Peru: Will Its Economic Boom Extend To The Technology Sector?

I recently returned from attending the opening of Belatrix Software’s new office in Lima, Peru, where I was also able to meet with representatives of the Peruvian Association Of Software Producers (APESOFT), which aims to promote the software industry in Peru.
 
I was keen to travel to Peru to gain a better understanding of one of the fastest-growing Latin American economies, as well as to put this growth into the context of its technology industry. Peru was recently ranked fourth in Bloomberg’s list of the top 20 emerging markets, just behind China, South Korea, and Thailand but ahead of other prominent Latin American destinations such as Mexico and Brazil. It is rated as one of the most attractive Latin American markets for doing business.
 
Peru has one of the fastest-growing economies in Latin America, and although GDP growth has recently slowed slightly, its forecast for the medium to long term is positive. Although by total size, it is dwarfed by Brazil (whose GDP is approximately 14 times larger than Peru’s), the IMF is expecting continued growth at approximately 6% in 2013 and 2014.
 
However, despite its fast-growing economy, Peru’s IT market is one of the smaller and more nascent Latin American markets. Forrester estimates that total Peruvian IT purchases in 2012 were $2.5 billion — compared with $23.4 billion in Mexico and $46.5 billion in Brazil.
 
Some key observations:
 
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Central And Eastern Europe – Capturing The Imagination Of Services Buyers?

 

IT services buyers are changing their buying requirements. Increasing demand for technologies that drive business innovation agendas, from cloud to analytics to mobile, is creating dramatic upheaval in the technology services market. One result of this, is that while organizations are looking to consolidate their supplier base in traditional service areas like applications outsourcing, buyers are looking to a broader range of providers to acquire specific expertise for these innovation-led engagements.
 
In light of this shifting backdrop, there is an argument that this will present opportunity to some of the so-called “alternative offshore” locations beyond India. In other words, buyers will look to other regions to try and find some of these specific skills and resources.
 
My recent report examined this with respect to Central and Eastern Europe (CEE).
 
The services market in the CEE region remains highly fragmented, with a large number of relatively small providers. However, the region does have a set of key strengths which will position it strongly in the minds of buyers as these broader technology shifts take place. In particular:
 
  • Aspirations of young digital natives in the region to become programmers or engineers
  • Educational systems focused on key strengths in engineering, math and science
  • Leading providers focus on high-end software engineering with expertise in agile development
  • Leading providers focus on product development services which helps differentiate from traditional IT services
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