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Manual contract processing costs firms £10m annually

A report from digital consultancy 4C suggests that manual contract processing and poor contract management costs UK businesses as much as £10m yearly – a situation which Consultancy.uk notes is contributing to around six in ten companies considering full digitisation in the next few years. A study published by Deloitte in September indicated that 8% of organisations around the world have already delivered over 50 automations in the last year, and the growing enthusiasm for automation has seen a doubling this year in the number of businesses with automation able to handle a growing amount of work in a capable and cost-effective manner. Nevertheless, the report from 4C underscores how UK companies are still losing millions of pounds due to manual processing of agreements, with more than a quarter (28%) of firms citing losses of £1m or more. Jani Van Hecke, Head of 4C’s Contract Lifecycle Management practice, said: “Businesses often neglect the non-customer-facing part of their operation, so it’s no surprise that the manual processing of agreements is resulting in lost money and time for companies across the UK. This research highlights the true scale of the problem that out-dated processes create and serves as a wake-up call to UK businesses.” More than half (59%) of UK businesses – notably in the manufacturing (63%) and finance (61%) sectors – are now considering full digitisation over the next few years, according to the report, with the key perceived benefits being  data safety (34%) and cost reduction (35%). Gareth Stephens, the Chief Executive of 4C, said: “It’s encouraging to see UK businesses recognise the digitisation and automation of their manual agreement processes as important to their operation. Cost and data security are cited as barriers to automation, yet our report shows that manual processing of contracts is hurting their revenues. By shifting company culture to make agreement automation a priority businesses can protect their data and drive business growth.”

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