New WorldCC Report Reveals Businesses Lose Up to 15% in Value Due to Inefficient Contract Management
Ridgefield, Connecticut - September 09, 2025 - (SeaPRwire) - A new global study published by World Commerce & Contracting (WorldCC) finds that companies are losing up to 15% of their annual business value due to inefficient contract management practices. The report, titled Contract Management: An Overlooked Driver of Business Agility and Financial Performance, highlights how fragmented, outdated, and reactive contract processes are significantly impacting operational and financial outcomes.
The research draws from a broad sample of industries and company sizes worldwide. It estimates an average loss of 8.6% in revenue and cost efficiency due to poor contracting. In complex or highly regulated sectors, this loss can exceed 15%.
Despite contracts governing every dollar of revenue and spend, the report found that they are often siloed in legal departments, difficult to access, and not integrated into broader business planning. On average, contract-related data is spread across 24 systems, limiting visibility and slowing down decision-making.
Key findings from the report include:
- Only 39% of commercial professionals believe their contracts deliver the intended outcomes.
- 83% of executives say their contracts are too rigid to respond to change.
- 90% of business users report that contracts are difficult or impossible to understand.
- The best-performing organizations operate four times faster in contract cycle times than the worst.
- Performance issues such as cost overruns, invoicing errors, and missed entitlements are common results of poor contract oversight.
The report also outlines a roadmap for organizations to improve their contract management maturity. It presents a four-stage model ranging from "Reactive" and compliance-driven practices to "Predictive" contracting supported by analytics, integration, and real-time insights.
Tim Cummins, President and Founder of WorldCC, said: "The core purpose of contracting is economic. The way we form and manage contracts has become a hidden constraint on our most strategic relationships."
The report positions contract management as a strategic function that directly impacts revenue, cash flow, and organizational agility. It offers practical steps for companies to assess their current systems, identify gaps, and improve through better cross-functional coordination, use of technology, and standardization.
Sally Guyer, Global CEO of WorldCC, stated: "CFOs are uniquely positioned to lead this change. By rethinking the role of contracts, they can transform a traditional back-office function into a strategic engine for growth, agility, and competitive advantage."
The report is available to download from WorldCC's website and includes guidance for business leaders on measuring the financial impact of contracting inefficiencies and prioritizing investments in contract lifecycle management.
About World Commerce & Contracting (WorldCC)
World Commerce & Contracting is a global, not-for-profit association dedicated to improving trading relationships and raising standards in commercial and contract management. With over 80,000 members in more than 180 countries, WorldCC provides research, education, certification, benchmarking, and policy engagement to support effective contracting across public and private sectors. The organization promotes ethical, inclusive, and financially sound commercial practices through global collaboration and data-driven insight.
Contact Information
Kate Hodgins
World Commerce & Contracting
Email: khodgins@worldcc.com
Website: https://www.worldcc.com/
