By Narayan Ammachchi
Analyst firm Fast Market Research has predicted that Brazil’s domestic IT spending will increase by 10 percent to reach US$ 11.80 billion by the end of 2013.
The key drivers of this growth are the international sporting events, FIFA World Cup and the Olympic Games, which the Latin American country is hosting in 2014 and 2016 respectively.
The sporting events will ‘drive billions of dollars of IT spending’, noted the research firm.
“Despite a slowdown in PC sales in 2012 and forecasts of a deceleration of economic growth in 2013, we believe a number of factors will converge to stimulate faster growth in the IT market in 2013,” said the analyst firm in a press release.
In the hardware market, the launch of Windows 8 and the arrival of higher performance price competitive tablets are expected to boost sales.
Interestingly, the analyst firm stated that cloud computing will encourage more investment in data centres and IT services.
“Growth will slow slightly from 2014, but nonetheless remain robust as we forecast compound annual growth rate of 8.2% 2014-2017.”
Computer hardware market is likely to see a steady growth in the years ahead, because the Brazilian government is expected to purchase a large chunk of PCs for its educational projects.
The analyst firm says the software penetration will continue to rise as small and medium-sized enterprises try to streamline business operation and gain efficiency.
“Cloud computing growth will be maintained as the national broadband plan extends coverage and improves quality of data services. Meanwhile, nascent machine-to-machine communications market shows signs of take-off, particularly in utilities and e-health verticals.”