Contract management tools to see strong growth
By Staff -- Purchasing, 4/5/2007 6:00:00 AM
A recent report from Forrester Research predicts that growth of contract management tools will far outpace growth of other purchasing software through the next two years.
Forrester says e-procurement tools will see growth of 3% annually through 2008 and e-sourcing tools will see 6% growth through 2008. However, contract management tools will see an astounding 30% annual growth in the same period, "because companies recognize the value of automating the process for creating and refining the contractual terms and conditions after a deal to buy something has been struck using e-sourcing tools, as well as automating the tracking and enforcement of compliance with contract terms through the e-procurement or direct materials purchasing applications."
In terms of selecting a contract management software provider, Forrester recommends selecting an enterprise-wide solution, not a buy-side-only product. "While contract management clearly plays a major role in the e-purchasing cycle, companies do not have only buy-side contracts to manage. We think it makes more sense to buy a contract management solution that can handle all forms of contracts and integrate that into the e-sourcing product set."
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