iMonitor IT (Brazil IT market survey)

Quarterly Survey Report

August 2021


The biggest growth in IT history

In the last 3 years the Brazilian IT market has grown, on average, 10% per year.

In 2021 the market will grow 21.0% reaching the highest historical growth rate to date.

In this latest survey, conducted by ADVANCE, entrepreneurs showed a great consensus on the growth of the IT market, but showed different visions of how to take advantage of the opportunity.

On one side we have 25% of entrepreneurs who have been preparing over the last few months, hiring employees, and increasing investments in marketing and sales. This group understood that a plan with different strategies and actions is mandatory for the company to grow twice or triple what it had been growing in the last 3 years. This group expects to achieve growth above 40% in 2021.

On the other side we have 39% of entrepreneurs who sees the opportunity passing on their doorstep and they know that they will have great difficulty in taking advantage in full, for lack of an adequate strategy, for lack of employees, for lack of good marketing or nourish the sales funnel. This group will grow less than 20%.

The first quarter of 2021 positively surprised all IT entrepreneurs reaching the 15.7% growth mark. The second quarter was even better, reaching 26.5% growth compared to the same period a year earlier. Government purchases, in federal, state and local levels, changed the seasonality of the second quarter, which historically was the weakest quarter of the year.

We expected higher IT sales increase in the education, healthcare and retail segments, and small and midsize business (SMB). It will be a year of many small projects but requiring high speed to sell and implement. 

We will also see an increase in IT sales in cloud solutions, security, analysis tools and satellite solutions to the Enterprise Management System (ERP). 

Traditional hardware companies (on-premises) should end 2021 with 13.2% growth and traditional software (on-premises) with 15.2%. It is not bad if we compare the results with previous years, but it is bad compared to the growth of cloud companies. IaaS (infrastructure as a service) companies should end 2021 with growth of 39.8% and SaaS companies with 28.2%.

The lake is full of fish like never in history and everyone will fish, but on-premises hardware and software companies are using fishing rod, and cloud companies are using a huge fishing net

We will end 2021 with about 70% of IT companies increasing by more than 15% their staff, investments in marketing and sales. This is the highest rate that ADVANCE has ever recorded in its research and clearly shows, that entrepreneurs believe 2022 will be exuberant. ADVANCE, using a mathematical model, predicts a growth of 22% for 2022 and, not higher than that, for we have a chronic lack of IT labor in the market.

IT companies have listed two major challenges for 2021.


The first challenge is to "sell efficiently", this is, how to sell double or triple having the same sales team, and how to use sales processes and methodologies to ensure maximum sales team performance.

The second challenge is to "attract, manage and retain talents". It is increasingly clear that this is not only a challenge in the HR area, but the whole company. To minimize the lack of labor, companies are implementing processes, using productivity tools, automating and robotizing everything that is possible. Some companies have done this job so well that they have managed to generate a huge competitive differential, with high quality services and excellent profit margin.

2021 and 2022 stand for a lake full of fish and fantastic opportunity for those who use fishing net...

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