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Chile Information Technology Report Q1 2013
Business Monitor International, December 2012, Pages: 72
BMI View: Chilean IT spending is expected to reach US$3.5bn in 2012, up 14%, with BMI's forecast upwardly revised in US dollar terms, despite an expected economic moderation. Chile's IT market is one of the most developed in Latin America and the Chilean government's commitment to high growth should continue to keep IT spending on an upwards trajectory, with BMI envisaging that Chilean GDP per capita will double in US dollar terms by 2019.
Headline Expenditure Projections:
Computer hardware sales: US$1.5bn in 2011 to US$1.6bn in 2012, +12.0% in US dollar terms.
Forecast in US dollar terms upwardly revised due to analyst modification following stronger than expected retail sales growth in H211.
Software sales: US$353mn in 2011 to US$406mn in 2012, +15% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification and much will depend on the success in bringing down illegal software use, which at 64% is higher than in some regional neighbours such as Mexico.
IT Services sales: US$1.3bn in 2011 to US$1.4bn in 2012, +15.0% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification, with strong sectors including utilities,
financial services, government, telecoms, mining, retail and distribution.
Chile's score was 63 out of 100.0. Chile has risen two places to third in our latest RRR table, behind only the US and Canada. Its overall rating was boosted by a relatively high Country Rewards score.
Key Trends & Developments:
- Chile's development as an offshoring location will attract more investment in IT services, with sectors such as retail, distribution, financial services, telecoms and healthcare offering opportunities. Mining is also a sector attracting increased vendor attention. Major multinationals such as General Electric and JP Morgan have proceeded with plans to establish service centres in Chile.
- Declining exports combined with more subdued private consumption and fixed investment will weigh on the IT market in 2012. However, with ample fiscal and monetary policy ammunition at the disposal of the Chilean authorities, we expect consumer spending to hold up relatively well.
- Many of the government's ICT development plans and programmes are still in a nascent stage and their ultimate effectiveness is yet to be determined. While Chile can boast relative strength in some areas, such as telecoms infrastructure, it has been relatively weak in terms of investment in enterprise IT.
Executive Summary 5
SWOT Analysis 7
Chile IT Sector SWOT 7
Chile Telecommunications Sector SWOT 8
Chile Political SWOT 9
Chile Economic SWOT 10
Chile Business Environment SWOT 11
Americas Risk/Reward Ratings 12
Table: Americas IT Risk/Reward Ratings 14
Americas IT Market Overview 15
IT Penetration 15
Market Overview 23
Government Authority 23
IT Services 29
Industry Developments 30
Industry Forecast 33
Table: Chile IT Sector - Historical Data & Forecasts , 2010-2017 36
Industry Forecast Internet 37
Table: Chilean Telecoms Sector - Internet - Historical Data And Forecasts, 2009-2016 37
Competitive Landscape 39
IT Services 43
Internet Competitive Landscape 46
Table: Regional Broadband Penetration Overview 46
Table: Regional Internet Penetration Overview 47
Macroeconomic Forecast 48
Table: Chile - Economic Activity, 2011-2016 50
Company Profiles 51
Sonda SA 51
Table: Selected Dell Mergers And Acquisitions 58
Country Snapshot 64
Table: Chile's Population By Age Group, 1990-2020 ('000) 65
Table: Chile's Population By Age Group, 1990-2020 (% of total) 66
Table: Chile's Key Population Ratios, 1990-2020 67
Table: Chile's Rural And Urban Population, 1990-2020 67
BMI Methodology 68
How We Generate Our Industry Forecasts 68
IT Industry 68
IT Ratings – Methodology 69
Table: IT Business Environment Indicators 70
Table: Weighting Of Components 71