ICT Brazilian market: a promising area for investments




      

ICT´s market is expected to grow 5% to hit USD $ 165.6 billion in 2015

The achievement of political stability and economic diversification has allowed Brazil to set goals for growth and to consolidate itself as an emerging power. Factors like the end of hyperinflation, the adoption of a floating exchange rate, elimination of external debt and an international reserve of billions of dollars contributed to the attractiveness of the Brazilian economy.

Currently, the Information Technology sector represents 5,2% of the Brazilian GDP and indicates a raise in the use of technology in the most diverse economic segments. Brazil is already considered the fourth largest information and communication technology (ICT) market of the planet and seventh in IT. With private investments and government support, this industry has sufficient capacity to continue its development. Investments in hardware, software and IT services in Brazil have seen a better-than-expected 15.4 percent uplift in 2013 in relation to the previous year, according to an annual report on sector performance by IDC.

 Perspectives for 2015

IDC agency studies indicates that the Brazilian IT market will continue to grow. Companies reached a high delivery level considering national companies of services and software area. A main concern to the country is the lack of skilled labor force, which demands more technical education programs and, currently, international skilled labor hiring.

To represent growth rates expected, spending on software, should reach US $ 5.7 billion in 2015, a 3.7% uplift.  Finally, spending on devices (PCs, tablets, mobile phones and printers) are expected to total $ 19.1 billion, a 1% growth compared to 2014.

 Consumer market 

A growing Brazilian middle class has been one of the most important factors to stimulate the economy and this population already represents 38% of the consumer income of families in the country. Therefore, this class is changing the configuration of the IT sector, mainly by the expanding consumption of technological services and products. For example, a raise in sales of desktops, notebooks, tablets and smartphones lead to an increase of home internet access. One of the biggest trends in the country is the mobility to include digitally the emerging population. Furthermore, the growth of the middle class will drive the consumption of technology in several areas, such as Health and Education. The ICT investments will be focused on raising work efficiency and enabling wellbeing for the middle class that is gaining more space and decision power both in Brazil and globally.  The tools will be based on pillars that guide future technology, among them: cloud computing, mobility, social networks and big data.

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    Commercial director OpenLink in Brazil, global developer of software solutions

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    Director of the CDC Brazil programs CDC Brazil, operating agency of the Department of Health and Human Services of the United States

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  • Our intention was to test the market of software factories in São Paulo to learn about companies' needs, so we could concrete our expansion plan. We also wanted to try the model of outsourcing the sales force, thus we chose Paseli to be our sales representative in the region.

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