It is no secret that proper contract management is necessary in order for the company to avoid exorbitantly costly mistakes, but how can people avoid these types of errors? Nobody wants to sign their life away. In an article for CIO.com, Sarah K. White elaborates on how to best avoid IT contract mistakes.
Confirm Details, Then Revise
CEO of Corridor Company Russ Edelman believes there are three common trends that are causing contracts to be mismanaged. The first trend is that there is a lack of trust with a lack of a consistent system to house contracts. Second, he sees that there are often inconsistencies in the contract templates. Finally, Edelman frequently sees that companies are unfamiliar with the strict compliance laws regarding contract management.
Sometimes, the style of contract management once used by a smaller company will no longer work as the company grows. This was the case for Koru Kids Ltd. Rachel Carrell, CEO, saw that as the company grew, their contract management was no longer working, especially because of outsourced employees. The company needed to redefine their management in order to save the company and more effectively communicate with the myriad of employees that they have.
It is not enough to merely invest in new technology to better the company; the company needs to also educate and empower their employees about the new technology. When effective contract management is emphasized in the company, people will take it seriously and major mistakes can be avoided.
Periodically, businesses should reevaluate their contract management strategy so they can avoid becoming obsolete. This may mean hiring new people who can solely focus on contracts. In the case of Koru Kids, their company saw success when they strayed away from the traditional contract management and found a flexible solution that worked for them. Contract management is an “evolving process” and will always need adaptations to match the company in the present.
You can read the original article here: http://www.cio.com/article/3099169/it-industry/how-to-stop-making-costly-it-contract-mistakes.html