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For Brazil, in 2020 IDC forecasts growth of 4.5% for the IT market and 0.2% for the telecommunications market;

The increase in Brazil will be mainly driven by investments in the pillars and accelerators of the 3rd technological platform;

At the IDC FutureScape 2020 conference, analysts presented the main forecasts for the next five years in the ICT market in Latin America.

Despite political uncertainties and low economic growth in Latin America, the growth of the IT market (hardware, software and services) will be 1.3% in 2019 and will accelerate in 2020, with an increase of 4.8%. The telecommunications market will end 2019 with a low of 3.5% and will begin to recover in 2020, growing by almost two percentage points. The data was presented at IDC's IDC FutureScape conference, a leader in market intelligence, consulting services and conferences with the Information Technology and Telecommunications industries.

According to Ricardo Villate, vice president of IDC Latin America, the biggest investment in the IT sector will be in technologies called “pillars for the third platform”, such as cloud, big data/analytics, mobility and social enterprise, which will concentrate 58% of investments – having an increase of 8.5% in projects, highlighting those that use cloud solutions (24.5%). “The world is approaching digital supremacy – the moment when the digital economy outstrips the size of the non-digital economy. The world economy will reach digital supremacy in 2023,” said Villate. According to him, a group of six technologies “innovation accelerators of the third platform” will go from 17% in investments to 27% in the next five years, growing 22% in 2020. Among them, Artificial Intelligence technologies stand out (44.2% of growth in 2020).

Specifically about Brazil, Villate expects the country to invest US$ 48 billion in IT and US$ 41 billion in telecom services in 2020.

Regarding the forecasts, the vice president of IDC Latin America commented that, by 2023, more than half of the global economy will be digital, so that investments in key technologies are accelerated and new operating models achieve hypervelocity, hyperscale and hyperconnection.

• Hypervelocity: The ability to create and improve digital services and experiences at a rate 100 times faster than today.
• Hyperscale: Digital applications and services will be developed and deployed over the next four years – as in the last 40 years – and billions of Edge devices and millions of Edge Computing locations will be deployed.
• Hyperconnectivity: leveraging your own innovative power through third-party code and data communities and creating new sources of income by distributing your own digital services to other digital supply chains.

For the Latin American market, IDC's top 10 projections for the next five years are:

1. By 2024, more than 40% of all ICT spending will go directly to digital transformation and innovation (compared to 20% in 2018), growing by 22% annually.
Although IDC has pointed out that one of the main challenges is the shortage of skills, by 2020 a deficit of ICT professionals is also expected, from 586 thousand to 570 thousand professionals.

2. By 2022, more than half of companies in Latin America will integrate management in the cloud, across public and private clouds, through the implementation of hybrid or multi-cloud unified technologies, tools and management processes.

3. By 2023, more than 30% of the new enterprise IT infrastructure deployed in Latin America will be Edge (edge computing), rather than corporate datacenters, compared to less than 5% today. By 2024, the number of edge applications will triple.

4. By 2025, nearly 50% of companies in Latin America will be active software producers, with code implemented daily; will have more than 90% of the new cloud-native applications; with 65% of external source codes and will have 1.5 times more developers.

5. By 2023, more than 15 million digital applications and services will be developed and deployed using cloud-native approaches in Latin America, most targeting industry-specific digital transformation use cases.

6. By 2025, more than half of new business applications in Latin America will incorporate Artificial Intelligence; by 2024, more than 35% of user interface interactions will utilize AI-enabled intelligent video, speech, natural language processing, and virtual/augmented reality.

7. By 2023, 30% of the top 2000 companies in Latin America will appoint a Chief Trust Officer, who will organize all trust functions, including security, finance, human resources, risk, sales, production and legal.

8. By 2023, 40% of the 1,000 largest companies in Latin America will have an ecosystem with millions of digital developers. Half of these companies will generate more than 15% of their digital income through their digital ecosystem/platform.

“In the digital economy, each company has the potential to become a platform, with a community of external developers around it to amplify its value, beyond its own direct reach”, reinforces Villate.

9. By 2025, around 20% of revenue growth for companies in Latin America will come from “white space” offerings that combine digital services from industries other than their own.

10. By 2023, the 5 mega public cloud platforms will represent more than 80% of the market. The top 10 Pure-Play software providers (focused on a single product or activity) will generate almost 20% of these companies' revenues with PaaS (platform as a service) solutions, which are currently expanding.

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