Gartner: IT Spending in Brazil Will Grow 5.7% in 2015

IT spending in Brazil is forecast to total $125.3 billion in 2015, a 5.7 percent increase from 2014 projected spending of $118.5 billion and much of this spending will be driven by the digital industrial economy, according to Gartner, Inc.

Cassio Dreyfuss, research vice president at Gartner, provided the latest outlook for the IT industry today to an audience of more than 1,400 CIOs and IT leaders at Gartner Symposium/ITxpo, which is taking place here through October 30.

“Enterprises today compete globally in all industries. Despite economic deceleration, Brazil demonstrates that IT is well-entrenched in the enterprise core strategy and is seen as a tool for competitiveness development, in best and and in challenging times, as well” said Mr. Dreyfuss. “Software, IT services, and mobile data services will post double-digit growth in 2015, with strong IT demand from vertical industries like banking and securities, manufacturing, natural resources, not to mention consumer markets.”

For 2015 versus 2014, Gartner’s projections show that the devices segment (including PCs, tablets, mobile phones & printers) in Brazil is projected to total $19.1 billion, a 1 percent increase from 2014 spending. Data center systems’ spending is expected to exceed $3 billion, a 7 percent increase from 2014. Software spending will total $5.7 billion, up 13.7 percent; IT services spending will reach $21.5 billion in 2015, up 13.7 percent; and telecom services is projected to total $75.9 billion in 2015, a 4.2 percent increase from 2014.

Gartner says every business units is a “Technology Startup”. There is a dramatic shift in IT spending power. There is a shift of demand and control away from IT and toward digital business units closer to the customer. “Thirty-eight percent of total IT spend happens outside of IT already, with a disproportionate amount in digital initiatives. By 2017, it will be over 50 percent,” Mr. Dreyfuss said. “Digital startups sit inside your own organization, in your marketing department, in HR, in logistics and in sales. Your business units are acting as technology startups. Today, every budget is an IT budget, frequently outside of the CIO control – but not outside of the CIO purview. IT Leaders must be called to participate in those decisions, to address issues such as IT economic effectiveness, architecture integration and security optimization.”

Gartner estimates that 50 percent of all technology sales people are actively selling direct to business units, not IT departments. Millions of sales people, and hundreds of thousands of resellers and channel partners are looking for new money flows in the fluid digital world, and they are finding eager buyers.

Read more: gartner.com