Latin American IT investment seen reaching US$74bn this year

Thursday, April 21, 2011

Latin American's IT expenditures are expected to increase 6.3% this year to US$74bn, driven by consumer demand, growth in enterprises and increased government focus on technology, according to international tech consultancy IDC.

Cloud computing, data centers, social networking and renovation are among the main IT areas that will see growth in the region this year, the consultancy said.

A study developed by IDC takes a look at near-term trends in the Latin American ICT sectors, based on the collaboration of more than 1,000 analysts around the region.

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In one area, "Chile is working on the digitalization of government services, but there are pending matters, like subsidies. Chile and Latin America in general do not subsidize domestic IT use, like Korea for example, which is a country that funds up to 90% of its domestic IT use," said Natalia Vega, country manager for IDC Chile.

According to the report, Latin America will continue to boost its IT investments. It is expected that countries like Chile will increase investment from 1.6% % of GDP, to 1.8. As a benchmark, the US and UK invest about 3.5% and 4.1%, respectively, of their GDP in IT.