2013-10-30 09:01:08 - New Computer Technology market report from Business Monitor International: "Colombia Information Technology Report Q4 2013"
We have a bright outlook for Colombia's IT market over the medium term, forecasting CAGR of 11% over our five-year forecast period 2013-2017, and as total spending reaches COP9.2trn in 2017. The rapidly developing IT market is driven by several factors including the supporting economic growth story, low PC penetration relative to income, expanding telecoms infrastructure and government ICT initiatives.
Although the consumption outlook has weakened since 2012, we expect Colombia to close the gap with its neighbours in terms of PC penetration over the medium term as devices become more affordable to the mass market. We expect increased enterprise adoption of software and services as companies modernise and become increasingly international in their outlook.
Full Report Details at
- www.fastmr.com/prod/698067_colombia_information_technology_repor ..
Computer Hardware Sales: COP2.997trn in 2013 to COP4.361trn by 2017. Consumption growth combined with low PC penetration and declining cost of devices will boost sales over the medium term. Tablets are expected to be a growth area alongside low cost notebooks.
Software Sales: COP980bn in 2013 to COP1.518trn by 2017. Government incentives for local software will boost the domestic sector, and we expect the greatest demand from end-users to remain in basic solutions, such as enterprise risk management and supply chain management systems.
IT Services Sales: COP2.104trn in 2013 to COP3.321trn in 2017. Public investments in areas such as ehealth, e-education and e-government will offer strong growth prospects, while there are initial steps also being made towards smart city infrastructure investments that will also yield opportunities.
Risk/Reward Rating: Colombia's score is 52.6 out of 100.0, the same as last quarter, and remains ranked eighth out of nine markets in the Americas region in our latest RRR table, ahead of only Venezuela. Colombia's overall ranking is held back by a low country rewards score of 55, the result of low incomes and a large rural population.
Key Trends & Developments
The key pillar of support for the Colombian IT market is the government's Vive Digital programme. The initiative will contribute to the development of the market via the elimination of import tariffs on connectivity devices and through measures to enhance credit availability for such devices. Further, government policy is also seeing large numbers of devices distributed to students, familiarising them with PCs and leading to further demand down the line. With low penetration of PCs, estimated to be around half the regional average by BMI, there is significant scope for catch-up.
Enterprises are another source of opportunity for vendors, with relatively low levels of computerisation among SMEs a particular area into which IT products and services can grow. There is also investment from large enterprises, although this is geared towards different product categories. For instance, data centre, information management and security solution investment is expected to increase. The government's ambitions to develop Colombia as a regional business process outsourcing (BPO) hub, which have enjoyed a degree of success, will generate more demand for back-end systems and services. Cloud computing remains a niche, but interest is growing. Software development is increasingly becoming a concern of the government and Fedesoft is spearheading initiatives to train local professionals to become developers.
Report Table of Contents:
BMI Industry View
- Business Environment
- Table: Colombia IT Sector - Historical Data & Forecasts (COPbn)
- Table: Internet - Historical Data And Forecasts
- Economic Analysis
- Table: Colombia - GDP by Expenditure, Real Growth %
Industry Risk Reward Ratings
- Americas Risk/Reward Ratings
- Table: Americas IT Risk/Reward Ratings
Industry Trends And Developments
- Table: Government Authorities
- Table: 4G Spectrum Results
- Table: IBM Acquisitions, 2012 (Total Value, US$3.964bn)
- Colombia Demographic Data
- Table: Colombia's Population By Age Group, 1990-2020 ('000)
- Table: Colombia's Population By Age Group, 1990-2020 (% of total)
- Table: Colombia's Key Population Ratios, 1990-2020
- Table: Colombia's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings - Methodology
- Table: IT Business Environment Indicators
- Table: Weighting Of Components
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Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
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