Despite the recession, spending on eProcurement and Contract Management solutions is expected to increase by 2% in 2009, according to Forrester Research.
“What we’re seeing right now is two conflicting forces at work,” says Andrew Bartels, VP and principal analyst, Forrester Research. “One is obviously the desire of companies to try and save money through the use of technology. The other is that their technology budgets and particularly their capital budgets are facing incredible constraints.”
Operational efficiency has taken on a new importance in the current economic climate and many organisations are looking to streamline supply chain processes, eradicate unnecessary costs and keep a tighter control on contract-related spending. This is all good news for Contract Management software vendors, like Dolphin Software.
IT budgets will continue to be squeezed over the next year and CIOs will have to weigh up what investments in technology will produce the greatest returns, while delivering effective cost savings to the business.
According to Forrester Research, the primary emphasis for many organisations in 2010 will be on cost savings and the use of technology solutions to enable teams to identify and manage cost saving opportunities.
Contract Management software plays a critical part in achieving this as most business-to-business transactions are underpinned by legal contracts and agreements. Being able to provide Procurement professionals and other business stakeholders with management information to enable contracts to be managed in the way that they were negotiated will mark the difference between success and failure for many organisations as we emerge from the current economic recession.