Widespread Acceptance of its Advantages Sustains IT Infrastructure Outsourcing Market in Latin America, Finds Frost & Sullivan

– Enterprises need to reduce costs and convert capital expenditure into operational expenditure steers market forward

SAO PAULO, March 3, 2015 /PRNewswire/ — The maturity of the Latin American market for IT infrastructure outsourcing services is proving to be a growth engine. As companies of different sizes across verticals now have a better understanding on the benefits of this business model, they are increasingly trusting service providers’ capabilities to guarantee availability and compliance with service level agreements.

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New analysis from Frost & Sullivan, Analysis of the Latin American Information Technology (IT) Infrastructure Outsourcing Services Market, finds that the market earned revenues of $3.03 billion in 2013 and estimates this to reach $5.22 billion in 2019. The study covers Argentina, Brazil, Chile, Colombia, Mexico and Peru.

For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/LA_PR_FValente_NE2C-72_17Oct14.

Companies are adopting IT infrastructure outsourcing services to cope with the dynamic Latin American market, where demand, competitors and regulation are changing. Outsourcing infrastructure management, monitoring and control allows IT executives to move beyond operational tasks to take on more strategic roles within the company, assisting in the organization and optimization of business processes.

"With companies across the region looking to reduce costs and convert capital expenditure into operational expenditure, the future of the IT infrastructure outsourcing services market seems bright," said Frost & Sullivan Information & Communication Technologies Research Analyst Mauricio Chede. "By availing IT infrastructure outsourcing solutions, enterprises are essentially spending on these services rather than investing money in expanding capacity."

However, many IT executives still perceive outsourcing as a loss of control over critical data. In addition to this fear, cultural preference for centralized control, particularly in markets like Brazil, makes companies hesitant to leave the management and monitoring of IT infrastructure in the hands of a service provider.

Further, the lack of a qualified IT labor force in Latin America compared to developed countries such as the United States and Europe is impeding market development. Labor shortages are elevating churn rates. Adding to these woes are the high salaries companies have to pay, partly due to heavy taxes, especially in Brazil.

"Notwithstanding these challenges, the Latin American IT infrastructure outsourcing services market will witness steady growth, especially as connectivity grows," stated Chede. "New trends such as big data, cloud computing and bring your own device are it harder and more complex for companies to manage the data being generated. Companies are, therefore, relying on IT infrastructure outsourcing service providers to ease data management."

Analysis of the Latin American Information Technology (IT) Infrastructure Outsourcing Services Market is part of the IT Services Growth Partnership Service program. Frost & Sullivan’s related studies include: Latin American Managed Security Services Market, Brazilian Internet Technology (IT) Infrastructure Outsourcing Services Market, Adding Value and Managing Change in Today’s Contact Center, and Brazilian Cloud Computing Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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Analysis of the Latin American Information Technology (IT) Infrastructure Outsourcing Services Market
NE2C-72

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54-11-4777-5300
F: +54-11-4777-5300
E: francesca.valente@frost.com 

http://www.frost.com

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