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The Latin America information technology (IT) services market is estimated to grow at a CAGR of 8.7% between 2022 and 2027. IT services market size in Latin America is forecast to increase by USD 49,380.19 million. The growth of the market depends on several factors, including the rising focus on core competencies and improving efficiency, the growing demand for IoT and big data operations, and the increased adoption of mobility solutions.
This Latin America IT services market report extensively covers market segmentation by type (project-oriented service, enterprise cloud computing service, IT outsourcing service, and IT support and training service) and deployment (hosted service and managed service). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing demand for IoT and big data operations is notably driving the market growth, although factors such as lack of quality standards in SLAs may impede the market growth. Our researchers analyzed the data with 2022 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 Latin America information technology (IT) services 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 IT services market in Latin America during the forecast period.
Integration of big data in IT service provider offerings is the primary trend in the Latin America information technology (IT) services 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 IT services market in Latin America during the forecast period.
The lack of quality standards in SLAs is a significant challenge to the growth of the Latin America information technology (IT) services 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.
Global IT Services Market in Latin America Customer Landscape
Vendors 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 vendors, 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 Latin America IT services market during the forecast period.
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The project-oriented service segment was valued at USD 30,132.40 million in 2017 and continued to grow by 2021. 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 Latin America IT services market during the forecast period.
The IT services market in Latin America report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the IT services market in Latin America as a part of the global IT consulting and other services market within the global IT services market. The super parent global IT services market covers companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services. The global IT consulting and other services market cover companies that provide information technology consulting and information management services. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
IT Services Market ScopeIn Latin America |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.7% |
Market growth 2023-2027 |
USD 49,380.19 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.89 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Accenture Plc, 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.com Inc., SAP SE, SONDA S.A., and Tata Consultancy Services Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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