Boston, MA -- (SBWIRE) -- 10/08/2014 -- We expect the Venezuelan IT market to be a regional underperformer in 2014 and over the medium term. The outlook is weakened by several economic challenges including inflation of more than 50% in 2014 and forecasts for a sharp depreciation of the bol ? var in the near future. These add to the existing challenges posed by the policy environment in areas such as the promotion of local production, IP enforcement and the 2014 introduction of a fair-price law limiting operating margins to 30%. There are however glimmers of opportunit y amid a weak outlook for vendors, for instance , the low PC penetration and government programmes to boost sales should ensure volume growth in the PC market . Further, a s the economic situation stabilises in the latter years of our forecast we believe local and regional vendors will be well positioned to capitalise on opportunities presented by government and enterprise modernisation.

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Headline Expenditure Projections

Computer Hardware Sales: From VEB6.6bn in 2013 to VEB8.2bn in 2014. Inflation and the depreciation of the bol?var have increased the price of imported hardware, including components required for local assembly, acting as a drag on demand.

Software Sales: From VEB1.8bn in 2013 to VEB2.4bn in 2014. High levels and lack of progress in reducing software piracy, indicate it will continue to be a drag on spending. Meanwhile, the government's commitment to open source software will limit opportunities for proprietary software vendors in both the retail and enterprise markets.

IT Services Sales: From VEB1.6bn in 2013 to VEB2.1bn in 2014. The long-term nature of IT services contracts mean vendors are reluctant to take on exposure to exchange rate and political risk in Venezuela, leaving the market served by local firms far behind the technological frontier. We expect IT services will remain the underperforming segment of the Venezuelan IT market.

Key Trends & Developments

The problem...

The Venezuela Information Technology Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.

BMI's Venezuela Information Technology Report provides industry professionals and strategists, corporate analysts, IT associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the IT industry in Venezuela.

Key Benefits

- Benchmark BMI's independent IT Industry forecasts for Venezuela to test other views - a key input for successful budgetary and strategic business planning in the Venezuelan IT market.
- Target business opportunities and risks in Venezuela's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in Venezuela.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).

Coverage

Executive Summary

Summary of BMI's key industry forecasts, views and trend analysis covering IT, regulatory changes, major investments and projects and significant national and multinational company developments.

Regional Overview

Cross-border analysis of regional markets, commenting on IT penetration (PC and internet) and market growth drivers (IT market size and IT market compound growth).

Country Market Overview

Structure, size and value of the industry sectors including hardware, software and services; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments and government authority.

BMI Industry Forecasts

Historic data series and forecasts to end-2017 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

IT Sector: IT industry value (US$bn); IT sector contribution to GDP (%); value of hardware, software and services industry (US$mn); PC, peripherals and software imports and exports (US$mn); PC, peripherals and software sales (US$mn); number of PCs (`000); PCs/100 inhabitants; internet users (`000); internet users per 100 inhabitants; broadband subscribers (`000); broadband subscribers per 100 inhabitants.

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