Source: Decision Report | Analysis by ADVANCE Consulting
The quarterly iMonitor IT report by ADVANCE Consulting, authored by the company’s founder Dagoberto Hajjar, projects that Brazil’s Information Technology (IT) market will grow 20.8% in 2025, despite ongoing political and economic instability.
Although 2024 was marked by currency volatility and postponed investments, the study reveals that the Brazilian IT sector is already repositioning for a new phase of growth and digital transformation.
2024: Growth Below Expectations
The report indicates that the sector grew 18.8% in 2024, falling short of market expectations. This underperformance is largely attributed to:
- Electoral instability
- High inflation rates
- Regulatory uncertainty
In particular, the fourth quarter of 2024 suffered from the strong U.S. dollar and rumors of new taxes, both of which negatively impacted tech sales.
“Currency fluctuations frightened many players, and several contracts were postponed. We started 2025 amid economic, political, legal, and tax uncertainties. Early Trump administration announcements advised caution for the months ahead,” said Hajjar.
Q1 of 2025: Growth Slower Than Expected
According to the report, Q1 2025 recorded a lower-than-expected growth rate of just 16%. One major reason is market polarization:
- About 10% of companies are expected to grow more than 50% this year,
- While 6% are actually shrinking.
Key Insight: Adapt or Fall Behind
Hajjar warns that only companies adapting to new technologies and market demands will thrive. The trend is clear: product resellers and system integrators are shifting towards service distribution, creating scalable, replicable service models.
“Product intermediation is shrinking. The sales and distribution channels must now add scalable service components. Many integrators are becoming distributors or sub-distributors, building their own service networks,” explained Hajjar.
Business Models Must Evolve
According to Hajjar, growth in 2025 will require modernization and monetization of business models. Clients want:
- Modern tools (hardware, software, cloud)
- Lower upfront investment
This challenges IT vendors to deliver cost-effective, growth-driven solutions through:
- Secure and efficient cloud migrations
- Rewriting software for modular, scalable architecture
- API integrations enabling new business models, including financial services.
Final Word: Speed is Essential
“To grow, you must understand emerging demands, adapt your business model, automate processes, train sales teams, use marketing effectively, and establish a continuous cycle of planning, execution, learning, and adaptation. All at high speed,” concluded Hajjar.