Market Analysis

Gabriel Cogo (Brazil) - IT Predictions for South America in 2011

If we look at Brazil's excellent economic predictions, combined with this year's growth rates the picture looks quite clear cut: the IT market will grow up to 20%. Yet there are still some nagging issues that create a barrier to the more optimistic expectations for Brazilian IT.

Questions like infrastructure, security and qualified workforce are all gaps that don't have an immediate solution, and which are vital to a constant and permanent growth. Not all is lost though, Brazil is one market that everyone is looking into, and events like the FIFA World Cup and the Olympics help bring visibility to the country. Investments will be made, and IT is one of the main priorities. Slowly Brazil is changing from just a consumer market, to a place where IT companies produce their equipment. Gradually it is becoming the place were all the "big dogs" of the industry are trying to allocate development staff for their newest products.

Every New Year comes with the advent of better, improved technologies, and 2011 won't be very different. What is more the delay between what is new in the developed countries and their arrival in South American is almost non-existent, given the fact that the South American IT market is growing at such an exponential rate. So, in my opinion, these are the trends that are going to dominate the IT market in South America for the next year:

1 - Cloud Computing: as Gartner has been predicting for some years now, Cloud Computing is getting stronger every year, and with the security risks finally being mitigated, the cloud is here to stay.

2 - Mobile Computing: smartphones have been quite a success between consumers, but now they're becoming an important accessory for work. In the next couple of years every Brazilian executive will be holding a Blackberry, iPhone or Android cellphone (and working with it).

3 - Social Networks: Facebook has finally made its way into Brazil, along with Twitter, and together they may be declaring the end of Orkut. But, no matter which is the website, Brazilians and South Americans want to connect, and as these and other sites grow in popularity, companies are beginning to look at them as business opportunities.

4 - Green IT: formerly a worry only for the big players, there's no doubt that every single IT company in South America that wants to survive will have to go green. Sustainability and carbon footprint are key words for the next year, and IT is a primary focus.

5 - Online Marketing: even if advertising in the internet isn't the primary objective for many companies, it offers reduced costs comparing to other forms of marketing. Investments in online marketing will also be getting a bigger cut of the marketing and sales budget next year.


Gabriel Cogo has a BA in Business Administration from UFRGS and has worked as a SAP Consultant for Gerdau SA.


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