Contract Lifecycle Management Market Trends

Growth Drivers

• Growing population of gig workers - There is an increase in the demand in the gig economy due to the expansion of the contract Lifecycle management (CLM) market, as the population is opting for a short-term contract and freelance opportunities, instead of a full-time employment. According to a NITI Aayog 2022 report on the gig economy, the gig workforce has the potential to increase to 2.35 crore by 2030.
• Importance of contract work - The growing importance given to the contract work, especially for skilled professionals, is driving the market for contract Lifecycle management.
• Demand for flexible work arrangements - The growing demand for a flexible work arrangements and high work-life balance has increased the demand for support mechanisms, such as contract Lifecycle management, which provides several services and support for those who are working on contract or freelance bases.
• Importance of contract-based benefits - Along with the importance of contract Lifecycle management for tracking contract work, the demand for contract-based benefits and services, such as insurance, reimbursements, and other related benefits is also increasing.
• Importance of self-employment - The increasing surge of self-employment as a form of job and the source of income, has increased the demand for a proper management of finances and several other related aspects.

Challenges

• Complexities of contracting - The contract lifecycle is highly complicated while involving several parties and stakeholders, such as clients, employers, employees, insurance providers, and tax authorities, which offers several challenges to the management for contractual obligations.
• Confusing regulations and laws - Several regulations and laws which are related to contractual work can be extremely complex and confusing, especially in several regions. This can act as a barrier in the proper implementation and administration of contract Lifecycle management.
• Lack of tools and solutions - The available tools and solutions, for the contract Lifecycle management may be limited and might not be able to cater to the growing need and complexity of the contracting and freelancing environment.
• Difficulty in integration - The integration of contract Lifecycle management solutions and existing systems and processes can pose a big challenge and cause problems with communication, coordination, and data flow between different departments and teams. This can hinder the effectiveness and the return on investment from the management of contractual activities.