Global IT service providers still hold the market share leadership in Brazil, Chile and Argentina, nevertheless, local players are gaining market participation in the region and competing directly with global players, not only in the IT infrastructure outsourcing services markets but also in more advanced and complex IT services areas.
Brazilian IT Infrastructure outsourcing service markets are the largest within Latin America reaching a total of $1,255.1 million in 2010 which represented a growth of 15.2% in comparison to the previous year. The positive economic perspective of the country for the short and medium term, and the overall growth of companies in the country were the main drivers for enterprises to close IT infrastructure outsourcing services contracts.
With a strong economical instability, Argentinean enterprises are very reticent in signing long term IT infrastructure outsourcing services contracts. The country presented the lowest growth rate regarding revenues in 2010 in comparison to its neighboring countries Brazil and Chile, achieving $154.8 million. Despite of the relatively limited addressable market in Chile, the earthquake in the beginning of 2010 in the country drove the growth of services such as storage and disaster recovery. Reaching $39.1 million in 2010, disaster recovery service is likely to present a compound annual growth rate (CAGR) of 11.7% until 2016.
Main drivers for this market include companies' focus in reducing operational costs and improving operational systems, the increasing confidence in medium/long term outsourcing deals after economy recovery and cloud computing concept, including virtualization technologies”, says Marcelo Kawanami, Frost & Sullivan ICT Industry Manager.
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Latin American IT Infrastructure Outsourcing Services Market – Argentina, Brazil and Chile / N932 -72