Sales of technology services in Chile rise 6% in 2009Published: May 27, 2010
This was the only sector in the industry that experienced growth during 2009, a period marked by the economic crisis. The industry is expected to rally in 2010.
After a difficult year marked by the economic crisis in 2009, the Chilean technology industry did not have much to smile about. Except for technology services, the rest of the sector suffered due to the challenging global scenario. There is some good news, however, since better performance in the sector is expected for 2010.
With a 6% growth rate, technology services was the only field to withstand last year's economic crisis according to the IT Activity Indicator released by the Chilean Association of Information Technology Companies (ACTI) and developed by IDC. This area yielded profits of CLP$ 216 billion, or 28% of total technology industry sales in 2009.
"Service sector growth is one of the main indicators that the Chilean technology market is reaching maturity, and outsourcing is becoming increasingly important," explained ACTI's CEO, Miguel Pérez. He indicated that, "This is one of our association's objectives, since it allows us to generate greater added value in our services and greater challenges for Chilean companies, which are already starting to develop a world-class IT industry."
In 2009, technology sector sales reached CLP$ 1.514 trillion, representing a 1% drop from the 2008 figure of CLP$ 1.526 trillion. This decline is attributed to a 4% fall in hardware sales to CLP$ 816 billion, although the hardware area continues to generate the highest proportion of industry sales, at 58%.
Software performance did not vary from 2008, with sales totaling CLP$ 215 billion, or 14% of 2009 technology sales.
"2009 was marked by cautious investments, and only strategic projects were undertaken", explained Pérez. He commented that this trend was also observed at the final consumer level, affecting hardware sales, although ultraportable equipment performed well in the market. In comparison to 2008, desktop sales dropped 13% to 456,987 units, while notebook sales fell 6% to 641,445 units. On the other hand, netbook sales were 13 times higher in 2009 than in 2008, reaching 270,459 new ultraportables.
The analysis indicates moderate recovery for 2010, with possible benefits for the technology industry as a result of the reconstruction process underway in Chile. Sales this year are expected to grow by 2%, driven once again by the service sector.
Cristina Rivas, Research Manager for IDC Cono Sur, confirms that 2009 was a difficult year due to the absences of large projects renewal in the software and hardware sectors. The service sector, however, made progress thanks to outsourcing.
Projection for the region.The IDC consulting firm also revealed its estimates for growth in IT investment over the next two years, shown below:
According to IDC, mass consumption is driving IT growth in the region. Moreover, the consulting firm assures that the new conditions paint an optimistic picture for the region.
Rivas indicates that access to consumer credit has improved in the different scenarios. Similarly, governments and private companies are reactivating projects that go beyond just a strategic point of view. Even so, she warns that a culture of austerity, cost reduction, and optimization is here to stay.
Source: AméricaEconomía