A data decomposition-based hierarchical classification method for multi-label classification of contractual obligations for the purpose of their governance.

Contract governance ensures that the agreed outcomes between customers and vendors are fulfilled. Information Technology (IT) outsourcing organizations enter thousands of contractual relationships each month leading to a high volume of business-critical contractual text that must be reviewed and deciphered for effective governance. The key to effective governance of contracts is a model that facilitates assigning ownership of the obligations to the right departments in an organization and allocating their accountability to the right stakeholders.