Peru Information Technology Report Q2 2016
BMI View: Peru's IT market is one of the least developed in Latin America, with low device and solutionpenetration among households and enterprises, but we do consider it to have bright prospects as thehousehold income profile improves over the medium term, alongside the ongoing trend of enterprisemodernisation. This will see the market move to a higher growth trajectory from 2017, after a markeddeceleration in 2015 and 2016 when a downturn in economic sentiment, and nuevo sol depreciation againstthe US dollar that resulted in deferred spending and heightened price sensitivity. We also considergovernment policies to support IT sector growth in Peru positively in the context of industry trends such asdeclining device prices, improvements in network infrastructure and cloud computing adoption. The majordownside risk to our bullish outlook is weaker Chinese demand for the country's raw materials.
Latest Updates & Industry Developments
Computer Hardware Sales: PEN2.9bn in 2016 to PEN3.8bn in 2020. After contraction in 2015 andstagnant market in 2016 we believe strong household income growth from 2017 will allow vendors to tapthe low PC penetration in Peru, particularly outside Lima where penetration is much lower.
Software Sales: PEN1.1bn in 2016 to PEN1.5bn in 2020. The enterprise software SME market isunderpenetrated but should be unlocked by lower cost SaaS, while more complex demands from largePeruvian enterprises should also be a strong growth areas they modernise.
IT Services Sales: PEN2.4bn in 2016 to PEN3.5bn in 2020. IT services will outperform in 2016 inchallenging economic environment due to cost savings for enterprises, while over the medium term cloudadoption and outsourcing will drive strong demand growth.
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