Nowadays, working far from the office is the norm, and this is where contract management software can serve as a handy tool for negotiations. Read more about software as a service when you click here. It enables you or the employer to create terms and conditions that can have legal bindings. It includes signatures, renewals, and data analysis where everyone in the team can have access to.
Know that contractors today are very simple in their structures. Two or more people get together to assign obligations and rights. They agree to the terms and abide by the agreement. When something goes wrong during the project, they have something to go back to later on and see their obligations on what they have promised to do.
The process of creating contracts involves a piece of paper signed and sealed by the two parties. For thousands of years, this was the basis of all alliances, commerce, and businesses. However, complexities have been introduced because of the internet. There are now multiple streaming platforms that hand out digital licensing agreements. There are also complex derivatives that can affect the parties financially, so it became a challenge to create a contract for many drafters.
However, the most significant impact can be seen in the frequency and volume of the contracts being sent each day. Some companies have reported that they have managed thousands of contracts in just a few months, that a pen and paper approach is not efficient any longer.
About the Software
While there’s still the tradition of contract management done manually, the file and folder way of storing things is inefficient in today’s world. The right software can solve these issues, and it can be used to organize the paperwork of an entire organization.
It helps with possible renewals. With the help of electronic calendars and automated messages, you can allocate and track common resources in the process. The integration of new software will automate the contract service, and the staff can do other more important things than doing things manually. These documents may be related to leases, licensing terms, and job agreements.
Another advantage is that it allows employees to access many contracts in a single place. Even if these employees are located in multiple branches, they will pull up the proper documents anytime and anywhere they want.
As businesses take this contract signing digitally, there’s a chance that it may have affected you in the last few months. You may have gotten across a contract management SaaS where you need to sign digitally, provide a copy of your ID, or scan some documents required to get a phone contract. Some of the reasons why you should consider this system are the following:
Why Choose SaaS for Contract Management?
1. Lower Maintenance Costs and Need for IT Operation
Software-as-a-Service will give your company faster access to the software at a more affordable rate than the standard licensing agreements. In the past, the performance of an organization’s software was limited to the in-house servers’ computing power.
Anytime you’ll add another person, sales, or branch, it can put extra demand on your servers, and you may have to invest in more extensive hardware. There’s Moore’s Law that states that the hardware will double in complexity once every two years, and this can be time-consuming and expensive for many people.
In the world of SaaS, you’ll be given access to computing power that’s secured inside an online portal. You don’t have to keep powerful software or hardware infrastructures inside your company. In this way, you can reduce hiring IT personnel and managers. In addition to this, there are automatic patches, updates, and service pack installations that your service provider can perform without you needing to do anything.
2. Recovery of Documents during Disasters
Another reason you should prefer SaaS is to maximize the security of your data with backups that are off-sites. It’s best to analyze why it’s essential to have an off-site backup. Even if you follow a rigorous schedule for a weekly or monthly update, it’s common for a company that not all people check whether that specific backup works.
In a worst-case scenario, the data may have been stored in the same server that’s supposedly safeguarded by the exact location in the company. If disasters like fire and floods hit, the offices, servers, and backups will all be gone in a flash.
A better alternative is contract management systems where you can get an ultra-secure facility. The legitimate ones have classifications of SAS70 Type II facilities where the bulk of the data is stored. There’s the State of Auditing Standards No. 70 developed by the Institute of Public Accountants in the USA, where they have over 360,000 members in over 100 countries. You can learn more info about SAS70 here: https://searchcio.techtarget.com/definition/SAS-70.
The AICPA rewards those facilities by giving them certificates to adhere to the strictest standards in data centers. Type II is only awarded for those who were able to adhere to the most challenging criteria possible. The best place where you can protect your key contracts is through a SaaS with a Type II certificate from the AICPA.
3. Reduce your Utility Bills and Free Up Plenty of Space
You may have been renting your offices and realize that this is one of the most expensive resources out there. As the company is growing more each day, you may realize that it will be more costly for the company to rent the space adjacent to the building you’re currently in. The solution is to declutter everything and make the documents digitally.
Sometimes, the only way to get some space is to reduce your on-site servers, utilize spaces used as storage, and give your staff some workstations where they can move freely. When you reduce your servers by going into a more reliable system, you also reduce your electrical bills every month. You can let go of some of the air conditioning systems that will keep your servers cool, and the energy costs can be used for other more essential things in the business.