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iMonitor IT (Brazil IT market survey)
Quarterly Survey Report
November 2024

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IT in Brazil: turbulent currents ahead...

The year 2025 is coming to an end, and what was a slight breeze of uncertainty in July has turned into a strong and constant wind in November, shaking the expectations of the Brazilian IT market. The 69th edition of ADVANCE Consulting's iMonitor IT survey paints a clearer – and somewhat less optimistic – picture of what tech entrepreneurs expect in 2026. This is not the time to panic, but rather to sharpen the tools and recalibrate the compass.

 

The General Climate: Structural Pessimism and the Electoral Effect

If before there was a certain "cautious optimism", now caution has won the battle. About 80% of IT entrepreneurs express "extreme concern" about political and economic instability, projecting a challenging scenario that could extend into 2027. The shadow of the 2026 election year, with its notorious ability to freeze decisions and investments, emerges as the main factor of uncertainty. The perception is clear: the administration will not make the necessary changes, and the US "tariff war" only adds fuel to the fire of complexity.

 

Route Adjustment: Modest Growth Expectations

The euphoria of July, which projected a growth of 18.0% for the IT market in 2026, gave way to a dose of reality. The expectation is now 16.0% for 2026. This 2% adjustment may seem small, but it reflects a more sober view of macroeconomic challenges and the delay in customer decision-making. Growth is lower, and it will require more effort to achieve.

 

AI: From Promise to Pragmatism with ROI on the Tip of the Tongue

Artificial Intelligence remains the star of the show, unquestionably the biggest opportunity for the industry. However, the discourse matured. It's not enough to talk about AI; it is necessary to show the ROI. The market, more cautious, requires "proofs of concept" and tangible results before any massive investment. The era of "Everything with AI" with no practical foundation is giving way to an era where AI needs to solve real problems and bring profit, not just buzz.

 

Sales Strategy: Expansion is the New Survival

The big change in the mentality of entrepreneurs is the prioritization of "Base Expansion". If before the "sale at the base" (for existing customers) was preferred in difficult times, now the logic is that the current base will not be enough for the desired growth. Selling to new customers, in new segments and geographies, and through new channels, is the bet. This requires a more proactive sales team that knows how to not only serve, but create demand and demonstrate value in an aggressive and convincing way. The good salesperson of 2026 is a strategist, a trailblazer.

 

Challenges That Call for Action, Not Just Concern

In addition to political-economic instability, structural challenges are highlighted: the shortage of skilled labor (especially in AI and new technologies) intensifies, fierce competition puts pressure on prices and margins, and the speed of technological change requires continuous adaptation and heavy investments in training. The tax reform, with its impacts on costs and pricing, completes the picture of concerns.

 

The 5 golden rules to succeed in 2026:

  1. Agile Planning and Scenarios: Ditch the dusty 5-year plan. Develop flexible scenarios and plan with agility. The market will change, and you need to change faster. Resilience is not just about surviving, it is about pivoting intelligently.

  2. Value is King (and ROI, the Queen): Each and every project, especially AI ones, must have a clear and measurable ROI. Help your customers reduce costs and increase efficiency. If your solution does not impact EBITDA, it will hardly pass the screening.

  3. Proactive Sales and Strategic Expansion: Don't wait for the customer to come. Train your team to be opportunity hunters, not just harvesters. Invest in expansion into new markets and segments, even if it means stepping out of your comfort zone. Channels can be a shortcut, but they require discipline.

  4. Talent is Gold (and Scarce): The war for talent is only going to get worse. Invest massively in training and retention. Create an environment where the IT professional wants to be and develop. Consider internal training programs and partnerships with universities.

  5. Operational Efficiency with AI: Use AI indoors! Automate processes, optimize operations, improve your own efficiency. This will not only reduce costs, but also serve as a case for your customers. Be the example of what you sell.

2026 will not be for the faint of heart. It will be a year for those who have vision, courage to innovate, speed to execute and, above all, the discipline to turn challenges into opportunities.

Dagoberto Hajjar

CEO - ADVANCE Consulting

About our surveys

ADVANCE does a quarterly survey to identify BRAZILIAN IT market growth, trends and opportunities. We interview a large number of IT entrepreneurs to understand business strategies and challenges. We have been doing this research since 2008 and the historical data allows us to establish trending algorithms, helping us to establish sharp predictions.

Topics that are addressed in this quarterly survey:

  • Financial results of IT companies in the last 2 years

  • Investments made in employee slated, marketing and sales

  • Expectations for the growth of the economy and IT market for the next 3 years

  • Main strategies adopted by IT companies

  • Planned investments in staff, marketing and sales

  • Internal and external variables that are taking it entrepreneurs' sleep away

  • Characteristics of IT companies with high growth rate

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