Software as a Service (SaaS) contract management software is a much-needed software in this era. As the pandemic has hit the whole world badly, companies felt the need to accelerate cloud migration plans, thus, becoming dependent upon SaaS. It greatly benefits companies in mitigating human errors, high expenses, and many more.
To know more about why your company needs to have SaaS contract management software, continue reading!
What is SaaS Contract Management?
Doing contract management manually is time-taking and also prone to human errors. So, businesses purchase and run the software as a service, usually termed SaaS. It is management software that uses digital means to unify contract lifecycle management processes.
Implementing SaaS contract management software safeguards the on-time processing of contracts and agreements to evade disruptions and additional fees. Moreover, it reduces the organization’s overhead by recognizing, curating, and storing all the agreements to free up office space and human resources.
Organizations depend on software in the technologically driven marketplace to keep their operations running. Thus, investing in contract management SaaS software is essential for business settings that are driven by hundreds or thousands of agreements. Eventually, it helps you maintain control over agreements and helps save your time and expenses.
SaaS contract management solutions provide businesses with cloud-based tools and services to manage contracts throughout their lifecycle. These platforms offer several advantages over traditional on-premises software, including lower upfront costs, easier updates, and greater scalability. In this section, we’ll discuss some of the key features and capabilities of SaaS contract management solutions.
Features and Capabilities of SaaS Contract Management Solutions
- Cloud-Based Access: One of the main advantages of SaaS contract management solutions is that they are accessible from anywhere with an internet connection, allowing users to access and manage contracts on-the-go, and facilitating collaboration among team members.
- Contract Creation and Templates: SaaS contract management solutions typically include a library of pre-built templates, as well as the ability to create custom templates, simplifying the contract drafting and negotiation process.
- Centralized Repository: A cloud-based, centralized repository enables businesses to store, organize, and access all their contracts in one place, improving visibility, ensuring version control, and streamlining collaboration.
- Contract Approval Workflow: Automating the approval process for contracts is a key feature of many SaaS contract management solutions. This helps reduce bottlenecks, enforce compliance, and accelerate the contract execution process.
- Contract Renewal and Expiration Management: SaaS contract management solutions often include features to track and manage contract renewals and expirations, ensuring timely action is taken, and reducing the risk of missed deadlines or unintended contract lapses.
- Document Comparison and Redlining: This feature allows users to compare different versions of a contract and highlight any changes or discrepancies, facilitating more efficient negotiations and contract revisions.
- Electronic Signature: Many SaaS contract management solutions offer electronic signature capabilities, enabling parties to sign contracts digitally and securely, speeding up the execution process.
- Compliance Monitoring: SaaS contract management solutions can help businesses ensure compliance with legal, regulatory, and internal requirements by providing tools to track and monitor contract terms and conditions.
- Reporting and Analytics: Robust reporting and analytics features enable businesses to gain insights into contract performance, compliance, and risk, helping drive continuous improvement and informed decision-making.
- Integration with Other Systems: SaaS contract management solutions can typically be integrated with other cloud-based or on-premises systems, such as ERP, CRM, and accounting software, ensuring seamless data flow and process alignment.
Why Do You Need SaaS Contract Management Software?
SaaS contract management ensures access to software that is needed by the organization’s team to complete its task. Along with that, it also eradicates the time-consuming and tiresome manual processes that cause interruptions and delays in the work.
In addition to it, some of the benefits of SaaS software are listed below.
- Time Savings
If you’re manually managing large contracts, searching for a tiny detail takes a long time. And long, complex SaaS contracts are the real time-takers. But, using SaaS contract management software saves time and allows you to do something productive instead.
Using this software, you can find the required contracts, and also it assists you search and identify the crucial information within them, saving both your time and effort.
- Cost Savings
Using paid software instead of manually doing operations and contracts can help businesses procure cost-saving benefits.
Those benefits count.
- Instead of manually searching through the contracts, automatically doing this task saves much time and money.
- A cloud-based solution allows businesses to eradicate the trouble of printing, scanning agreements, emailing contracts, and scanning electronic signatures.
- Contract management SaaS solutions keep track of deadlines by identifying aging contracts and giving alerts so you do not miss them. These automatic operations save long costs, which you might incur if doing this manually. Also, it tells you which contracts to renew so additional expenses are terminated.
- Reducing Team Member Disagreements
SaaS software enables real-time team collaboration and reduces team member disagreements. The team members can work together in real-time even if they are miles apart. It allows team members to communicate with each other and resolve conflict if there is any.
- Eliminating Data Breaches
SaaS contracts and security work in accordance with each other. A SaaS contract management process has proper vendor contacts storage. Instead of keeping contracts in various locations, place them in a safe location that is also easy to access, eliminating data breaching. It also saves the costs that you might incur in case of unfortunate events.
So, getting a contract management software solution with secure storage space and top-notch security features saves you from adverse events.
- Reducing Expensive Duplications
With contract information in hand, you can quickly determine which applications you are currently using in your SaaS inventory. You can use this data to guide forthcoming software acquisition decisions and avoid installing duplicate applications. It saves you from purchasing tools that have the same purpose, thus, reducing your expenses.
- Great Insights into your SaaS Contract Lifecycle Management (CLM)
If you try to manage each stage of the SaaS CLM process, it costs you a tremendous amount of time and energy and bears the risk of human error. Still, you might struggle with getting the most out of the contact’s performance.
Luckily, the contract workflow automation within the SaaS CLM software diminishes the hurdles by connecting with the right at the right time and providing unlimited contract reminders and notifications.
Furthermore, the contract lifecycle automation tools keep track of every step of the contract management process, including contract collaboration, negotiations, and approvals. And the CLM SaaS process assists in concentrating on contract performance management by agreeing to invest more time in contract content analysis.
- Ensuring Key Contract Details are Attended
When using automated softwares, you can set automated reminders for any additional requirements that are needed to be addressed by SaaS. Moreover, the SaaS contract managing software ensures every essential detail of the contract is closely attended to keep the services uninterrupted.
SaaS Contract Management: Key Stakeholders
To upturn the effectiveness of SaaS contract management, team members from around the organization are trained and educated. And it is ensured that everyone gets the process.
The key stakeholders of SaaS contract management software are the following:
It is usual for the legal department to work diligently with an organization’s contracts.
Sales and Marketing
The sales and marketing team is required to analyze project management and customer relationship contract terms to reduce extra expenses.
The human resources team may need to regularly access contracts, particularly when recruiting new employees.
Finance and Accounting
The finance and accounting personnel must access contacts to make sure finances are provided to the assigned departments.
The employees usually work with third-party vendors like SaaS providers.
Summing it up, SaaS Contract Management software saves your time, cost, and energy. Well, that’s not it; it also ensures data is kept securely and is not breached. Also, it eliminates duplication expenses and reduces team member disagreements.
All in all, SaaS CMS is a beneficial tool that transfers all manual work into automatic operations without involving human interventions.
Olga V. Mack is Vice President at LexisNexis® and CEO of CounselLink® CLM, a next-gen contract management company that has pioneered digital negotiation technology.
An award-winning general counsel and operations professional, Olga embraces legal innovation and has dedicated her career to improving and shaping the future of law. She shares her views in her columns at Above the Law, Forbes, Bloomberg Law, Association of Corporate Counsel (ACC) Docket, and more.