Study published by ABES - Brazilian Association of Software Companies based on a survey conducted by IDC, brings the scenario of the Software and IT Services industry in the country
The Study on the Brazilian Software and Services Market 2016, produced by the Brazilian Association of Software Companies (ABES) in partnership with IDC (International Data Corporation), shows that the IT Market in Brazil, including hardware, software and services, increased 9.2% last year, against 5.6% of the global growth average. Worldwide, investments in this sector totaled US$ 2.2 trillion in 2015.
In the ranking of investments in the IT sector in Latin America, the country remained in 1st place, with 45% of investments in the region, totaling US$ 59.9 billion, followed by Mexico (20%) and Colombia (8%). Altogether, the Latin American region totals US$ 133 billion. Responsible for almost half of the IT investments in the region, Brazil remains the relevant leader in Latin America in this sector.
By fragmenting investments by sector, the IT Services Market in Brazil grew 8.2%, compared to 2014, with an investment of U$ 14.3 billion, and that of Software, which was responsible for the increase in the average of IT growth rate last year grew by 30.2%, with investments of U$ 12.3 billion. In addition, the Brazilian Hardware Market hit the mark of U$ 33.4 billion, representing a growth of 6.3%, the lowest among the three sectors.
“The share of investments in hardware among the total is still close to 56%, but the share in Software and Services has been growing year on year, and should exceed the share of 50% in total, as Brazil increases its degree of maturity”, comments Jorge Sukarie, chairman of the ABES Board.
Brazil occupies 6th place in the World ICT Ranking
Considering investments in ICT (IT + Telecom), which grew 4.3% last year, and added up to more than US$ 3.7 trillion, Brazil lost a position, and now appears in 6th place, in the world ranking, with investments of US$ 152 billion in 2015. However, it is still close to countries that are highlights in the world economy such as Germany (5th) and the United Kingdom (4th). The United States also leads this ranking, followed by China and Japan.
In the World Market for Investments in Software and Services, which totaled US$ 1.124 trillion, Brazil is in 8th position, with US$ 27 billion, preceded by Canada (US$ 32 bi), China (US$ 34 bi), France (US$ 48 bi) ), Germany (US$ 67 bi), Japan (US$ 77 bi), the United Kingdom (US$ 83 bi) and the United States (US$ 470 bi).
Regional Data of the Software and Services Market in Brazil
Considering the Brazilian territory, the southeastern region represents 60,44% of the regional distribution of the Brazilian IT Market. The Northeast (10,72%) and Midwest (10,64%) regions are in second and third place, respectively.
In 2015, approximately 13,951 companies operating in the Brazilian Software and Services Market were identified, with almost half of them (41.1%) dedicated to the distribution and commercialization of these resources. The others represent development and production companies (31.6%) and services (27.3%).
The companies dedicated to development and production, in Brazil, total 4,408 businesses and can be divided by size, being: Micro Enterprises (45,62%), Small Enterprises (49,02%), Medium Enterprises (4,33%) and Large Enterprises (1,03%) .
Trends for the Brazilian Market in 2016
The research points out that the relationship between IT and the companies' business area will become even closer, generating the digitization of processes and integration of production lines. The study points out that 54% of medium and large companies in Brazil will invest in the so-called Digital Transformation (DX) in 2016.
In addition, sales of technological devices will remain high, despite recent declines. It is estimated that in 2016, 40 million mobile phones, 6 million computers and 5 million tablets are acquired in Brazil.
The survey also shows that, with the visibility of the “Internet of Things” achieved in 2015, the sector should reach US$ 4.1 billion in Brazil alone, with US$ 37 million corresponding only to domestic devices. Another phenomenon that draws attention is the increase in financial transactions carried out via mobile: the amounts must exceed 30% of the total payments made in 2016.
The study points out that the concern with systems security will also grow at least 2% of the total IT budget. The challenge will be to find the right balance between the efficiency that mobility brings to companies with greater control over their use. In 2016, around 50% from companies will restrict the use of “BYOD” (Bring your own Device), and more than 70% from them will have some way of controlling the tasks performed in this context of mobility that characterizes the 21st century.
Few technologies will have the growth that will be experienced by “Cloud Computing” or Cloud solution: by the end of the decade, there will be a growth of 20% per year in the adoption of this type of solution.
The search for increased profits and differentiation in the face of competition, due to the current economic crisis, generates greater interest in engagement through "Social Media" and "User Experience" (CX). According to the IDC survey, in 2016, one in four companies will have started projects with this focus.
The search for business efficiency, productivity and competitiveness in companies from all markets in the economy will make Information Technology continue to be a strategic sector. The expectation for 2016, despite the challenging scenario in Brazil, is that this segment will grow 3.0% against an average world growth of 2.4%, and that of ICT will increase a little less, something around 2.6%.
For Jorge Sukarie, president of the ABES Council, the study numbers indicate that, despite all the economic and political challenges that Brazil must face, in 2016, the country will still have an ICT sector with growth compared to the countries that will experience the highest growth rates in these investments. "The use of technology can bring to Brazil the necessary conditions to gain productivity, competitiveness and efficiency that will be necessary to face our challenges", comments Sukarie.
About ABES
ABES, the Brazilian Association of Software Companies, is the most representative entity in the sector with around 1,600 associated or associated companies, distributed in 23 Brazilian states, plus the Federal District, responsible for generating more than 120 thousand direct jobs and a turnover annual turnover of US$ 20 billion per year.
The companies associated with ABES represent 85% of the turnover of the software development and commercialization segment in Brazil and 33% of the total turnover of the IT sector, equivalent in 2014 to US$ 60 billion of sales of software, IT services and hardware.
Since its foundation, on September 9, 1986, the entity has exercised the mission of sectorial representation in the legislative and tax areas, in proposing and guiding policies aimed at strengthening the value chain of the Brazilian Software and Services Industry - IBSS, in defense intellectual property and combating piracy of national or international software and supporting initiatives to promote research, development, innovation and the development of national software. Access the ABES Portal - www.abes.org.br or talk to our Relationship Center: (11) 2161-2833.
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