SOURCE: Aberdeen Group, a Harte-Hanks Company

May 03, 2007 11:40 ET

Contract Management: Optimizing Revenues and Capturing Savings

Best-in-Class Enterprises Demonstrate That Contract Management Can Impact the Business When the Right Organization, Processes and Technology Are in Place

BOSTON, MA -- (MARKET WIRE) -- May 3, 2007 -- According to 42% of enterprises in a new study the top driver for improvements in the management of contracts is the pressure to better assess and mitigate risks. Additionally, nearly 65% of enterprises report that contract lifecycle management (CLM) has improved exposure to financial and legal risk, according to the new "Contract Lifecycle Management and the CFO" report, published by the Aberdeen Group, a Harte-Hanks Company (NYSE: HHS).

Contracts have historically been seen as purely legal documents that protect against worst-case contingency scenarios. In today's world, they are, in addition, instruments that determine a large part of the ongoing relationship between buyer and seller.

Despite the importance and potential business impact of contracts, most enterprises still experience large disconnects between the processes and organization around contracts, how they are managed and the intelligence that can be gained from them to support business operations. However, there are a number of enterprises from the 258-enterprise sample that exemplify a Best-in-Class level of performance.

Best-in-Class Performance

Best-in-Class enterprises demonstrate that contract management can impact the business when the right organization, processes and technology are in place. For example, these companies have:

    
--  Sixty-eight percent of spend on-contract (vs. 47% for all others) and
    88% percent of transactions that are compliant with contracts (vs. 56% for
    all others). This allows Best-in-Class to capture a higher percentage of
    savings (and allowing finance to cater for this savings) that may have been
    negotiated during a sourcing event.
--  Higher performance on the sell-side with 75% (vs. 60% for all others)
    of sales orders and revenue recognition that is compliant with a particular
    contract. This is clearly a key for any finance executive given the strict
    regulations around revenue recognition.
    
Best-in-Class enterprises display certain characteristics that are not as prevalent in Industry Average or Laggard enterprises. Such characteristics include having both a central organization that manages contracts as well as a central electronic (and searchable) repository of contracts that includes a library of standardized and pre-approved terms and clauses.

To learn more about contract management and to view Aberdeen recommendations download a complimentary copy of this report, made available due to: Business Integrity, CMA Contiki, Imany and Selectica. For a complimentary copy of "Contract Management and the CFO" report visit http://www.aberdeen.com/link/sponsor.asp?cid=3965

About Aberdeen Group, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen™ for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com.

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