Brazilian IT market to grow despite recession

Despite economic slowdown, companies will continue to invest in digital transformation in 2016, says IDC
Written by Angelica Mari, Contributing Writer

The Brazilian IT market will see growth of about 2.6 percent in 2016 despite the current economic slowdown, according to analyst IDC.

The growth outlook looks meagre in comparison to the 5 percent growth seen in 2015, the 9,2 percent expansion recorded in 2014 and the 15 percent growth seen in the golden year of 2013, but IDC suggests that the sector will still generate about $60bn in business in 2016.

Decision makers will be using the technology budget for initiatives that will result in a market advantage and short term results, according to IDC country manager Dennis Arcieri at a press event in São Paulo yesterday.

Such initiatives will be mainly about digital transformation (DX), which will be bringing CIOs and line of business (LOB) heads closer together - and also complicate the lives of IT chiefs a little bit more, as CIOs will have less time to interact with their own suppliers as they will be spending a lot more time dealing with other executives within their organizations.

"The previous situation where LOB managers would bypass CIOs, who would only turn up at the end of the party when it comes to technology decisions, will start to change now," says IDC enterprise analyst Pietro Delai.

"Increasingly, there will be tech budgets going to other lines of business and having joint accounts to pay for things will become a lot more common. But the pressure to show results and manage these budgets properly will be even more noticeable," Delai added.

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