Brazilian organizations to invest $2.9B in data projects in 2022
The increasing focus on data in Brazilian organizations should prompt $2.9 billion worth of investments in that area in 2022, according to research from the Brazilian Association of Software Companies (ABES) in partnership with IT analyst firm IDC.
According to the predictions, most resources will go towards the acquisition of big data and analytics solutions. Artificial intelligence (AI) and machine learning will see an 28% spending increase at $490 million. Investments around 5G should reach $25.2 billion in 2025. According to the study, the investment in the fifth-generation technology should also boost new technologies such as AI, big data, cloud analytics, and information security.
Separate research from Brazil's National Banking Federation (FEBRABAN) carried out by Deloitte on the banking sector, the largest buyer of technology in Brazil, suggests that budgets in Brazilian banks are set to increase this year as digital transformation accelerates. IT spending in banks, particularly in areas related to analytics, is set to reach $7.4 billion in 2022, up 18% in relation to last year.
Investment in software accounted for 58% of all investments in technology at banking institutions in 2021, a 29% increase from the previous year. The boost is attributed to the current focus on areas such as open finance and data analytics, as well as the ongoing modernization of the technology legacy at banks.
As well as AI and cybersecurity, which have been cited as key areas of focus in 2021 and remain so this year, other data-driven technologies have been cited as crucial. IT decision-makers that participated in the research mentioned public cloud (94%), big data (94%), process mining (78%), internet of things (75%), blockchain (67%), and quantum computing (50%) as part of their current priorities.
Overall, information technology and telecommunications (ICT) investments in Brazil are expected to reach $52.2 billion in 2022, up 14.3% from the $45.7 billion invested in 2021, according to the ABES/IDC research. This is more than double the global average, the study noted, forecasting an increase of 6.4% in ICT investments in 2022.
According to the ABES/IDC study, Brazil is the tenth largest technology market in the world, accounting for 1.65% of the $2.79 trillion invested globally in software, equipment and services in 2021.