The governments all over the world are increasingly under pressure due to dwindling resources and increased spending due to growth of populations as well as their growing needs. This trend has given rise to the importance of Professional Contract Management in the relevant organizations.
While dwindling resources press reduced government spending, which in turn results in risks and opportunities. Risks causes down scaling the economies causing government contractors and suppliers reducing staff due to cancelled or scaled-back projects, which harms the economy further due job losses. On the positive side, opportunities, though lesser in value than the risks, make the governments to look at subcontracting the necessary services to the private sector in order to save money and maintain the services.
As the governments with limited resources are being pressurized by the increasing and material hungry populations around the world, the state projects being the backbones of local economies, are being scrutinized to get the maximum yields while maintaining expenditure to minimum possible levels. In such scenarios, the project management teams are constantly trying to find ways to curtail excess expenses by cost management, and avoid or mitigate possible risks through professional contract management, for timely and cost effective project completions.