Colombia Information Technology Report Q1 2013
- ID: 2356155
- December 2012
- Region: Colombia
- 74 pages
- Business Monitor International
BMI View: Colombia's IT market is forecast to increase in value to US$3.3bn in 2013, representing a 9
%year-on-year increase. Colombian IT spending is projected to grow at a compound annual growth rate of 10.9% during the period 2013-2017, driven by economic growth, government ICT initiatives and improving infrastructure. The consumer-driven economic boom of the past few years may have come to an end, but rising incomes and greater computer affordability will result in more spending on IT products and services. Meanwhile, the government's Vive Digital ICT development plan should also help to underpin market expansion over our five-year forecast period.
Headline Expenditure Projections:
Computer hardware sales: US$1.5bn in 2012 to US$1.6in 2013, +8% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst adjustment amid signs of a consumer slowdown.
However, tablets are expected to be a growth area, with a strong uptake of the devices in the Colombia market.
Software sales: US$487mn in 2012 to US$537in 2013, +10% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst adjustment, with the greatest demand for basic solutions, such as enterprise risk management and supply chain management systems.
IT services sales: US$1.0bn in 2012 to US$1.2bn in 2013, +11% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst adjustment, although more spending is expected on ehealth,
e-education and e-government service roll-outs.
Risk/Reward Rating: Colombia's score is 53.1 out of 100.0. Colombia ranked eighth our of nine markets in the Americas region in our latest risk/reward ratings (RRRs) table, behind all of its regional peers, with the sole exception of Venezuela. Despite the high growth potential of its market, Colombia's overall ranking was constrained by a low country rewards score of just 50, marking the country joint lowest in the region with Peru.
Key Trends & Developments
- The government's Vive Digital programme offers a long-term boost to the IT market, with a pledge to eliminate import tariffs on connectivity devices, and to take measures to enhance credit availability for such devices. Private credit growth has also started improving, and could mean an increasingly bright outlook for household consumption.
- The business sector also represents a large opportunity, due to the relatively low levels of computerisation among small businesses in particular. According to government figures, just 7
%of Colombia's small businesses are currently online, although such businesses represent 96% of all Colombian enterprises.
- Investment in data centres, information management and security solutions are expected to be growth areas in the large company segment. Meanwhile, the government's ambitions to develop Colombia as a regional business process outsourcing (BPO) hub, which have enjoyed a degree of success, will generate more demand for back-end systems and services. Cloud computing remains a niche, but interest is growing. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
Colombian IT Sector SWOT 7
Colombian Telecoms Industry SWOT 8
Colombia Political SWOT 9
Colombia Economic SWOT 9
Colombia Business Environment SWOT 10
Americas Risk/Reward Ratings 11
Table: Americas IT Risk/Reward Ratings 13
Americas IT Markets Overview 14
IT Penetration 14
Market Growth And Drivers 16
Sectors And Verticals 18
Market Overview 22
Government Authority 22
Industry Developments 30
Incentives For Offshoring Investment 32
Industry Forecast 34
Table: Colombia IT Sector – Historical Data & Forecasts (US$mn Unless Otherwise Stated), 2010-2017 37
Industry Forecast Internet 38
Table: Internet – Historical Data And Forecasts 38
Competitive Landscape 40
IT Services 43
Internet Competitive Landscape 46
Macroeconomic Forecast 47
Table: Colombia – GDP By Expenditure, Real Growth %, 2008-2016 48
Company Profiles 49
Table: Selected Dell Mergers And Acquisitions 59
Country Snapshot 66
Table: Colombia's Population By Age Group, 1990-2020 ('000) 67
Table: Colombia's Population By Age Group, 1990-2020 (% of total) 68
Table: Colombia's Key Population Ratios, 1990-2020 69
Table: Colombia's Rural And Urban Population, 1990-2020 69
BMI Methodology 70
How We Generate Our Industry Forecasts 70
IT Industry 70
IT Ratings – Methodology 71
Table: IT Business Environment Indicators 72
Table: Weighting Of Components 73