BrazilAPAC loses up to $600 billion yearly from poor agreement management
Large countries in Asia Pacific lose between $500 and $600 billion in economic value each year due to poor agreement management processes. That is according to research from Docusign and Deloitte.
Globally, the amount of losses linked to bad agreement management amounts to a staggering $1.77 trillion – and that is set to increase to $2.36 trillion by 2030 if businesses fail to raise standards. The report surveyed over 1,000 business leaders in 10 countries, including Australia, Singapore, and Japan.
The report focuses on the major culprits of this pilfered value, which can be traced to struggles that organizations face in managing agreements efficiently.
Among the drivers of key challenges and inefficiencies are antiquated manual processes, disconnected work flows, poor communication between stakeholders, and unclear governance.
“Agreements are the cornerstone of every business and outdated management systems and practices are impacting productivity, costing businesses time, money, and opportunity,” said Shaun McLagan, group vice president and general manager for Asia Pacific and Japan at Docusign.
Most of the lost value comes from two places: Loss of productivity and increased costs, which are linked to manual workflows and wasted time; and loss of revenue, mostly related to delayed closing of deals.
A total of 69% of respondents to the survey reported increased burnout and attrition due to hiring burden created by agreement delays. In addition to that, more than half (57%) of respondents reported missing out on preferred talent due to agreement delays.
When it comes to innovative tools that can help the agreement management process to go more smoothly, 40% said that they need more collaboration tools and capabilities, the lack of which results in delays and re-works.
As far as those that already use such tools, the shares are quite low. Only 36% of respondents reported using intelligent contract analytics tools, and an even lower 31% reported using a centralised, searchable contract repository.
