Organisations across the globe are reviewing their IT infrastructure due to the unprecedented change in business demands associated with the COVID-19 pandemic.
In Latin America, this has accelerated the digital transition by 10 years. The Head of Product and Expansion at a Mexican fintech company confirms, “Many companies have been forced to accelerate their digitalisation plans on many fronts from client support to operations, there has been a lot of investment.”
“Many companies have been forced to accelerate their digitalisation plans.”
Head of Product and Expansion, Mexican fintech company
Market research firm, IDC, reported that although the pandemic has cause a huge economic decline, IT investment will grow between 5.5% and 7.7% in 2021. The finance, retail and health sectors have seen the largest demands driven by customer demands.
A Vice President for Business Transformation at a Peruvian bank details, “We have migrated to AWS. With the need for remote working we have stopped using Virtual Private Networks (VPNs). The easiest way to share and continue operating the entire company is in the cloud, everything I work on now is saved in the cloud and is fully encrypted.”
Some businesses in Latin America had already started digitalisation initiatives and these investments were vindicated when the pandemic struck. The Head of Cloud for a global retailer explains, “In retail and banking many businesses in Latin America had already started digitalisation initiatives, we started in 2015, so when COVID arrived we were prepared.”
“In retail and banking many businesses in Latin America had already started digitalisation initiatives, we started in 2015.”
Head of Cloud, global retailer
Considering companies that are only just considering the cloud, the cloud executive continues, “The challenge for companies that are only starting post-COVID is to prepare their infrastructure. Many will not understand the efficiency of the cloud and will spend too much time and money choosing applications.”
For the earlier adopters, the challenge is focus says the cloud executive, “In 2018, we evaluated a lot of new technologies (internet of things, artificial intelligence, block chain, etc), post-COVID the challenge is to focus and understand what really matters to customer experience and satisfaction.”
IDC estimates that by the end of 2021, 75% of Latin American companies will be putting processes and applications in the cloud, making up 35% of total IT spend.
Quite an opportunity!