"Colombia Information Technology Report Q3 2013" Published

We have a bright outlook for Colombia's IT market over the medium term, forecasting CAGR of 11% 2013 to 2017 as total spending reaches COP9.2trn in the final year of our forecast. The rapidly developing IT market is driven by several factors including the supporting economic growth story, low PC penetration relative to income, expanding telecoms infrastructure and government ICT initiatives. Even though the consumption outlook has weakened since 2012 we expect Colombia to close the gap with its neighbours in terms of PC penetration over the medium term as devices become more affordable to the mass market. Meanwhile we expect increased enterprise adoption of software and services as companies modernise and become increasingly international in their outlook.

Headline Expenditure Projections:

Computer Hardware Sales: COP2.997trn in 2013 to COP4.361trn by 2017. Consumption growth combined with low PC penetration and declining cost of devices will boost sales over the medium term. Tablets are expected to be a growth area alongside low cost notebooks.

Full Report Details at
- http://www.fastmr.com/prod/640226_colombia_information_technology_report_q3_2013.aspx?afid=301

Software Sales: COP980bn in 2013 to COP1.518trn by 2017. Government incentives for local software will boost the domestic sector, and we expect the greatest demand from end-users to remain in basic solutions, such as enterprise risk management and supply chain management systems.

IT Services Sales: COP2.104trn in 2013 to COP3.321trn in 2017. Public investments in areas such as ehealth, e-education and e-government will offer strong growth prospects, while there are initial steps also being made towards smart city infrastructure investments that will also yield opportunities.

Risk/Reward Rating: Colombia's score is 52.6 out of 100.0. Colombia ranked eighth out of nine markets in the Americas region in our latest risk/reward ratings (RRRs) table, ahead of only Venezuela. Colombia's overall ranking is held back by a low country rewards score of 55, the result of low incomes and a large rural population.

Key Trends & Developments

The key pillar of support for the Colombian IT market is the government's Vive Digital programme. The initiative will contribute to the development of the market via the elimination of import tariffs on connectivity devices and through measures to enhance credit availability for such devices. Further, government policy is also seeing large numbers of devices distributed to students, familiarising them with PCs and leading to further demand down the line. With low penetration of PCs, estimated to be around half the regional average by BMI, there is significant scope for catch-up.

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