Market Trends of Latin America IT Industry
This section covers the major market trends shaping the Latin America IT Market according to our research experts:
Growth of Enterprise Software and the Workplace Automation Industry in the Latin American Market
- Due to advancements in IT operation across the cloud-based platform, enterprise software has become more data-driven and real-time, creating greater value for the business, especially in operational efficiency, business opportunity discovery, and remote access optimization.
- Demand for higher efficiency and better control in procurement, chronic transportation bottlenecks, high freight prices, and the necessity to digitally connect all linkages in a complex ecosystem has reinforced and diversified the Latin American supply chain tech management market.
- The supply chain technology management industry is controlled by large ERP management software vendors, such as SAP, Oracle, Infor, and IBM, and regional businesses, like Totvs, which offer supply chain-specific suites in addition to their core ERPs. However, the cost and time required to adopt these suites may be prohibitive for many Latin American businesses.
- In March 2022, Quincus, a SaaS platform, launched new operations in Mexico and Colombia as part of their ongoing Latin American expansion. Quincus' technology optimizes, streamlines, and automates logistics for end-to-end processes by integrating AI and machine learning.
- With the huge demand from the IT and telecommunications industries throughout the ever-growing corporate sector, the opportunity for IT infrastructure services from these end users is likely to develop rapidly in the coming years.
- Adopting software robots to manage routine work carried out by temporary or seasonal staff or staff bursts required by regulatory spikes, new product launches, or some new operation is further boosting the market's growth.
- The increasing adoption of robot-based solutions for workplace automation across various end-user industries and the rising trend of cloud-based solutions are likely to generate new prospects for establishing robotic process automation. This transformation is providing an opportunity for the growth of IT services in the region.
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Significant Adoption is Expected in the IT and Telecom Industry
- The IT sector is a critical component of the modern era. From transportation and manufacturing to nuclear power plants and medicine, the software has the potential to improve people's lives. Human dependency on software is growing as the world progresses through a century of artificial intelligence, machine learning, automation, and 5G technologies.
- According to the International Trade Administration, Mexico is establishing itself as a high-quality software provider for the automotive, aerospace, and finance industries. Throughout the country, 38 IT clusters provide software development, call center, high-tech manufacturing, and engineering services. Mexico is following the worldwide trend toward a service-centric IT business, where most technologies are provided through a service contract or lease, creating opportunities in Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), and Platform-as-a-Service (PaaS).
- Technology is crucial in supporting the manufacturing industry's future growth ambitions. This industry is becoming more mechanized and technologically-based. Companies are eager to deploy new operating systems or improve existing ones, often overwhelmed by the alternatives available. The software generally enables firms to streamline operations and deal with product quality and proficiency issues.
- Information technology is crucial for today's telecommunications industry. Providing telecommunication services requires a huge amount of IT support. Real-time processes like prepaid billing accounts require a fully IT-automated process chain, which may fuel the market during the forecast period.
- In Latin America, according to research by the Ibero-American Telecoms Organization (OTI), the region's telecommunications business registered USD 32,632 million in Q3 2021, representing a 6% rise.
- The Mexican Internet Association estimated that the number of internet users in Mexico will increase by 10.2% by 2020. The country had 84.1 million internet users in June 2021, accounting for 72% of the population over the age of six. About 96% of internet users in Mexico use a smartphone, and the country currently has 88.2 million active smartphone users. As a result, demand for telecommunications may increase during the forecast period.
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