Have you recently come across voluminous, lengthy, and complex contract documents in your legal practice? It might be a good idea to outsource contract abstraction services. With contract abstraction, you will receive a summary of your contract that contains key points including clauses, the scope of work obligations, named parties, renewal dates, termination, liability waivers, etc. A company can benefit from such services in more than one way.
Contract abstraction services can provide a plethora of benefits to support business changes. These may include greater efficiencies, more consistent quality, and improved cost control through standardization. The reason that contributing businesses choose outsourcing is to allow themselves to primarily focus on their core competencies while employing contracted organizations for elements outside of these.
Let us explore the key benefits of outsourcing contract abstraction.
Contract abstraction services offer businesses a new set of resources that have experience in certain domains, which allows companies access to employees with backgrounds in specific industries or disciplines. In return for this knowledge base and skillset, contract workers are paid salaries by participating companies but then work under their direction within an organization that uses them. This allows for the sharing of expertise across departments without the additional costs associated with bringing on full-time employees.
Since contract workers have specialized knowledge in a given area, they are required to obtain and maintain active industry certifications in their field of expertise. This can result in the streamlined production of services as well as increased consistency across projects happening within an organization.
A Transition from Paper to E-copies
If your legal firm or division has a lot of paper documents stored in filing cabinets, finding specific dates, payment terms, or phrases/clauses may prove difficult. It’s tedious, expensive, and risky to save, check, and extract data from a contract on your own. It is possible to hire experts to handle contract abstraction that will utilize the latest technology to efficiently process information and deliver it in a concise, easily readable format.
Gain a Better Perspective
Clauses, dates, and similar critical terms are extracted during contract abstraction. The abstraction of contracts gives you a clear picture of important aspects like dates, terminations, parties, renewals, etc. when dealing with complex or extensive contracts. Abstraction of contracts can help you improve your internal efficiency and ensure that your contracts are legally valid throughout their lifetime. Additionally, your enterprise can save time and staff resources by utilizing cloud computing. Upon completion of contract abstraction, all the clauses and recommendations in your documents will be visible to all of your team members.
More Consistent Quality
Since most contract workers are brought onto organizations utilizing specific project requests, there is little possibility for inconsistency due to individual performance issues or disagreements. Furthermore, since these companies have contact with other organizations besides your own, they may be able to communicate best practices that you could bring into your workflow.
For example, rather than hiring someone with experience monitoring environmental conditions during storage, an outsourcing company may require all contracted units to abide by certain standards for temperature and humidity. This ensures that all units throughout a network are following best practices within the industry to limit discrepancies that may be costly in terms of downtime or diminished performance rates.
Improved Cost Control Through Standardization
Contract abstraction services can provide companies with more streamlined workflows by employing standards across multiple organizations that participate; this is done through:
- Establishing processes that ensure information is passed on from one unit to another along with current pricing models, policies, and procedures.
- Developing methods for ongoing communication between each organization’s relevant departments.
- Streamlining support requests through web-based portals or phone systems.
- Having established rules in place during project delivery allows businesses to reduce costs and improve efficiency through standard workflows.
- Businesses that are interested in harnessing the benefits of outsourced contract abstraction services can contact third-party companies for more information on how they can be used to help meet organizational goals. Some helpful questions that businesses may want to ask include:
- What are your current project backlogs?
- How do you determine what projects you accept?
- What is included with contracted units and additional charges for changes to existing models?
- Do you keep track of company-specific software updates or follow industry standards? There are many options available, so these factors must be considered before making a decision about which company is right for your business needs.
Greater Efficiency through Specialization, Standardization, and Increased Expertise
Outsourcing allows a company to access specialized knowledge without having to hire full-time employees or train existing staff in the necessary skillset. This can lead to increased quality of work as well as streamlined workflows through standardization of practices across multiple organizations involved with the project Delivery. Additionally, companies that use contract workers have less turnover since they are brought on only for specific projects and are not expected to provide ongoing support or training once their part is done.
More Consistent Quality
Products Since most companies that use contract workers will have a dedicated team assigned to projects and not rely on existing staff, the end product should be more consistent amongst projects. Also, this consistency can allow for greater focus on important quality assurance practices such as having a system in place to track software updates or industry standards.
Reduce Operating Expenses
Through Decreased Headcount When companies hire contractors instead of full-time employees, they can decrease operating expenses due to decreased headcount within their company; however, this can also lead some businesses into trouble if they do not prepare accordingly for increased demand during project crunch times.
Increased Project Profitability
Contract workers can have a positive impact on project profitability by increasing the number of hours worked without incurring costs associated with hiring full-time employees and training them in your workflow or company practices.