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*By Jorge Sukarie

Over the last two decades, Brazil has stood out on the global information technology (IT) scene, with its position in rankings international events revealing both the challenges faced and the achievements obtained. In 2024, the partnership between the Brazilian Association of Software (ABES) and the International Data Corporation (IDC) celebrates 20 years of valuable contributions to the understanding and development of the Brazilian market software and services. 

Over the past 20 years, I have had the opportunity to closely monitor the evolution of the sector and the transformations that the study has brought to the Brazilian market. Since the beginning of the studies in 2004, Brazil has occupied different positions in the ranking world leader in IT investments, demonstrating constant and significant growth in the sector. In the early 2000s, the country was among the top 10 economies in terms of investment in the sector, oscillating between 7th and 11th position over the years. In 2006, Brazil maintained a solid position, occupying 13th place in the ranking global, reflecting the strength of investments in software and services that began to represent a growing share of the domestic market. This period was marked by a significant boost in the development of technological solutions adapted to local needs, which allowed the country to stand out on the international scene. 

In the following years, Brazil continued to strengthen its presence in the global market, despite economic fluctuations and internal political changes. In 2012, the country reached the peak of its performance, reaching 7th position in the ranking global IT market. This result was driven by a considerable increase in technology investments and the expansion of the domestic market, which grew rapidly in response to demands for digitalization and innovation. However, economic challenges and exchange rate volatility impacted sustained growth, resulting in a drop to 10th position in 2019 and then to 12th in 2022. In 2023, Brazil returned to being among the 10 largest IT markets, retaking the 10th position. These movements in the ranking express global economic fluctuations, as well as the resilience of the Brazilian market, which continues to adapt and grow even in times of uncertainty. 

When evaluating this journey, it is clear that the study is a strategic tool for understanding and directing the growth of the sector. The annual studies by ABES/IDC also highlight the technological trends that have shaped the Brazilian IT market over these two decades. Since 2004, Brazil has closely followed global innovations, adapting them to its own needs and realities. Since that year, the adoption of emerging technologies, such as cloud computing, software as a service (SaaS) and artificial intelligence (AI) have become increasingly prominent. These trends have demonstrated a strong change in the way Brazilian companies operate, leveraging innovation and competitiveness on the global stage. For example, the growth in the use of cloud solutions in Brazil has transformed the domestic market and, simultaneously, opened new opportunities for local companies to compete on a global level. 

Another interesting point observed in the studies is the growing importance of information security and data analysis. With the advancement of digital transformation, these topics have gained visibility, and Brazil has begun to invest significantly in these areas, recognizing the need to protect data and use information strategically to drive business growth. Brazilian companies, especially small and medium-sized ones, have quickly adapted to these trends, incorporating new technologies and adjusting their strategies to maintain relevance in an increasingly competitive market.

The special edition celebrating the 20th anniversary of the ABES/IDC study covers an overview of the sector's main results and milestones in recent years. The document revisits the historical milestones of the IT market in Brazil, as well as presents a detailed analysis of the country's positions in the rankings global IT, with an emphasis on the evolution and transformations that have allowed Brazil to be among the largest IT investors in the world. Additionally, the edition addresses projections for the future and offers insights about the opportunities and challenges that the Brazilian market will face in the coming years. 

The story told by these studies over the past two decades reveals a resilient and innovative Brazil, capable of adapting and growing even in the face of adversity. The country, which has established itself as one of the main IT markets in Latin America, continues to play a key role in the global technology economy, with promising prospects for the coming years. Looking back on this journey, it is clear that Brazil has followed global trends and also influenced them, given that it has developed and continues to develop technological solutions that are now recognized and used worldwide. 

The coming years promise to continue this successful trajectory, with Brazil well-positioned to lead innovations in the IT sector and continue to grow in prominence on the global stage. The ABES/IDC study is more than a market analysis; it is a source of inspiration and guidance for IT sector players in Brazil and a reflection of the country's ability to continually reinvent itself and innovate. 

*Jorge Sukarie is a board member of the Brazilian Association of Software Companies (ABES), founding partner and CEO of Brasoftware.

Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies

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