As the global economy continues to recover, the technology market is also expected to see sizable growth. According to a recent Forrester Research report, cloud computing will play a significant role in that growth.
In a recent blog post, Forrester CEO George Colony said the next two years will see high levels of adoption for what he calls "fourth wave systems," which include cloud computing, app Internet and smart computing.
While tech spending is expected to increase across the world, Latin America is expected to see the highest rate of growth, Forrester reported. According to the study, the region will experience more than 9 percent growth this year and more than 12 percent in 2012. Comparatively, the U.S. technology market will see about 5 percent growth in 2011, and 10 percent next year.
"This is another signal to CEOs of all stripes that they should push to make their businesses increasingly digital and aligned with technology markets," Colony said.
In a separate report by research firm Frost & Sullivan, last year saw a high level of cloud computing adoption in Latin America, with 47 percent of large enterprises already using the technology. According to the report, 60 percent of large companies plan to be in the cloud this year.
Several other factors might contribute to the strong IT growth in Latin America, including higher spending on software and hardware, as well as data protection solutions. Another significant contribution to the growth is a fast-growing outsourcing market throughout the region.
More businesses, particularly those from the United States, are finding Latin America to be an attractive market for IT outsourcing, due to its similar time zones and cultures. Additionally, in the wake of the recent civil unrest in Libya and Egypt, businesses view many Latin America countries, such as Chile, Brazil and Columbia, as relatively safe destinations to outsource business operations.