The role of contracts is changing

The past decade has seen a revolution in the role of contracts-transforming them from purely legal necessities for protecting against worst-case outcomes, into tools for optimising ongoing business relationships. The way they are managed must be transformed too.

Companies across all sectors are moving decisively to drive out costs and concentrate on core competencies by increasing their use of outsourcing, licensing and various innovative forms of alliance. These changes require more flexible business models and a rising diversity of business relationships. Contracts are the means by which these are defined and optimised.