Corporate sector concern on Humala seen in 4 areas

- Friday, April 8, 2011

Corporate sector concern on Humala seen in 4 areas

Presidential hopeful Ollanta Humala's growing popularity is stoking the Peruvian IT industry's fears of nationalizations, press regulation and constitutional changes, international tech consultancy IDC's system infrastructure software analyst David Ayvar told BNamericas.

Those factors, coupled with Humala's chummy relations with Venezuelan President Hugo Chávez, could hit both IT companies and their best clients.

"In this context, large companies - be they local or multinationals that operate in Peru - would be the most affected, and they are concerned about the possible election of Ollanta Humala," he said. "The main IT providers would not be immune to this type of environment, due to the fact that large companies, together with the government, are the biggest investors in IT."

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If Humala wins the election, it could be the start of a slippery slope through the five-year presidential term, according to the analyst.

"Even if expenditures in technology don't drop, the economic environment might not be favorable in the medium or long term, even going as far as having limits on transactions in dollars like in Venezuela today," Ayvar said.

The head analyst at local consultancy firm Dominio Consultores, Victor Velarde, recently told BNamericas that the IT industry is cautious, but that players are continuing with business as usual.

A poll carried out recently by Ipsos Apoyo showed Humala garnering 28% of the first round vote, followed by legislator Keiko Fujimori with 21% and former president Alejandro Toledo and minister Pedro Pablo Kuczynski with 18% each.

The first round of presidential elections will take place April 10, and a run-off vote will occur June 5 if no candidate manages to capture 50% of the vote. Due to the presence of various candidates, it is highly unlikely that an outright winner will emerge this month.