Recent Study: Brazil Information Technology Report Q1 2013

New Computer Technology research report from Business Monitor International is now available from Fast Market Research

by Bill Thompson

(WireNews+Co) - Boston, MA - 26 February 2013

BMI View: We now expect Brazil IT market spending to reach US$31.8bn in 2013, up 8% from an estimated US$29.8bn in 2012. Despite a slowdown in PC sales in H112, the Brazilian IT market is easily the largest in Latin America and spending is forecast to reach nearly US$44bn by 2017. This makes Brazil one of the fastest growing global markets and, with household PC penetration at around 50%, a return to double-digit PC market growth is expected. Brazil's hosting of the Olympic Games and FIFA World Cup is expected to drive billions of dollars of IT-related spending. Meanwhile, growing small and medium-sized interest in cloud computing will encourage more investment in data centres and IT services.

Headline Expenditure Projections

Computer Hardware Sales: US$12.6bn in 2012 to US$13.2bn in 2013; +4% in US dollar terms. Our forecast has been downwardly revised due to analyst modification, following low single-digit growth in H112, as businesses delayed investments due to economic uncertainty.

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/541159_brazil_information_technology_report_q1_2013.aspx?afid=201) (http://www.fastmr.com/prod/541159_brazil_information_technology_report_q1_2013.aspx?afid=201)

Software Sales: US$5.1bn in 2012 to US$5.6bn in 2013; +9% in US dollar terms. Our forecast is unchanged with vendors reporting continued strong growth in enterprise software licence sales. We note that software is beginning to gain ground in Brazil despite high annual losses from software piracy. IT Services Sales: US$12.0bn in 2012 to US$13.0bn in 2013, +8% in US dollar terms. Our forecast has been downwardly revised owing to analyst modification, but the large number of multinationals setting up headquarters in Brazil will continue to be an important driver of spending.

Risk/Reward Ratings: Brazil's score in our Q113 RRR for the IT sector is 61.8 out of 100. Brazil ranks fourth in our latest table, behind the US, Canada and Chile, and joint with Mexico. Key Trends & Developments

- The biggest impact from the upcoming 2014 FIFA World Cup IT spending is expected to be felt in 2013. Brazil's hosting of the FIFA 2014 World Cup and the award of the 2016 Olympic Games to Rio de Janeiro are expected to drive investment of around US$5.7bn in IT-related spending. This will include not only spending on ICT capabilities directly associated with these events, such as transmission of data and images they generate, but also indirectly related spending on IT for transport and other infrastructure projects. The Brazilian government has formulated an investment strategy to drive modernisation ahead of the events, with IT one key element.
- One driver for the IT services market will be the Brazilian government's intention to develop the country's capabilities in the business process outsourcing area and capture a larger global market share. Brazil has an ambitious plan to become one of the world's top IT outsourcing destinations through a joint initiative by the federal government and Brasscom, the software and IT service export association.

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