Contract defines the business relationship and transactions between two or more parties who want to do business with each other. It provides terms, pricing, and service levels of customer, partner, and supplier relationships. For many companies, trying to properly manage and administer contractual agreement becomes a complicated process. An inefficient process limit visibility into corporate contracts and performance, expose a company to inflated costs, diminish negotiation leverage, set off missed revenue opportunities, and incur poor compliance and regulatory backlash. Companies are putting themselves at risk every day trying to handle the following:
- Businesses are much more complex
- Contracting process is a collaborative process
- Uncertain global economic conditions
- Accountability for contract outcomes
- Increase in volume and complexity of contracts
- New regulations are being enforced
- Continued pressure to improve financial performance
- Contract ownership is highly visible
Due to the current economic state and the complexity and globalization of businesses, contract management has been described as one of the next big technology investments for organizations of all sizes and industries. The primary reason for investing in contract management is because it can help organizations earn more while doing so more cost-effectively. Contract management enables organizations to be proactive in the management of their contracts. As a result, organizations that implement contract management system usually have a deeper and more contextualized understanding of the risks, obligations and benefits associated with each contract.
General Networks provides contract management solutions with SharePoint and Open Text.