Contract management software is filling a need in an accelerating market,
according to a report by Goldman Sachs.
As B2B grows, contracts between companies are multiplying. According to
Goldman Sachs’ analysts, it is therefore imperative that companies adopt
tools to efficiently manage their contracts.
“We have put a significant amount of time into understanding and
validating the contract management business and the impact it has on the
industries we researched,” said Jamie Friedman, vice president, senior
equity analysts for the Menlo Park, Calif.-based division of Goldman Sachs.
According to the research, the need for contract management software
exists in across all vertical industries as business-to-business trading
partners structure agreements in line with specific objectives.
Goldman Sachs reports that companies using contract management software
can reduce annual contract management expenses by 20 to 50 percent. Analysts
said also that they anticipate seeing the category reach revenues of $3.1
billion by 2005.
Among the companies rated by the research, I-many was described as the
only “pure play” software company. “I-many is providing a strong value
proposition in this space, as evidenced by their client base, and they are
well positioned to expand their presence in this category through their
first-mover advantage,” said Friedman.
“DiCarta, a private company, is showing promise,” he added. “Among
incumbents, i2 and PSFT offer fairly advanced contract software.”