IT budgets set to increase in Brazil in 2020
Technology spending in Brazil will grow 2.5 percent in Brazil in 2020, the equivalent of $64 billion, according to Gartner.
Demands for regulatory compliance - such as the new data protection regulations (LGPD, in the Portuguese acronym) to be enforced next year - are a priority for local organizations.
Cloud-based security projected to grow by 41.2 percent over the next five years. Security overheads in Brazil saw an overall increase of 10.5 percent in 2019, the analyst says.
"It's not just about keeping the 'bad guys' out," says Gartner's research Vice President, John-David Lovelock. "There is also a growing need to comply with tariffs and trade policy, intellectual property rights and privacy laws such as the LGPD."
However, Gartner noted that Brazil spends only 2 percent of all its IT investment on public cloud services and can be considered a laggard in that regard.
"Countries with the lowest investments are behind the United States in terms of cloud spending in four years or more. These countries have been slower to fully embrace cloud computing as a whole," says Lovelock.
"Brazilian business leaders and chief information officers (CIOs) are aware of digital advances in other geographies and define [strategies] in line with these players."
The analyst house predicts that spending with technology in Brazil for 2019 will decrease by 4.6 percent, in line with global trends.
Gartner estimates global IT spending for 2019 will reach $3.7 trillion, up 0.4 percent on the previous year. Budgets worldwide should see an overall improvement in 2020, according to the analyst, with an increase of 3.7 percent.