TECH SUPPLIER Jul 2022 - Market Perspective - Doc # LA49409622
The Impact of Inflation in Latin America
Latin America and the world are facing never-experienced crises that have raised uncertainty never before witnessed. When felt it was returning to its pre-pandemic GDP growth trend rate of around 2.5% for 2022, according to FMI, the Russia/Ukraine conflict brought further inflation shockwaves. The Latin American IT markets are facing challenges such as enterprise hardware scarcity that leads to further cloud adoption. The region suffers from a talent crisis leading to salary inflation that impacts both companies and service providers. We see the countries continue to struggle for at least one more year. However, we also see growth in countries where executives are usually resilient to crises and inflation issues.
Despite facing a double challenge, companies and service providers have sizable opportunities to modernize infrastructures and applications, making the most of the cloud and As a Service. Their best option is to go along with their digital transformation while harnessing services like CLaaS to create efficient hybrid infrastructures and optimize their IT spending. On the other hand, organizations should also get closer to their service providers to assure the help of experienced IT professionals to support the demands from customers, users, and the operation itself," Alejandro Florean, Vice President of Consulting and Strategy for Latin America Custom Solution.