Information Technology in Brazil: China is passed and Brazil becomes 7th largest software market in the world
Brazil has overtaken China in 2012 and became the seventh largest domestic market in the world in the sale of software and services for information technology, according to a survey released recently by the Brazilian Association of Software Companies (ABES).
With a total market of $ 24.9 billion, the country jumped three positions 2011 to last year and topped the way, besides the Chinese, Australians and Italians.
The growth recorded in 2011 was about 28%. The jump was due to the 53.5% growth in software sales, which reached U.S. $ 9.48 billion. The service sector information technology systems (development done at the request of a company) increased 16% and reached $ 15.44 billion.
Meanwhile, China‘s domestic market grew by 12.2%, reaching $ 23 billion. The global crisis that hit mainly Europe and the United States reduced the growth of major software markets. Italy, on the way to Brazil, grew by only 4%, France 6%, Germany 9%, and the UK, 5%. The United States, the greatest power in the segment and home to major companies, advanced 3.63%.
Japan and Australia, apparently immune to the effect of the crisis, advanced 14.7% and 10.5%, respectively. With solid growth of 21.5%, Canada maintained the sixth position and prevented what could have been a bigger jump in the sector of Brazil.
Despite the advances in trading software in Brazil, the vast majority of computer programs is still being developed outside the country by foreign companies. Just under 80% of the revenue goes to the coffers of companies like the U.S. Microsoft and SAP.
The sectors that consume these programs are finance (25%), and telecommunications services (24.8%) and industry (18.6%). In the services segment, the logic is reversed. More than 88% of the amount raised will go to companies that make development of solutions within the country.
With the advancement of the Brazilian market for software and services, Brazil arrived in 2011 to 3% of global movement. However, while the Brazilian market soars, exports still lag behind, reaching $ 2.24 billion in 2012.
An obstacle to the growth of the domestic market — touted by ABES — is piracy, which reached 53% of software sold in Brazil in 2011. The fight against illegal software led to the removal of 20,600 ads selling pirated software sites on the internet, in addition to the suspension of 52 websites. Outside the internet, 309 shares during the year, 640,000 CDs were seized.
When added to the expense with software resources spent on hardware (equipment), Brazil is characterized as the destination of 49% of all funds invested in Latin America.