The Brazilian IT service market has good momentum. Brazil’s market represents the majority (49%) of the total U.S.$32 billion IT service market in Latin America. With a positive and promising GDP, global appetite for new growth, open culture, and a dynamic and diversified economy, Brazil has a positive, global outlook for the future.
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Young noted that labor and resources are also very challenging for the Brazil IT services market. Gartner estimates that 46% of Brazilian organizations lack either quantity or quality when it comes to the internal IT skills needed to support their business.
According to Dreyfuss and Young, 66% of Brazilian IT leaders and CIOs have planned to increase their IT budget spending in 2012, while only 16% planned to decrease spending and 18% said it would remain at the same level.
Regarding technology adoption, Dreyfuss said Brazilians have not yet taken advantage of cloud delivery services. “We would like to encourage you to lead cloud computing adoption rather than being pushed,” he said. “Brazil is making necessary IT investments, but it is also missing opportunities.”
The two executives suggested that IT leaders and CIOs make their organizations ready for the future by implementing formal innovation initiatives and developing a service architecture that enables new service delivery models.
Four major challenges for CIOs:
• Business Focus
Challenge— Lack of alignment with business renders IT services and sourcing strategies ineffective.
Call to action—Leverage Brazil’s “learning culture” to develop world-class IT and business leaders; raise the bar for business-aligned sourcing initiates.
• Cost
Challenge—Structural labor and service costs are increasing the impact on all IT services and sourcing initiatives.
Call to action—Capitalize on the favorable economy to set IT growth goals; use sourcing effectively to drive cost-efficiencies and productivity.
• Resources
Challenge—Insufficient IT skills in the organization and in providers will create serious bottlenecks.
Call to action—Partner with providers, government and universities to build a much-needed IT talent pool; leverage global sourcing practices to tap into other talent pools.
• IT innovation
Challenge—Brazil lags in the global market in terms of commitment to key new technology innovations, especially cloud computing.
Call to action—Make your IT organization ready for the future and implement a formal innovation initiative; develop a service architecture that enables new services and delivery models.
