IT investments may grow by up to 2.5% in 2020

According to Gartner research, IT investments in Brazil will total US$ 64 billion in 2020, an increase of 2.5% compared to the total in 2019. According to its latest forecast, spending on Information Technology in the Brazilian market is expected to decrease by 4.6% this year. Analysts state that Brazil is following the same pattern as the global market. Global IT spending is projected to reach US$ 3.7 trillion in 2019, an increase of 0.4% compared to 2018. However, the global IT landscape is expected to recover in 2020, with a projected growth of 3.7%. "The headwinds from foreign currency are blowing strong across Latin America," says John-David Lovelock, Research Vice President at Gartner. "In Brazil specifically, IT spending is being driven by the Data Center segment, as the availability and breadth of Cloud options are not yet fully present." Today's complex global geopolitical environment has placed regulatory compliance at the top of organizations' priority lists. Overall security spending increased by 10.5% in 2019, with security for Cloud Computing projected to grow by 41.2% over the next five years. The global device market will experience the largest decline in spending in 2019, a drop of 5.3% compared to the US$ 713 billion in 2018. However, the expectation is that the segment will return to growth in 2020, with an increase of 1.2%. "Similar to how consumers have reached the upgrade threshold for new technologies and applications, technology general managers and product managers should only invest in the next generation of products that truly bring them closer to becoming a real technology company," Lovelock assesses. The growth in IT spending is being driven by the rest of the world, primarily achieved through investments in Cloud. The United States leads the adoption of Cloud Computing and accounts for more than half of global spending in this segment. In some cases, the countries that Gartner tracks are lagging behind by 1 to 7 years in the adoption rates of Cloud solutions. Brazil spends 2% of its total investment on public Cloud services and can be considered a country with a slow pace in this aspect. Source: E-commerce Brazil

Frequently asked questions

What does Gartner forecast for IT investments in Brazil in 2020?

Gartner projects that IT investments in Brazil will total US$ 64 billion in 2020, a 2.5% increase over 2019, a year in which spending had fallen 4.6%. This follows the same pattern seen globally: worldwide IT spending is expected to grow 3.7% in 2020, after rising just 0.4% in 2019 to reach US$ 3.7 trillion.

Why is IT spending in Brazil still driven by Data Center rather than Cloud?

According to John-David Lovelock, Research Vice President at Gartner, this happens because the availability and breadth of Cloud options are not yet fully present in the country. Brazil invests only 2% of its total IT budget in public cloud services, a pace Gartner considers slow, while the United States leads Cloud Computing adoption and accounts for more than half of global spending in this segment.

How much is security spending expected to grow, according to Gartner?

Overall security spending had already increased by 10.5% in 2019, and Gartner projects that Cloud Computing security will grow by 41.2% over the next five years. This trend is tied to today's complex global geopolitical environment, which has placed regulatory compliance at the top of organizations' priority lists.