Every enterprise today is in search of options that can reduce the time taken to achieve its goal in the contemporary digital economy. Contract management is not left out in this regard, as it is a vital aspect of many industries. The manual method of processing contracts on paper is lacking in effectiveness and may contain numerous misinterpretations and errors.
Meet the e-signature—a contemporary approach that facilitates the entire process of contracts. Electronic signatures as used in signing documents help businesses streamline operations and confirm agreements, making them legally binding.
The Electronic Signature: Understanding and Definition
The electronic signature, commonly referred to as e-signature, is the computerized version of the handwritten signature. This makes it possible for a person to append his/her signatures on documents through electronic means. Given that contracts can nowadays be signed with the help of electronic tools, electronic signing is undoubtedly very helpful in the contract management process.
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Advantages of Integrating Electronic Signatures in Contract Management
1. Improved Efficiency
The use of an electronic signature enhances the efficiency of contract signing. Most traditional processes involve the use of hard copy papers, which entails activities such as printing, signing, scanning and mailing, all of which are time-consuming to projects. In contrast, the use of electronic signatures for contract signings and other formalizations makes these possible in minutes rather than the above mentioned potential delays.
2. Enhanced Security and Compliance
The use of an electronic signature has enhanced the security of documents as compared to using a conventional sign. A number of e-signature solutions include features such as encrypted transmission, electronic record of actions, and ways to recognize signers. The additional layer of security prevents fraudsters from posing as the signatory and meeting the legal requirements of the enacted laws such as the ESIGN Act in the U. S and the eIDAS regulation in the EU.
3. Cost Reduction
When it comes to cost saving, you have to agree that with the help of electronic signatures, many expenses related to paper, printing, and mailing are eliminated.
4. Better Document Management
Electronic signatures are also easily compatible with CMS software for efficient contract storage, classification, and search. This reduces the possibility of papers getting lost or misplaced, which is often associated with the paper based systems.
How to Implement Electronic Signatures in Contract Management
1. Choose a Reliable Platform
Choose a right and reliable e-signature solution that follows regulatory requirements.
2. Train Your Team
Educate your employees about how to use the platform as well as understand the features that are available to them.
3. Integrate with Existing Systems
To ensure seamless working, the e-signature platform should be synchronized with the contract management system.
Conclusion
The evolution of electronic signatures is becoming the new frontier of contract management tomorrow. Due to the benefits such as increased efficiency, greater security and reduction in costs, they are now a necessity for any size of business. The trend of using this technology will lead to the increased automation of contract management processes in the future.
