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New Market Study Published: Argentina Information Technology Report Q4 2010
Fast Market Research recommends "Argentina Information Technology Report Q4 2010" from Business Monitor International, now available
The Argentine IT market is the second largest in Latin America. Despite the current economic crisis, the total value of spending on IT products and services should pass US$3.9bn in 2010 and approach US$6.6bn by 2014. Per capita IT spend is seen as rising from US$98 in 2010 to US$158 in 2014 as the market approaches levels last seen before the crisis of 2001. The market is dominated by the capital Buenos Aires, which accounts for 26% of household appliance sales, including computer hardware.
In 2010, government spending should be a growth area, after a quiet 2009 for government hardware tenders, with particular opportunities in the education sector. Educational tenders will be a particular area of opportunity, with a tender to deliver 3mn PCs to public schools announced in April. Key prospects for enterprise resource planning (ERP) implementations and systems upgrades will include companies focused on regional expansion and export-oriented industries.
In April 2010, the Argentine government was preparing to launch a tender to provide 3mn PCs to public schools nationwide. The programme, called Conectar Ingualdad, was announced by President Cristina Fernandez. The tender will be run through state social security agency ANSES, with the 3mn PCs due to be distributed in early 2011.
The announcement of the government tender for 3mn notebooks computers for schools, again raised questions about the domestic computer industry's production capacity. The government has ruled that half of the PCs must be manufactured in Argentina, which over three years would add at least another 500,000 computers to annual production. Many experts have argued that this will be difficult, but the most likely approach to achieve this is likely to be through joint ventures between local and multinational manufacturers.
October 2009, Argentina's senate approved a controversial bill aimed at imposing new taxes on luxury items, including electronics products. The law doubled value-added tax (VAT) on affected goods from 10.5% to 21%. However, after industry lobbying, notebooks and netbooks were excluded from the proposed tax. The government said that the intention behind the proposed tax hikes was to provide assistance to the electronics manufacturing hub of Tierra del Fuego.
In July 2010, Microsoft estimated that around 500,000 Windows 7 licenses had been sold in Argentina since the October 2009 launch of the operating system on the local market. Microsoft forecast that sales would rise 20% in the second half of 2010, with business demand growing 30%. Software market leader Microsoft Argentina expected revenues to rise 24% to around US$100mn in FY09, which ended in June 2009.
HP accounted for the largest share of PCs imported in H110, with 27%, according to customs data, followed by Dell with 17% and 15.3% for Lenovo. These figures did not include locally assembled PCs, which typically account for around 60% of the total. In mid-2010, Intel, which won another recent government education PC tender, was among those companies expected to bid for the newly announced education sector tender.
A major area of opportunity for IT services vendors will be public and private sector organisation demand for help to utilise cloud computing solutions. Software giant SAP has formed an alliance with IBM, Linux systems integrator Red Hat and Argentine telecoms company Metrotel to offer hosted solutions in Argentina. Government is expected to be a key vertical and, in June 2010, Japanese giant NEC announced the launch of a cloud computing base general education system for the Ministry of Education in Argentina's San Juan province.
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Report Table of Contents:
- Argentina IT Sector SWOT
- Argentina Telecoms Industry SWOT
- Argentina Political SWOT
- Argentina Economic SWOT
- Argentina Business Environment SWOT
IT Business Environment Ratings
- Latin America IT Business Environment Ratings
- Table: Regional IT Business Environment Ratings
Latin America Regional IT Markets Overview
Argentina Market Overview
- Government Authority
- Industry Developments
Industry Forecast Scenario
- Table: Argentina - IT Industry (US$mn Unless Otherwise Stated)
- Country Context
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Rural & Urban Breakdown, 2005-2030
- Telecoms - Internet - Historical Data and Forecast
- Argentina - Economic Activity
- IT Services
- Dell (Argentina)
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings - Methodology
- Table: IT Business Environment Indicators
- Table: Weighting Of Components
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