This is not new, but Gartner said today that firms ”focus too much on the operational level of outsourcing, and not enough on the strategic management of contracts.”
As I always say, “you can outsource the process but not the accountability!”
The article talks about aligning sourcing actions with business goals and the importance of the competencies of strategic sourcing. This is clear, you must focus on outcomes. You must get it right when you put the agreement in place or you will pay for it during delivery. It’s much more expensive to correct errors after you have let the contract.
Gartner research director Frank Ridder said “Many organisations struggle to develop an effective and efficient sourcing environment, which is necessary to achieve positive sourcing outcomes.” Effective contract lifecycle management systems like Open Windows Contracts pro-actively automate the sourcing process for organisations. They provide education on how the process should be performed, as well as accountability and auditability.
No Comments | Tags: Contract Management, Contract Management Software, Contract Software, contract lifecycle management
Public companies considering not having a good system in place to manage contracts are facing a huge burden everytime they make an aquisition and add to the due diligence cost on both sides of a transaction.
One of the first questions asked in the process is, ‘what contracts do you have?’ Well, what contracts do you have and how quickly can you give me a summary into risks and exposure at a contract level?
Putting in place a contract lifecycle management system ensures operational contract management that simply rolls up into reporting.
Many companies I know embark on a massive data gathering expedition each and every time somebody asks a question.
Are you prepared for your next transaction?
No Comments | Tags: Contract Management, Contract Management Software, Contract Software, contract lifecycle management
Contract Management jobs are on the rise, particularly in IT contract management says AbsoluteIT Director Grant Burley in New Zealand, “There are more complex deliverables that are having to be met, and with a need for monitoring and clarity as to what is delivered, we’ve seen growth in these roles.”
This is the case across all areas of contracting, and as either the complexity of agreement being managed, or sheer number of agreements reaches a critical point, increased contract management effort including better systems and contract management software, is required.
No Comments | Tags: Contract Management, general forum
Although a full shift to the cloud a decade away, interesting article on cloud services, the shift away from hands on technical IT. Garner says “within enterprise IT, there will a growing job emphasis on managing contracts with the service providers. ‘You’ll see more positions in supplier relationship management and coordination,’ says Gartner’s McDonald.”
No Comments | Tags: Contract Management, general forum
