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Argentina Information Technology Report Q1 2016

Argentina Information Technology Report Q1 2016

BMI View: We are anticipating a strong growth in the IT market in 2016 in local curreny terms but pesoweakness remains a problem for Argentina. US dollar denominated growth will be negative once again buta less hostile economic environment, including slower peso depreciation against the US dollar, which willmean less pressure on PC sales than under our previous forecast. We still expect a marked improvementfrom 2014 when the economic crisis had a major disruptive impact on the Argentine IT market, with thedevaluation of the peso, import restrictions, high inflation, capital controls, shortage of credit andgovernment debt default all contributing to a recession and sharp contraction of the IT market in US dollarterms. Over the medium term, we expect the market to move to a higher growth trajectory from 2016/2017as confidence returns and deferred purchases from 2014-2015 are unlocked. Meanwhile, the impact ofeconomic crisis was not wholly negative, with devaluation helping to make IT exports abroad morecompetitive and boosting industry development. There are also positive fundamentals for medium-termgrowth including increases in PC penetration, second device ownership, enterprise software penetrationand cloud computing are examples of sectors that have growth opportunities.

Headline Expenditure Projections

Computer Hardware Sales: sales will jump by 21.5% in 2016 with market value reaching ARS23.9b inlocal currency terms.

Software Sales: will jump 21.2% in 2016 to an estimated ARS18.73bn. Small- and medium-sizedenterprise demand for software and strong potential in enterprise resource planning applications shouldmaintain growth despite macroeconomic challenges.


BMI Industry View
SWOT
IT SWOT
Industry Forecast
Table: IT Industry - Historical Data and Forecasts (2013-2019)
Industry Risk Reward Index
Table: Americas IT Risk/Reward Index, Q116
Market Overview
Hardware
Software
Table: Argentina Software Exports By Country
Cloud Computing
IT Services
Regulatory Development
Competitive Landscape
International Companies
Table: IBM
Table: Sofrecom
Local Companies
Table: Axoft Argentina (Tango)
Table: Banghó
Table: Ceven
Table: Exo
Table: Noblex (Newsan)
Regional Overview
Americas
Demographic Forecast
Table: Population Headline Indicators (Argentina 1990-2025)
Table: Key Population Ratios (Argentina 1990-2025)
Table: Urban/Rural Population & Life Expectancy (Argentina 1990-2025)
Table: Population By Age Group (Argentina 1990-2025)
Table: Population By Age Group % (Argentina 1990-2025)
Methodology
Industry Forecast Methodology
Sources
Risk/Reward Index Methodology
Table: IT Risk/Reward Index Indicators
Table: Weighting Of Components

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