NEW
YORK, Aug. 6, 2024 /PRNewswire/ -- The
information technology services market size in Latin America is estimated to grow by
USD 48.43 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a
CAGR of 8.09% during the forecast period. Rising focus on core
competencies and improving efficiency is driving market
growth, with a trend towards emergence of ai in
information management. However, lack of quality standards in
slas poses a challenge. Key market players include 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..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Type (Project oriented
service, Enterprise cloud computing service, IT outsourcing
service, and IT support and training service), Deployment (Hosted
service and Managed service), and Geography (Latin
America)
|
Region
Covered
|
Latin
America
|
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.
|
Key Market Trends Fueling Growth
Several enterprises worldwide are integrating Artificial
Intelligence (AI) into their information technology services to
automate processes and enhance efficiency. This technology helps
reduce the time spent on paperwork by half of the workforce,
thereby increasing return on investment and decreasing costs. AI
also brings structure to unstructured data, making it easier to
find information, streamlines processes, and enhances information
security. These benefits are expected to boost the growth of
information technology services in Latin
America, making vendors more efficient and competitive in
the market. Integrating AI in information services also improves
data quality and categorizes and tags information for easy access
in the future. These advantages are significant trends driving the
growth of the information technology services market in Latin
America.
The Information Technology Services (ITS) market in Latin America is witnessing significant
trends. Key verticals like Telecommunication, Healthcare,
Manufacturing, and the Finance industry are adopting IT services at
an accelerated pace. Firms are exploring both on-premises
deployment and cloud-based offerings, with cloud services gaining
popularity due to their scalability and cost-effectiveness.
However, variables such as lack of standardization, IT service
performance, and security breaches pose challenges. Large
Enterprises are focusing on feasibility and success rate of IT
solutions, while addressing data security concerns and regulatory
requirements through managed services, system integration, and
consulting. Technology advancements like AI, Machine Learning (ML),
IoT, Robotics, and Software-as-a-service are transforming the ITS
landscape. Firms are investing in 5G, Blockchain, Augmented
Reality, and Artificial Intelligence to improve efficiency and
productivity. The International Trade Administration emphasizes the
importance of cybersecurity solutions to mitigate risks from
cyberattacks. IT infrastructure services, software robots, and
Robotic Process Automation are also gaining traction. The
feasibility of on-premise and cloud-based solutions will continue
to be a topic of debate as firms navigate the complexities of the
ITS market.
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Market Challenges
- An Service Level Agreement (SLA) is a contract between an
information technology service provider and an end-user, outlining
the expected levels of service delivery. SLAs are output-focused
and define the benefits and support the customer receives. However,
they do not detail the full scope of services. End-users often lack
SLA negotiation experience, leading to misunderstandings. Service
providers must be transparent about SLAs to increase adoption. SLAs
should include uptime, downtime, and outage frequency statistics.
End-users must monitor their IT systems' efficiency to evaluate
service effectiveness. Lack of standardized SLAs may hinder the
growth of Latin America's
information technology services market.
- The Information Technology Services Market in Latin America is experiencing significant
growth, driven by the adoption of software-as-a-service and
cloud-based offerings. IT services, IT infrastructure, and security
solutions are in high demand, especially in sectors like finance
and international trade. However, challenges such as data breaches
require robust security solutions. Technological developments like
5G, blockchain, augmented reality, artificial intelligence, IT
infrastructure services, software robots, and robotic process
automation are transforming businesses. The professional services
sector, remote working, and business plans are also leveraging
these technologies. Economic expansion brings opportunities but
also potential problems like resource wastage and IT costs. Precise
forecasting and business intelligence (BI) tools help save costs
through consumption-based pricing models and cloud-based
deployments. Scalability and automatic updates are essential for
businesses to stay competitive. IT specialists play a crucial role
in operations, and talent recruiting and skill sets are key
business strategies.
For more insights on driver and
challenges - Download a Sample Report
Segment Overview
This information technology services market in Latin America report extensively covers market
segmentation by
- Type
- 1.1 Project oriented service
- 1.2 Enterprise cloud computing service
- 1.3 IT outsourcing service
- 1.4 IT support and training service
- Deployment
- 2.1 Hosted service
- 2.2 Managed service
- Geography
1.1 Project oriented service- In Latin America, the Information Technology
Services Market encompasses project-oriented offerings such as
system integration, information technology consulting, and
application development services. System integration involves
project planning, management, and detailed design and
implementation of application programming interfaces, along with
system deployment services like installation, interoperability
testing, and other related tasks. Consulting services offer
advisory assistance for businesses to enhance operational
performance and technology strategies, focusing on areas like
e-commerce, telecommunications, hardware system design, software
development, and website design. Vendors like Cognizant in
Argentina and Deloitte in
Brazil provide these services,
with Cognizant offering application development and value
management, and Deloitte delivering innovation-driven consulting
and technology strategy solutions. This market growth is attributed
to the increasing demand for digital transformation and
modernization initiatives among Latin American enterprises.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Research Analysis
The Information Technology Services market in Latin America is experiencing significant
growth, driven by the adoption of advanced technologies such as
Software-as-a-Service (SaaS), Cloud-based offerings, and IT
infrastructure services. The region's economic expansion is fueling
the demand for IT services, including IT infrastructure services,
Infrastructure-as-a-Service (IaaS), and Platform-as-a-Service
(PaaS). Cloud services are becoming increasingly popular due to
their scalability, automatic updates, and consumption-based pricing
models. The finance industry is a major vertical driving the
adoption of IT services, with a focus on security solutions,
including data breach prevention and artificial intelligence-based
threat detection. Technologies such as 5G, Blockchain, Augmented
Reality, and Robotic Process Automation (RPA) are also gaining
traction in the region. RPA, in particular, is being used to
automate repetitive tasks and reduce IT costs. The International
Trade Administration is playing a key role in promoting IT services
exports from Latin America. The
implementation of 5G networks and the increasing use of IT clusters
are expected to further boost the market's growth. IT
infrastructure, including hardware and software, is also a
significant component of the market, with a focus on cloud-based
deployments and the integration of emerging technologies such as AI
and blockchain. Overall, the Latin American IT services market is
poised for continued growth, driven by the region's economic
expansion and the adoption of advanced technologies.
Market Research Overview
The Information Technology Services Market in Latin America is experiencing significant
growth, driven by technological developments and the increasing
adoption of IT infrastructure services, Software-as-a-Service
(SaaS), and Cloud-based offerings. Businesses are seeking to
improve their operations, reduce IT costs, and take advantage of
scalability, automatic updates, and consumption-based pricing
models. Sectors like Finance, Telecommunication, Healthcare,
Manufacturing, and IoT are leading the way in IT infrastructure
services, with a focus on Resource management, Talent recruiting,
and Business strategies. The adoption of 5G, Blockchain, Augmented
Reality, Artificial Intelligence (AI), Machine Learning (ML), and
Robotic Process Automation (RPA) is also on the rise. However,
there are potential problems, including data breaches, security
solutions, regulatory requirements, and a lack of standardization.
Firms must ensure IT service performance and address variables such
as economic expansion, skill sets, and resources. The International
Trade Administration is playing a role in facilitating business
plans and IT service trade, while IT clusters are emerging as hubs
for innovation and collaboration. The Professional services sector
is also adopting managed services, system integration, consulting,
and training and education to stay competitive. Remote working is
becoming more common, and firms must adapt to this new reality
while maintaining security and ensuring IT costs remain under
control. Precise forecasting and Business Intelligence (BI) are
essential for making informed decisions and identifying cost-saving
opportunities. IT specialists and Operations teams must be prepared
for the challenges and opportunities presented by technological
advancements, including Cloud services, Data storing capacity,
On-premises deployment, and the feasibility of new technologies
like AI, ML, and Robotics.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Type
-
- Project Oriented Service
- Enterprise Cloud Computing Service
- IT Outsourcing Service
- IT Support And Training Service
- Deployment
-
- Hosted Service
- Managed Service
- Geography
-
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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