Google eSignature in Docs: Will It Replace Your Contract Management Software?

Source: Google

Solopreneurs and freelancers have a new reason to rejoice. Google has announced plans to include an eSignature tool right within Google Docs.

On the Google Workspace blog, the tech giant explained that the eSignature feature will add more value to its Workspace subscription. It will help address one of the common problems of solo business owners in document and contract management. Since users can create and sign documents within Docs, they won’t need to go to another app to complete the task.

Traditionally, users would need to download and convert documents created in Google Docs or Word to PDF files. They then need to sign the PDF and re-upload it as an attachment so that the other party could sign. With the new eSignature tool, users can simply draft the contract and finalize agreements within a familiar interface.

Moreover, Google hopes that the eSignature tool can help its users stay on top of contracts and documents that need to be signed. eSignature will particularly be helpful to freelancers and professionals who often work alone. They don’t have assistants or staff that could help them keep track of contracts.

According to Google, Workspace subscribers also have the advantage of built-in protections when signing documents within Docs. Google uses the same security protocols to safeguard user information and privacy on its platform. Workspace subscribers would have to wait though since Google is yet to announce a date for the rollout.

eSignature tool lets users easily request electronic signatures directly in Google Docs. Source: Google

Do You Still Need Contract Management Software?

With the soon-to-be-released eSignature in Google Docs, would businesses still need dedicated contract management software?

Based on Google’s blog update, users can collaborate on documents, add customized fields to documents, and request for signature once all comments on a document have been resolved. Also, once ready to sign, the signee can easily add their signature without downloading the document.

Once signed, Docs emails a completed PDF file of the document to both parties. Both parties will also be able to track the progress of documents and find completed contracts within Google Workspace.

So, what can users do in a contract management software that they won’t be able to in Google Docs with eSignature?

Compliance is one. Large organizations, especially in heavily regulated industries like construction, healthcare, and financial services need to meet strict compliance. Cloud-based contract management software can be an excellent solution. Contract management platforms include robust security such as SOC2 Type 2 certification and IASME certification for GDPR compliance.

AI-powered contract automation features are another consideration. Aside from automating workflows, AI in contract management can help in streamlining data insertion and extraction. It can also assist in risk identification using automated data entry and risk assessment mapping.

Google said that the eSignature feature will be available to Google Workspace Individual users. So, we’re assuming it offers the basic features solo business owners or small businesses need to successfully manage their contracts. Businesses that need to manage complex contracts, especially involving volume and multi-step processes for review and approval, may have more options with cloud-based contract management software.