In a previous post, I discussed the IACCM's finding that, in some cases, more than 40% of legal department costs are associated with bid and contracting work.
What then might a business case for automation look like? Below is a quick, back-of-the-napkin calculation.
The question then is, how much can that $12M realistically be reduced? I would suggest that a 10% (i.e. $1.2M) annual reduction should easily be achievable for the majority of organizations that have not yet focused serious effort on streamlining their contracting processes.
To be sure, it will cost money to realize the potential benefits. But, even over a 3 year time horizon, I would expect a very strong return on investment.
Let us know your experiences with contracting improvement in the comments below.