LATAM Contract Lifecycle Management Market Trends

Growth Drivers

• Growing Trade with Other Countries – Businesses enter into trade partnerships in order to import food and goods from abroad. Bilateral contracts help to smoothen the engagement of concerned countries in trade. The import value of Latin America from India in the year 2021-2022 increased by approximately 48% and the total value was around worth USD 19 billion.

• Rising Use of Artificial Intelligence– AI has optimized the business and it helps organizations to constantly shift and strategize according to the needs. In the fast-paced world of AI, the contract has become even more important. In the region, around 30% of companies are using artificial intelligence for their business. Moreover, while nearly 43% of businesses in the area are considering using the technology, about 29% of them have implemented these solutions in some capacity.

• Introduction of New Construction Contracts – For instance, the Urgency Decree No. 021-2020 was published in January 2020 by the Peruvian government. The Decree specifies terms for collaboration agreements with international organizations as well as Project Management Office within the context of Government to Government ("G2G") agreements.

• Growing Usage of Natural Language Processing– Text analytics-based cloud NLP helps in decision-making or additional analysis by creating structured data from the contracts. The value of the Latin American market for natural language processing software was estimated at approximately USD 25 million.

• Rising Employment in the Region– Latin American IT companies increased their global hiring by 286% in the second half of 2021. Additionally, it indicated that employers worldwide were most interested in hiring Latin American specialists.

Challenges

• Concerns associated with safety and privacy - Contracts include useful details regarding a company's clients, partners, intellectual property, and business procedure. As a result, the business may be exposed to threats from rivals and others who might try to exploit its information and data against it. Therefore, security breaches may result in legal action, penalties, harm to one's reputation, and other consequences.
• Implementation of CLM in the company is difficult due to financial constraints
• Cloud-based solution has a risk of cyber attacks