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Latin American IT Infrastructure Outsourcing Services Markets
Frost & Sullivan, Feb 2010, Pages: 83
Even though the worldwide economic crisis has negatively affected the Latin American IT infrastructure outsourcing markets, the region is forecast to grow at higher levels than more mature regions such as the United States and the Western Europe. Hence, the majority of global vendors are investing strongly in the region, competing with local and regional competitors.
Market Overview
- Argentina has been seriously affected by the global economic crisis, particularly in the last quarter of 2008 and in 2009. Factors such as political instability, along with rising inflation rates and the strong devaluation of the local currency, affected the entire economy.
- Even though the economic scenario has delayed the signing of a series of important IT infrastructure outsourcing contracts, there was a significant increase in the awareness of the benefits of outsourcing IT infrastructure, which will play an important role as a driver for future growth.
- Companies across most business segments are relatively pessimistic concerning Argentina's short-term economic scenario and are preparing to reduce costs across all business areas. This can be considered an opportunity for IT infrastructure service providers that market themselves as tools to effectively reduce IT costs.
- Moreover, the expansion of regulations that obligates companies to comply with specific IT infrastructure requirements and the offering of more competitive data center services has definitely played an important role in Argentina in 2009.
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