Contract management is a critical component of business and rights in accordance with that business agreement.Frequently, the signing of the contracts is the last time that it see the light of day.That is unfortunate and potentially costly decision both financially and from a business reputation perspective.Resolution by lawyers and the courts generally means everyone loses.The most proactive approach for the management of contract tasks and obligations requires the expertise of a contract manager and ideally a purpose of a contract is to establish the agreement that the parties have made and to define responsibilities contract management software system. Some of the major industries that deploy hosted contract management systems are discussed below.
The finance industry is one of the most regulated industries. This is particularly true in the United States. Financial companies are faced with ever changing and growing compliance requirements.SOX is a prime example of the federal agency regulations they face. Stricter rules and greater oversight and enforcement have generated the motivations to solve the problem of simplifying their lifecycle contract management. This sector generally is comprised of banks, credit unions, savings and loans, investment firms, real estate and insurance. The lack of compliance call result in the type of headlines that no organization wants to see in print.
Colleges, Universities and other education institutions must address numerous challenges with their contract management.Contract types often include employee agreements, facility contracts, equipment leases as well as rental of their facilities to other organizations. Multiple locations and numerous initiators of agreement further compound the challenge and help to make a compelling argument for a system that will help centralize and automate their contract management systems. Major universities are rapidly adapting contract management software to streamline and automate the entire contract lifecycle including requisition, approvals, award, compliance monitoring, budget alerts, key date notifications, contract closeout and much more.
The Healthcare Industry is full of regulatory compliance and strict guidelines regarding privacy and security. Patient data and the financial aspects such as billing are well managed. However, other operations of the hospital or offices are just as complex and often quite challenging. The management of their contracts jumps to the top of the list of priorities to require renewed focus. Implementing contract management software generally delivers benefits that include:
The growth of the healthcare sector and the aging of our population has help to drive the importance of properly managing the broad range of agreements by hospitals and other healthcare entities adopting software for the management of contracts.
The volume and variety of agreements associated is as broad as it is complex. Development projects often have critical milestones established with financial implications associated with the deliverables.The dramatic increase of cloud based delivery of solutions as well as the traditional on premise approach all have complex commitments that require management. A few examples of some additional critical features and benefits for the management of their contracts include:
Summary
It is clear if you are one of the sectors above or any other business entity that you should leverage the benefits of contract management software. Once implemented your organization will:
