2019 should be better for innovation and investment
In 2018, the economic and political situation in Latin America limited technology adoption in the region. Brazil, Mexico and Colombia, which together represent 61% of the population and 66% of the Latin American GDP, had presidential elections simultaneously, which had repercussions on the ICT market and led to an estimated growth of 3.9% in investments in technology, compared to to 2017. In 2019, with the impetus of global digital transformation, there will be an acceleration in the pace of innovation and spending on digital assets. This is one of the forecasts by IDC, a leader in market intelligence, consulting services and conferences with the Information Technology and Telecommunications industries, for the Latin American IT market in 2019.
According to IDC Latin America, 54% of the companies recently surveyed said they will increase IT spending, and only 17% plan to spend less than in 2018. IDC analysts predict that during 2019, the IT sector will grow at a rate of 8 .2% in constant dollars and spending on the Third Platform pillars (mobility, cloud, big data and social media) will capture approximately half of the budget and will grow by an average of 5%.
IDC Latin America's 10 forecasts for 2019 update several important issues, such as the digital economy; the distribution and specialization of the cloud; the technologies that accelerate application development, the growing role of artificial intelligence and the constant change of developers, as explained below:
1. By 2022, the digital economy is expected to account for more than 50% of Latin America's GDP, with growth driven by improved offerings, operations and relationships. From 2019 to 2022, nearly US$ 380 billion will be spent on IT spending.
2. By 2022, nearly 70% of all IT spending in Latin America will go to Third Platform technologies, as more than 75% of companies will create “digital native” IT environments to thrive in the digital economy.
3. By 2022, more than 20% of cloud deployments in Latin America will include Edge Computing, and 15% of Front-End devices and systems will run artificial intelligence algorithms.
4. By 2020, 60% of the new applications in Latin America will feature microservice architectures that will improve the ability to design, debug, update, and leverage third-party code; 25% of all production applications will be cloud native.
5. In 2022, a new class of professionals who produce code without custom scripts will expand the developer population in 15%, accelerating digital transformation.
6. From 2018 to 2023, with new tools/platforms, more human resources, agile methods and code reuse, around 30 million new business logic applications will be created by developers in Latin America.
7. By 2022, 15% of public cloud computing will be based on non-x86 processors; By 2022, organizations will spend more on vertical SaaS applications than horizontal applications, especially those that enjoy a local or regional competitive advantage over global companies.
8. By 2024, AI-enabled user interfaces and process automation will replace a quarter of today's screen-based applications; By 2022, 25% companies will use conversational speech technology in customer experience-related applications.
9. By 2022, in Latin America, 20% of servers will encrypt data at rest and in motion, more than 20% of security alerts will be handled by AI-based automation, and more than 5 million people will have blockchain-based digital identities .
10. By 2022, the top four mega cloud platforms will have 70% of IaaS / PaaS implementations in Latin America, and by 2024, 80% of the 1,000 largest companies in Latin America will reduce the risk of contract hijacking through multicloud technology and tools / hybrids.
The IT industry is entering a period of dramatic and disruptive transformation, defined by an ever-deepening integration of digital services and technologies into the global economy and widespread reinvention of enterprise IT environments. The era will also be marked by the shift to public cloud platforms (and their ecosystems) and the increasing ability to run resources in a widely distributed cloud topology, including data centers and servers of all types and, increasingly, in cloud environments. multi-vendor cloud. According to IDC Latin America, another important change in companies of all sizes and in all sectors will be in relation to agile / DevOps tools, technologies and practices that will radically accelerate the pace (and volume) of digital innovation. IDC Latin America also cites the integration of artificial intelligence technologies and solutions in all aspects of companies; and a massive expansion of direct use of specialized IT infrastructure and vertically focused applications and services.
As industries and the global economy increasingly shift towards the digital world, the number one priority for CXOs should be preparing their organizations to reinvent themselves. And as companies' confidence in technology grows, CXOs must carefully evaluate their IT providers, selecting those who are also reinventing themselves for the digital economy.
According to IDC Latin America, 54% of the companies recently surveyed said they will increase IT spending, and only 17% plan to spend less than in 2018. IDC analysts predict that during 2019, the IT sector will grow at a rate of 8 .2% in constant dollars and spending on the Third Platform pillars (mobility, cloud, big data and social media) will capture approximately half of the budget and will grow by an average of 5%.
IDC Latin America's 10 forecasts for 2019 update several important issues, such as the digital economy; the distribution and specialization of the cloud; the technologies that accelerate application development, the growing role of artificial intelligence and the constant change of developers, as explained below:
1. By 2022, the digital economy is expected to account for more than 50% of Latin America's GDP, with growth driven by improved offerings, operations and relationships. From 2019 to 2022, nearly US$ 380 billion will be spent on IT spending.
2. By 2022, nearly 70% of all IT spending in Latin America will go to Third Platform technologies, as more than 75% of companies will create “digital native” IT environments to thrive in the digital economy.
3. By 2022, more than 20% of cloud deployments in Latin America will include Edge Computing, and 15% of Front-End devices and systems will run artificial intelligence algorithms.
4. By 2020, 60% of the new applications in Latin America will feature microservice architectures that will improve the ability to design, debug, update, and leverage third-party code; 25% of all production applications will be cloud native.
5. In 2022, a new class of professionals who produce code without custom scripts will expand the developer population in 15%, accelerating digital transformation.
6. From 2018 to 2023, with new tools/platforms, more human resources, agile methods and code reuse, around 30 million new business logic applications will be created by developers in Latin America.
7. By 2022, 15% of public cloud computing will be based on non-x86 processors; By 2022, organizations will spend more on vertical SaaS applications than horizontal applications, especially those that enjoy a local or regional competitive advantage over global companies.
8. By 2024, AI-enabled user interfaces and process automation will replace a quarter of today's screen-based applications; By 2022, 25% companies will use conversational speech technology in customer experience-related applications.
9. By 2022, in Latin America, 20% of servers will encrypt data at rest and in motion, more than 20% of security alerts will be handled by AI-based automation, and more than 5 million people will have blockchain-based digital identities .
10. By 2022, the top four mega cloud platforms will have 70% of IaaS / PaaS implementations in Latin America, and by 2024, 80% of the 1,000 largest companies in Latin America will reduce the risk of contract hijacking through multicloud technology and tools / hybrids.
The IT industry is entering a period of dramatic and disruptive transformation, defined by an ever-deepening integration of digital services and technologies into the global economy and widespread reinvention of enterprise IT environments. The era will also be marked by the shift to public cloud platforms (and their ecosystems) and the increasing ability to run resources in a widely distributed cloud topology, including data centers and servers of all types and, increasingly, in cloud environments. multi-vendor cloud. According to IDC Latin America, another important change in companies of all sizes and in all sectors will be in relation to agile / DevOps tools, technologies and practices that will radically accelerate the pace (and volume) of digital innovation. IDC Latin America also cites the integration of artificial intelligence technologies and solutions in all aspects of companies; and a massive expansion of direct use of specialized IT infrastructure and vertically focused applications and services.
As industries and the global economy increasingly shift towards the digital world, the number one priority for CXOs should be preparing their organizations to reinvent themselves. And as companies' confidence in technology grows, CXOs must carefully evaluate their IT providers, selecting those who are also reinventing themselves for the digital economy.
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