2013-12-24 20:56:23 - New Computer Technology market report from Business Monitor International: "Colombia Information Technology Report Q1 2014"
Colombia's IT market is expected to be a regional outperformer over the medium term, as we forecast CAGR of 11% over our five-year forecast period 2013-2017.Total spending is expected to reach COP9.2trn in 2017, with demand buoyed by income growth and political stability. Technology trends will also drive the development of the IT market with declining device prices and low PC penetration combining to boost sales, investments telecoms infrastructure expanding broadband access, and government ICT initiatives to promote adoption of products and services by consumers and enterprises. These factors together will drive a broad based development of the IT market, from greater penetration of basic technology through to more advanced deployments by large enterprises and government, for instance in cloud
computing and software development.
Headline Expenditure Projections
* Computer Hardware Sales: COP2.997trn in 2013 to COP4.361trn by 2017. The low PC penetration and declining cost of devices mean sales to first-time buyers and in the upgrade/replacement market are expected to grow, with tablets expected to see the fastest sales growth.
* 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. Colombia is developing as a destination for nearshore outsourcing, while public investments in areas such as e-health, e-education and e-government also offer strong growth prospects.
Full Report Details at
- www.fastmr.com/prod/754505_colombia_information_technology_repor ..
Key Trends & Developments
The development of the Colombian IT market, like the wider economy, has been stymied by political instability over decades - but is now developing fast and closing the gap to other markets in the region. One area in which BMI expects to see rapid improvement is PC penetration, as incomes rise and device prices decline. There is low penetration of PCs in Colombia, estimated to be around half the regional average, meaning significant scope for catch-up. An additional driver is the government's Vive Digital programme, which 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. This will help to lower prices and remove a barrier to big-ticket investments by households, making it one of the PC markets with the strongest outlook in Latin America.
Large enterprises have been investing to upgrade hardware and software - a trend we expect to continue as they modernise to remain competitive domestically and expand internationally. Investments in certain areas will drive market growth over the medium term, for instance in cloud computing as local and international providers have invested in data centres and security solutions. As well as local enterprise demand, Colombia is benefitting from international demand for nearshore services. The government is looking to develop Colombia as a regional business process outsourcing (BPO) hub, and it has made some progress by tapping demand from North American enterprises that are looking for alternatives to traditional outsourcing markets such as India.
Report Table of Contents:
BMI Industry View
- IT SWOT
- Wireline SWOT
- 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
- Table: Americas IT Risk/Reward Ratings, Q1 2014
Industry Trends And Developments
- Table: Government Authorities
- Table: 4G Spectrum Results
- International Companies
- Table: Hewlett-Packard
- Table: Oracle
- Table: Lenovo
- Local Companies
- Table: Productora de Software (PSL)
- Table: IBM Acquisitions, 2012 (Total Value, US$3.964bn)
- Demographic Outlook
- 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
- Industry Forecast Methodology
- Risk Reward Rating Methodology
- Table: It Risk Reward Rating Indicators
- Table: Weighting Of Components
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