IT Services - LATAM

  • LATAM
  • Revenue in the IT Services market is projected to reach US$56.53bn in 2024.
  • Other IT Services dominates the market with a projected market volume of US$18.48bn in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.67%, resulting in a market volume of US$74.49bn by 2029.
  • The average Spend per Employee in the IT Services market is projected to reach US$182.90 in 2024.
  • In global comparison, most revenue will be generated in the United States (US$522.00bn in 2024).

Key regions: United States, China, India, Japan, Germany

 
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Analyst Opinion

The IT Services market in LATAM is experiencing significant growth and development, driven by various factors such as increasing customer preferences for outsourcing IT services, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the IT Services market in LATAM are shifting towards outsourcing IT services to third-party providers.

This preference is driven by the need for cost reduction and access to specialized expertise. Many companies in the region are realizing the benefits of outsourcing their IT services, including reduced operational costs, improved efficiency, and access to a wider range of technical skills. Additionally, outsourcing allows companies to focus on their core business functions while leaving IT management to experts.

Trends in the IT Services market in LATAM are also contributing to its development. One of the major trends is the increasing adoption of cloud computing services. Cloud computing offers scalability, flexibility, and cost-effectiveness, making it an attractive option for companies in the region.

As a result, there is a growing demand for cloud-based IT services, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS). Another trend in the market is the rising importance of cybersecurity services. With the increasing number of cyber threats and data breaches, companies in LATAM are prioritizing the protection of their sensitive information.

This has led to a higher demand for cybersecurity services, including threat detection and prevention, vulnerability assessments, and incident response. Local special circumstances in the region also contribute to the development of the IT Services market. One such circumstance is the presence of a large pool of skilled IT professionals.

LATAM has a strong talent pool in the IT sector, with many highly skilled and educated professionals. This talent pool attracts both local and international companies to outsource their IT services to the region. Underlying macroeconomic factors also play a role in the growth of the IT Services market in LATAM.

The region has experienced steady economic growth in recent years, which has led to increased investments in technology infrastructure and digital transformation initiatives. Additionally, government initiatives to promote the IT sector and attract foreign investment have further fueled the growth of the market. In conclusion, the IT Services market in LATAM is developing rapidly due to customer preferences for outsourcing, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

The region's focus on cost reduction, access to specialized expertise, and the adoption of cloud computing and cybersecurity services are driving the growth of the market. With a large pool of skilled IT professionals and favorable macroeconomic conditions, LATAM is becoming an attractive destination for companies looking to outsource their IT services.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Overview

  • Revenue
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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