Elections, political instability, inflation and a difficult macroeconomic scenario are forcing companies to be more cautious when investing in digital transformation in Latin America.

“People are not so optimistic today,” said Jairo Guzmán (pictured) BNamericas, director of market for Colombian Internexa, a wholesale telecom operator that has been offering telecom services and technology to companies for several years.

Guzmán pointed out that recent government changes in Colombia, Chile and – last year – Peru have caused companies to be more cautious about investments. In Colombia, in particular, there was a slowdown between the first and second rounds of elections.

Today, Brazil is in the midst of an electoral process, with a second round of presidential elections set for October 30, and Argentina, mired in an economic crisis, will hold elections in 2023.

In a report published this Wednesday (19), ECLAC predicts the region will grow by 3.2% in 2022, higher than its estimate in August, although the agency forecasts a slowdown to 1.4% next year.

“Throughout Latin America there is this polarization [política] which is not good for companies and [nem] for public policy that advances issues such as digital transformation,” Guzman said.

Despite this context, the chief ensures that there are companies that are embracing the opportunities offered by technology and emphasizes that the medium-term scenario seems more optimistic.

“You can slow down [o investimento em tecnologia]but cannot stop it,” he added.

In particular, the CEO sees opportunities in 100% digital challenges such as the metaverse, blockchain and cloud, as well as in the development of basic telecommunications infrastructure, accompanied by government interest in digital inclusion.

In addition, Guzmán anticipates huge potential due to the size and power of the Latin American workforce, which is already exporting its work to other latitudes.

“We [como latino-americanos] we could quickly reach the pinnacle of digital transformation. However, the fear of political and economic change means that companies, especially the more traditional ones, are more prone to prevention than action,” he added. Meanwhile, more digital companies are embracing the opportunities.

In addition, a weak exchange rate makes imported products more expensive, which, coupled with the container and semiconductor crisis, has disrupted the production chain.

INTERNEXA

Despite the current difficulties, Internexa continues to grow, especially among small and medium-sized companies. The company is currently focused on reaching this underserved segment and is adding about 12 customers per month.

According to him, about 200 new customers appear annually in all segments.

“There are two factors that play in our favor. First, we are new to this business, which is why we are able to attract underserved companies. Secondly, we have a presence at the regional level, and one country can compensate for the instability that exists in others,” Guzman concluded.