Latin American Datacenter Services to Grow Drastically; Fastest Growth in Colombia

Market research firm Frost & Sullivan (News - Alert) recently released new analysis for its "IT Infrastructure Outsourcing Services Market: Colombia, Mexico, and Venezuela" report, which was first added to the company's offering earlier in the year. This new analysis states that this market should experience significant growth over the next four years as companies in Colombia, Mexico and Venezuela seek to leverage the value that outsourcing IT infrastructure services offer.

As such, the report estimates the market in Colombia to grow from $168.8 to $309.5 million, while Mexico will expand to $899.5 million from $579.4 million and Venezuela will grow from $103.6 million to $166.6 million by 2017. Colombia will experience the fastest rate of growth, with a compound annual rate of 13.3 percent from 2011 to 2017.

"The Colombian market, especially big centers like Bogota or Medellin, is more likely to invest in outsourcing," said Frost & Sullivan ICT Research Analyst Bruno Tasco in a statement. "Large enterprises are beginning to understand the benefits of these business models and to trust service provider capabilities in guaranteeing availability."

Regular services, namely co-location and hosting, will experience the greatest demand, while datacenters are expected to add more value to their offering by adding dedicated hosting, storage and disaster recovery.

Meanwhile, Mexico's stable economy and willingness to outsource non-core IT activities mirrors Colombia and, as such, the Mexican datacenter market is developing successfully — although not as quickly as Colombia's.

Finally, in Venezuela, companies have begun to see the importance of using a third party to manage datacenter services so they can better focus on their core business. Demand here is being largely driven by cloud computing, with a focus on virtual hosting and monitoring services, while storage and security services are also growing in popularity.

"Suppliers of outsourcing services should enhance and customize their offerings to meet the increasing corporate need for top quality, high performance, and completely secure IT services," added Tasco. "This will help fully leverage the demand for datacenters across Colombia, Mexico and Venezuela."