Myth: Contracts Can Be Managed With a Spreadsheet
Reality: Granted, this may not be a complete myth if your company has less than ten contracts in its portfolio. However, it is unlikely that many companies carry so few contracts. Many employment relationships are governed by contracts, as are supply chains, technology systems, and professional services. As a company grows, it will no doubt find itself entering into more and more contracts. This will make the management process increasingly complex and cumbersome spreadsheets likely won't cut it. Company leaders may be resistant to investing in a cloud-based solution when there are seemingly attractive alternatives they can use for free. But, the reality is that any free online service is not going to offer the same level of security, sophisticated features, or round the clock tech support that a reputable, purpose-built contract management solution will provide.
Myth: Contracts in the Cloud Will Be Easily Compromised
Reality: The idea of the cloud is certainly a nebulous concept to grasp. Data that is housed in the cloud seems to be magically saved, transmitted, and retrieved from any device on any network. Of course, even cloud-based data has to reside somewhere, and that somewhere is a physical server taking up space in a building. As a result, data that is in the cloud has to be protected in various manners at different levels. This usually requires authentication procedures for accessing that data, encryption for data at rest and in transit, and highly secure data centers where the servers are located. Saving a document in one of the usual office applications rarely offers this kind of security, so the belief that cloud-based solutions are more likely to allow for data to become compromised simply lacks merit.
Myth: Using the Cloud Will Complicate Management
Reality: It can be overwhelming for businesses to invest in and implement various types of business solutions to help with different aspects of their operations. Some systems may cover more than one area such as payroll and accounting, but a truly robust solution usually handles a discrete area and handles it exceedingly well. For most companies, contract management is one of those specialized segments of the business that warrants its own technology. And, contrary to the misconception that such a unique solution will be difficult to implement and oversee, there are affordable solutions with an intuitive interface and easy to use, practical features. If any contract management system complicates the management process instead of facilitating it, then it is likely just the wrong solution for your business.