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Embracing Digital Startup: Gartner Analyst Advice to CIOs as Brazil's
IT Spending Grows 5.7 percent in 2015
According to Gartner, Inc., an American information technology research and advisory, Brazil's IT spending in is forecast to total $125.3 billion in 2015, a 5.7 percent increase from 2014. This is a projected spending of $118.5 billion, and according to the firm, much of this spending will be driven by the digital industrial economy.
Cassio Dreyfuss, Research Vice President at Gartner, provided the latest outlook for the country's IT industry to over 1,400 CIOs and IT leaders during the Gartner Symposium/ITxpo that took place in Sao Paulo. Dreyfuss said that most enterprises today compete globally in all industries. And despite economic deceleration, Brazil demonstrates that Information Technology is firmly established in the enterprise core strategy, which is considered a tool for high competitiveness development at best, and even in challenging circumstances. He further added that software, IT services, and mobile data services will generate a post double-digit growth in 2015, with strong IT demand from vertical industries, such as banking and securities, manufacturing, natural resources, and consumer markets
Furthermore, Gartner's projections show that Brazil's devices segment, which includes PCs, tablets, mobile phones and printers, is projected to total $19.1 billion, a 1 percent increase from 2014 spending. Meanwhile, data center systems' spending is expected to grow more than $3 billion, a 7 percent increase from 2014. Other segments such as software spending will total $5.7 billion, up 13.7 percent; IT services will reach $21.5 billion in 2015, up 13.7 percent; and telecommunication services is expected to reach a total $75.9 billion in 2015, a 4.2 percent increase from 2014.
The Gartner Analyst sees a big possible, dramatic shift in IT spending power for the country, as there is a shift of demand and control away from IT, growing towards digital business units that are closer to the customer. Gartner further estimates that 50 percent of all technology sales people are actively selling direct to business units as opposed to IT departments. A great number of sales representatives, affiliates and channel partners are searching for new cash streams in the fluid digital world, and they are discovering more and more zealous customers.
Clovis Lacerda, Founder and CEO of Parlacom Brasil, an affiliate of the LeadingQuest Group of Companies, agrees with the Dreyfuss in this light of embracing this new trend. Lacerda believes that every company is a technology startup unit in itself, especially companies in Brazil. "Most big cities, now have sizeable ecosystems where hundreds to thousands of startup entrepreneurs are highly interconnected creating a global crowd." Lacerda said.
The Gartner Analyst also noted that the Internet of things will generate a vast amount of new information. Although smart machines will take care of part of it. and smart machines will take care of part of it (It's repeated). Digital businesses will also impact jobs in various ways. The synergy among technology families will trigger the creation of totally new business models and processes. Gartners forecasts that by 2018, digital businesses will require 50 percent less of business process workers. However, digital business will also drive 500 percent growth in digital jobs.
"Brazil, being one of the largest in population, surely has one of the richest resource for this kind of ecosystem. With cheap, ubiquitous digital products and services, digital startups can help penetrate and build up the economy of the country, eventually reshaping industries and causing a big digital, industrial economic explosion", Lacerda further said.