4 Steps for Managing Outsourced Contracts

Outsourcing is the way of the world. Businesses of all sizes frequently find themselves in situations in which they simply do not have the time or resources to take care of all of their operational activities. Thus, it is often necessary to recruit professionals external to the company to help handle certain matters. This is true across sectors and throughout many departments within a business, including the contracting world. In many cases, companies subcontract with other firms to provide a service independent of or in conjunction with their own service delivery. It is clearly risky to outsource certain activities, as it is harder to control for quality, but with the right management approach, it can prove to be quite useful. Here are some tips for managing outsourced contracts:

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The Simple Guide to Optimizing Contract Management Reporting

Contract management is a core competency that provides businesses and organizations with the information they need to control revenue leakage, comply with applicable laws and regulations, and achieve other beneficial outcomes. That is, of course, if contract management is proactive and well-organized. Companies that learn to optimize their contract management reporting throughout the contract lifecycle stand to gain the most from their contract management practices.

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5 Ways You Will Reap the Rewards of Contract Tracking

After working diligently to negotiate a favorable contract, it’s important to get the most out of the agreement. Using contract management software to proactively track contracts offers multiple benefits, from reduced risk to increased savings and more. Here are just a few rewards of contract tracking.

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4 Steps to Create an Agile Contract

Traditional contracting focused on risk mitigation, allocation of liability, avoidance of conflicts, and significant financial consequences in the event of non-performance or a breach. Although this approach to contracting persists today, there is a growing desire for companies to incorporate a more relaxed mindset when it comes to negotiating and drafting contracts. The agile contract is one that prioritizes flexibility and outcomes over stringent adherence to doing things a certain way and demanding complete obedience. With constant changes in technology and the ease of conducting affairs across state and national borders, companies will have to adapt to new ways of thinking or risk losing business to a company that is able and willing to do so. Here are four steps to take to create agile contracts:

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4 Key Contract Performance Metrics

It is often difficult to discern the success of a contract when the subject matter of the agreement is more complex than the delivery of a single item in exchange for a payment. A lot of business contracts can last for several years and may involve a series of actions, deliveries, and/or payments from one or both sides. Nonetheless, contract performance is critical to managing a company’s contract portfolio, and it obviously has significant influence on the bottom line. As a result, the contract management team must have clear metrics by which to measure performance. Here are four key metrics that can be used to evaluate contract performance:

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The Relationship Between Contract Management & Compliance

The terms contract management and contract compliance are often used interchangeably. Although the two business processes do overlap in many ways, and it is not incorrect to intermingle these concepts, there are some slight nuances to each. Perhaps the easiest way to discern the difference is by thinking about contract management as a more internal process focused on the manner in which a company is managing its own contract portfolio. On the other hand, contract compliance is somewhat more externally focused, as it requires an examination of the performance by the other parties to contracts. Despite these subtle differences, contract management and compliance will always be inextricably intertwined as each facet continuously influences the other, as discussed below.

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4 Vendor Management Best Practices

Choosing the right vendors is often critical to your company's success. Disorganized partners and bad relationships can lead to costly performance interruptions and even ruined reputations. Sometimes vendors are selected in haste or the firm that is offering the lowest price is chosen, but the old saying that you get what you pay for must be heeded. Here are four best practices when it comes to vendor management:

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The Difference Between Contract Management and Contract Administration

The terms contract administration and contract management are often used interchangeably. Although they share many similarities, at a granular level, they are technically different phases of the contract lifecycle. However, for many companies, the same team of professionals may be responsible for both facets of the contracting process, which is likely one of the reasons that people tend to conflate these terms. Deciding if these are related or distinct processes really depends on the size and resources of a company and whether the company has a specific team devoted to the contracting process. For smaller businesses, people often have multiple job functions, including the handling of all contract matters. Here are the primary differences between the two aspects of contracting:

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4 Tips for Better Outcomes in Contract Management

Company leaders often find the contracting aspect of running a business risky and frustrating. Nonetheless, entering into these legally binding agreements is something that businesses have been doing and will be doing for centuries. Despite this reality, it is often surprising how many companies fail to devote sufficient resources to this part of their operations. In many cases, once legal counsel has negotiated and drafted the agreement, the actual administration of the contracts is often neglected in favor of other pressing matters. Of course, this can become a costly oversight given the legal and financial ramifications associated with contract breaches. Here are 4 tips for ensuring better contract management outcomes:

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Cloud Contract Myths Debunked

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.

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