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Brazil IT Infrastructure Outsourcing Services Market
Frost & Sullivan, Oct 2005
Economic Recovery in Latin America Accelerates Migration from Cost-effective IT Solutions to More Complex IT Projects
The largest markets for IT infrastructure outsourcing services in Latin America are Brazil and Mexico, which have shown substantial uptake of IT outsourcing infrastructure services. However, smaller markets such as Argentina, Colombia, and Chile are making inroads into the IT outsourcing sphere and as their economies improve, greater IT investments are expected. Once outsourcing's benefits of low costs become increasingly apparent, companies from more countries are likely to contract these services.
This Frost & Sullivan research service examines the Latin American IT infrastructure outsourcing services market and its sub-segments - co-location, dedicated hosting, disaster recovery, storage, and network management. The study discusses the prevailing industry challenges and gives strategic recommendations to overcome them. This enables companies to align their positioning strategies to benefit from the changing market conditions.
Improved Awareness of the Benefits of IT Outsourcing Encourages Companies to Outsource their IT Infrastructure
Market participants in Latin America will have to work around the region’s cultural limitations toward IT outsourcing. IT managers are particularly reluctant to lose control over operations - especially critical ones - to third-party operators, which hinder the overall development of the outsourcing market. To overcome such cultural misgivings, vendors need to improve their efforts to increase the awareness of outsourcing’s benefits.
Some key benefits of IT outsourcing are enabling the outsourcing company to focus on its core business, reducing upfront investments, technologically updating equipment, and accessing trained and skilled personnel, says the analyst of this research service. As companies realize these benefits, they will increasingly view IT infrastructure outsourcing as an attractive solution for improving their productivity.
Significant Opportunities Arise as Solution Offerings Evolve to Suit Different Types of Customers
Both supply and demand of IT solutions are expected to continue improving, which is expected to drive the adoption of IT infrastructure outsourcing services, notes the analyst. There is likely to be further demand as competitors evolve and expand their product offerings to provide feasible solutions to companies of different sizes and expertise, while showcasing the value and cost-cutting benefits of IT outsourcing.
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