The 2014 FIFA World Cup kicked off (pun FULLY intended) last week in Brazil, amidst equal parts fanfare and controversy.
The highly anticipated, month-long event only happens every four years, and it borders on a religious experience for football fans worldwide.
However, the weeks preceding the start of the competition last Thursday saw some significant criticism from Brazilians and international fans alike.
From lack of infrastructure to support the influx of fans, to the millions of dollars funnelled into building stadiums in a country where a high percentage of the population still lives in poverty, many felt that a better host country could have been chosen, and the presence of such a world-class sporting event was actually bad news for Brazil.
It’s early days yet, but thus far Brazil is certainly holding its own as a host country, and offering up a pretty exciting competition to boot.
And, according to a recent report from TechNavio, there is at least one area where the World Cup and the upcoming 2016 Summer Olympics have been an undisputed boon to the Latin American country—it’s IT industry.
Yes, evidently the presence of major competitions are helping to spur a 10.12 percent CAGR from 2013-2018 in the IT Market in Brazil.
Software and Services Seeing the Bulk of IT Growth
Like any other IT market, the Brazilian one is primarily segmented into hardware, software and IT services, with growth being generated mainly from the latter two categories. A rise in digital consumers and an increase in internet usage has been giving the market a good boost over the past few years and now the presence of the World Cup and the upcoming Olympics is attracting major IT companies to enter the Brazilian market. Even 4G coverage, which was once limited to major urban areas, has been expanded in anticipation of the World Cup
Government Initiatives Galore
The Brazilian government has been a driving force behind much of the growth and maturity that the IT market in the country has seen in recent years.
A number of initiatives, include providing policy incentives, establishing high-tech zones, and providing development funding have had a positive impact on the market. These initiatives have had the twofold goal of attracting foreign investors while also providing good opportunities to Brazilians.
Additionally, the science ministry significantly upped its investment in IT, with US$5.6 billion spent in 2013, compared with US$3.8 billion in 2012. Part of this funding is used to help start-up companies by paying for mentors, helping with angel funding, and providing technological consultants.
The government funding also supports university research institutes and high-tech incubators. In addition, the Ministry of Science and Technology is planning to create national technology software and services certification standard for the local market, which will act as an evaluating body to ensure the quality of Brazil’s software.
While relatively low export rates and difficulty cultivating a skilled workforce continue to plague the Brazilian IT market, the increased attention brought to the country through the World Cup and Summer Olympics will likely draw a good amount of foreign investment, and help boost investment in IT infrastructure and services in Brazil over the forecast period.
