Skip to main content Skip to footer

Legal Process Outsourcing

Boosting revenue with smart contract management strategies

Contracts are an integral building block of businesses today, with contracts governing an estimated 60% to 80% of business-to-business relationships and transactions. With companies managing tens of thousands of active contracts at any given time, traditional contract management processes are no longer sufficient. This is where Contract Lifecycle Management (CLM) solutions and smart contract management strategies step in to overcome key contract management challenges and help businesses boost revenue through enhanced contract management efficiency.


Key contract management challenges

Businesses often face many challenges when managing a contract lifecycle, which can result in not just missed business opportunities but non-compliance fines and penalties as well. Four key CLM challenges that businesses must overcome include:

  • Lack of visibility and control over contract data in the decentralised and manual contract management processes, resulting in fragmented contract repositories, difficulty tracking contract obligations and versions, and limited access to critical information.
  • Inefficient and time-intensive negotiations, leading to missed opportunities, delays, and increased costs.
  • Lack of collaboration between siloed finance, legal, and sales teams, resulting in disputes, errors, and compliance issues.

Key features of an AI-powered contract management strategy

Rapidly advancing technologies and AI capabilities have demonstrated a transformative impact on contract management processes and CLM. The core capabilities and features of an AI-powered contract management strategy include:

  • Automated data extraction and analysis to quickly identify key contract terms and risks.
  • AI-driven risk detection to improve decision-making by identifying potential issues early.
  • Streamlined workflows through automation to reduce delays and minimise manual errors.
  • Centralised contract storage and templates to enhance accessibility and ensure consistency.
  • Real-time compliance monitoring to minimise the risk of regulatory violations.
  • Insightful analytics and reporting to provide actionable insights into contract performance.
  • Seamless integration with existing systems to boost collaboration and transparency across teams.

Role of smart contract management strategies in boosting revenue

Accelerate time-to-revenue with advanced CLM strategies

Accelerate time-to-revenue with advanced CLM strategies

Smart contract management strategies provide businesses with powerful tools to enhance efficiency, reduce costs, and boost revenue through optimised CLM. Seven ways optimised contract management processes contribute to revenue growth include:


Task automation

Automating routine tasks like contract drafting, approvals, and renewals reduces human intervention in CLM, resulting in fewer delays and errors. This efficiency helps businesses accelerate revenue generation and allocate available resources more strategically. Additionally, reducing errors also results in enhanced compliance, assisting businesses to prevent costly mistakes that could result in missed opportunities or non-compliance penalties.


Resource optimisation and faster contract review

Through smart contract management, you can leverage automation and structured workflows to streamline the contract review process. By eliminating manual processes, businesses can save on operational costs, focus on closing the deals faster, and optimise their resource allocation.


Scalability and flexibility

As businesses grow and contract volumes increase, AI-powered contract management processes offer scalable solutions that can automate contract renewals, track obligations, and send notifications about upcoming deadlines. This ensures better contract oversight, ensuring businesses can respond quickly to their growing obligations without compromising on quality or control.


Automatic compliance and risk reduction

Automated compliance features of an AI-driven CLM solution and contract management process help businesses stay on top of and adapt to the changing regulatory environments. These systems ensure standardisation and maintain comprehensive audit trails, thus reducing the risk of non-compliance penalties. As a result, businesses can expand into new markets and explore diverse revenue streams without having to worry about compliance.


Strategic collaboration and centralised data

A single source of truth for contracts – through integrated CLM systems – breaks down inter-departmental silos and facilitates real-time collaboration between different stakeholders. Stringent version control ensures access to the latest contract terms, while robust search capabilities allow businesses to identify revenue-generating clauses and opportunities to support strategic decision-making.


Increased privacy and security

Smart contract management strategies often leverage enterprise-grade security features to protect sensitive contract information from unauthorised access, ensuring data privacy and safeguarding against potential data breaches. These measures not only ensure compliance but also build trust among key stakeholders to further enhance business opportunities.

Each of these factors helps businesses optimise contract management processes, improve efficiency, mitigate risks, and boost revenue (both directly and indirectly).


How can Infosys BPM help implement smart contract management processes?

Managing numerous contracts daily requires smart contract management for efficient CLM. Infosys BPM contract lifecycle management services can help businesses enforce compliance, manage obligations, reduce contract risk, and reduce their time-to-contract. With services covering contract lifecycle management, contract and negotiation, contract execution and approval, and technology for contract management, Infosys BPM can help leverage contract intelligence and implement AI-driven contract management strategies to enable higher performance.


Recent Posts