Software Solutions Spending on The Horizon for Many Medium-and Large-Sized Businesses, Says IDC Latin America
MIAMI, FL – DECEMBER 13, 2002 – According to a just-released report by IDC Latin America in which approximately 700 computerized businesses in Latin America with over 100 employees were asked about their spending intentions on software-based IT solutions, a significant majority indicated that solutions investments were planned for 2003. While it should be remembered that these responses reflect intentions rather than actual investments, and that the continuation of current projects could be included in the projected spending, the proportion of firms with investment plans suggests promising pockets of opportunity for IT vendors in the region.
Despite a relatively high installed base of Data Security and ERP applications among Latin American medium and especially large companies, these two solutions were most frequently cited as firms' primary software-based investments for 2003. The prevalence of these applications can be attributed to their foundational role in establishing an applications infrastructure. Interest in security has grown over the past couple of years in tandem with companies' increased awareness of data vulnerabilities, and new ERP solutions, as well as upgrades and module additions, remain popular investments to boost efficiency. However, from a services standpoint, IDC Latin America believes some of the best potential opportunities in the region are found in the CRM solutions area.
While CRM uptake in the region has been relatively slow, more than one-quarter of companies indicated it was either a primary or secondary investment priority for 2003. Furthermore, survey results indicate that implementers of CRM are most likely of all solutions areas to rely on external IT services help to realize the project. "Thus, CRM is not only an investment at the forefront of the budgets of many IT and business executives in Latin America, but it is also a market that invites a collaborative approach between clients and IT services firms," says Melissa Utter, senior analyst at IDC Latin America and author of Pockets of Opportunity in Latin America's IT Solutions Services Market. "However, given the current environment in which IT spending is channeled into smaller, more tactical, quick success projects, services providers looking to succeed in the CRM space should have affordable point solution approaches available to address the needs of more cautious spenders," says Utter.
The Pockets of Opportunity in Latin America's IT Solutions Services Market report evaluates the IT solutions services market in Latin America to determine what opportunities lie on the horizon for IT solutions services vendors in 2003. To realize this research, IDC Latin America surveyed IT decision-making professionals (CIOs, MIS Directors, and business executives) in Latin America. This report is based on results received from approximately 700 medium- and large-size companies in Latin America's six largest IT markets (Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela) during October 2002. The main focus is on current use of and planned investment in seven major solutions areas (ERP, CRM, SCM, Data Security, Data Storage, eCommerce, and Wireless and Mobile) for 2003, including intentions for partnering with external solutions providers on planned solutions projects. For more information regarding the study Pockets of Opportunity in Latin America's IT Solutions Services Market or to obtain the complete study, please contact Barbie Cordero of IDC Latin America at email@example.com or at (305) 351-3131.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com
IDC Latin America
IDC Latin America has established an unrivaled reputation for analysis of the IT, Internet, and Telecom markets in Latin America. Our research group is comprised of over ninety analysts in Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela who are devoted to generating the most authentic and up-to-date information on these markets. Following a commitment to excellence, IDC has pioneered primary research in the countries of Costa Rica, Dominican Republic, Ecuador, Guatemala, Panama, Peru, and Puerto Rico. This distinctive local presence results in the most comprehensive and trustworthy market coverage of the Latin American region.
IDC is a division of IDG, the world's leading IT media, research and exposition company.