Jan 25, 2018   SOURCE: PR NewsWire

Frost & Sullivan: Brazilian IT Providers Expand their Offering to Cloud and Managed Services to Increase Revenue

SÃO PAULO, Jan. 25, 2018 /PRNewswire/ -- The latest Frost & Sullivan research, Brazilian IT Outsourcing Market, Forecast to 2021, sheds light on the impacts of recent technological innovations, critical business and economic considerations that are aiding and hampering the outsourcing model adoption. The information technology (IT) outsourcing segment corresponds today at 48.5% of the total IT industry in Brazil; it is expected to attain $US 7.96 billion by 2021, while it reached $US 6.68 billion in 2016.

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The Brazilian economic scenario influenced the performance of the services market, and forced companies to reduce expenditure and focus on maintaining the operation and increasing efficiency. As a result, the business has shifted from traditional IT services to new platforms and technologies that offer faster implementation at more competitive prices.

"IT investments have been primarily directed at cloud solutions, such as SaaS, as a way to reduce investments in the acquisition of hardware and software while optimizing the infrastructure by adapting the capacity of processing to demand," stated Renato Rosa, Information & Communications Technology Program Manager at Frost & Sullivan.

The study revealed that:

    --  As cloud solutions take root, companies are having difficulty managing
        their cloud services, often provided through multiple vendors. Thus, IT
        companies are aiming to serve as cloud brokers or cloud management
        providers. IT companies also have the opportunities to help companies
        manage data centers;
    --  Finance is still the largest sector that invests in IT and is beginning
        to adhere to the cloud model;
    --  Application Management is the fastest growing service line. This stems
        from the needs of companies to have a better understanding and control
        of business processes;
    --  IT service providers have found new opportunities by diversifying their
        portfolios and adding small to medium-sized businesses (SMBs) to their
        target audience as a way to increase revenue.

"Over the next few years, many companies will need to revise their business infrastructure and will be looking for companies that have IT services that align with their business needs," concluded Rosa.

Brazilian IT Outsourcing Market, Forecast to 2021 is part of Frost & Sullivan's Digital Transformation Growth Partnership Service program.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion

Brazilian IT Outsourcing Market, Forecast to 2021
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Contact:
Francesca Valente
Corporate Communications - Americas
P: +54 11 4777 5300
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SOURCE Frost & Sullivan