Latin America's IT services market will reach US$22.4bn this year, up 11% from 2010 and two percentage points higher than previous forecasts, according to IDC's Latin America Semiannual IT Services Tracker 2010.
An ongoing economic recovery and sustained growth in legacy application upgrades are the main drivers. Additionally, increasing virtualization, consolidation and optimization of data centers have driven adoption of cloud computing as a business model.
"Both trends are starting to gain weight on companies' IT agendas, something that will persist during 2012," said Mariana Zamoszczyk, program manager for the IT services unit at IDC Latin America.
By country, Brazil, Colombia and Peru showed the highest growth rates during 2010 - more than 20% each compared to the year before - while Mexico had a considerable recovery at 13%.
As to vertical markets, the study indicates that the financial, telecommunications and manufacturing segments continue generating the highest investments in the region, representing 62% of the IT services market in 2010.
But the services and gas and oil segments recorded the highest growth rates, at 20% and 21% respectively.