Contract management, entitlement and automated renewal capabilities are critical to the success and profitability of service organizations. Though tech firms traditionally looked to CRM providers for these modules, most companies have multiple customer and contract databases, making entitlement and automation difficult, if not impossible. Additionally, the emerging lighter-weight CRM solutions are not robust enough to manage the complex contract environments of technology services organizations.
Based on member interviews and benchmarking activities, legacy contract management systems are not meeting the needs of today’s tech firms, preventing increased automation that would cut operating expenses and allow new revenue opportunities. For this reason, TSIA recommends that high tech service organizations invest in best of breed contract management technology. Companies that have made investments in these tools are demonstrating positive ROI, including higher renewal rates, rising revenue, and lower operating margins. Service executives should evaluate how additional contract tools can impact the organization, and build the business case for investment in 2014 and beyond.