Feature

LatAm's ICT market seen as attractive despite economic, supply chain problems

Bnamericas Published: Thursday, September 22, 2022

The adverse economic situation in Latin America due to high inflation, rising interest rates and currency depreciation has not reduced the region's attractiveness to some technology providers.

"Latin America has a tremendous opportunity," said Luis Gonçalves, Dell's leader for the region, during a Q2 results webinar on Wednesday.

“The challenges that we face in Latin America, in general, are not very different from the challenges that we have always faced in the different countries of the region. However, now they are also global,” he said in response to a question from BNamericas.

Inflation has always been an issue in countries like Argentina and Brazil, and political uncertainty is nothing new to the region, said Gonçalves, who added that knowing how to navigate in adverse environments has become key for continued growth.

“In Latin America there's a lot of opportunity. 5G is just taking off and it creates a huge opportunity for our business. Also, private companies, governments and society in general offer an enormous potential for continued consumption of technologies,” he said.

Octavio Lazarini Barbosa, VP at technology distributor TD Synnex, expressed similar views at a virtual press conference that was also held on Wednesday.

"The investments we're making are long-term," he said in response to a question from BNamericas. "We do not see countries with major obstacles that force us to divest," the executive said, adding that volatility in Latin American currencies can sometimes lead to complications.

TD Synnex is the result of last year's merger between Tech Data and Synnex. Both companies have been operating in the region for more than 30 years.

SUPPLY CHAIN PROBLEMS

The shortage of chipsets and supply chain problems continue to be highlighted by executives as one of the main challenges of the ICT industry in Latin America.

"We've still seen global supply chain challenges," Goncalves said. "Until last quarter we had a lot of pressure on the supply of components for client solutions [PCs and workstations], but positive changes and a path of recovery is now in the making."

Lazarini said the lack of chipsets has generated delays in delivery times, which has been compensated for by an anticipation of orders from customers.

The supply chain problem has also fueled cloud demand due to delays in hardware shipments, he added.

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