What is Contract Lifecycle Management (CLM) & How does it Work?

Companies are losing 9% of their annual revenue to poor contract management. That’s where most businesses hit a roadblock. You could be having this massive revenue leak. But not with an efficient contract management tool.

What is Contract Lifecycle Management?

Contract Lifecycle Management (CLM) involves managing contracts from initiation through execution, performance, and renewal or expiration. It systematically handles every contract stage, from drafting and negotiation to compliance and renewal, using tools and often specialized software.

SignDesk’s Contract Lifecycle Management (CLM) digitally manages contracts at every stage. A good CLM tool takes the chaos out of contract management and replaces it with clarity, control, and compliance. Trusted by 3,000+ market leaders for a smooth contract lifecycle by cutting 68% TAT. You can do that too – how? Let’s find out with this detailed guide! 

Contracts!

Stages of the Contract Lifecycle Management (CLM) Process

Managing contracts manually leads to delays, compliance risks, and lost revenue. A leading appliance company in India faced these exact challenges – slow approvals, errors, and poor visibility. SignDesk’s CLM solution transformed their process with automated workflows and real-time tracking, cutting turnaround time by 68% with 100% digital workflows.

This is the power of end-to-end digital Contract Lifecycle Management (CLM) – faster deals, seamless collaboration, and total control.

CLM is categorised into stages of contract lifecycle, ensuring speed, compliance, and visibility. Let’s walk through the process, one stage at a time:

• Contract Request (Initiation)

Every contract begins with a business need – a vendor agreement, NDA, or sales deal. Instead of messy email chains, a CLM system allows team members to request a contract formally through a standardized intake form. A business professional submits a request to legal for drafting an agreement, and further actions are taken once initiated.

• Contract Authoring (Drafting)

Now it’s time to write. But forget copy-pasting from old docs. In CLM, this stage is simplified by drafting the contract with templates and clauses available in the library. Once a request is approved, the authoring stage kicks in. Here, legal or business teams draft the contract.

Instead of reinventing the wheel, CLM platforms provide:

• Pre-approved templates tailored to specific use cases
• Clause libraries with legally vetted language
• Auto-populated fields to reduce manual entry

For example, a sales agreement might automatically fill in client names, payment terms, and region-specific clauses.

• Negotiation

Negotiation is reviewing, modifying, and agreeing on contract terms between two or more parties. Traditionally, this involves endless email threads and multiple versions of Word documents with tracked changes.

Modern CLM transforms negotiation by offering:

• Real-time collaboration on a shared document
• Role-based permissions for internal and external users
• Auto-versioning and change tracking
• Audit trails to ensure accountability

For example, a vendor might suggest a change to the payment clause. The internal procurement team gets an instant alert, reviews the clause, and comments directly on the platform – no need to dig through inboxes.

• Approval Workflows

Routing the contract to the right people at the right time! Once the draft is finalized, internal stakeholders need to approve it. This could include:

• Legal for compliance checks
• Finance for budget approval
• Executives for high-value contracts

Instead of a manual contract approval process, CLM automates the workflow:

• Assigns approvers based on rules (e.g., contract value > ₹10 lakhs routes to CFO)
• Sends reminders and tracks approvals in real-time
• Ensures nothing gets stuck in limbo

• Execution (eSigning)

Closing the deal – faster than ever! Once everyone’s given the green light, it’s time to sign. No more printing, scanning, or waiting for courier services.

With integrated digital signature solutions, contracts are:

• Signed securely and legally across devices
• Timestamped and stored for future audits
• Compliant with global eSignature laws (like IT Act in India, eIDAS in EU, ESIGN in US)

• Obligation Management & Tracking

A signed contract is just the beginning. Businesses sigh in relief once a contract is signed, but that’s where the real work begins. Post-signature contract management is critical to ensure both parties fulfill their obligations. This includes Payment schedule, Delivery timelines, Service-level agreements (SLAs), Renewal deadlines, and Compliance audits.

CLM offers smart dashboards and reminders, helping you:

• Monitor contract performance
• Avoid penalties for missed obligations
• Stay ahead of renewal dates

• Amendments & Renewals

Contracts evolve – so should your CLM. Markets change. Clients renegotiate. Vendors revise rates. Contracts need flexibility.

With a digital CLM, you can:

• Amend terms without creating new contracts
• Compare versions side-by-side
• Set auto-renewal rules and receive alerts well in advance

For example, your software supplier’s annual contract can auto-renew every March unless renegotiated – CLM ensures you’re never caught off guard.

Why SignDesk is the #1 Choice For Contract Lifecycle Management

Managing contracts is slow and messy, but it doesn’t have to be. SignDesk offers one platform: faster contracts, no delays! With SignDesk CLM, businesses can create, sign, track, and manage contracts in one place, without the usual delays and manual work. How? Our CLM software features unique capabilities that allow for a seamless contracting experience. Learn more about them below:

• Create & Collaborate on Contracts Faster Than Ever

Creating contracts shouldn’t take days or even hours. SignDesk makes it happen in minutes. We offer:

– Pre-approved templates and clause libraries to draft contracts quickly and accurately

– Auto-fill dynamic forms to instantly customize agreements based on context or counterparty

– Pre-draft internal sign-offs for simplifying approvals and improving compliance with CLM 

– Real-time Negotiation, with secure collaboration and version control built in

Everything is built to save time and avoid confusion.

• Efficiently Execute Contracts Digitally

Speed up execution without compromising on legality or data security. SignDesk provides:

– Digitally sign and stamp contracts with built-in eSign and eStamp integration

– Automated alerts for renewals, expirations, and obligations so you never miss a milestone 

– User access management and permissions to control visibility and actions across teams

It’s fast, secure, and 100% digital.

• See Everything, Stay in Control

Know exactly where every contract stands and where it’s headed. We have developed:

– Real-time tracking of changes, comments, and actions throughout the lifecycle

– Audit readiness and SLA compliance made easy with obligation and milestone tracking

– Interactive dashboards and analytics to inform more intelligent business decisions

Everything is clear, simple, and right at your fingertips.

• Organize, Integrate & Scale Easily

Manage all your contracts in one place and connect with tools you already use.

– Bulk upload legacy contracts and manage everything in one secure repository

–  Smart search and tagging for faster access and better organization

– Integrated GSTIN verification and plug-and-play APIs for seamless workflows

– MS Word integration so you can work from where you already do

With SignDesk, you don’t just manage contracts; you enjoy the benefits of contract lifecycle management and evolve your business with 1.6x speed.

How Contract Lifecycle Management Works with SignDesk

✅ Get Started in a Few Easy Steps

Manual Contracting vs. SignDesk CLM

Manual contract management has long been a roadblock for growing businesses. It’s slow, error-prone, hard to track, and almost impossible to scale. That’s where SignDesk CLM comes in as a modern, AI-powered platform that simplifies the entire contract journey, from renewal request.

Here’s how SignDesk CLM solves the everyday problems of manual contracting and helps businesses save time, reduce risk, and scale faster.

💡 Companies using SignDesk CLM report up to 68% reduction in contract turnaround time.

CTA: Speak to a CLM Specialist and See the Difference!

🚀 How TTK Prestige Reduced Contracting Time from 30 Days to 20 Minutes with SignDesk CLM

TTK Prestige, a leading kitchen appliances brand in India, faced severe issues in its contract management process. They faced lengthy and inefficient contract cycles, finalizing agreements often took over 30 days due to manual drafting, repeated reviews, and frequent delays caused by unavailable signatories. The reliance on physical signatures, paper-based processes, and courier services slowed things down, leading to high printing, scanning, and logistics costs.

That’s when they turned to SignDesk CLM, a powerful, AI-enabled contract lifecycle management platform that helped them digitize, streamline, and scale their contracting operations.

✅ Contract Turnaround Time Cut to 20 Minutes

What used to take weeks is now completed within minutes, thanks to template-based drafting, instant collaboration, and automated approvals.

✅ Costs Reduced by Over 30%

With everything digital, drafting, signing, and stamping, TTK Prestige eliminated paper, courier, and administrative overheads.

✅ 100% Digital Contract Workflows

With eSign, eStamp, and automated contract tracking on one platform, the entire contracting process became seamless and secure.

With SignDesk CLM, many top enterprises, such as Kotak, Axis, TTK Prestige, and HDFC, saved time and money and empowered their legal and business teams.

Frequently Asked Questions (FAQs)

1. What Does CLM Stand For in Business?

CLM stands for Contract Lifecycle Management, a digital process that helps businesses create, manage, sign, track, and renew contracts efficiently and securely.

2. How is CLM Different From CRM?

CLM (Contract Lifecycle Management) manages contracts, while CRM (Customer Relationship Management) handles customer interactions. CLM focuses on legal agreements; CRM focuses on relationships and sales.

3. What is CLM in Testing?

In testing, CLM refers to managing the full lifecycle of test-related documentation, such as requirements, test cases, and approvals, to ensure compliance and audit readiness.

4. What Does CLM Mean in KYC Processes?

In KYC, CLM tracks a client’s onboarding, compliance, and documentation journey across their relationship with the business.

5. What Challenges Does CLM Software Solve?

CLM addresses slow contract cycles, compliance risks, version control issues, and approval delays, while improving visibility, collaboration, and legal accuracy.

6. How Should You Choose a CLM Vendor?

Look for a CLM vendor that offers AI-powered automation, eSign/eStamp integration, substantial compliance, scalable workflows, and easy integrations like SignDesk.