Globally CLM demand is expected to grow at 13.59% CAGR during the period 2017‐2021.1 Within this growth, we do not find an explicit demand from India’s SME sector. We evaluated 10 CLM products and found one that came close to match the requirements of this sector.
Even without explicit demand, CLM benefits are very clear
Challenges of Indian SME sector are not very different from other large and/or global players:
- Contracts are stored in physical form and tempered
- Many of the contracts cannot be found
- There is no awareness about the number of active contracts with one party
- Insufficient team capacity to manage contracts that lead to minimal or no compliance
- Lack of automated alerts which increases people dependency
We have found companies executing or aware of some form of structured improvement methods (Kaizen, Lean Six Sigma, etc.), but all of them ignore the one format, which legally defines the relationship and operating model between two or more entities. Companies thus lose out the opportunity to maximize the “hidden revenue” by 1% or more.
Critical needs of the sector
Companies need process streamlining and effective governance, which can be enabled to a large extent through an appropriate CLM product. The product should typically be:
- Able to manage end‐to‐end contract requirement
- Intuitive and simple to use without the complexity of managing associated IT infrastructure
- Provide access to self‐service report and dashboard functionality
For evaluation, we assumed the total active contract base to be less than 5000 and evaluated 10 CLM products available in the market.
Out the 10 products, four of them were enterprise level products with rich features and excellent functionalities. But these need a much larger investment on infrastructure, many of their features may be rarely used, and come with a relatively expensive user license (approximately ranging between NR 460,000 – 7,200,000 on license cost for 10 users annually). This tips the balance unfavorably against achieving ROI in a 3‐year period.
Four of the products provide limited functionality only. We found a good application of machine learning in these products to abstract data from contracts, or to do comparative analysis between different templates/clauses. But since machine‐learning applications need a large data set for training, these products have limited applicability in the SME sector.
Another product that we loved was because of its completeness and capability to customize, but it comes with a price tag of approximately INR 500,000 license cost for 10 users annually.
All of the products reviewed provide integration with SAP, while none of them matched up to our expectation of providing customizable reports or dashboards.
CMx stood out as the winner with license cost starting at INR 76,000 for 1‐15 users per annum. It provides a comprehensive core set of features, in-cloud and on-premise implementation, and flexibility to customize.
We will be happy to identify your needs through our unique CLM maturity assessment framework and design roadmap for implementation.
To evaluate CLM product fit for your organization please contact us at (+91) 880 588 7373 or email@example.com.
1 Global Contract Life‐cycle Management Software Market 2017‐2021, 19 July 2017
We at OmnesLaw strongly believe that the legal industry now lies in the cusp of technology transformation. There is precious opportunity to shape the future by enabling the convergence of Analytics and AI technologies in the legal domain.
About the Author:
Vijayta Sharma is a Project Manager at OmnesLaw. She has a unique blend of SME and Technology expertise, advises law firms and corporations on various value enhancements and has conducted multiple product evaluations. She has successfully integrated technologies and creative workflows for managed review processes and assisted in‐house IT team in the development of proprietary e‐Discovery project management tool.