Today’s legal departments want to streamline and improve their contract management processes. In many cases, it makes good business sense to engage a Legal Process Outsourcing (LPO) provider to manage legal service contracts, draft contracts, review legal contracts, and review legal documents.
Outsourcing of contract management
LPO service providers provide governance, compliance, and risk management solutions that help companies avoid or mitigate business and reputation risks. Some of the most outsourced contract management processes are:
* Contract detection and audit services
* Contract overview, redlining, editing
* Contract abstraction
* Governance, risk and compliance
* Management reporting services
* Online contract repositories
* Warning and notification services
* Claims and dispute management
Manage and abstract legal contracts
Legal departments and law firms have hundreds or thousands of paper contracts stored in filing cabinets or as spreadsheets. This type of storage system is cumbersome and does not guarantee that the most important data and payment conditions are met and that certain important conditions or clauses are implemented. Manually storing, monitoring, mining and managing contracts is time consuming, expensive and risky. By outsourcing this function to an LPO supplier specializing in contract management and abstraction services, you can keep up to date with the information in these contracts. Because LPO vendors use the latest technologies to effectively perform this process, they can deliver abstracted documents to legal clients accurately and quickly.
Benefits of contract withdrawal
Contract withdrawal involves extracting important data, clauses and other relevant information from paper documents. This type of “legal coding” works by tagging all the important terms, metadata, etc. in each contract. When dealing with long and complicated contract documents, contract abstraction provides a concise overview with all key points highlighted such as date, party name, expiration date, renewal and more. This saves valuable time and resources, increasing internal productivity and ensuring legal compliance throughout the contract life cycle.
In addition, contract withdrawal documents are easier for non-lawyers to understand because important clauses and guidelines are brought forward. As a vital business function, contract management is becoming more accessible and predictable for everyone.
In essence, contract withdrawal helps companies make informed decisions about the contracts they sign. The contracts detail the essential details that highlight the importance of a legal document.
A real competitive advantage
Contract management has become a core competency critical to a company’s ability to operate efficiently and mitigate legal risks. Organizations with mature contract management processes have a clear competitive advantage and seek collaboration Outsourcing of legal processes providers to manage this essential activity.