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Argentina Information Technology Report Q1 2013
Business Monitor International, December 2012, Pages: 73
BMI has warned of the risk of a substantial currency devaluation, which would have an impact on the affordability of IT products and services. However, there will still be opportunities. As well as growing interest in cloud computing, the second largest IT market in the region has strong growth fundamentals,
including rising PC penetration, rising incomes and a high-tech-focused national development plan. The government's computers for school programme will also continue to provide a boost, with 1.15mn netbooks to be procured in the third phase in 2012. However, government measures to support the domestic IT industry, such as the luxury goods tax on imported goods, have a strong influence on the market.
Headline Expenditure Projections
Computer hardware sales: US$2.46bn in 2012 to US$2.50bn in 2013, +2% in US dollar terms. Forecast in US dollar terms downwardly revised due to macroeconomic factors and analyst modification as domestic PC production continues to increase.
Software sales: US$570mn in 2012 to US$600mn in 2013, +5% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification, but small and medium-sized enterprise
(SME) demand for enterprise resource planning (ERP) applications should continue to grow, particularly in relatively untapped provincial areas.
IT services sales: US$1.8bn in 2012 to US$1.9bn in 2013, +7% in US dollar terms. Forecast in US dollar terms downwardly revised due to macroeconomic factors and analyst modification, but IT services revenue is expected to grow faster than the market as a whole, with organisations looking for help to utilise cloud computing.
Argentina's score was 54.2 out of 100.0. Argentina ranks sixth in the Americas region in our latest RRR table, slightly ahead of Peru, but behind its regional peers Chile and Brazil.
Despite the country's high country structure score, Argentina's relatively small IT market and correspondingly low IT market score influenced its ranking.
Key Trends & Developments
- The IT market is expected to grow by around 4% in 2013, as persistent high inflation and slowing economic activity take their toll on both business and consumer demand. We believe that this trend will continue throughout 2013, as consumers and businesses remain hesitant about making large IT purchases, and significant import restrictions limit sales.
- Educational tenders and government tenders are a major feature for the market. 2013 shoud see the completion of the third phase of the Program Conectar Igualdad for delivery of PCs to schools, which was due to deliver 1,154,000 netbooks to schools across the country. As of H212,
government figures indicated that delivery was lagging behind target. According to government data, in the first eight months of 2012, only around 230,000 netbook were delivered to schools.
The second phase of the programme was completed in March 2012.
- New cloud computing offerings and increased competition in this segment should fuel further demand from end-users to utilise this technology. Telefónica was among local market players to launch new cloud services for SMEs in 2012. In addition to cost savings, businesses will look to boost efficiency and increase flexibility of response to customer needs. There should be potential for ERP solutions in sectors such as energy and transport.
Executive Summary 5
SWOT Analysis 7
Argentina IT Industry SWOT 7
Argentina Telecoms Industry SWOT 8
Argentina Political SWOT 9
Argentina Economic SWOT 10
Argentina Business Environment SWOT 11
Americas Pacific IT Risk/Reward Ratings 12
Table: Americas IT Risk/Reward Ratings 14
Asia Pacific IT Markets Overview 15
IT Penetration 15
Market Growth And Drivers 17
Sectors And Verticals 19
Market Overview 23
Government Authority 23
Industry Developments 31
Industry Forecast 36
Table: Argentina IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2010-2017 39
Industry Forecast Internet 40
Table: Telecoms Sector - Internet - Historical Data & Forecasts, 2009-2016 40
Competitive Landscape 42
IT Services 46
Macroeconomic Forecast 49
Company Profiles 52
Microsoft Corporation 52
Table: Selected Dell Mergers And Acquisitions 62
Country Snapshot 65
Table: Argentina's Population By Age Group, 1990-2020 ('000) 66
Table: Argentina's Population By Age Group, 1990-2020 (% of total) 67
Table: Argentina's Key Population Ratios, 1990-2020 68
Table: Argentina's Rural And Urban Population, 1990-2020 68
BMI Methodology 69
How We Generate Our Industry Forecasts 69
IT Industry 69
IT Ratings - Methodology 70
Table: IT Business Environment Indicators 71
Table: Weighting Of Components 72