.
By region, North America (US, Canada, and Mexico) leads when it comes to contract management solutions market share, followed by Europe (France, Germany, Italy, Russia, UK, and the Rest of Europe), the APAC region (China, India, Japan, Australia, and rest of Asia), MEA (Saudi Arabia, UAE, South Africa, and Rest of MEA), and SAM (Brazil, Argentina, and Rest of South America).
Contract Management Modernized
There’s no doubt that digital contract management solutions are a game-changer. There are advanced systems that suit professionals already in the legal field, as well as simplified versions that enable those without legal knowledge to manage the lifecycle of contracts without legal backgrounds.
The fact that anyone can use these contract management tools has helped small businesses save a lot of resources they would have otherwise used to hire legal teams to handle contractual agreements. These software have also come in handy at the right time, especially during the pandemic when remote working seems to be the future.