Investment in Technology Expected to Increase 7.1% This Year in Brazil, Says IDC

RIO DE JANEIRO, BRAZIL – Spending on technology and telecommunications in Brazil should rise 7.1% this year, totaling US$64.4 billion, said International Data Corporation (IDC) Brasil consultancy on Thursday, February 4th.

Cyber security is at the top of the priority list among investments in technology for 61% of the 75 Brazilian companies surveyed this year – 11 points above 2019.

Spending on software and security equipment will total US$900 million in 2021, a 12,5% increase over 2019. Cloud security offers should represent 23% of security investments, according to IDC.

Data analysis technologies, including artificial intelligence and machine learning, rank second on the priority list for 52% of companies surveyed. Spending on artificial intelligence in Brazil will total US$464 million by the end of the year.

“Security systems are the most benefited from the use of artificial intelligence given the increase in attacks and data leaks,” says Luciano Ramos, research and consulting manager for IDC Brasil’s corporate area.

He emphasizes that the multiplication of artificial intelligence resources will also hasten competition in the segment. “We will see an increase in the number of mergers and acquisitions with companies and startups in the area,” he projects.

5G technology is one of the consultancy’s bets for the country this year. “5G must be seen as an opportunity for the implementation of corporate technologies such as cloud computing, internet of things (IoT), artificial intelligence, among others,” says Luciano Saboia, telecommunications research and consulting manager at IDC Brasil.

Saboia believes that the delay in the auction for 5G networks will be recovered by the sector. “Operators invest between R$5 and R$6 billion per year on infrastructure and Brazil is able to make up for this delay,” he says.

Spending on infrastructure and software platforms such as public cloud services (outsourced) should reach US$3 billion this year, an increase of 46.5% over 2020. “This is a sharp increase towards the cloud driven by platforms such as service, including data analysis in the cloud,” says Ramos.

Spending on ERP (Enterprise Resource Planning) will increase 12.6% this year, totaling US$3.4 billion, and investments in these systems in the cloud should range between 14% and over 30% depending on the segment (people management, assets, finance, logistics, etc.).

Spending on consumer relationship systems, including attendance management, sales and marketing, should total US$1,4 bi, a 21,3% increase.

About IDC

International Data Corporation (IDC) is a global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets.

With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries.

Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), a tech media, data and marketing services company, wholly owned subsidiary of Chinese investment company China Oceanwide Holdings Group.