Drive Margin Improvements with Effective Contract Management

While firms evaluate long term counter pricing measures to negate the impact of inflation, commercial tightness emerges as an effective means of arresting margin erosion with immediate effect. Given the central role of contracts across organizational divisions, efficient contracting allows for significant value unlocking especially in the areas of price-escalation-linked revenue realization, due diligence of contractual obligations for preventing penalties while increasing customer satisfaction and navigating the evolving regulatory landscape.

To combat the revenue leakages affecting the IT industry margins, BCG has partnered with Icertis, the industry leader in end-to-end contract management, to launch a holistic report on the subject. This report dives deep into the pre-implementation assessment analysis undertaken jointly by BCG and Icertis and reveals that AI-enabled contract data management can save up to 3.5% of revenue leakage for the IT/ITeS firms in the current inflationary environment, thereby engendering significant margin improvement potential.

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