An Empirical Study of Gaps in 'Contract Lifecycle Management' Practices: a Sectoral Analysis of the Indian Consultancy Services Industry under the Indian Contract Act, 1872

Abstract

Forecasting and managing contractual relationships from inception to termination are increasingly becoming the core of governance and hence, CLM (Contract Lifecycle Management). Often, in consultancy services, deliverables (IP/intellectual property), performance standards, and payments are complex. Well-managed contracts ensure optimal operational efficiency, risk is assigned to the parties, and enforceability under the law. The Indian Contract Act, 1872 (ICA) governs all contractual relationships in India and contains a list of essential requirements for such contracts, including: offer; acceptance; consideration; free consent; lawful object; capacity to contract; performance of the contract; breach thereof; and remedies available for nonperformance, etc. India does have a strong statutory framework in place, but consultancy firms still practice a disparate and unstructured contract lifecycle. So, while most organisations lack standardised templates based on the ICA provisions, structured performance-monitoring systems, a centralised contract repository, or technology-enabled compliance systems, this is particularly the case for post-award contract stakeholders, where statutory obligations often do not logically route through to operational contract management, resulting in disputes, financial penalties, reputational impact, and inefficiencies.

This study aims to empirically investigate the existing gaps in CLM practices among Indian consultancy services and their correlation with ICA. Check out the Abstract and Supplemental Material for details on a mixed-methods approach that combines qualitative interviews and quantitative surveys to pinpoint operational shortcomings, assess compliance levels, and analyse the link between structured CLM practices and dispute reduction. The researchers then formulate an ICA-aligned, industry-specific CLM framework for consulting. This study aims to make a double contribution: first, to academic scholarship, and second, to industry practice, by guiding how contract governance should be grounded not only in legal doctrine but also in practical experience.