Technology companies are drastically reducing prices of products and services and diversifying their portfolios as a way to respond to recessionary spending patterns of user organizations in Latin America, according to a recent study.
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Latin American decision makers are shifting from technology spending to employing digital tools to accelerate and enhance their business, according to the study Latin America Outlook of the Information Technology Services Market by consulting firm Frost & Sullivan.
This new environment is creating opportunities for IT and cloud sourcing, and service providers are responding with an expansion of their portfolio of cloud services, according to the study.
Additionally, vendors are targeting market segments and industry sectors where they had no historical presence, moving from the enterprise to small and medium enterprise segments and diversifying their portfolio as a way to increase their revenue, according to Renato Rosa, Digital Transformation Program Manager at Frost & Sullivan.
"This movement is increasing the competition and forcing IT service prices to fall sharply," Rosa points out.
"Latin American enterprises are no longer satisfied with service offerings; they are demanding consultations to better plan for their future needs and optimize infrastructure," he adds.
The strategy adopted by companies in Latin countries like Brazil illustrate that trend, Oracle being among the companies chasing the SME segment with