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The Latin America information technology (IT) services market is forecast to increase by USD 48.44 billion, at a CAGR of 8.09% between 2023 and 2028. In Latin America, the market is experiencing significant expansion. This growth is driven by several key factors. Firstly, companies are increasingly concentrating on their core competencies, leading to a heightened demand for efficient ITS solutions. Secondly, the region is witnessing a surge in the adoption of the Internet of Things (IoT) and big data operations, necessitating advanced ITS capabilities. Lastly, mobility solutions are gaining traction, further fueling market growth. These trends underscore the importance of ITS in Latin America's digital transformation, making it an attractive market for technology providers. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.
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In market is rapidly evolving with a strong emphasis on modern technologies and solutions. Software-as-a-service and cloud-based offerings have gained significant traction, enabling businesses to streamline operations and enhance scalability. IT services encompassing IT infrastructure and advanced security solutions are pivotal in addressing challenges such as data breaches and ensuring robust cybersecurity measures. The advent of 5G technology promises enhanced connectivity, while blockchain enhances security and transparency across various sectors. Innovations like augmented reality and artificial intelligence are reshaping industries, and IT infrastructure services play a crucial role in supporting these advancements. As Latin America embraces these technologies, the focus on IT costs, regulatory requirements, and training and education remains integral for sustainable growth in this dynamic market. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing demand for IoT and big data operations is the key factor driving the growth of the market. The increasing use of internet-connected devices in Latin America is expected to contribute significantly to the growth of the IT services market in Latin America by providing managed services for these devices. Trends such as connected cars, connected homes, and smart cities are becoming more and more popular. Industries such as manufacturing, utilities, retail, automotive, and social media are also using the IoT. IoT devices require an energy-efficient network of smart nodes that must always be connected to each other. This also increases the use of Internet and infrastructure services and helps manage these devices.
Moreover, big data analytics has triggered the high-tech expansion of data centers. On-the-go business is a popular trend, and it has been made viable through technological advances within devices such as mobile phones and tablets. Data is continuously being fed into storage systems. For predictive and consumer analytics operations, enterprises use these big data sets. Enterprises have started procuring high-performance storage in data centers, such as storage area network (SAN) and network-attached storage (NAS) systems, to enhance their performance. Thus, with an increase in the demand for big data analytics, the demand for IT services will also rise. Such factors will be a major driver for the growth of the market during the forecast period.
Integration of big data in IT service provider offerings is the primary trend in the market growth. IT service providers have access to large amounts of data that are analyzed to offer a variety of solutions to their organizations. Companies typically perform big data analytics on internal customer and operational databases and external social media sites to understand the reach and impact of their products. IT service providers offer services designed to provide quantitative and qualitative insights. Big data analysis and market research analysis are used together and the derived insights can be helpful to enterprises.
For instance, many companies use big data tools to run predictive analytics processes on their customer information databases. The results of such analyses can be appended to the market survey data to arrive at predictive segmentation values. In addition, tools such as Facebook Insights, Google Analytics, Open Calais, and KNIME Analytics are being used by information service providers to add value to their offerings. Such tools will drive the growth of the market during the forecast period.
The lack of quality standards in SLAs is a significant challenge to the growth of the market. An SLA establishes a contract between a service provider (internal or external) and an end user. It covers all possible expected levels of services from the service provider. SLAs are performance-based and clearly define the benefits and support that will receive by the customer during the course of the agreement. However, the SLA does not cover the services delivered. The end-user is also unaware that full service must be included in the SLA to protect the business. Additionally, they also lack experience in terms of negotiating SLAs before opting for cloud services and, most of the time, realize it later.
Therefore, service providers need to be clear and transparent regarding their SLAs to increase the adoption of IT services. Apart from strictly meeting the SLA commitments, IT service providers should also provide statistics regarding uptime, downtime, and outage frequency. This will help users understand risk factors and plan for the worst scenarios. Customers also need to monitor the efficiency of their IT systems to evaluate if IT services meet their business objectives. However, the lack of quality standards in SLAs can become a major challenge for the growth of the IT services market in Latin America during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ernst and Young Global Ltd.: The company offers IT services such as including audit, tax, and consulting. Also, under this segment, the company offers audits and other financial services.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the project oriented service segment will be significant during the forecast period. The project-oriented services include system integration service, IT consulting service, and application development service. Moreover, there are various vendors that provide project-oriented services in Latin America. For instance, Cognizant provides application development and value management services in Argentina. Cognizant helps clients with digital-ready IT backbones with a low total cost of ownership (TCO) while simultaneously optimizing its legacy systems. Thus, it will lead to the growth of project-oriented services in Latin America, thereby leading to the growth of the market.
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The project oriented service segment was valued at USD 31.97 billion in 2018 and continued to grow by 2022. This segment includes IT consulting services and application development services. Integration services include project planning, project management, and detailed design and implementation of application programming interfaces as a system integration service. IT services also includes system deployment services like installation, interoperability testing, and other system deployment services. Consulting services are advisory services that help companies analyze and improve business operational performance and technology strategies. Such factors will increase segment growth in the market during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is experiencing rapid evolution driven by advancements in Software-as-a-Service (SaaS), Cloud-based offerings, and robust IT infrastructure development. Companies across various sectors, including the finance industry and professional services, are increasingly adopting IT solutions like Blockchain, Artificial Intelligence (AI), and Robotic Process Automation (RPA) to streamline operations and enhance efficiency. The market landscape depends on the 5G, IT infrastructure services, Software robots, International Trade Administration, IT clusters, Professional services sector, Remote working, Business plans, Technological developments, Skill sets, Resources, Improved business processes, Business Intelligence (BI), Global IT services market, Software, Hardware, IT costs, Automatic updates, Data storing capacity, On-premises deployment, Lack of standardization, Variables, Firms, Feasibility. The sector is witnessing significant growth in Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) models, catering to diverse verticals such as telecommunications and healthcare. The region is also grappling with challenges like data breaches and cyberattacks, prompting a heightened demand for robust security solutions and regulatory compliance frameworks.
Moreover, technological advancements in Augmented Reality (AR) and Machine Learning (ML) are transforming business strategies, enabling precise forecasting and improved resource management. Small and Medium Enterprises (SMEs) and large enterprises alike are leveraging cloud-based deployments and consumption-based pricing models to achieve scalability and cost-saving opportunities. Amidst economic expansion, IT specialists are in high demand, driving investments in talent recruiting and training initiatives. The market landscape depends on the As Latin America navigates through potential problems like resource wastage and IT service performance variability, there is a growing focus on achieving standardized IT service delivery and enhancing data security measures to support sustainable growth in the region's IT services market.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.09% |
Market growth 2024-2028 |
USD 48.44 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.32 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Alphabet Inc., Amazon.com Inc., Atos SE, Capgemini Service SAS, Cisco Systems Inc., Dell Technologies Inc., Deloitte Touche Tohmatsu Ltd., Ernst and Young Global Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., KPMG International Ltd., Microsoft Corp., Oracle Corp., PricewaterhouseCoopers LLP, Salesforce Inc., SAP SE, SONDA S.A., and Tata Consultancy Services Ltd. |
Market dynamics |
Parent market analysis, Market trends, market growth analysis, market research and growth, Market forecasting, market report, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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