Mastering Contract & Entity Management in 2025

The importance of efficient contract and entity management

Legal teams play a crucial role in managing core operational processes, with contract management (81%) and entity management (71%) being among the most essential areas of work in-house.

The volume of contracts managed varies significantly based on team size. For example, 29% of respondents report handling 100–500 contracts annually. Solo in-house lawyers manage fewer than 500 contracts per year (84%), while 79% of large legal teams with over 50 members handle more than 5,000 contracts annually.

When it comes to entity management, most legal departments oversee relatively simple structures, with 53% managing between 1 and 10 legal entities. However, for 15%, the complexity scales significantly, as they are responsible for managing over 100 entities. Efficient practices in these areas are crucial for reducing risk, ensuring compliance, and driving business growth.

Key challenges in in-house legal departments in 2025

The Legisway Benchmark 2025 provides fascinating insights into the challenges legal teams face around contract management and technology adoption. Here’s what the data reveals:

Contract management challenges

1. Lack of visibility (60%)
   Lack of visibility (60%) is the most common challenge when it comes to contract management. Respondents aren’t always able to track contract data, such as renewal dates or KPIs. Without proper tools, this becomes a time-draining endeavor that leaves organizations vulnerable to contractual risks.
2. Standardization
   More than half of the respondents (52%) said their organization lacks standardized processes for contract lifecycle management (CLM), resulting in inconsistent workflows.
3. Contract loss
   Misplaced or missing contracts are a recurring issue for nearly half of respondents (49%), posing risks to compliance and client relationships.
4. CLM software adoption
   While 42% of teams now use CLM software (up from 33% last year), adoption is lower in smaller teams. Only 16% of solo in-house lawyers use CLM software, while almost half of teams with 2-5 members do, and 71% among teams with more than 50 employees.

Entity management challenges

1. Reliance on shared drives
   Approximately 30% of legal teams still depend on shared drives for entity data, which can lead to inefficiencies and errors during audits or compliance checks.
2. Budget constraints
   While some teams are adopting entity management software, 34% of respondents report they lack dedicated budgets for legal technology, which can be an obstacle to acquiring a solution.

Recommended solutions

The benchmark report highlights the growing adoption of technology to overcome these operational hurdles.

The promise of technology lies in efficiency, accuracy, and strategic value. Here’s what your team can achieve with the right tools in place:

• Track metrics and boost visibility
  Use CLM tools to track contractual performance metrics like turnaround time, renewal rates, and risk exposure. With dashboards and analytics, legal teams can provide clear insights for business stakeholders. Learn more about these features here.
• Automate processes
  Tools like Legisway enable document automation through templates, reducing contract creation time and ensuring consistency. Conditional logic and integrated workflows simplify negotiation and approval cycles.
• Reduce compliance risks
  Entity management platforms help centralize records, from compliance filings to shareholder details, ensuring you're always audit-ready. Automated reminders prevent missed deadlines. Explore the possibilities here.
• Focus on strategic value
  By automating routine tasks, in-house legal professionals can allocate more time to providing strategic advice, empowering the business through informed decision-making.

Key takeaways

The Legisway Benchmark underscores the pressing need for legal departments to modernize their approach to contract and entity management. With increasing workloads and tightening budgets, legal teams must operate in the most efficient way possible to remain competitive, which means:

	Investing in CLM software to automate workflows and ensure compliance.
	Transitioning to structured entity management tools for better data visibility and reporting.
	Aligning budgets with digital transformation goals to adopt the right tools, even for smaller teams.

By taking these actions, your legal team can reduce risks, save time, and unlock strategic opportunities to add greater value to your organization.