Issue

2
Realizing Enterprise
Contract Lifecycle
Management (CLM)
6
From the Gartner Files:
Market Guide for Contract
Life Cycle Management
22
About
ICERTIS

Contract Risk and

Compliance (CRC) at
the heart of Value
Creation in
Enterprise CLM
Welcome
Letter
Traditional wisdom in contract
management does not deliver the
results required. A solution limited to
workflow and document
management, though useful, limits
the organizations ability to
strategically leverage contracts in
improving business performance
while managing the associated
risks.
Icertis Contract Management (ICM)
A contract management solution
enables enterprises to not only
initiative in any enterprise starts
revitalize their contract operations
with automating the contract
but to also manage contract
lifecycle process to bring in some
risk and compliance for better
form of governance and control.
business performance.
Automation brings improvements in
productivity and visibility. Though
useful, this is not enough
to deliver the ideal performance
impact. Contracts today are
complexbusiness relationships
in new markets, sales and
procurement arrangements with
outcome- based pricing and
penalties, linked value chains with
interdependencies between

parties, etc. all requiring the

enterprises to have the set of tools
to not only get the contract done
the right way but more importantly
bring the contract to life in day- today business transactions. This
ensures
compliance, helping an organization
realize the full potential of a contract
while identifying and mitigating any
contractual risk through the lifecycle.

Samir Bodas, CEO and

cofounder

Realizing Enterprise Contract

Lifecycle Management (CLM)
Onboarding a single, enterprise-wide contract
management solution is first step to equip enterprises
to embark on proactive compliance and risk
management. Gartner States, A significant proportion of
all CLM-related inquiries entering Gartner (40% to 50%)
are now aimed at an enterprise scope. One can
manage all types of contract
sell side, buy side, admin, employee, etc. in a single
system. Conventional fragmentation of the buy and sell
sides is counter- productive in todays linked value
chains. One needs the ability to setup any contract
type and its attributes, configure its workflow, and in
turn, manage it in the context of different functions in
business.
A highly configurable contract management platform is
critical to enable these needs. Long term sustainability
is often dependent on how many of the enterprises
needs are addressed by configuration and how much
by customization. It can be interpreted that the Gartner
report advises businesses to evaluate this aspect
thoroughly.
Adoption is the Biggest Factor in Enterprise
Enterprises should undertake a proof of concept
CLM
evaluation to see not just how the system helps meet
The most critical aspect of an enterprise-wide solution is
user requirements but to also determine how the
its adoption, as that in itself lays the foundation of
configurability and flexibility of the solution can meet
ensuring compliance and managing risks. Adoption
the enterprise needs in a sustainable way.
hinges on ease of use, convenience
and how the solution provides contextual experience
for its users. Enterprise-wide adoption gets enabled
through configurability of the system for different user
segments, support for devices and mobility to offer
convenience, and most of all empowering end users
to engage with the solution through personalization
and self- help. Contextual
experience
is often an
Understanding
Contract
Compliance
underestimated
factorisin
enterprise-wide
Contract compliance
best
understood insystems.
stages: pre-

Post-execution compliance is about ensuring

business is done in accordance with the terms in the
contract. This requires contracts to be an integral part
of the selling and buying transactions. Terms
enforcement on selling and buying transactions helps
realize the full potential in contracts.

Achieving Pre-Execution Compliance

An enterprise CLM is not just about creating and
approving contracts in one system. It is about how to
rationalize and standardize the language across the
enterprise and bear in the system to drive the inclusion
of the right language into a contract.

execution and post-execution. Pre-execution

compliance is all about getting the right contract done
by ensuring the right terms and language are included
in the contract and align with the business strategy and
policies. It also involves making sure the right
governance is enforced as the contract is negotiated,
reviewed and approved. Most often organizations
struggle with non-standard language, variation in
templates, lack of enforcement of language, maverick
contracting, etc.
Contract Risk and Compliance (CRC) at the heart of Value Creation in Enterprise CLM is published by ICERTIS. Editorial content supplied by ICERTIS is independent of Gartner
analysis. All Gartner research is used with Gartners permission, and was originally published as part of Gartners syndicated research service available to all entitled Gartner
clients. 2016 Gartner, Inc. and/or its affiliates. All rights reserved. The use of Gartner research in this publication does not indicate Gartners endorsement of ICERTISs
products and/or strategies. Reproduction or distribution of this publication in any form without Gartners prior written permission is forbidden. The information contained herein
has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. The opinions
expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or
services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial
interests in entities covered in Gartner research. Gartners Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently
by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research,
see Guiding Principles on Independence and Objectivity on its website.

For example, one of Icertis Fortune 100 customers

leverages the platform globally to author contracts. The
enterprise has global operations in 90 countries and
had thousands of templates in over 40 languages with
a large clause library. Managing the vast expanse of
this content and keeping it updated to align with
changing business needs was a huge expense, often
riddled with incidents of deviations. The platform not only
helped rationalize the clause and template library but
now manages contract authoring, driven by a robust
rules engine that looks at all the attributes of the deal
and brings in the right clauses to build the contract.
This significantly improved business velocity while
ensuring compliance by including the right approved
language dynamically into the contract documents. A
dynamic approval workflow that adapted to every
negotiation change to enforce the governance policies
of
the enterprise
that no form
undue
risk creeped
Enterprises
todayensured
are a complex
of linked
value into
the
contract
during
negotiations
and
all
the
right
chains. Functional silos are sub-optimal. A digitalreviews
and approvals
in place
before
execution.
business
todaywere
should
be able
to surface
data and
information across the value chain. In the context of
contracts, whats needed is the ability to establish
and manage relationships between various contracts
and their associated transactions. The ability to link
sell-side and buy-side contracts to drive mitigation of
risks by enforcing terms, alignment of objectives and
roll-up financials is critical. The Icertis platform
supports enforcement of terms and language across
relationships,
enabling outcome
management.
Ensuring
Post-Execution
Compliance
Often enterprises and contract management solutions
will help get a good contract done. But that is not
enough to ensure the promise and potential of the
contract is realized. Managing the contract obligations
and bringing the contracts to bear in business
transactions to ensure compliance in a way that does
not hamper with speed of execution is critical.
Traditionally contracts, once executed, resided in
repositories that delivered good search capability but
often had a hand-shake with other enterprise systems.
The ICM platform delivers a bestin-class capability to manage contract compliance
post execution in integration with other enterprise
systems. Enforcement of terms, calculation of
incentives / rebates / discounts, tracking of contract
SLAs and resulting penalties are some of the key
compliance areas that enable true value realization
for enterprises.

Many organizations have fragmented systems across

their global footprint. Not only ERP but even procurement
systems are separate across regions. This hampers the
effectiveness of global sourcing organizations as
contracts tend to live outside of this ecosystem, making
it difficult to enforce terms, leading to leakages and
missed savings. Icertis Contract Management, deployed
in cloud, not only manages global sourcing agreements
but easily connects with procurement systems to enforce
contract terms on pricing and discounts, and also brings
purchase orders and invoice data back into the contract
system. This enables wider adoption of global sourcing
agreements and better opportunity to tap into the
savings potential
of the contracts. The availability of the information in the
contract system makes it a consolidated hub of data,
giving significant insights into supplier contract
performance. This extends beyond commercial terms
compliance to include SLA and penalty tracking.
Transaction data from enterprise systems is easily
pulled into the platform to review SLAs, monitor potential
deviations and also provide inputs on penalty
implications as per the contract terms.

A sell-side example of post-execution compliance is best

explained by an Icertis customer who leverages the
system to manage dealer agreements. Not only does
the platform manage the contract lifecycle along with
the definition of all pricing terms and discount structures
but extends the usage to helping the customer actually
calculate
the dealer discounts and incentives. Integration with a
sales order system brings in the order data, which is
then matched and validated against contracts. A
calculation engine then triggers the calculation of
discounts and rebates based on pricing terms defined in
the contract. The right discounts are applied and the
rebates processed through the system. This has
significantly
improved
theofvelocity
of business,
plugged
There
are many
aspects
contractual
commitments
leakages
and
also improved
customersystem.
satisfaction
all
that
are not
captured
in an enterprise
A robust
tangible,
measurable
on business
way
to manage
these impacts
obligations
is critical. An IT
performance.
Services Company discovered that its commitment to
have its consulting staff undergo special drug testing
(before being deployed on customer engagements)
was missed somewhere along the way, leading to
penalty for non-compliance. They also noticed
provisions on forex fluctuations or data security
commitments had serious implications of noncompliance. A complete obligation lifecycle
management capability that can help identify, assign
and track these to completion is critical to ensure that
such
contractual
obligations
Managing
Contract
Risk are as equally managed
as the commercial aspects.
The traditional CLM perspective had, at best, a
constricted view of risk management. Gartner reports
Few companies have viewed CLM as strategic, or from
a risk management perspective. Contract risk is not
just about deviations in language or terms taken on
during
negotiations. It needs to have a more holistic view of all
aspects of the lifecycle the financials, actual
performance, the risk associated with participating
parties and the risk of non-compliance. Icertis Contract
Management has a completely integrated contract risk
management model that helps identify and proactively
manage risk across these categories throughput the
lifecycle of a contract.

A configurable risk model looks at risks across various

categories of contractual risk, financial risk,
performance risk, compliance risk and
supplier/customer risk. The model natively hooks into
contract data, associated transactions and identifies
risk as per the risk rules setup. Changing attributes of
the contract and its transactions or the profile of
participating entities drives the risk model to calculate
risk scores on each category (based on the scoring
rules) and identify high risk areas for immediate alerts
and visibility to the stakeholders. A holistic view helps
businesses understand the contract in its totality and not
isolated
incidents and
of risk,
which
typically
getand
inItjust
tracks
the language
terms
in the
contract
surfaced
during
negotiations.
For
example:
identifies deviations, outliers to calculate contractual
risks. A non-standard liability clause or a use of a
fallback instead of a primary has a different risk
profile associated with the contract.
It captures financial terms like contract value,
payment terms and pricing to assess financial risk
Actual transaction data, SLA data for the contract or
from related contracts is assessed to calculate the
performance risk

With almost all business transactions conducted on the basis

of a contract,
identifying and managing risk arising out of contractual
relationships is more critical than ever before.

 The ICM platform can also connect to outside data

sources like D&B and bring in credit appraisal,
supplier evaluation and other risk related data to
bear into risk profiling of the contract
Integrate with external data sources like Thomson
Reuters to get live feed, process events data to
identify and notify on potential risks or opportunities
The compliance risk is evaluated on issues with
obligations or non- compliance in transactions
The consolidated risk gets assessed on scheduled
frequency (like monthly / quarterly) and on key events
throughout the lifecycle of the contract. The ability to
identify the risk right from creation through
its negotiation and post execution is critical, and
presenting this information in a timely manner
equips the business to take quick action and
respond
A holisticfaster.
model to identify contract risk helps
enterprises plan mitigation actions in time. The
Icertis platform helps customers also setup
mitigation actions to manage the resulting risk.
Such
actions can be assigned to individual owners and can
be tracked to completion. Getting proactive visibility on
contract risk on a global scale and across a portfolio
of contracts helps enterprises manage their contracts
better.

Summary
Icertis Contract Management is a comprehensive
platform that
enables
enterprise contract
management with a high adoption rate and the
easiest-to-use user interface. The system builds on
this foundation to deliver a robust contract
compliance and risk
management capability, helping organizations achieve
1]
Deploy
the contract
management
solution
to
higher
levels
of maturity
in their contract
management
operations.
manage
enterprise- wide contracting processes by
onboarding all contract types across functions and
regions. Leverage this to make the system a single
source of truth on everything related to contractual
relationships.
2] Drive adoption through the enterprise with a focus on
contextual representation with the right convenience of
usage with enablement of mobility. Evaluate the solution
not just for end user usage but also for ease of
configuration and how it enables the enterprise to be
agile in responding to changing business needs.
3] Integrate with enterprise systems to drive compliance
of contractual terms. Leverage the platform to extend
its usage in order to drive commercial processes to
ensure savings and significant improvements in
business velocity.
4] Provide holistic contract risk management to enable
proactive visibility and management of high risk
contracts. Leverage the system to not only identify risks
but to also set mitigation actions in order to manage the
contract risk to help enterprises reduce exposure and
protect against liabilities and business losses.
Source:
ICERTIS

From the Gartner

Files:

Market Guide for Contract Life

Cycle Management
CLM is evolving from an operational
record- keeping system, primarily
used for legal audit purposes, to
an enterprise-level core system
addressing business risk, costs
and the pursuit of revenue
maximization. CIOs and line-ofbusiness management need to
identify
the right solution for their
Key
Findings
needs.
The vendor market for
contract life cycle
management (CLM)
solutions is fragmented and
for the most part
immature when compared with
ERP or other enterprise-level
markets. Providers range from
small vendors with $2 million to
The
$3 million
historic
inroots
revenue
of a to
vendor,
modules
within buy
multibillion-dollar
either
side or sell side,
enterprise
vendors. of
plus
the percentage
customers using its solution for
one
or other of these contract types,
can be a strong indicator of
the
level
(depth) of are
Mostvendors
customer
deployments
experience,
or lack
thereof.
custom
builds,
specifically
created, configured and/or
modified for that specific customer,
which makes the comparison of
reference customers challenging.
Product maturity varies widely by
process, and while CLM is used
in all industries, with highly
regulated industries exhibiting
the highest adoption, most vendor
solutions are generic, delivering
little industry specialization out of
the box.
Recommendations
Beware User references are
more likely representative of the
vendors professional services
capability than the vendors
solution. Investigate references
thoroughly. In most cases,
customers have been supplied
custom solutions, which are not
representative of what you would
Ensure
receive you
without
similar
custom
speak
to the
local
activity. when local vendor
resource
support is required.
6

Many vendors handle international

support through loosely coupled
partners or via a remote
resource.
First establish your current process
capabilities before engaging
vendors, plus your short-term and
long-term capability aspirations.
Assess short-term capability
requirements based on needs
versus likes to get to minimum
essential, core, capability
Evaluate
enablement.
vendors CLM
offerings but also broader
suite capabilities where
applicable, since natively
integrated complementary
modules can improve CLM
value-add
and ROI.
Market
Definition
This document was revised on 25
September 2015. The document you
are viewing is the corrected version.
For more information, see the
Corrections page on gartner.com.
Contract life cycle management
denotes a solution and
processes for managing
the life cycles of contracts and
agreements created and/or
administered by, or affecting, an
organization. These include thirdparty or internal contract
agreements, such as outsourcing,
procurement, sales, nondisclosure,
intellectual property (IP), leasing,
facilities management, employment
and other licensing, plus any other
agreements or contractual
documents
containing
obligations
CLM spans all
processes
that
affect the
organization
now
associated
with
the life cycle
of
and/or
in the future.
each contractual
agreement,
from initial request through
contract discovery, authoring,
redlining and negotiation,
valuation, approval, execution,
order tracking/matching,
compliance/ obligation
management, amendments,
dispute management, auditing,
reporting, and fine-tuning to
eventual archiving. CLM
encompasses repository and
clause library construction and
management, integration with
other systems, and the
organizational

structures required to enable the

optimal management of all
contracts affecting the business.

Market Direction
Historically, CLM has been viewed by
user organizations as an
operational cost of doing business.
Few companies have viewed CLM
as strategic, or from a risk
management perspective. There
has been a failure of the
contracts/legal team to make a
strategic case to C-level executives
on how CLM can save (or make)
money and how the applications,
when appropriately applied with
reasonable controls, can reduce
corporate risk. C-level executives
wont understand until contracts/
legal
and,ofinthis
many
companies,
As
result
failure
to capture
procurement
and
join IT
forces
the
attention of
thesales
C-level,
and create a
investment
in strategic
CLM has business
been
case.
minimal.
Vendors, too, have
represented the market poorly,
selling
departmentally, with few vendors
historically presenting their case for
an
enterprisecentric
approach to
CLM
Is Moving
From
CLM.

Nice to Have to
Need to Have

A significant proportion of all CLMrelated inquiries entering Gartner

(40% to 50%) are now aimed at an
enterprise scope. Leading
organizations are seeking a wide
CLM context, encompassing all (or
most) contract processes and
agreement types across the
A
proportion of
organizations
organization.
This
wider context is
will
select
allenterprise
or
referred
to to
byoutsource
Gartner as
part
CLM.of their CLM
requirements. Many user
organizations are ill-equipped for
the changing complexity
of contractual processes, nor do
they have the organizational
structure to effectively manage
contracts globally, across all
departments. Few have budgets to
increase internal legal department
staff to handle

increased volumes. This is, in part,

leading to a growth in business
process outsourcing (BPO) service
providers eager to assist with the
operational needs of global
businesses.
CLM is not just a practice for the
legal department, nor is it just a
big-organization issue. It requires
the focus of CIOs and
IT leaders, but it is not just an IT
issue although it is fast
becoming a big data issue for IT to
support. Chief procurement officers,
sales and supply management
must also take responsibility for the
organizations
CLMforcing
process
Market
trends are
competency.that CLM is no longer
recognition
a nice-to-have capability: Its a
priority. These trends include:
An increase in global business
velocity requiring faster
execution of the contracting
process
Increased demands on
governance, risk and
compliance (GRC) management
A push for legal self-service to
reduce operational costs and
handle increased volumes
Digitization of paper contracts,
embracing e-signature and so
forth
The move by many companies
toward more diverse sales and
licensing models
Companies expansion into new
markets (including merger and
acquisition activity)
Increased personalization of
customer requirements
Organizations are realizing that
many contracts across the
business are interdependent and
that control of just the common
contract types is not enough to
mitigate risk of nonstandard terms
to the business. Organizations
are acting to mature their contract
process capabilities

to deal with the hundreds of

contract types of ever-increasing
complexity necessary to
run a
company.
But that does not mean that
vendors must cease
approaching the market
departmentally and focus all
effort at the executive level.
Depending on the type of
organization, vendors need to have
multiple go-to-market messages for
different prospect targets (it may be
strategic/risk for large businesses,
and tactical/operational for small or
midsize businesses [SMBs]). Today,
nearlya supply
all havechain
a single
go-toFrom
sourcing
market approach
and little industryperspective,
large/mature
centric
R&Dare
concentration.
companies
making CLM core as
part of the pace-layered system of
record, whereas SMBs can use CLM
apps to differentiate their
contracts/legal capabilities as a
system of differentiation. Vendors
must address
these differences.
Market
Analysis

Introduction
Through late 2014 and into 2015,
Gartner gathered information from a
cross-sample of 30 vendors of CLM
solutions, plus a number of their
customers, in order to provide a
Market Guide for CIOs, IT leaders and
line-of- business management to be
leveraged when identifying and
selecting vendors to support CLM
process maturity.
Important:
The list of vendors
included in this report is by no
means exhaustive. Nor does the
list suggest that listed vendors are
in some way superior to vendors not
covered. There are more than 80
vendors in the
CLM market today, each with very
different characteristics and
abilities. Inclusion in this report was
determined in order to represent a
wide spectrum of vendor types,
coverage and abilities. Additional
vendor names and analysis are
available through the Gartner
inquiry process.

Many CLM vendors have been in

place for many years. However, by
comparison to other enterprise
solution areas, the vendor market to
support CLM is, for the most part,
immature and
ill-equipped to support user
organizations in their quest for
comprehensive process maturity without
extensive configuration and/or
modification beyond that of the basic
setup. This limitation includes an
omission, among most vendors, of
prepackaged integrations to other
systems that, with the possible
exception of solutions such as
Salesforce, are individually built for each
customer by the majority of vendors.
Also missing is an end- to-end view of
contract interdependencies, plus an
ability to protect the organization by
proactively capturing, scanning and
routing all contracts entering and
leaving the organization (a control
tower
seen
at all
Level
5 of theare
This ismodel
not toassay
that
vendors
discovery
process
capability
in
the due
immature, but it does mean that
Gartner
CLM
maturity
model).
Licensing
diligence is required when engaging
styles also
varyfinalizing
greatly, as
does theand
vendors
and
licenses
quality and comprehensiveness of
deliverables.
licenses
statements of work,
Cloud, and
or Bust
which, given the subject under
While more than half the installed
discussion, is somewhat ironic.
base of customers is using their
solution on-premises, most (nearly
all) new sales are either hosted
subscriptions or delivered under a full
software- as-a-service model. The
decision to implement in the cloud or
on-premises depends on the
individual user organization and is
rarely justifiable when based only on
price. Indeed,
there is little evidence that cloud
deployments end up less expensive in
the longorrun.
customers
Cloud
not,Nevertheless,
the dynamics
of the
of CLM seem
a and
market
are comfortable
changing with
fast,
cloud-based
vendors
mustsubscription
also adaptmodel.
if they are
to capture the burgeoning market
opportunity.

which is using one vendors CLM

CLM Customers and
solution for all contract types. Nor
Table 1 is based on census data
Customer Needs
has any user company presented
provided by the U.S. government
CLM adoption is primarily among
itself at Level 5 of the CLM maturity
in 2012 related
large organizations, those with
model, although many harbor the
to the number of organizations in
revenue of more than $250 million
aspiration.
the
(see Figure 1). This is partly due to
The vendor solutions have yet to
U.S. As shown, even when
portfolio and contract complexity,
be fully tested because the
applying very conservative
but also because transaction
vast majority of
estimates related to CLM uptake
volumes become more noticeable,
companies have yet to mature
and average solution cost, plus
potentially highlighting
beyond Level 2 of the CLM maturity
assuming that every current
the legal department as a
model, which means vendors are
worldwide CLM customer resides
bottleneck. Not many deals need
not encouraged toward, or
in the U.S., CLM has the potential
As
highlighted
in yellow
in Figure
to be
lost through
tardy responses
remunerated for, investment in
to become more than a $2.8
2,
while
CLM spans
many
before
someone
senior
notices.
capabilities that take customers
billion solution market in the U.S.
industries, highly
beyond the first rung
alone. Europe would likely equate
regulated industries lead the way in
of CLM maturity (defined as Level 3
to double that opportunity. Today,
terms of CLM adoption. But many
of the maturity model). For similar
extrapolating from the revenue
other markets will greatly increase
reasons, few vendors are
and customer numbers of those
adoption as products and services
experienced at negotiating at the
vendors surveyed, CLM globally
become more personalized, global
board
level within
enterprise-level
As
explained
earlier,
the current
registers less than 15% of the
sales markets open further, IP
user oforganizations,
from which
shift
inquiries seeking
market
in poised
terms of
The
CLMpotential
market is
for strong
protection fears increase and new
future CLM CLM
salesmay
will invigorate
increasingly
enterprise
numbersYet
of organizations
and
growth.
today, the market
technologies (such as 3D printing
be driven
off). to grow it
the
market(signed
and begin
revenue
To call
it slow
reflects agenerated.
the chicken
or the
egg
and legal
the Internet
of incorporates
Things) impact
The
industry
the
toward its potential. Many
burning
is an understatement,
scenario, where
one side or the
the market.
highest
number of CLM customers
vendors are
despite
it being
a definedthe
market
other needs
to invigorate
market
based on the user counts of those
enhancing their services and
than 10 years.
for more
it to grow.
vendors listed, although this does
readdressing their customer
Few vendor solutions possess
not signify maturity. In many cases,
engagement programs to account
strength across all processes of
these organizations simply use the
for this shift of emphasis. Most
CLM, nor do many easily account
tool
seek to land and expand their
for the management of both
in order to gather contractual
relationship with customers. Some
structured and unstructured
information for use related to
have developed consistent
content. In fairness to the vendors,
case history and so forth (below
implementation methodologies
however, Gartner has yet to meet
Level 3 maturity). After the legal
and are beginning to build stronger
a reference for any of the vendor
sector, the public sector/not-forvalue propositions. Yet few have
solutions, whether on the list or
profit industries are the most
productized their offerings to
not,
prominent.
enable a modular adoption
Table 1. U.S. CLM Market
experience for customers as they
Potential
increaseAverage Solution
Number of
Market Opportunity Assumptions
Even fewer have
Organizations capability.
Cost
consistent global support
Large (1,000 or
9,158
$120,000
$384,636,000
35% of market
coverage.
more
licenses CLM
employees)
Midsize (100 to
92,484
$70,000
$1,294,776,000
20% of market
999
licenses CLM
employees)
Small (fewer than
5,624,518
$20,000
$1,124,903,600
1% of market licenses
CLM
100 employees)
Total
$2,804,315,600

CLM Market Potential

Source: Statistics of U.S. Businesses, United States Census Bureau (2012) and Gartner (July 2015)

FIGURE 1
Percentage of Customers by Customer Revenue Size (VendorReported Data)

Source: Gartner (July

2015)

Note: The others category

incorporates industries such as
sporting event management and
hospitality, but it also includes
uncategorized responses from SAP
(including SAP [Ariba]), which was
the only vendor to claim that it does
not categorize its customers by
industry vertical. This suggests a
horizontal functional footprint, but it
may also reflect that many licenses
of its CLM modules are hidden
within wider ERP or procurement
suite implementations,
where
is a line
item
but not
SAP is CLM
not alone
in its
horizontal
significant
or
specifically
itemized.
approach to the market. Most
CLM
vendors exercise a horizontal,
generic approach to sales
customizing and configuring
solutions to customer needs
during the implementation phase
on an individual basis.

A total of 8,023 user customers are

represented in Figure 2. During
reference calls over the past year,
many customers commented that their
specific implementation was, in their
opinion, a custom build, based on a
horizontal template or framework
system. However, most did not see
this as a negative or as detrimental
because the providers were very
nimble in terms of their ability to
prototype, configure and customize the
solution such
that implementation
However,
the custom
nature of so
times were
rarely heavilydoes
impacted by
many
implementations
the
horizontal
starting point.
present
a challenge
to prospective
customers when deciding which
vendor solution to select for a
project, particularly when seeking
representative references. It is
important that you investigate with
every reference what percentage of
the solution was out of the box and
what was added through
customization.

Beware User references are

more likely representative of the
vendors professional services
capability than the vendors
solution. Investigate references
thoroughly. In most cases,
customers have been supplied
custom solutions, which are not
representative of what you would
receive without similar custom
activity. Also examine the
experience of vendor-assigned
implementation
resources,
relative
It
is for this reason
that Gartner
to the not
contract
types
you intend
does
primarily
assess
the to
control.
current vendor market based on its
functional capabilities, beyond
suite-based, buy-side CLM
solutions. Each vendor claims to
be able to do pretty much
anything required by the customer.
Several customer references
mentioned this issue and stated
that, in their circumstances,
this required significant custom
effort by the vendor on behalf of
9
the customer,

FIGURE 2
Number of Customers by Industry (VendorReported Data)

Note: Industries with less than 10% include aftermarket, mining, non-life sciences
contract manufacturing, hospitality, paper and pulp, real estate and facilities
management, and metals.
Source: Gartner (July 2015)

10

greatly increasing costs. To

overcome this issue, Gartner
assesses vendors based on the
vendors ability to aid customers
to enhance their CLM process
maturity to
their desired level. The ability to
assess the vendors objectively is
one of the reasons Gartner
developed the CLM maturity model
contained
in Toolkit:and
Contract
Life
Subscription/license
service
Cycle
Management
Maturity
costs tend to reflect customer
Model. size. Midsize companies
revenue
are likely to pay twice as much as
small organizations, while large
organizations can pay more than
double that of a midsize business.
Often, it is not the out-of-the-box
solution or even the subscription
costs that inflate the costs: It is the
configuration and customization
services that alter pricing
dramatically. Configuration is a
necessary requirement, but
customization needs will greatly
depend on the vendor chosen.
Based on a large number of client
inquiries and vendor customer
references, what is apparent is
that the historic footprint of the
CLM vendor and the concentration
of its customers using its solution
for contracts on the buy side or
sell side of the business can
greatly affect the vendors depth
and experience of different
contract types and
that of its implementation resources
(see the Historic column in Figure
3). This is important when
considering a vendor to support an
enterprise CLM approach, covering
all or most contract types in the
organization, as many vendors will
offer little best-practice guidance
beyond their historic roots.

Figure 3 represents the

percentage of customers using
each vendors solution
segmented between:
Buy-side contracts (procurementrelated contracts, including IT
contracts)
Contracts such as nondisclosure
agreements (NDAs) or other
agreement types not covered in
the other groupings
Employment-related
contracts
Sell-side
contracts
Customers using the product on
the buy side and sell side1
Also represented is the age of the
vendor and its home location, plus
guidance related to the percentage
of customers using the vendors
product to support processes
related to buy-side and sell-side
contracts.
FIGURE 3
Contract Type Percentages (VendorReported Data)

Source: Gartner (July

2015)

Note: The percentages are not

meant to add up. By example, a
customer using the solution on
the sell side may also use it for
NDAs, for example.

CLM Vendor Regional

Coverage
Where local vendor support is
required, ensure you speak to
the local resource. Many
vendors handle international
support through very loosely
It
is hard not
to be slightly
coupled
partners
or via a
skeptical
when
considering how
remote resource.
many vendors in the CLM market
approach international support.
Vendor size does not indicate a
wider perspective or coverage,
nor does the number of users
necessarily indicate
increased depth of experience. The
smallest of vendors can develop
relationships with partners to
support local international
deployment needs. The problem is
that

many vendors have not put formal

channel partnerships in place, or
they cover a specific location in an
ad hoc, opportunistic manner.
In terms of Figure 4, the basic
guidance is this: The more
regions that a vendor claims to
cover with a direct local office,
the higher the risk that its
claims will be
inaccurate or overstated. Of
course, this is a generalization,
but it is
a worthy
(albeit
skeptical)
Many
vendors
cover
regional
startingremotely,
point.
needs
either directly or
with a partner in one region that
claims to cover the rest.
Clearly, vendors such as IBM, Infor
and SAP are represented in many
countries, but even this does not
guarantee CLM experience or
industry depth among the local
resources. In all cases where local
deployment is required, check local
references, and
do not assume the vendor has
direct

11

FIGURE 4
CLM Vendor Regional Coverage (VendorReported Data)

resources or partners where it

claims to have representation.
Many partners may be very loosely
coupled and may not know the
product or industry well, or they may
not use the same implementation
methodology, or provide the same
response to SLAs. In short,
apply caveat emptor to regional
deployments (the principle being
that the buyer alone is responsible
for checking the quality and
suitability
of goods
before a
CLM Vendor
Functional
purchase is made).
Capabilities Before
engaging vendors, first
establish your current process
capabilities, plus
your short-term and long-term
capability aspirations.
We asked the surveyed CLM vendors
to rank their functional capabilities
across the life cycle of CLM, based
on scores from 1 to 15, where 15
indicates the highest functional
richness (see Figure 5). The
aggregated results from vendor
scores proves that it is hard to find a
single vendor with the perfect
solution for your needs. The
significance of the higher-average
ranking is less significant. More
important are those rankings below
8, with the exception of ranking for
discovery, which is a generally a
specialist enablement handled by
vendors such as Seal Software.
If you complete the maturity model
Toolkit and aspire to Level 4 or
above, many of these process
areas (such as obligation
management or risk/value
assessment) may require
additional system development,
stalling your maturity progression.

Source: Gartner (July 2015)

12

It will be hard for you to select from

the wide array of vendors, where
some compromise may be
required, without first establishing
your existing capabilities and your
short- and long-term aspirations
(your needs, not your wants).
By utilizing Gartners Toolkit:
Contract Life Cycle Management
Maturity Model, you can
establish your current and
aspirational
capability goals. Consider confining
short-term aspirations to minimum
essential core needs, which alleviate
identifiable risks and costs. Once
value
is Toolkit
established,
further
But
the
can also
helpmaturity
engage
ismembers
more readily
byofthe
fromsupported
other parts
the
business.
organization and stimulate debate
about the complete organizations
approach to CLM. Customers that
have used the tool report that the
key value of the model is its ability to
stimulate internal debate and
recognition of current operational
frailties.

Evaluate vendors CLM offerings

but also broader suites where
applicable, since natively
integrated complementary
modules can improve CLM
value-add
and
ROI.
Many
vendors
offer
CLM as part of
a larger suite, or they provide
add-on or complementary
modules to their CLM offering.
Where such capability is natively
integrated, it can remove many
integration issues or
customization needs.
Representative
Vendors
For the purposes of this Market
Guide, we have included
details related to 29
vendors in the CLM market. This list
is by no means exhaustive, nor is
it an indication that the listed
vendors are more, or less,
comprehensive than others in the
market. Information on additional
vendors not listed here can be
obtained through inquiry by
contacting your Gartner
representative.

FIGURE 5
Average Rank of Functional Depth of Vendor Solutions (VendorReported Data)

There are currently more than 80

vendors in the CLM market, not
including many document
management and enterprise content
management (ECM) system and tool
vendors, some of which can provide
support for limited (below Level 3
maturity)
CLM capabilities.
Advanced
Software

Concepts (ASC)
ASC was established in 1992. Its
solution, ASC Contracts, is aimed
at customers seeking the full life
cycle of CLM. ASC is based from
offices in the U.S. and Canada
and through partners elsewhere,
and
its product is most commonly
used in the communications
and media sector,
although it has a number of
customers in energy, healthcare,
high tech and industrial
manufacturing. ASC claims that
most of
its customers (more than 70%)
are large enterprises, with more
than $10 billion in revenue. ASC
has a slightly higher usage on
the sell side than on the buy side.
Few

Source: Gartner (July

2015)

13

customers use its solution outside

these areas. Nearly all its
customers license by subscription.
ASC also provides solutions for
form management, as well as for
pricing
and quoting requirements. The
solution
Apttusalso incorporates
integration to Salesforce.
U.S.-headquartered Apttus was
founded in 2006. The Apttus
solution, Apttus Contract
Management, is built on the
Salesforce1 platform. Its CLM
capabilities are closely integrated
with its other sell-side solutions,
but they are also applied to buyside needs in support of supplier
relationship
management (such as supplier
onboarding; processes for sourcing
and requests for proposals,
information, quotes and so forth;
and vendor management). Its
primary industry is high tech, plus
business services and
communications and media. Apttus
has also seen considerable growth
of late with enterprises in the
manufacturing, life sciences and
financial
b-packservices
(Part sectors.
of Selectica)
Customers of Apttus Contract
Among CLM vendors, b-pack is
Management tend to be at the
rare in that it is headquartered in
upper-midmarket or enterprise
France. The company
level ($250 million to $10 billion in
was founded in 2001 and delivers its
revenue).
contract management capability
tightly embedded within its procureto-pay solution and rarely if ever
stand-alone. According to b-pack,
all its customers are on the buy
side. Most of its customers are
midsize (less than $1 billion in
revenue), with most in banking
and securities, business services,
or energy. In March 2015, b-pack
was
acquired
by Selectica
to
Beach
Street
Consulting
enhance its own procure-to-pay
U.S.-headquartered Beach Street
capability.
Consulting was founded in 2004.
Beach Street says that its
customers tend to be large
enterprises (more than $10 billion in
revenue) in three
14

industries: public sector (including

not-for- profit organizations), high
tech, and banking and securities.
While Beach Street has a small
number of customers, many use its
solutions on the buy side and sell
side. Its Clause Library System and
CLM solution modules are sold as
bundled packages that have a
perpetual license with an annual
maintenance
and support fee.
Business Integrity
Business Integrity was founded in
1997 and has offices in the U.K.
and U.S. Its solution,
ContractExpress, has customers in
all size ranges above $50 million
in revenue. The solution includes
integration to Salesforce and
Microsoft SharePoint. Its customers
are predominantly in high tech or
business services. The solution,
which is used mostly on the sell
side but has one-fifth of its
customers using the product for
both buy- and sell-related
contracts, focuses on the
creation and management of
wizard-based contract templates.
In
addition,
Business Integrity
CLM
Matrix
holds several contract-automationCLM Matrix offers a SharePointrelated patents in the U.S.,
centric solution. Many of its
emphasizing its focus on selfcustomers begin small and
service ease of use.
then grow in competency over
time, using its Visio-style
business
process modeling tool to build a
graphical representation of CLM
business processes. The CLM
Matrix solution is found in industries
such as pharmaceuticals,
healthcare, high tech and the public
sector. The solution can be clauseor template- based, including a
rule-based clause library. While
many
CMA customers
Contiki use the solution for
buy-side or sell-side contracts, only
CMA Contiki is one of the longest10% use the solution for both.
established CLM providers,
having been established in
Norway in 1989. Contiki now
operates from offices in Norway
and

the U.K. It primarily serves the

energy and utility sectors,
although it also has a small
number of midsize customers in
the high- tech, financial services
and pharmaceutical industries.
While the product, Contiki ECM,
serves fewer customers than many
other providers, the nature of its
customers business environments
means that the contracts dealt
with by the product tend
to be highly complex and long
term and require the inclusion and
tracking of many interdependent
documents. Most of its customers
use the product onSystems
the buy side,
CobbleStone
with 25% using the product for both
U.S.-headquartered CobbleStone
the buy and sell sides.
Systems has been providing
contract management software,
implementation and maintenance
services worldwide since 1995,
mostly serving midsize businesses
(less than $1 billion in revenue) and
large businesses. Most of its
customers (65%) hold a subscription
license versus a perpetual onpremises license.
CobbleStone is a U.S. federal
contractor on the General Services
Administration (GSA) Schedule,
and although its customers are
spread across many industries,
healthcare, public sector and
pharmaceuticals are
the most prominent. Its flagship
product, Contract Insight, includes
functionality to support full CLM for
buy-side
andLogix
sell-side contracts,
Contract
NDAs, employment and partnering
Contract Logix began its operation
agreements, and so forth, plus
in the U.S. in 1997. According to the
online bid/ solicitation management
company, 25% of its customers use
and document scanning and
the product for both buy-side and
management.
sell-side contracts, plus all
customers use the product for
NDAs. The system comes in
multiple editions and is modular,
allowing for flexible implementation.
The solution can be provided onpremises or hosted. Its most
prominent industry sector is
healthcare.

Corridor
Corridor is headquartered in the
U.S. and began business in 1996.
The Corridor Contract Management
(CM) [.app] is built on top of
Microsoft SharePoint. Its customers
use the product predominantly on
the buy side, and its most
penetrated industry is healthcare.
Most customers license the solution
on-premises under a traditional
license and maintenance
agreement.
Corridor
Curtis claims
Fitch to have direct
offices in all regions.
U.K.-headquartered Curtis Fitch
focuses almost exclusively on
buy-side contracts with its
product CF Contracts. The solution
provides the ability to build
contracts from predefined
clauses or from template
documents. Curtis Fitch also
provides CF
Contracts alongside its sourcing
solutions. CF Contracts is used in a
number of industries, including
Financial Services, Food and
Beverage, and Retail, but is
extensively
industry-agnostic.
Exari
According to the vendor, the product
Exaris Contract Management
is used by most organization sizes
solution is used in banking,
on a subscription basis.
insurance, financial services and
technology/media companies and in
government departments.
Customers use the solution primarily
on the sell side. Ten percent of
customers use the product on both
the buy side and the sell side. Exari
is headquartered in the U.S. and
serves customers of most sizes.
Exari says that, while nearly all
customers license on a
subscription
Gatewit model, 80% of
customers use the product onGatewit is unique in this list as the
premises.
only vendor headquartered in
Portugal. Its solution, Gatewit
Contract Management, is almost
exclusively focused on very small
organizations (primarily in local
government),

with less than $50 million in

revenue. More than 80% of
Gatewits contract management
customers are in the public sector or
are
not for profit. The solution is
licensed as a module within a
suite of products from
Gatewit focused on buy-side (eGEP
procurement) requirements.
GEPs solution, Smart by GEP
Contract Management is a module
within GEPs spend, sourcing and
procurement solution Smart by
GEP. The solution is primarily used
by large enterprises (more than $1
billion
in revenue) across a number of
industries, with nominally more
customers in industrial
manufacturing and professional
services/ consulting services. U.S.based GEP is the only provider on
this list that also provides a series
of BPO services to its customers,
Gimmal
including transactional contract
Gimmal Contract Management was
management outsourcing services.
created through the recent
acquisition of Prodagio Software,
which was established in 1997 in the
U.S. Gimmal provides solutions and
services to support enterprise
collaboration. Gimmals customers
use the solution to manage the life
cycle of NDAs and other
agreements. Thirty- five percent of
customers use the solution to
support buy-side activities, with 28%
using
it to support the sell side. Less
than 10% of its customer use the
solution for both. The
solution is licensed by the user and is
available in the cloud or onpremises. It is primarily used by
organizations in the public sector/notforprofit and communications and
HotDocs
media, but also other industries.
U.S.-headquartered HotDocs was
Most of its customers
founded in 1989. HotDocs has a
are lower enterprise ($1 billion to
large volume of customers, more
$10 billion in revenue), which
than 80% of which are
predominantly license the solution
under a subscription model.

small businesses (less than $50

million in revenue). Most of
HotDocs customers use the
solution for agreements such as
NDAs, with much fewer using the
product to manage commercial
contracts on the buy or sell side.
Customers are mostly in the legal,
banking, the public sector/not-forprofit or insurance industries.
HotDocs
is deployed both onIBM (Emptoris)
premises and hosted in the cloud.
IBMs contract management
capability is available as a
stand-alone solution, as well as
part of IBMs Emptoris Strategic
Supply Management solution
suite. IBM claims to have clients
deployed in a wide variety of
global industries and has
strength in regulated industries,
including financial services, energy
(oil and gas), pharmaceuticals,
biotech and particularly healthcare,
which seems to be its strongest
industry. IBM notes that 50% of its
clients use the product in support of
buy-side activities, 35% for sell
side, and 15% for buy side
and sell side. This is not surprising,
given the focus of the wider IBM
Emptoris suite, which is primarily
focused on supply-side
requirements. Although
headquartered
in the U.S., IBM has
Icertis
a strong global presence. The vast
Icertis was formed in 2009. Its
majority using IBM Emptoris are
flagship product is Icertis
enterprise-level organizations (more
Contract Management ( ICM).
than $1 billion in revenue).
Most ICM implementations tend
to be enterprisewide, covering
multiple contract types across
global operations. The public
cloud-delivered tool is very
configurable, easy to use and
fast to
deploy, according to customers,
although most projects are
subject to some custom build.
Icertis can be of interest when
multiple content types are required
or where integration to other
enterprise systems is required.
Icertis has customers in
15
manufacturing, business services,
pharmaceuticals and IT, among
others.

Customers are generally midsize

( with
$250 million in revenue) or
bigger, although lately most are
above $1 billion in revenue.

Infor
Infor Lawson Contract Management
is a tightly integrated extension of
the Infor Lawson Supply Chain
Management solution.
Licensed on-premises or hosted,
its small list of primarily U.S.
customers (less than
100) utilize the solution, almost
exclusively, for buy-side activities.
Customers are primarily in the
healthcare or public sector
industries. The template-based
solution
is mainly valued for its repository,
rebate management, tier-pricing
functionality, enterprise search
engine, contextualized alerts
and Infors integration platform
(Intelligent Open Network [ION])
which aids integration to other
products. Infor has also
announced a newly created,
cloud-delivered
contract
Ivalua
management solution due to
Established in 2000, Ivalua is a
launch before the end of 2015,
provider of spend management
which will be aimed initially at
software, with main offices
sell- side manufacturing or
located in the U.S. and in Europe.
distribution-centric contract
As a result, the Ivalua Buyer
requirements.
contract management solution
focuses heavily on
buy-side agreements. Unusually,
Ivalua says that its customers are
licensed primarily
on a subscription basis, despite
40% of customers deploying onpremises, with 50% in a hosted
model. Most of its customers have
revenue exceeding $1 billion,
although
have customers
Novatusit does
Contract
as
small
as
$50
Managementmillion in revenue.
Ivalua partners with Seal Software
Novatus, established in 2008 in
for the discovery phase.
the U.S., focuses most of its
efforts on buy-side contracts. Its
product, Novatus Contracts,
16

covers the full life cycle of CLM.

Despite Novatus buy-side focus,
25% of its customers use the
product on both the buy side and
sell side. The hosted/private
cloud, subscription-based solution is
mostly licensed by midsize
businesses ($100 million to $1
billion in revenue) within the
healthcare, high-tech and retail
industries.
Revitas Novatus has partnered
with Seal Software for discovery.
Revitas Contract Manager is an
integral part of the Revitas solution
suite. It covers a wide span of
contract management needs,
including document authoring and
global
and/or multidivisional user security
controls. Established in 1989 in the
U.S., Revitas focuses strongly on
the sell side, where 80% of its
customers reside. The majority of its
customers are large enterprises
(more than
$10 billion in revenue), with a high
emphasis on the pharmaceutical
and biotech industries, plus
aerospace and defense, food and
beverage,
and high tech. Revitas
SAP
CLM solution is designed to be
SAP Contract Lifecycle
CRM- and ERP-agnostic, offering
Management is sold standoff-the-shelf, prebuilt integrations
alone or fully integrated to
for Salesforce, Oracle and SAP.
SAPs core ERP suite. SAP
does not
disclose the industries where the
solution is used, although
banking, high tech,
communications and media, and
aerospace and defense feature
among its references.
Seventy-five percent of customers
using the solution are enterprisesize businesses (more than $1
billion in revenue), with the highest
concentration
between $1 billion
SAP (Ariba)
and $10 billion. The vast majority
The subscription-based Ariba
license the solution on-premises
Contract Management solution
under a perpetual model.
has its roots in the support of
buy-side activities, although

some customers have extended

its use to sell-side and other
types of contracts, such as NDAs.
SAPs Ariba has one of the
largest CLM customer
communities in the market,
despite only a quarter of its total
procurement customer base
using its CLM solution.
Established in 1996, U.S.headquartered Ariba sells Ariba
Contract Management as a
module of its suite into
most industries, including financial,
business services, manufacturing,
oil and gas, utilities,
telecommunications, consumer
packaged goods, retail, university
and
education, and healthcare.
SciQuest
Sixty percent of its customer base
Based in Morrisville, North Carolina,
are lower enterprises ($1 billion to
with offices in multiple U.S. cities,
$10 billion in revenue), and a further
plus in Canada
20% are upper enterprises (more
(Edmonton) and the U.K., SciQuest is
than $10 billion in revenue).
a cloud- based source-to-settle
solution provider. It was founded in
1995 and is publicly traded on
Nasdaq. Originally targeting higher
education, government and
healthcare, SciQuest has grown
rapidly and become industryagnostic by virtue of its acquisitions.
SciQuest acquired CLM vendor
Upside Software in 2012. Despite its
CLM solution being historically
stand-alone and focused on the buy
side and sell side, it is now more
recognized
as a module within
Seal Software
SciQuests spend management
Seal Software could easily be
suite and less frequently licensed
excluded from this list due to
stand-alone.
its narrow footprint.
It is included because its solution
is the best-known of its type on
the market. Seal concentrates on
two aspects of CLM. The
first is the discovery phase. Seals
cDiscovery solution provides a
service that attempts to automate
the process of extracting metadata
from electronically held documents
and images in order to establish
core repository and clause library
data. Seal also provides

business analytic tools to help

customers extract business
decision support and tuning
information from the repository and
library. Seal has also established
relationships with other vendors that
resell Seals tool as part of their
services. These include Apttus,
Navantis and Selectica. Seals direct
customers tend
to be enterprise level, with more
than $1 billion in revenue.
Although the solution can be
used for all types of contractual
documentation,
the vast majority
Selectica
of Seals customers use the
SmartContracts (formerly called
product for buy-side contracts.
Selectica CLM) is a platformagnostic CLM solution used across
a diverse set of industries.
Selecticas customers are generally
enterprise level (with more than $1
billion in revenue) and are split
equally between buy- side and
sell-side usage. Selectica claims
a high percentage of its customers
use the solution at an enterprise
level, combining sell side and buy
side. The solution is integrated with
Salesforce, plus a number of ERP,
CRP, supplier relationship
management, procurement and
business intelligence systems.
Selectica spans all the process
areas of CLM, with a particular
focus on approvals and
amendments. Its acquisition of
Iasta in mid-2014 added key
elements
SirionLabs
of upstream procurement to its own
SirionLabs is the youngest of the
CLM functionality to strengthen
vendors included on this list,
Selecticas portfolio. This was
having commenced business in
further supported through the
2013 and being funded by
acquisition of b-pack in March 2015.
Sequoia Capital in 2014.
SirionLabs takes a different
approach to CLM. Where many
begin with the repository creation
and the early processes of CLM,
SirionLabs has
focused its efforts on the support of
complex service supplier
management in terms
of obligations, performance,
financials

and relationships after the

agreements are signed.
SirionLabs calls this supplier
governance. As would be
expected of a startup,
SirionLabs has few customers to
date, yet in a mix of automated and
offshore services, including
automatic extraction of buyer and
seller deliverables from contracts
and
statements of work, SirionLabs
Symfact
has developed its capabilities very
Symfact is a well-established .NETquickly.
based CLM provider. Beyond CLM,
Symfacts strength is its ability to
additionally address multiple GRC
domains from a single platform.
Based on Symfacts submitted
information, the product is used for
all contract types,
and more than 70% of its
customers use the product for
multiple types of contracts. Most
of its customers license the
product on-premises under a
perpetual license model, but like
other vendors, many new
sales are hosted under a
subscription model.
Symfacts customers tend to be
midsize to large organizations
(more than $250
million in revenue). Symfact is used
across
a wide range of industries,
SynerTrade
most notably banking and
France-headquartered SynerTrade is
securities, business services, and
a buy- side-centric tool. It boasts a
pharmaceutical and biotech, as
small number of clients across a
well as other industries, including
wide array of industries. Most of its
sporting events management.
customers are large organizations
(more than $1 billion in revenue),
which license the product under a
hosted subscription license (hosted
in Europe). SynerTrade has provided
integration to a number of ERP,
sourcing and procurement solutions
for its customers. It provides a
mobile user interface for iOS and
Android, including an offline mode,
plus optical character recognition
capabilities and metadata
classification to establish a clause
library and repository and to drag
and drop workflow maintenance.

CLM Vendor Licensing

and Delivery Methods
Figure 6 details vendor-reported
data related to their licensing and
delivery methods.

CLM Vendor Customers by

Industry
The following figures (Figures 7
through 12) segment the
percentage of the vendors
customers by industry. Note: A large
percentage does not signify a
large number of customers; it is
Market
merely anRecommendations
indication of the focus of
the organization
vendor.
No
is immune from
the complexities of modern
contracts, or the fast pace of
business in the global economy.
Whether it is your intent to simply
gather all contracts together
electronically and pick out key
renewal dates, or if you require a
full authoring system, Gartner
inquiries indicate
that CLM is rapidly gaining in
prominence and should be on the
to-do list for every CIO or IT leader,
regardless of industry, size or region.
In the worst case, a lack of focus on
this might be costing your
organization millions of dollars
already or may be about to do so.
Once
in place, CLM can protect the
organization from unnecessary
losses,
As
can obligations
be seen in or
A lost
Framework for
opportunity.Big
But Data
adding
a CLM the
Evaluating
Initiatives,
solution
is not
sufficient.
takes a
four
pillars
of the
digitalItenterprise
combination
of technology
tools,that
outline
the key
success factors
processes
and
people
to achieve
apply
to big
data
initiatives.
These
CLM maturity.
buying
a solution
same
successJust
factors
apply
to CLM
will
not move
needle
on
initiatives.
Thethe
pillars
of data,
performance.
people,
process and technology
must be addressed simultaneously
to ensure successful transition to
become a digital business. It takes
courage, fortitude and focus to meet
CLM maturity goals. Yet the rewards
are high, and the effort to protect
the company and enhance its
performance is worthwhile.
17

FIGURE 6
Licensing and Delivery Methods (VendorReported Data)

Source: Gartner (July 2015)

FIGURE 7
Percentage of Customers by Industry (VendorReported Data)

Source: Gartner (July

2015)

18

FIGURE 8
Percentage of Customers by Industry (Vendor-Reported Data)
Continued

Source: Gartner (July

2015)

FIGURE 9
Percentage of Customers by Industry (Vendor-Reported Data)
Continued

Source: Gartner (July

2015)

19

FIGURE 11
Percentage of Customers by Industry (Vendor-Reported Data)
Continued

Source: Gartner (July

2015)

FIGURE 12
Percentage of Customers by Industry (Vendor-Reported Data)
Continued

Source: Gartner (July

2015)

20

FIGURE 13
Percentage of Customers by Industry (Vendor-Reported Data)
Continued

Evidence
1 The presence of usage on the
buy side
and the sell side
provides
two guides
for
selection:
Customers using the solution
for both contract types tend to
be more mature in terms of
their CLM processes and
organizational structure.
The percentage may also be an
indication of the vendors
experience of more mature or
complex contract types or the
interdependencies between
contracts.
Source: Gartner Research,
G00276707, Nigel Montgomery,
Deborah R. Wilson, 16 July 2015

Source: Gartner (July

2015)

21

About ICERTIS
Icertis Contract Management is a comprehensive
platform that
enables
enterprise contract
management with a high adoption rate and the
easiest-to-use user interface. The system builds on
this foundation to deliver a robust contract
compliance and risk
management capability, helping organizations achieve
higher levels of maturity in their contract management
operations.

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