1. LATAM IT SERVICES MARKET
LatAm IT Services Market Analysis for open a firm of IT Services
Ronan Martins Soares
Head of Information Technology,
Software Factory and AMS
ronanms@gmail.com
Belo Horizonte, Brazil
2. AGENDA
• Internal Market Size and Export of IT Services
• GDP per capita
• Ranking at 2014;
• Ranking for 2018;
• Analysis and Trends
• Open a firm
• Labor Tax and Contributions
• Rent an Office
3. INTERNAL MARKET SIZE
AND EXPORT OF IT SERVICES
Argentina Brazil Chile Colombia Costa Rica Mexico
Export of IT Services $ 1,000 MM $ 2,000 MM $ 1,500 MM $ 10 MM $ 4,000 MM $ 5,000 MM
Internal Market Size $ 4,000 MM $ 23,000 MM $ 4,000 MM $ 2,000 MM $ 1,000 MM $ 9,000 MM
$ MM
$ 5,000 MM
$ 10,000 MM
$ 15,000 MM
$ 20,000 MM
$ 25,000 MM
$ 30,000 MM
Market Size
Although exports of IT services are increasing, the internal market is
increasingly important for IT companies in Latin America. The internal
market continues to support overseas investments.
Like many countries in Central America, Costa Rica's small internal market
and scarcity of customers make growth a slow and difficult process
without much room for internal expansion, forcing IT companies to seek
alternatives outside the country for a sustainable growth.
Source: Apex
4. GDP PER CAPITA - RANKING AT 2014
USD 858.40
USD 1,929.28
USD 2,367.77
USD 2,989.07
USD 3,684.04
USD 3,945.33
USD 4,013.93
USD 4,273.70
USD 4,659.35
USD 5,097.82
USD 5,922.62
USD 6,321.77
USD 6,826.60
USD 6,895.07
USD 7,280.42
USD 7,866.65
USD 7,913.01
USD 8,125.89
USD 9,628.46
USD 9,639.62
USD 10,767.25
USD 10,892.85
USD 11,079.54
USD 11,231.15
USD 11,824.75
USD 13,329.77
USD 14,204.83
USD 14,856.02
USD 15,447.53
USD 17,121.06
USD 21,462.23
USD 24,484.52
USD - USD 5,000.00 USD 10,000.00 USD 15,000.00 USD 20,000.00 USD 25,000.00 USD 30,000.00
32º HAITI
31º NICARAGUA
30º HONDURAS
29º BOLIVIA
28º GUATEMALA
27º GUYANA
26º EL SALVADOR
25º PARAGUAY
24º BELIZE
23º JAMAICA
22º DOMINICAN REPUBLIC
21º ECUADOR
20º ST. VINCENT AND THE GRENADINES
19º PERU
18º DOMINICA
17º ST. LUCIA
16º GRENADA
15º COLOMBIA
14º SURINAME
13º ARGENTINA
12º MEXICO
11º COSTA RICA
10º BRAZIL
9º VENEZUELA
8º PANAMA
7º ST. KITTS AND NEVIS
6º ANTIGUA AND BARBUDA
5º CHILE
4º BARBADOS
3º URUGUAY
2º TRINIDAD AND TOBAGO
1º THE BAHAMAS
Source: International Monetary Fund
GDP per capita is a good way to compare the economic output of a
country as it relate comparing GDP per country using PPP. When the
LatAm countries are compared that way, The Bahamas is ranked 1st GDP
per capita of the LatAm countries and Trinidad and Tobago is ranked 2nd
GDP per capita of the LatAm countries, however IT industry is not
representative in economy these countries.
The major exporters of IT services in LatAm are Uruguay (3rd GDP), Chile
(5th GDP), Panama (8th GDP), Brazil (10th GDP), Costa Rica (11st GDP),
Mexico (12nd GDP), Argentina (13rd GDP), Colombia (15th GDP), Peru
(19th GDP) and Guatemala (28th GDP).
5. GDP PER CAPITA - RANKING FOR 2018
Source: International Monetary Fund
USD 1,029.52
USD 2,316.84
USD 2,484.10
USD 4,045.06
USD 4,222.16
USD 4,732.35
USD 5,033.33
USD 5,119.13
USD 5,419.94
USD 5,611.68
USD 6,627.79
USD 7,422.48
USD 8,107.84
USD 8,527.08
USD 8,646.43
USD 8,847.85
USD 9,254.92
USD 9,406.37
USD 9,848.12
USD 11,240.02
USD 12,925.16
USD 13,065.37
USD 13,070.73
USD 13,399.29
USD 15,233.06
USD 15,761.67
USD 16,902.47
USD 17,772.71
USD 18,967.72
USD 20,777.55
USD 24,539.64
USD 28,575.33
USD - USD 5,000.00 USD 10,000.00 USD 15,000.00 USD 20,000.00 USD 25,000.00 USD 30,000.00 USD 35,000.00
32º HAITI
31º NICARAGUA
30º HONDURAS
29º BOLIVIA
28º GUATEMALA
27º EL SALVADOR
26º GUYANA
25º BELIZE
24º PARAGUAY
23º JAMAICA
22º DOMINICAN REPUBLIC
21º ECUADOR
20º ST. VINCENT AND THE GRENADINES
19º DOMINICA
18º ARGENTINA
17º PERU
16º GRENADA
15º ST. LUCIA
14º COLOMBIA
13º VENEZUELA
12º MEXICO
11º SURINAME
10º COSTA RICA
9º BRAZIL
8º ST. KITTS AND NEVIS
7º PANAMA
6º ANTIGUA AND BARBUDA
5º BARBADOS
4º CHILE
3º URUGUAY
2º TRINIDAD AND TOBAGO
1º THE BAHAMAS
GDP per capita is a good way to compare the economic output of a
country as it relate comparing GDP per country using PPP. When the
LatAm countries are compared that way, The Bahamas is ranked 1st GDP
per capita of the LatAm countries and Trinidad and Tobago is ranked 2nd
GDP per capita of the LatAm countries, however IT industry is not
representative in economy these countries.
The major exporters of IT services in LatAm are Uruguay (3rd GDP), Chile
(5th GDP), Panama (8th GDP), Brazil (10th GDP), Costa Rica (11st GDP),
Mexico (12nd GDP), Argentina (13rd GDP), Colombia (15th GDP), Peru
(19th GDP) and Guatemala (28th GDP).
7. OPEN A FIRM
$1,938.26 $1,844.19
$521.62
$108.17
$581.09
$891.70
$1,920.53
$686.48
$1,685.55
$686.37
$249.10
$3,337.54
$-
$500.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
$3,000.00
$3,500.00
$4,000.00
ARGENTINA BOLIV IA BRAZIL CHILE COLOMBIA COSTA RICA MEXICO PA NA MA PARAGUAY PERU PUERTO
RICO
URUGUAY
COST TO OPEN A FIRM
25.00 days
49.00 days
107.50 days
5.50 days
15.00 days
24.00 days
6.00 days
6.00 days
35.00 days
25.00 days
0.00 days 20.00 days 40.00 days 60.00 days 80.00 days 100.00 days 120.00 days
ARGENTINA
BOLIV IA
BRAZIL
CHILE
COLOMBIA
COSTA RICA
MEXICO
PANAMA
PA RAGUAY
PERU
AVERAGE DAYS TO OPEN A FIRM
Source: The Would Bank
8. LABOR TAX AND CONTRIBUTIONS
29.4%
18.8%
39.6%
38.0%
28.8%
29.5%
28.2%
19.8%
18.6%
11.0%
14.4%
15.6%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0%
ARGENTINA
BOLIV IA
BRAZIL
CHILE
COLOMBIA
COSTA RICA
MEXICO
PANAMA
PARAGUAY
PERU
PUERTO RICO (U,S,)
URUGUAY
LABOR TAX AND CONTRIBUTIONS (%)
Source: The Would Bank
9. RENT AN OFFICE
$3,500.00
$2,000.00
$7,500.00
$2,418.47 $2,500.00
$2,291.66
$4,000.00
$3,260.87
$1,500.00
$5,037.31
$398.04
$4,431.81
$-
$1,000.00
$2,000.00
$3,000.00
$4,000.00
$5,000.00
$6,000.00
$7,000.00
$8,000.00
ARGENTINA BOLIV IA BRAZIL CHILE COLOMBIA COSTA RICA MEXICO PANAMA PARAGUAY PERU PUERTO
RICO
URUGUAY
RENT AN OFFICE (ABOUT 100M2)
Source: The Would Bank
10. THANK YOU !
Ronan Martins Soares
Head of Information Technology,
Software Factory and AMS
ronanms@gmail.com
Belo Horizonte, Brazil
About me
Over 13 years of experience in delivery IT services management,
operations and software factory, 3 of these years in Mexico, where he
had the opportunity in attend company of banking and finance
industry, automotive industry, telecommunication, logistics, trade and
retail industry.
Was COO (Director of Operations) at a company dedicated to Mobile
Application Development.
Structured and managed 2 delivery centers in Mexico and 4 software
factories in Brazil, 2 of these factories were dedicated for Mobile
Development (iOS and Android). Management of an international
multidisciplinary team with about 140 professionals and 7 Managers
working in Project Management, Software Solutions, Delivery and
consulting in Cobit, ITIL, CMMi, SCRUM and TSP.
Solid experience in elaboration and execution strategic planning,
corporate governance of IT, global strategies, analyzing perspectives
and trends, finance, logistics and international market in countries of
Latin America.