iMonitor IT (Brazil IT market survey)

Quarterly Survey Report

April 2021

On the way to 20% growth


2020 was an amazing year and 2021 will be exuberant


The first quarter of 2021 was exuberant for the Brazilian IT market with 15.7% growth over the same period of the previous year. For the first time we had a first quarter with double-digit growth and signaling that we may reach 20% growth by the end of 2021.


Back in January, of this year, the expectation of entrepreneurs was to have 11% growth for the IT market in 2021. I wrote several articles stating that the growth of 11% was extremely conservative. Then came the pleasant surprise of great results in the first quarter and entrepreneurs changed their forecast to 14.6% growth. I still think they are underestimating the forecast. When I apply my mathematical models, it shows that we will end the year with at least 16.5% growth.


The performance of the second quarter performance will be key to determining the rest of the year's growth. Historically the second quarter is always the weakest of the year, however, the market signals that we may have a stronger second quarter because of government IT purchases including federal, state and local. The reason is that in 2022 we will have a very competitive election scenario, with expensive and elaborated campaigns, and IT projects are long-lasting. So, the government has to buy IT in the second quarter to have everything up and running by the end of the year, and "look good" in the election year. We have seen this effect happen in previous elections and it moves the entire IT ecosystem increase total sales.


This year IT major investments will be done in education, healthcare and retail segments, as well as small and midsize business (SMB). It will be a year of many small projects demanding high speed to sell and implement them.


We will also see a significant sales increase in cloud solutions, security, analysis tools and satellite products to the enterprise management system (ERP).


The pandemic has taken the digital transformation projects out of the drawers. Companies had to transform themselves to survive and grow. Most of the 3-year digital transformation projects were done in 4 months. IT companies that have offered cloud and IaaS (infrastructure as services) products and services have seen EXUBERANT growth in 2020 and will be even better in 2021 with expected 41.5% growth.


Among the main challenges that IT entrepreneurs will face in 2021 are: attracting and retaining talents, increasing sales through EXPANSION, increasing the generation of QUALIFIED leads, and meet market demand - yes, we will have a higher demand than we will be able to serve, especially in the area of services.


The lack of manpower is a limiting factor for many of the companies, and a factor of great differentiation for others. It's not just a lack of programmers and developers. Good sales, marketing, operations, HR, customer service and support professionals are missing. Several IT entrepreneurs are investing in tools and processes to increase productivity, so they can produce more with fewer people, increase the margin and gaining competitive advantage.


2021 will be a year of IMPRESSIVE opportunities, but it will require entrepreneurs to work very differently. Those who want to have a high growth rate will have to do the basics extremely well, that is, analyze the market with opportunities and threats, design or redesign the business model to meet the demand in a differentiated way, correctly choose the portfolio of products and services, write a plan with strategies and actions "of war", structure the areas of marketing and sales, and have great discipline in the execution of the plan. In addition to the basics, they will have to constantly think about innovation and have great speed in planning, executing, learning and adjusting the plan. It's a lot, but the reward is worth it.


It is your own decision whether you will take or not advantage of this this huge and unique wave of 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