Demand should remain
But analysts said demand for contract-management systems should remain strong, since the software can help cut costs and even prevent companies from overspending because of late fees and broken contractual terms.
For consumer goods conglomerate Procter & Gamble, tracking which contracts are more profitable is a top priority.
The company, which manufactures household name brands such as Tide detergent and Pringles potato chips, is installing I-many's software. The new software will move the company out of the dark ages of a paper-based system to a fully automated one that can even write cheques to the company's distributors.
"We put in a very detailed system," said Derek Christian, account executive for P&G's commercial products group. "This will make managing contracts more efficient and allow us to grow without having to staff up."
In the near term, analysts say, the players will need to focus on spreading the word and increasing marketing efforts. For the most part, companies have dedicated few marketing dollars to help fuel the adoption of the software, but analysts expect much more noise--and bigger revenues--in the future.
"This is just the beginning," Goldman's Friedman said. "It'll be a very interesting year for these guys."
