Average contract length

Contract agility rules the roost

Companies are locking in SaaS for over a year and a half on average.

With an average of just over 19 months, companies seem to prefer shorter contract terms - even in the face of attractive discount offers, placing higher value on flexibility.

It is however noticeable that  businesses are more willing to commit to longer contract terms in certain areas. HR systems, CRM platforms and ERPs stand out as among the longest average commitments - approx 2 years - largely because businesses seek to minimize the disruption of regularly reviewing options and re-negotiating for platforms that are central to business operations.

On the flip side, Project Management, Collaboration and Development tools tend to have much shorter contracts, between 14 and 17 months - as departments experiment with the efficacy of these tools and find it much easier to chop and change them.