IT Services - South America

South America

Revenue in the IT Services market is projected to reach US$33.52bn in 2024.
Other IT Services dominates the market with a projected market volume of US$11.76bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.75%, resulting in a market volume of US$44.34bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$162.20 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

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Cognizant, Hewlett Packard Enterprise, and TCS.

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Analyst Opinion

The IT Services market in South America has been experiencing significant growth in recent years, driven by a variety of factors including customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: One major trend in the South American IT Services market is a growing preference for cloud-based solutions. As companies in the region increasingly embrace digital transformation, they are looking for more flexible and scalable IT solutions that can adapt to their changing needs. Cloud-based services offer this flexibility, as well as the ability to reduce costs and improve efficiency.Another trend is the increasing demand for cybersecurity services. With the rise of cyber threats and data breaches, companies are looking for ways to protect their sensitive information and ensure compliance with regulations. This has led to a growing market for IT security services, including risk assessments, vulnerability testing, and threat detection and response.

Trends in the market: One trend that is driving growth in the South American IT Services market is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. These technologies are being used to automate processes, improve decision-making, and enhance customer experiences. In addition, the growing availability of data is providing new opportunities for companies to leverage AI and ML to gain insights and improve their operations.Another trend is the growing importance of digital transformation. As companies in South America look to compete in an increasingly globalized economy, they are recognizing the need to embrace digital technologies and processes. This has led to a growing demand for IT consulting services, as companies seek guidance on how to implement digital strategies and optimize their operations.

Local special circumstances: One of the key special circumstances affecting the South American IT Services market is the region's economic and political volatility. Many countries in the region have experienced significant economic and political instability in recent years, which has led to uncertainty and risk for businesses operating in the region. In addition, the region's complex regulatory environment can make it difficult for companies to navigate the market and comply with local laws and regulations.

Underlying macroeconomic factors: Several underlying macroeconomic factors are driving growth in the South American IT Services market. One is the region's growing middle class, which is driving demand for digital services and e-commerce. Another is the increasing availability of high-speed internet and mobile connectivity, which is enabling companies to reach new customers and operate more efficiently. Additionally, the region's expanding startup ecosystem is creating new opportunities for IT services providers to partner with innovative companies and support their growth.

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.