SAO PAULO, July 19, 2016 /PRNewswire/ -- The migration from traditional computing practices to modern processes in the Latin American IT services industry has been severely impeded by issues relating to reliability and infrastructure inadequacy. Realizing the vast revenue potential of the industry, stakeholders are gradually seeing the value in cooperating to tackle these challenges in a concerted manner.
New analysis from Frost & Sullivan, 2016 Latin America Outlook for the Information Technology Services Industry (http://www.frost.com/sublib/display-report.do?id=K0AB-01-00-00-00&src=PR), finds that the IT services industry earned revenue of $6.46 billion in 2015 and estimates this to reach $7.78 billion in 2016. The research covers: data center services, Big Data and analytics, cloud computing, managed security services, Internet of Things, smart cities, social business and mobility.
For complimentary access to more information on this analysis, please visit: http://corpcom.frost.com/forms/LA_PR_FValente_K0AB_Jul16
"One of the biggest hurdles to the mass adoption of potentially disruptive technologies is security," said Frost & Sullivan Digital Transformation Consultant Leandro Scalize. "No matter which technology is in focus, without a well-drawn security strategy, there is little chance of long-term success.''
Security will become increasingly relevant as companies continue their digital transformation process. The managed security services sector will grow accordingly, from $580.2 million in 2015 to $687.5 million in 2016, at a growth rate of 18.4 percent. Even though the current leader in IT services revenue continues to be data center services, it could soon change as its compound annual growth rate is the lowest among all the services covered.
A segment that is fast approaching maturity in Latin America is cloud computing, mainly due to the rising awareness and deployment of software as a service (SaaS) and Infrastructure as a Service (IaaS). Public cloud computing services are likely to generate more than $2 billion in 2016. Big Data will play a prominent role in the IT industry driven by the greater emphasis companies are putting on data analytics.
"The IT industry presents substantial opportunities for the companies that understand the real value of data management," noted Scalize. "Additionally, technology providers are feeling optimistic about their prospects due to the rising awareness of various IT services and consequently, the increasing opportunities coming from multiple industry verticals."
2016 Latin America Outlook for the Information Technology Services Industry is part of the IT Services & Applications (http://ww2.frost.com/research/industry/information-communications-technologies/it-services-applications) Growth Partnership Service program. Frost & Sullivan's related studies include: Analysis of Smart City Opportunities in Latin America, Analysis of Big Data and Analytics Market in Latin America, Analysis of the Latin American Managed Security Services Market, Analysis of the Latin American Datacenter Services Market, Maximizing the Human Resource, Managed Services Market in South Africa, African Cloud Computing Barometer, as well as Australia, Asia-Pacific, India, Indonesia, Japan and Malaysia Data Center Services Market 2016. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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2016 Latin America Outlook for the Information Technology Services Industry
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SOURCE Frost & Sullivan