Software, services industry set to grow 2011 revenues by 20%

- Friday, December 30, 2011

Software, services industry set to grow 2011 revenues by 20%

Brazil's software and services industry will see 2011 revenues surge 20%, totaling US$22bn, online news source TI Inside reported, citing Gerson Schmitt, the president of local software industry association Abes.

Also, "the goal is to keep this same pace of growth in 2012, which should be around 15-20%," Schmitt was quoted as saying.

The executive noted that further expansion would be limited due to a shortage in the local IT workforce.

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Schmitt also praised the government for recent changes in the tax code, allowing IT companies to contribute with 2.5% of revenues, instead of the previous system of taxing 20% over the payroll.

But according to Abes' president, the measure could harm smaller enterprises, which work with a reduced number of employees.

"These companies often don't have many employees, so they will have a heavier tax burden. This mainly affects the newer companies arriving in the market," he said.