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Brazil’s ICT market grows 11% to $198B, telecom claims biggest share

The Brazilian information and communication technology (ICT) market topped $197.56 billion in 2011, which is a growth of 10.9% over the previous year, according to a study commissioned by the Brazilian Association of Information Technology and Communication (Brasscom) for the International Data Corporation (IDC).

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Telecom represented the biggest share of the total amount: $94.96 billion last year, up 10.4% compared to 2010. The second biggest chunk of revenue came from in-house IT ($41.6 billion), which is technology developed by government and companies in other sectors of the economy. Hardware came next ($29.9 billion), followed by IT services ($14.7 billion), software ($6.18 billion), and BPO ($5.6 billion).

Separately, the IT sector claimed 4.4% of the Brazilian gross domestic product (GDP) in 2011. The IT market has been rising at rates that are at least twice GDP growth. Brasscom forecasts this year’s growth to be 9%.

Brasscom also noted several challenges that the sector faces to fully developing in the country, including competitive costs, professional training, infrastructure improvements, and the promotion of national innovations.

Antonio Gil, Brasscom’s president, noted the federal government has placed ICT on the national development agenda, providing the conditions that could help the market to reach of a 6-7% share of the national GDP in the next 10 years, a rate similar to developed countries.

The expectation is that Brazil can also become one of the four main global IT centers by 2022. The goal for the next ten years, added Gil, is to double ICT total revenues to $210 billion by increasing the use of ICT by other economic activities.

The study covered only the domestic IT market, without accounting for exports and international operations.

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