Key Takeaways
Outsourcing contract transaction work allows legal teams to focus on higher-value strategic activities.
Standardized workflows and better data visibility improve efficiency and support successful CLM implementation.
Scalable contract outsourcing solutions help legal operations keep pace with business growth and technological change.
Managing contract transaction work is a constant struggle, particularly when it comes to distinguishing between strategic legal tasks and routine, repetitive transactional activities that drain legal resources. Lawyers, paralegals, and contracts managers all face the challenge of reducing risk while reclaiming bandwidth for higher-value work.
Here are six signals that it is time to assess the outsourcing of some or all your contracts transaction work:
1. Chronic Bottlenecks in Contract Turnaround
If your team is missing internal SLAs or other response expectations, it’s a red flag. Bottlenecks often stem from manual processes, limited staffing, or lack of automation. Outsourcing can introduce scalable support, technology and streamlined workflows that accelerate contract review, approval, and execution, without compromising quality.
2. High Volume, Low Complexity Contracts Are Draining Resources
NDAs, MSAs, SOWs, and other routine agreements can consume disproportionate time and attention. If your legal team is bogged down by repetitive, low-risk contracts, outsourcing these tasks to a specialized provider can free up internal talent to focus on strategic initiatives, complex negotiations, and risk mitigation. A service provider can also introduce AI and other technologies, so you are sure you are getting the efficiency advantages in all the latest technologies.
3. Fragmented Systems and Lack of Standardization
Are contracts stored across multiple platforms? Is version control a recurring issue? If your Contracts Lifecycle Management (CLM) process lacks consistency in templates, clause libraries, or approval workflows, outsourcing can bring structure and standardization. Many providers offer integrated technology solutions that centralize contract data and enforce best practices. Getting your systems and data house in order is particularly critical prior to a CLM implementation. Use a service provider for data cleansing before and after migrations.
4. Limited Visibility into Contract Data and Performance
Without robust reporting, it’s difficult to track obligations, renewal dates, or compliance metrics. If your team is flying blind when it comes to contract analytics, consider outsourcing to a provider who can provide the latest AI tools or optimize the use of your existing technologies to create dashboards, alerts, and insights that empower better decision-making and risk management. Tracking data over time can help you demonstrate the ROI of CLM platform technology.
5. Frequent Staff Turnover or Skill Gaps
Legal teams often face turnover, especially in roles focused on contract administration. If onboarding new staff feels like a revolving door, or if your team lacks the experience to leverage technology or design effective processes, then outsourcing can provide you with a team that will respond and scale to meet your changing needs. A strong managed services provider will utilize your tools to best advantage and include access to Six Sigma and project trained professionals who specialize in AI and process and workflow design for contracts management.
6. Business Growth Is Outpacing Legal Capacity
Mergers, new markets, product launches, growth are exciting, but it can strain legal operations. If your team is struggling to scale alongside the business while needing to control costs, outsourcing contracts functions can offer flexible support that grows with you, ensuring contracts don’t become a barrier to progress.
Outsourcing as a Strategic Lever
Outsourcing contracts lifecycle transactions isn’t about replacing your legal team, it’s about empowering it. By offloading routine repetitive transactions and leveraging external expertise, your team can focus on what it does best: protecting the business from risk, enabling growth, and driving strategic value.
If any of these signals resonate, it is time to explore outsourcing options. Assess your goals and workload needs, find a legal services provider with experience in the current CLM and AI technologies and build a partnership that aligns with your goals. The right outsourcing provider relationship can transform your contracts requirements from pain points into competitive advantages.
Learn how we helped Microsoft streamline their contracts work, or contact our Contracts Solutions team to learn more about how we can help create CLM efficiencies.