IT investment seen growing 11% this year

Wednesday, November 16, 2011

IT investment in Chile is expected to grow 11% this year to 1.99tn pesos (US$3.9bn), according to a joint report by local communications and IT association Acti and tech consultancy IDC.

For 2012, IT investments are estimated to reach 2.41tn pesos, due to the country's expected healthy economy.

According to the study, the IT activity index 2011, the hardware market is leading investments in the industry with 61% of the total. The IT services market accounts for 29%, while the software market contributes 10%.

Start your 15 day free trial now!


Already a subscriber? Please, login

"IT investment in Chile continues to represent about 1.7% of the country's GDP, while the global average varies from 2.0-2.5%. These figures show the industry still has growth potential," Acti president Raúl Ciudad said.

Compared to other countries in the region, Chile's growth in IT investment led the way last year with 40.2%, followed by Brazil (40.0%), Peru (39.9%), Colombia (36.5%) and Argentina (24.2%).

For this year, with figures that reflect stabilization in the investment after the economic crisis, growth in IT investment in US dollars is expected to be led by Brazil with 23.2%, followed by Peru (21.6%), Chile (21.0%), Colombia (16.4%) and Argentina (13.6%).

Mobility and increasing broadband penetration have continued to fuel the adoption rates for laptops in Chile, growing to 867,000 units in the first half of 2011, from 662,000 units in the year-ago period.

On the other hand, desktops have shown more modest growth, to 263,000 units from 253,000 in the same comparison.

For 2012, the consumer sector is expected to maintain its investments to renew IT equipment, while in the corporate segment, specific solutions will be implemented to complement the core business.

In the public sector, the study foresees improvements in IT infrastructure to support e-government services, in addition to hardware upgrades and new virtualization projects.

"The government's investment this year was lower than expected. Therefore, we believe that next year will bring large projects of interest to the market," IDC senior analyst Marco Soto said.

But the floods in Thailand could complicate the picture in the coming months with a price increase in computer parts such as hard drives, he added. "We believe the first half of 2012 is going to be complicated and could somewhat affect the [investment] trend we have been seeing so far. But we hope to recover in the second half."


With respect to the IT ministry that Acti has long pushed for, Ciudad said the entity is actively working with the government to create an entity in charge of research, innovation and technology activities in the country.

For Ciudad, creating a technology ministry is imperative to driving efficient and nationwide strategies for promoting IT investments, reducing the digital divide, and stimulating innovation in the country.

In particular, the Acti president emphasized the latter issue, since a low rating in Chile's research and development environment led the country to fall five places in the 2011 edition of the Economist Intelligence Unit's IT Industry Competitiveness Index.

Chile has fallen 21 places since 2009 to date in the R&D category, to 52nd place - behind Brazil, Argentina, Mexico and Colombia. This sharp decline was mainly due to the limited filing of patents for technological innovation.