IT Overview in Latin America: Challenges and Opportunities

Latin America has become a key commercial hub, where development and innovation fuel the growth of major industries. Companies in the region are betting on digital transformation to compete globally. In fact, according to the “IT Market Review 2024-2025” report, 64% of companies in Latin America plan to increase their information technology (IT) budget by 2025.

IT sector is today a critical component to achieving digital transformation goals in organizations, offering a promise of innovation and renewal in an increasingly advanced and dynamic market. In this blog, you will learn about the current IT landscape in Latin America and how they impact current investments and decision-making.

Where Latin American Companies’ Top IT Investments Are Headed in 2025 and Beyond

Technology is essential to support the future growth ambitions of industries in Latin America. The need to align growth with operability becomes essential. Over the years, we have seen an increase in partnerships between companies and IT providers; Organizations have understood that to navigate the growing technological disruption, they need technology partners capable of delivering exceptional service in digital environments.

Some of the main focuses of IT investment in Latin America are focused on:

• Artificial intelligence

According to the study “IT Market Review 2024-2025”, “15% of companies are implementing a solution, 29% are working on pilot projects and 16% are evaluating its implementation, while 29% are already using it concretely.”

• Cloud adoption

A study by NTT Data reveals that, “80% of Latin American companies are already in an advanced stage of cloud adoption. Likewise, 42% are in the process of implementation, while 38% are in the optimization stage.”

• Business automation

“Gartner estimates that by 2025, 20% of global organizations will have implemented hyperautomation strategies, and Latin America is no exception, with the implementation of these technologies in sectors such as manufacturing, logistics, financial services and even digital marketing.”

• Cybersecurity

Other areas of investment focus on enterprise cybersecurity, where “The size of the cybersecurity market in Latin America reached 21,600 million USD in 2024” and is expected to grow 6.80% during 2025-2033. (Imarc, 2024)

But essentially, a recent report on the acquisition of IT solutions in the region reveals that “90% of organizations consider quality as “very important” when contracting products or services linked to IT projects, followed by support (78%), strategy (47%) and delivery/implementation (45%). In this way, the price, which could have a greater weight in decisions in contexts of economic contraction, is in fifth place” (Technology Market In 2025 – Magmacomms, 2024)

What critical IT challenges are businesses currently facing? 

While digital transformation offers great opportunities, companies face challenges that can slow down their technological evolution. The study, IT Market Review 2024-2025, highlights some of the most important challenges:  

• The IT talent gap represents a critical challenge that is difficult for organizations to manage. The shortage of qualified professionals and the speed of digital innovations generate complicated situations. According to the report, “the shortage of talent continues to be a relevant challenge for companies in Latin America; the delay in the incorporation of personnel can extend up to 90 days, or even more in more than half of the cases.”  

• Cybersecurity is recognized as a global challenge. The study highlights that “end users can incorporate free tools that do not meet organizations’ security standards, forcing CIOs to work constantly and reactively to integrate security with innovation.”    

• Finally, adaptability, which relates to the ability of companies to integrate technological innovations into their environments and the resistance to change that may arise. Many organizations still struggle with the adoption of emerging technologies due to a lack of digital culture and fear of operational disruption. 

What companies are betting on to expand their technological capacity 

The role of the IT provider will become increasingly important for companies looking to seize new opportunities. This year’s forecasts highlight the significance of partnering with a technology ally that is closely aligned with an organization’s digital strategy. Such partnerships enable companies in the region to navigate transformation while ensuring operational continuity. 

 Let’s take a look at how organizations today are constantly looking to implement new IT solutions or improve existing ones. However, IT departments are frequently overwhelmed by the relentless pace of continuous innovation. The need to continuously update, without slowing down daily operations, creates discussions about more efficient IT management.   

 In this scenario, the reliable IT provider takes on a leading role, allowing companies to move forward without compromising their operations by offering effective solutions adapted to their needs. As Guevara points out in the same report, “This study shows that the concept of ‘technological partner’, strategic and reliable, is increasingly important among executives in the region, and that is a wake-up call for all those who are in this industry looking to build new links or develop the ones they already have.” 

Conclusions  

IT landscape is characterized by rapid digital transformation, where innovation, security, and adaptability play crucial roles in achieving success. Businesses and technology are increasingly evolving together, and having an IT-focused business strategy has become essential for enhancing the global competitiveness of organizations in the region. 

Today, technology is no longer seen as an expense and is perceived as a strategic investment that adds value to the company. It is time for leaders to ensure that their objectives are aligned with technological transformation, turning it into an engine of growth.  

In 2025, the real competitive advantage will not lie only in adopting new technologies without a clear strategy, but in choosing the right technology partner, capable of transforming opportunities into concrete results.