Nearshore Americas
Reopening Latin America

COVID-19 May Not Hurt LatAm IT Industry Severely: IDC

The economic crisis brought upon by the COVID-19 pandemic would not hurt Latin American IT companies much, but the industry may see its revenue decline by as much as 15% in the worst-case scenario, according to IDC.

The research firm, whose projections were published by BNamericas, says the revenue drop would not be so severe.

The longer the travel restrictions last, the harsher will be its impact on businesses. “Ultimately, everything depends on how long the economy will remain paralyzed,” reported the news portal, citing Luciano Ramos, research and consulting manager at IDC’s office in Brazil.

According to IDC, not all IT services providers will be impacted by the COVID-19 pandemic; some of them may even see their revenue grow. The cloud services providers, for example, will likely see their revenue increase as more and more businesses try using virtual networks.

IT consultants and managed services providers may also survive the crisis, as businesses invest more money in digital tools in a bid to cut costs and remain operational amid the lockdown.

While the pandemic has wreaked havoc on the region’s financial markets, some business startups have continued to raise money.

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A week ago, Mexican fintech startup Credijusto raised US$100 million from Credit Suisse Group, saying it would lend more money to small and mid-sized businesses.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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