Mexico
Press Release

IT investment growth of 9.4% expected by 2022 in Latin America: IDC

Bnamericas Published: Wednesday, December 15, 2021

IDC statement

(Machine translation)

Latin America, December 15, 2021. - Despite the ravages of the pandemic, the Latin American market showed a growth of 8.5% in the information technology market during 2021, which reflects the importance of the sector in economic development of the countries of the region. IDC, the main ICT industry analysis firm, reported that by 2022 growth will be approximately 9.4% in the business market (excluding the consumer market), a figure that stands out in its “10 predictions” for the next few years.

Ricardo Villate, IDC Group Vice President for Latin America explained that this development has occurred because the IT industry continues to be an economic engine. It has even supported other vertical market sectors to enable IT to modify and drive business processes.

"For 2022, we expect a continuous increase in IT spending, with an average growth of 9.4%, as the technologies allowed, modified, and accelerated the dynamics to continue with the business," said Villate.

Likewise, he highlighted that an example of this was that the electronic commerce market increased its penetration between 10 and 15 percentage points in all categories of commerce. Which also meant that mobile payment methods will reach more than 50% of the population in Latin America. Another example is that the post-pandemic work model has been remotely permanent in at least 40% of companies.

In this same context, and derived from the need to use the amount of data that is generated, by 2023, 40% of the 5,000 most important companies in Latin America will have a data governance architecture to enable DataOps; promote data engineering based on Machine Learning; reduce data risks and drive innovation. While, by 2024, 1/3 of these companies will form data sharing partnerships with external stakeholders through data clean rooms to increase interdependence and safeguard data privacy and valuable data assets.

Latin American spending on data management software, which includes data integration and intelligence, database administration and development, as well as management systems, will grow at a compound rate of more than 16% in the next five years.

“The COVID-19 pandemic showed that organizations that were well on the path to being digital businesses are surviving much better, even thriving under pressure. Future success is no longer based on imagining what the future will be like or struggling to adapt to immediate disruptions; rather, in continuous innovation in response to the challenges and opportunities of "every moment". On the other hand, managers have realized that innovation is not only internal; they need to extend it to their ecosystems, even with partners, "said Villate.

The 10 predictions for 2022

Prediction 1: By 2024, digital companies will enable empathetic customer experiences and resilient operating models by shifting 70% of all technology and services spending to results-focused, as-a-service models.

Prediction 2: By 2023, 35% of the top 5,000 companies in Latin America will reset cloud selection processes to focus on business outcomes rather than IT requirements, valuing access to vendor portfolios from the beginning. device to the edge and from data to ecosystem.

Prediction 3: By 2023, 40% of the top 5,000 companies in Latin America will use cloud-linked AI-assisted government services to manage, optimize and protect dispersed data and resources, but 30% will not achieve full value due to IT skill mismatches.

Prediction 4: By 2024, 40% of the IT budgets of the 5,000 main companies in Latin America will be redistributed due to the adoption of integrated solution packages “as a service” in areas of security, cloud platforms, virtual workspace and connectivity.

Prediction 5: By 2025, industry leaders facing mandatory or systemic transitions in the next decade will double IT spending for new environments, but will struggle to achieve the expected gains in IT operational efficiency.

Prediction 6: By 2024, 50% of the top 5,000 companies in Latin America will earn twice as much, in terms of significant returns, on investments in technology that increase employee / customer activities compared to those that automate individual processes.

Prediction 7: By 2025, regional divergences in data privacy, security, and placement / use / disclosure mandates will force 90% of Latin American companies to restructure their data governance processes centered on an autonomous basis.

Prediction 8: By 2024, 40% of the top 5,000 companies in Latin America will shift half of their spending on new technology hardware / connectivity to modernize and re-conceptualize in-person experiences for customers and employees at their own locations.

Prediction 9: By 2025, 40% of the 5,000 main companies in Latin America will have Digital Sustainability teams, charged with evaluating, certifying and coordinating the use of business and IT sustainability data and analytical platforms offered by the ICT providers.

Prediction 10: By 2025, public company valuations will be based on both reliance on data controls for proper / effective use of data, and financial controls focusing increased spending on data-driven solutions.

This IDC report presents the top 10 predictions and key drivers for the IT industry for the next several years. It highlights the medium and long-term challenges facing enterprise IT teams as they define, build and govern the technologies necessary to thrive in a digital world.

***

About IDC

International Data Corporation (IDC) is the world's leading market intelligence, consulting services, and events firm for the Information Technology, Telecommunications, and Consumer Technology markets. With more than 1,100 analysts around the world, IDC provides global, regional and local expertise on technology and industry trends and opportunities in 110 countries. IDC insight and analysis helps IT professionals, business executives, and the investment community make informed technology decisions and achieve key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the leading technology, research and event media company. To learn more about IDC, please visit www.idc.com and www.idclatin.com .

Follow us on LinkedIn as: https://www.linkedin.com/company/IDC-Latin-America


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