May 30, 2022
Scalability and Growth Using Contract Management in the Tech Industry
Table of Contents
- Why the tech industry is like no other
- Scalability and growth in the tech industry
- Contract management in the tech industry
- Benefits of contract management technology for scalability and growth
- Scaling and growing your tech company with Contractbook
Are you looking to grow your company? Optimizing the way you handle your contracts is always a good place to start. After all, the bigger your company, the more admin work you’ll have. And the last thing you want is for manual tasks to take up too much of your time. Luckily, you can avoid this by learning about scalability and growth using contract management in the tech industry.
Why the tech industry is like no other
Of course, it could be said that no two industries are the same. But add technology to the mix and you get something even more unique. Some of the characteristics of the tech industry that separate it from others include:
- Role of innovation
- Complex business models
- Importance of growth
Role of innovation
Without innovation, there’s no technology. So, from a purely logical standpoint, it should be a good thing for a tech company to be in a state of constant evolution. But everything has its downsides. Constant evolution means constant change, which translates to regular business disruptions. That’s why it could be said that the tech industry is always one step ahead of itself, not just others.
Complex business models
When you’re in the tech industry, more often than not, you’re offering something no one’s ever offered before. You also have scalability and growth to consider, which adds to the complexity of your situation. So it’s only logical that you have to get creative with the business model as well. And the more complex it is, the more important efficiency becomes.
Importance of growth
It could be said that growth is vital for business in general. But research tells us that this especially applies to the tech industry. According to McKinsey, it’s the growth rate of a tech company that’s the most reliable indicator of long-term success. It’s for this reason that serious tech companies operate with scaling or expansion in mind.
Scalability and growth in the tech industry
We’ve already established how important growth is for a tech company. But there’s some confusion around the term as it’s sometimes used to describe one of two ways to grow a company. One of them is growth, obviously, while the other is scaling.
You experience growth when your company increases its sales volume while simultaneously growing its resources.
On the other hand, scaling is what happens when you don’t add more resources and the company still grows.
What about scalability? It’s the company’s ability to increase its sales volume without it negatively affecting the bottom line.
But how do you make sure you have that ability? A good place to start is to optimize your contract administration.
Contract management in the tech industry
There’s no business that doesn’t benefit from developing a quality contract management system. But once again, this especially applies to contract management in the tech industry. Why is that so? Because more often than not, tech companies have:
- Subscription-based models
- No dedicated contract teams
So, on the one hand, you have a business model that relies on signing contracts with your customers. This means tons of contract work. And if all goes well, there will only be more of it.
On the other hand, there are usually no dedicated teams for contract management in the tech industry. In turn, the responsibility for handling contracts is dispersed. This means you’ll likely start to struggle as soon as the workload increases.
Now you understand why you can’t do without optimizing your contract administration. But let’s see exactly how you can achieve scalability and growth using contract management in the tech industry.
How contract management technology helps you achieve scalability and growth
Contract management technology or software is aimed at:
1. Reducing your workload
When you switch from manual to automated processes, you waste a lot less time creating, approving and renewing contracts. That’s why contract management software comes with template libraries, eSign functionalities, and automated workflows. Just imagine not having to print, sign, and scan each contract just so you can approve it.
2. Improving the bottom line
When there’s no system in place, things often get delayed. Standardized processes help you speed things up. Of course, the less time you need to fulfill your contractual obligations, the shorter your sales cycle is. As a result, your overall capacity is automatically increased and you soon start seeing revenue growth.
3. Keeping your customers happy
Standardized, automated processes leave very little room for error. When everything always goes smoothly, you grow your reputation as a reliable company. What’s more, you make the customer experience as pleasant as possible. In turn, you retain more of your current customers and increase your chances of generating new business.
4. Attracting more talent
It doesn’t just improve efficiency. Streamlined collaboration makes a world of difference when it comes to employee happiness as well. That’s why contract management technology doesn’t stop at automated workflows. It also allows for easy integration with your collaboration tools.
5. Making it easier to spot trends
When you have all your contracts in one place, you significantly increase your data visibility. That’s why contract management software features centralized repositories that are easy to integrate with the rest of your structure. Add to that the real-time data flow and you get all the tools you need to identify new growth opportunities.
Scaling and growing your tech company with Contractbook
It’s what the facts are telling you. Achieving scalability and growth using contract management in the tech industry could be seen as a logical first step. If you take that first step with Contractbook, you won’t just get your own centralized repository with real-time data flow. You’ll also be able to use eSignatures and set up automated workflows and reminders. What’s more, we’ll take care of integration with your system and collaboration tools. So if you’re ready to take your company to the next level, take a moment to get in touch.