Unlocking the value of CLM: An in-depth look at Agiloft’s ROI 

You get what you pay for. This saying couldn’t be more accurate than when it comes to enterprise Contract Lifecycle Management (CLM) software. There are tons of CLM solutions out there, with prices and features all over the map. The reality is, most of this software isn’t cheap, but it’s become essential for smooth business operations. So, how do you make sure you’re getting solid Return On Investment (ROI) when you decide to invest in a CLM solution? 

Leading CLM analyst firm MGI Research recently took a deep dive into the ROI for Agiloft, a well-known leader in the CLM space. In this blog, we’ll explore the findings from a recent MGI Research report, showcasing the impressive ROI that Agiloft’s CLM software can bring to organizations around the globe. 

Understanding CLM and its importance

CLM refers to the strategic management of contracts throughout the entire lifecycle from initiation through execution, performance, and renewal or termination. Effective CLM can address numerous pain points within an organization, such as: 

• Manual processes: Traditional contract management often involves manual processes that are time-consuming and prone to errors. 

• Lack of visibility: Without a centralized system, different departments may struggle to access the current status of contracts, leading to delays and miscommunication. 

• Compliance risks: Inadequate contract management can result in compliance issues, financial penalties, and increased legal risks. 

Modern CLM solutions, like Agiloft, leverage advanced technologies such as artificial intelligence (AI) and machine learning to automate and optimize these processes, transforming contract management into an intelligent, real-time system of record. 

The case for investing in CLM software

Investing in CLM software can yield substantial benefits across various areas of an organization. According to the MGI Research report, the key advantages include: 

• Increased productivity: Automating contract processes reduces the time and effort required to manage contracts, allowing employees to focus on higher-value tasks. 

• Shorter contract cycles: Streamlined workflows and automated approvals can significantly reduce the time it takes to execute contracts. 

• Better negotiated terms: Enhanced visibility and analytics enable organizations to negotiate more favorable terms and conditions. 

• Risk mitigation: Improved compliance and audit trails help mitigate legal and financial risks. 

Agiloft’s ROI: A closer look

MGI Research conducted a comprehensive assessment of Agiloft’s ROI, interviewing companies that have implemented the software to gather key investment and outcome metrics. The findings reveal that Agiloft’s CLM can generate substantial ROI, generally exceeding 100%. 

Here are some highlights from the report: 

• Company A: A growth-stage software organization with $250 million in annual revenue implemented Agiloft to manage legal, compliance, procurement, and HR contracts. The company reported net annual savings of approximately $450,000, resulting in an ROI of over 160%. 

• Company E: A global provider of advanced materials with over 13,000 employees and $5 billion in annual revenues focused on HR contracts. This company achieved net annual savings of nearly $3.2 million, translating to an ROI of more than 480%. 

• Company F: A large, mature US-based organization handling legal contracts reported net annual savings of around $1.1 million, with an ROI of over 400%. 

These examples illustrate the significant financial benefits that organizations can achieve by implementing Agiloft’s CLM solution. 

Customer testimonials about Agiloft’s ROI

The report also includes qualitative feedback from Agiloft customers, highlighting the practical benefits of the software: 

• Efficiency gains: “Our old system took us 45 minutes to process a basic NDA. Agiloft brought it down to 8 minutes.” 

• Resource savings: “On our old system, it took one person 30 hours per week to do an average of 25 agreements. In our first week on Agiloft, it took that associate 3 hours to complete 21 agreements.” 

• Cost savings: “We spend roughly $40k per year on Agiloft and it saves us roughly 5-10% on every contract, which is roughly $800k to $1.2 million euros per year saved.” 

These testimonials underscore the transformative impact of Agiloft’s CLM solution on operational efficiency and cost savings. 

Why now is the time for CLM

The adoption of CLM software is rising rapidly across organizations of all sizes and industries. Several factors are driving this trend: 

• Digital transformation: As businesses increasingly digitize their operations, the need for automated contract management solutions becomes more apparent. 

• Regulatory compliance: Stricter regulatory requirements necessitate robust contract management systems to ensure compliance and avoid penalties. 

• Competitive advantage: Organizations that effectively manage their contracts can gain a competitive edge by reducing risks, improving efficiency, and enhancing customer and supplier relationships. 

Moreover, the integration of generative AI (genAI) into CLM solutions is further catalyzing adoption, enabling more intelligent and proactive contract management. 

Conclusion

The MGI Research report on Agiloft’s CLM solution provides compelling evidence of the substantial ROI that organizations can achieve by investing in advanced contract management software. By automating and optimizing contract processes, Agiloft helps businesses increase productivity, reduce risks, and realize significant cost savings. 

As the business landscape continues to evolve, the importance of effective contract management cannot be overstated. For organizations looking to streamline their operations and enhance their bottom line, Agiloft’s CLM solution offers a proven path to success. 

Interested in learning more about Agiloft ROI? Read the full MGI report here.