Sometimes it can be hard to estimate the total cost for legal services in a large corporation. Expenditure of the companies’ purchase of external legal services vary greatly depending on size and industry, but averages 1% of annual sales.
Standard documents (NDA, employment contracts, purchase and sales, corporate documents etc.) are estimated to approximately 25% of all legal work.
Example: a company with an annual turnover of € 1 billion thus has total legal costs amounting to 33 M € annually, of which 8,25 M € relates to the creation and negotiation of standard agreements – every year. That is € 68 750 per month! At an hourly rate of 350 Euro, this amount corresponds to 24 000 hours of legal work.
Thus, 25% (of all legal work) x 3,3% of annual sales could be automated! This should be compared to an investment in the Pactumize Contract Automation Platform that could digitalize your contracts and provide a Contract Automation solution for the non-lawyers in the organization. A basic deployment would include one platform license (to get you going), 10 super user licenses (for the in-house lawyers) and 100 business user licenses to be deployed to the non-lawyers across the organization.
The monthly cost of licenses for this investment amounts to € 6 400 resulting in a very good ROI for the legal team, faster contracts to the business and several other benefits as well!
Contact us today to learn more and see what kind of solution would fit your organization!