A study by Advance and Sky.One points out that smaller companies in the sector had more difficulties to stop growing.
The IT market grew by 23% in 2021, according to new Sky.One research done in partnership with Advance. The percentage is even higher than the growth achieved by the sector in 2020, which was 10.4%. The research points out that the reasons why the market grew in 2021 are related to investments in remote work made in 2020.
The expectation for 2022 and 2023 is also positive, with an increase of 22% this year – the first quarter alone should grow 21% – and another 22% for next year. The study heard 1,500 IT companies and brought the perception of their IT entrepreneurs to establish algorithms for trends and predictions.
Of the 10.4% growth in 2020, 4.7% represents the hardware market, 7.7% software, 9.4% services, 28.9% IaaS (infrastructure as a service), 21% PaaS (Platform as a Service) and 18.2% SaaS (Software as a Service). In 2021, the 23% increase resulted in 15.2% in hardware, 18.8% in software, 21.6% in services, 34.5% in IaaS, 22% in Paas and 31.5% in SaaS , as shown in the table below.
Another important topic to be reflected in the survey is that the sale of hardware has been reducing, in contrast to the growth of IaaS. In addition, the sale of traditional software has been decreasing, while SaaS has shown growth. As the executive points out, the significant expansion of IaaS represents excellent sales expectations for SaaS and Services in 2022 and 2023.
The impact of the pandemic on small businesses
The survey points out that, before the pandemic, smaller IT companies, that is, with revenues of less than R$16 million, grew above the market average. However, in 2020, this scenario changed, as the larger companies (revenues above BRL 100 million/year) already had the experience, processes and tools to support their remote work operations, unlike the situation of smaller ones. Even in 2021, the performance of larger companies was much better compared to smaller ones.
Other factors that contributed to this occurrence, which include: greater hiring power of professionals from large companies, greater investment in marketing to find new customers, greater investment in sales, with new structures and professionals trained in digital sales techniques.
Profile of the companies participating in the research
1,500 companies participated in the study, with 40% software, 35% services, 21% resale and 4% distributor as their main activity. In addition, participating organizations have as their main offer Consulting or Training Services (35%), Cloud Software (26%), Traditional or On-Premises Software (14%), Hardware, Network or Telecom Equipment (12%) and Platform as a service (5%).
Another highlight is the billing of these companies. In 2020, most amounted to 16 to 90.9 million (30%), from 2.5 to 9.9 million (23%), from 1.1 to 2.4 million (16%), from 10 to 15 .9 million (12%), up to 1 million (11%) and over 100 million (7%).
Another data mentioned by the survey is that most organizations have 10 to 19 (21%) employees, from 20 to 49 (20%), from 100 to 249 (19%), from 50 to 99 (17%), from 5 to 9 (8%), up to 4 (7%), over 500 (5%) and from 250 to 499 (3%). It is also important to note that 91% of respondents are C-Level, 76% CEOs, 15% Directors, 6% Managers and 3% Sales Professionals.
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