Recently, there has been a lot of talk about contract management and its role in reducing future risks. In the last year, many firms have realized that their current management approaches are unfit for purpose, especially in the face of a crisis like the Covid-19 outbreak. In response, an increasing number of organizations are turning to contract management software, such as Anapact.
As a result of digitization propelling technology forward, we will delve into the top contract management trends to watch in 2021.
Continuity of Business Operations
Businesses that adapt to changing conditions are more successful; however, it is always better to be prepared than react. The importance of keeping your operations going with minimal disruption has been highlighted during the last year.
Businesses now have a framework and the tools they need to govern their processes better and assure compliance throughout the pandemic, allowing them to respond more rapidly to the challenges that have developed regarding contracts, supply chains, and deliverables.
Contract amendments and provisions have been a hot topic, with many businesses unable to negotiate modifications due to a lack of communication or connections with third-party vendors. Companies are turning to automated contract management tools to give vendors insight and access without jeopardizing security.
Remote Working
One of the main advantages of contract management software during the commencement of a worldwide pandemic was that the majority of it is browser-based. With remote working expected to be the norm in 2021, having an online contract management solution is becoming increasingly important.
Access to everything employees need without having to leave the safety of their homes has been a massive advantage for many firms as many employees adapted to remote working, and countries across the world are under sanctions and lockdowns. All information and contracts are available online, with comprehensive search functionality, ensuring that all employees have constant access to precise information.
Machine Learning & Artificial Intelligence
Automation is well known for optimizing operations and enhancing efficiency and productivity, particularly in contract lifecycle repetitive manual chores and procedures. You can improve contract management with automation, and you can reduce risk.
Artificial intelligence was always going to be the inevitable successor to automation as technology and knowledge progressed. Although AI and its integration are far from complete, they have benefits for the future of contract management.
Compliance & Data Privacy
In this age of the pandemic, with the current trend of digitization and documentation moving online, you must have data security in place across your organization. The majority of security and data breaches are caused by simple employee errors when transmitting the information. However, as cyber-attacks become more common, governments and organizations worldwide are constantly upgrading and increasing data protection legislation.
In 2020, the General Data Protection Regulation (GDPR) resulted in a greater emphasis on data privacy, which has continued this year. As the year progresses, organizations should focus on preventing data breaches and ensuring compliance with evolving legislation.
Digital ID
Digital identification is quickly becoming the norm for many enterprises and organizations, as indicated by the rising use of e-signatures over the last year, despite Covid and the transition to remote working having a significant influence on the penetration of this software application.
With the migration of paperwork and data to the internet, it’s become critical to have digital solutions to boost security and safeguard data privacy. This technology allows anybody involved in the contract management process—from employees to vendors—to be authenticated, which improves the process’s speed and efficiency while adding an extra degree of security.
Final Thoughts
Contract management has become more critical as digitization advances. By adopting current and future trends, you can ensure that your company is on the cutting edge of contract management software, integrating best practices across the board and maximizing your company’s potential and resources.
If you’d like to start applying any of the contract management trends discussed in this article, contact Anapact now to discuss how you can move your company or organization forward
