Argentina’s information technology (IT) market -- including hardware, software, and services -- reached $5.2 billion in revenues in 2010, a 17 percent increase from 2009, and is expected to increase an additional 17 percent in 2011. In 2010, the software and services sectors recorded 13 percent and 15 percent increases, respectively. Hardware sales grew 15 percent in 2009 and approximately 19 percent in 2010. A local consultant, Prince & Cooke, projects that hardware will continue to grow in 2011 by 18 to 20 percent, led by the sales of notebooks, netbooks, tablets and other MIDs (mobile internet devices). The sale of personal computers (PCs) grew 18 percent in 2010, reaching 11.9 million units installed and sales are expected to increase by 17 percent in 2011. The sale of notebooks accounted for 35 percent of total PC sales in 2010, and is expected to increase 50 percent in 2011, including netbooks and similar devices. Printer sales and other peripherals increased 15 percent in 2010, while consumables increased 13 percent. Netbooks, MIDs, and 3G communication devices, such as smart phones (+180% in 2010) and other mobile devices grew an average of 50 percent in total. These products are expected to lead the sales of small personal computers and consumer electronics in 2011/12.
IT Services are growing in Argentina as outsourcing of IT-related solutions continues to be the main practice for companies worldwide. Total revenues of this subsector reached almost $1.5 billion in 2010 (30 percent of total sector revenues) in which the outsourcing of software development, network infrastructure, and management-related services played key roles.
The Argentine telecommunications sector grew 16 percent in 2010, accounting for $10 billion in revenues. The market is expected to grow by 17 percent in 2011. The continuing increase of broadband access (fixed 21%; mobile 150%) combined with the increased sale of notebooks and the record sale of smartphones and USB modems were highlights of 2010. This contributed significantly to the sale of broadband services over cellular and fixed networks and are expected to continue throughout 2011/12.
Statistics from December 2010 indicate a penetration rate of 22 percent in telephone lines (9 million telephone lines installed); 50 million cellular phone subscribers (120 percent penetration, of which only 38 million are active) and 30 million Internet users (70 percent penetration). Argentina has the highest cable TV penetration in Latin America -- 70 percent in the Buenos Aires Metropolitan Area and 45 percent nationwide.
In 2010, 3G USB modems and smartphones accounted for 1.5 million mobile broadband units. According to Carrier and Associates, 2010 ended with 6.5 million fixed broadband accounts, with 8 million subscribers projected for 2011. International voice traffic increased by ten percent, while local phone calls increased by five percent. Telecom equipment/infrastructure sales increased 15 percent in 2010 reaching $900 million, and accounted for approximately 10 percent of total sector revenues. An investment increase is expected for 2011/12, mainly in 3G services for the GSM network, IP-based and NGN networks, and IT service outsourcing.