Brazil IT spend set to grow in 2017

Local investment in technology will gather pace again after a year of stagnation, says survey
Written by Angelica Mari, Contributing Writer

The Brazilian IT industry is predicted to grow by 3.3 percent and generate revenues of R$76,1 million ($23,4 million) in 2017, according to an annual trends survey by Brazilian analyst firm IT4CIO.

The survey on technology investment trends covered 1,500 IT decision makers at large and medium-sized companies and found that 45 percent of executives expect investment growth, while 22 percent stated that a budget reduction is on the cards.

An overall increase in outsourcing of non-core activities - including aspects of IT - will be on the rise this year as organizations seek cost efficiencies, which means more business to IT suppliers, according to the survey.

Priorities for Brazilian CIOs in 2017 will include projects related to cloud computing, business intelligence, mobility, information security and systems integration. Initiatives related to Internet of Things, which were barely mentioned by local CIOs in 2016, are being considered by 27 percent of companies surveyed.

However, 70 percent of the CIOs polled stated they will be revising their IT service contracts with vendors while 23 percent intend to move from their current supplier base to cheaper alternatives.

The survey also indicates that 2016 was tough for Brazilian IT organizations. Even though IT was largely spared by major budget cuts, 37 percent of CIOs surveyed said they reduced their headcount for the first time since the start of the survey 12 years ago.

Budgets also shrank over the course of the year, the end result being IT investments growing by just 0.4 percent in 2016, below the inflation rate of 6.3 percent.

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