Latin American IT market to grow 7% per year till 2014

Infotech Lead America: The IT market in Latin America will grow 7 percent a year till 2014.

As economy of most countries of the region is likely to grow less than 3 percent, the IT investments represent a key factor to boost Gross Domestic Product (GDP).

Though IT investments — — composed of hardware, software and services — are increasing, the IT market is facing a new era of business model, where data or information is not sufficient to differentiate one company from another.

“What makes the difference is how to develop insights that can guarantee companies a competitive edge in the market. The market is now driven by technology business, not by the Information Technology,”’ said technology analyst Mauricio Chede at Frost & Sullivan.

CIO’s main objective is to outsource technology processes, applications and infrastructure, in addition to understanding how your business can benefit from cloud computing. This demonstrates a clear path on the new role of the IT executive, being more strategic and aligned with the company’s business.

To achieve this goal, the Latin American companies are willing to outsource their infrastructure, driven not only by cost reduction, but also for efficiency and productivity.

The restrictions that the market often face were related to concerns about data security and not just because of the low knowledge or ability of companies to provide services. That is changing, as demand and supply are getting more mature.

Compliance and regulation of specific verticals such as banking; issues of telecommunications infrastructure to ensure connectivity; and perception of high complexity to outsource the infrastructure to a third party are three main constraints in the Latin American market.

The market Datacenter services in Latin America will continue to grow by more than the economy does not follow the same path and also considering that this is already a billion-dollar business.

Frost & Sullivan estimates that the total market for services Datacenter Latin America in 2012 reached a total of $ 2.3 billion and is forecast to grow 9.6 percent per year until 2017.

In 2017, total data center market will represent $ 3.6 billion. Brazil is the market leader in the region with 58.5 percent share for datacenter services in 2012 and is forecast to reach 59 percent by 2017.

The region has opportunities, especially with Big Data, cloud computing and mobility, which will demand datacenter services to ensure greater storage procesamento and the large volume of information.

picture source: technoshf


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