Colombia Information Technology Report Q3 2012

Date: July 3, 2012
Pages: 73
US$ 1,175.00
Report type: Strategic Report
Delivery: E-mail Delivery (PDF), Download

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Includes 3 FREE quarterly updates

BMI View: Colombia's IT market is forecast to increase to US$3.0bn in 2012, up by around 11%, with our five-year forecast upwardly revised from Q212. Colombian IT spending is projected to grow at a CAGR of 12% during 2012-2016, driven by government ICT initiatives and improving infrastructure. The consumer-driven economic boom of recent years may have come to an end, but rising incomes and greater computer affordability will result in more spending on IT products and services. Percapita IT spend is projected to rise by 47% from US$59 in 2012 to US$92 by 2016.

Headline Expenditure Projections Computer hardware sales: US$1.4bn in 2011 to US$1.5bn in 2012, +10% in US dollar terms. Forecast in US dollar terms unchanged but there is considerable potential in government and business segments, where levels of investment are low.

Software sales: US$434mn in 2011 to US$486mn in 2012, +11% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification with most demand for basic solutions, such as enterprise risk management and supply chain management systems.

IT Services sales: US$911mn in 2011 to US$1.0bn in 2012, +13% in US dollar terms. Forecast in US dollar terms unchanged as around 75% of demand still comes from the large company sector. Risk/Reward Rating: Colombia's score was 52.3 out of 100.0. Colombia ranked eighth our of nine markets in the Americas region in our latest business environment ratings table, behind all of its regional peers with the sole exception of Venezuela. Despite the high growth potential of its market, Colombia's overall ranking was constrained by a low Country Structure score of just 50, joint lowest in the region with Peru.

Key Trends & Developments
  • The government's Vive Digital programme offers a long-term boost to the IT market, with a pledge to eliminate import tariffs on connectivity devices, and to take measures to enhance credit availability for such devices. Private credit growth has also started improving, and could mean an increasingly bright outlook for household consumption.
  • The business sector also represents a large opportunity, due to the relatively low levels of computerisation among small businesses in particular. According to government figures, just 7% of Colombia's small businesses are currently online, although such businesses represent 96% of all Colombian enterprises.
  • Investment in data centres, information management and security solutions are expected to be growth areas in the large company segment. Meanwhile, the government's ambitions to develop Colombia as a regional BPO hub, which have enjoyed some success, will generate more demand for back-end systems and services. Cloud computing remains a niche but interest is growing.
Executive Summary
SWOT Analysis
Colombia IT Sector SWOT
Colombia Telecoms Industry SWOT
Colombia Political SWOT
Colombia Economic SWOT
Colombia Business Environment SWOT
Latin America IT Risk/Reward Ratings
  Table: Regional IT Risk/Reward Ratings Q312
IT Markets Overview
IT Penetration
Sectors And Verticals
Colombia Market Overview
Government Authority
Banking Sector Investments
Industry Developments
Incentives For Offshoring Investment
Industry Forecast
Market Drivers
  Table: Colombia IT Industry, Historical Data And Forecasts (US$mn unless otherwise stated)
Industry Forecast Internet
Competitive Landscape
IT Services
Internet Competitive Landscape
Macroeconomic Forecast
  Table: Colombia – Economic Activity, 2011-2016
Company Profiles
  Table: Selected Dell Mergers And Acquisitions
Country Snapshot: Colombia Demographic Data
  Table: Colombia's Population By Age Group, 1990-2020 ('000)
  Table: Colombia's Population By Age Group, 1990-2020 (% of total)
  Table: Colombia's Key Population Ratios, 1990-2020
  Table: Colombia's Rural And Urban Population, 1990-2020
BMI Methodology
How We Generate Our Industry Forecasts
Transport Industry
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