Contracts are a fundamental part of business, used in every industry from finance to manufacturing. Contracts must be executed with precision and efficiency for companies to succeed. As the complexity of contracts increases, so does the need for contract management services. Companies that can leverage these trends will have a competitive edge over their competitors in 2018 and beyond..
The Contract Management industry is a $1.5 trillion market with an estimated growth of 8% by 2020, and has been predicted to exceed $4.6 trillion in the next decade as enterprises increasingly move their transaction processing online.
The “future of contract management” is a trend that will be present in the contracting industry for some time. The top trends are cloud computing, automation, and social media.
Time does not wait for anybody. You must stay up with the advancements in technology. Businesses are the ones that suffer the most. They’re always moving to keep up with changing customer expectations. Contract lifecycle management is at the heart of it all.
Contract management has evolved significantly in recent years. It has transitioned from a back-office discussion to a competitive advantage determiner. The following are the most important trends in contract management.
These are the trends that will shape contract management in the years ahead:
Transformation to the digital age
Digital transformation is at the forefront of these developments. To automate the contracting process, several firms used contract lifecycle management systems (CLM).
Despite the CLM solution’s focus on legal, procurement, and sales, the strategy was disconnected, resulting in inefficiencies. Users were frustrated by the deployment and process of various CLM products.
There is, thankfully, a remedy. ContractSafe.com’s enterprise contract management software, for example, comes in helpful. On a single platform, the program allows for the safe management of all contacts.
Working from afar
Many individuals were put under lockdown as a result of the COVID-19 epidemic. However, work had to go on; as a result, I had to work from home. During this time, the importance of end-to-end automation was recognized by the business sector.
This tendency will continue through 2021, with continuing immunization and a gradual return to normality. Employees have also begun to work from home. Many companies have benefited from the convenience of being able to get whatever they need without having to leave their homes.
All of the information and contracts are securely accessible to these personnel thanks to contract management software. To sum it up, they can all search the data using powerful search capabilities.
Identification using the internet
The usage of digital identification is another important development. The adoption of e-signature software has been affected by the trend in remote working. This is the new normal, and it isn’t going away anytime soon. Its security efficiency and data privacy are the major reasons behind this.
The usage of electronic signature instruments for identification improves the contract administration process. Because no one can fabricate an e-signature, the authentication of the persons involved is quick and safe.
Due to continually changing restrictions and the sensitivity of information moving through employees: some are still at home, many organizations will adopt this technology.
Machine Learning and Artificial Intelligence
You’ve probably heard of Artificial Intelligence (AI) and machine learning. It’s the next big thing in contract lifecycle management, and it’s a growing trend. Machine learning-based automation increases security and simplifies procedures.
CLM will quadruple in value by 2023, according to the Global Enterprise Contract Management Market’s trend research study, and AI will be the driving factor. The contract management software becomes a living system thanks to AI. The software can now correctly generate, execute, and manage contracts as a result of this transition.
Any serious firm that wants to get a competitive advantage over its rivals must use this technology. AI-powered CLM systems have a promising future. The organization must recognize the need of improved contract life cycle operations and use contract management software.
Continuity of Operations
For many firms, the year 2020 marked a watershed moment. Many of them saw the importance of automation. And the trend of business continuity planning will continue. Even in the face of hardship, businesses are adjusting and finding ways to stay functioning.
Many firms were able to continue operating even at the height of the epidemic because to contract management solutions.
Compliance and data privacy
When customers entrust you with their contract demands, you should respect their data privacy and comply with all applicable laws. Companies are taking extra steps when it comes to data security and compliance. This is a global trend that will continue to expand as long as fraudsters target companies that handle personal information.
The EU enacted the General Data Protection Regulation (GDPR) to safeguard the privacy of its people’ personal information. Any company’s first priority should be putting in place safeguards to prevent data breaches and ensure compliance. This action strengthens the client/customer relationship.
Contract management software should be used if your company wishes to secure data and follow regulations. This program includes the following features:
- ContractSafe is an interface that employs permission-based access. This allows you to only provide access permission when it is really essential.
- Two-factor authentication with safe data encryption for the enterprise.
- The automation guarantees that data breaches are kept to a minimal.
The most important takeaway
So far, the aforementioned developments have had an impact on contract management. And, as you can see from how automation helped during the epidemic and is expected to continue to help businesses gain a competitive advantage in the future years, every firm needs this software. Why don’t you get a free sample here to be secure and successful in the future?
“Gartner e signature magic quadrant 2020” is a report that was released by Gartner in January of this year. It is a top trends report on contract management. The report also includes the “Must Have” text. Reference: gartner e signature magic quadrant 2020.
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