Boston, MA -- (ReleaseWire) -- 06/16/2014 -- Our outlook for the Venezuelan IT market is bearish, and we expect it to be a regional underperformer over the medium term. The short-term outlook is particularly poor, with economic instability including inflation of almost 50% and sharp depreciation of the bolivar exacerbating existing downside from the government's interventionist approach. There are however opportunities for vendors to tap over the medium - term, with low PC penetration and government programmes to boost sales. As the economic situation stabilises in the latter years of our forecast we believe local and regional vendors will be well positioned to capitalise on opportunities presented by government and enterprise modernisation.
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Headline Expenditure Projections
Computer Hardware Sales: From VEB6.6bn in 2013 to VEB8.2bn in 2014. The ongoing depreciation of the bolivar has increased the price of imported hardware, including components required for local assembly, acting as a drag on demand.
Software Sales: From VEB1.8bn in 2013 to VEB2.4bn in 2014. High levels of software piracy and the government's commitment to open source software will limit opportunities for proprietary software vendors in both the retail and enterprise markets.
IT Services Sales: From VEB1.6bn in 2013 to VEB2.1bn in 2014. We expect around 75% of demand will come from large companies, with the oil sector still significant despite the fall in oil prices. However, there is medium-term potential for IT services sales to SMEs, particularly cost-saving cloud computing services.
Key Trends & Developments
Amidst a generally poor short-term outlook there is an opportunity for local IT service providers in the public sector where modernisation initiatives continue. For instance, in March 2014 the science, technology and innovation minister Manuel Fern?ndez announced the government was planning to digitise all its services by 2016. He reported that of the 805 separate government services offered in March 2014, only...
The Venezuela Information Technology Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.
BMI's Venezuela Information Technology Report provides industry professionals and strategists, corporate analysts, IT associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the IT industry in Venezuela.
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