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IT will be Brazil's outlier this year

Bnamericas Published: Tuesday, June 07, 2016

Software association ABESand ICT consultancy IDC forecast that Brazil's IT market will grow 3% this year, beating the estimated 2.4% global average and outperforming the local economy, which is expected to contract 4.3%.

Growth will be driven in part by the increasing role of IT in the operations of companies, which are seeking to digitize records and integrate production processes.

According to the study, 54% of Brazil's medium and large companies will invest in the so-called digital transformation this year. This trend had already been highlighted by another consultancy, Gartner.

Another driver for IT spending will be cloud computing. The ABES/IDC study does not set forecasts, but says investments will remain high.

To Gartner, cloud was the silver-lining of local IT spending in 2015, although investments in the technology fell on an annual basis. In fact, while IDC reported Brazil IT spending grew 9.2% last year, Gartner reported domestic IT spending plummeted 30%.

DEVICES

Meanwhile, the trend for devices will continue to be bearish. In 2015, sales of tablets and smartphones fell for the first time, while PCs recorded another year of losses.

ABES and IDC estimate 40mn mobile phones, 6mn PCs and 5mn tablets will be sold in Brazil this year, down from 47mn, 6.6mn and 5.8mn, respectively, last year.

The survey also sees the internet-of-things (IoT) segment generating US$4.1bn in revenues in Brazil this year, while the value of financial transactions via mobile devices will grow 30%.

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