Information Technology in Peru

Software Development

Overall, Peru is considered a small market for information technology products and services when compared to other Latin American countries. However, even in this small market, double digit percentage growth is expected by the U.S. Department of Commerce at least into the early 21st century. However, while the overall market is growing, the percentage of local production has been declining, as summarized below:(31)

1997 1998 1999
Total Market Size $96.0 million $117.1 million $142.9 million
Total Local Production $58.5 million $67.3 million $77.4 million
Total Exports $0.3 million $0.3 million $0.4 million
Total Imports $37.8 million $50.2 million $65.9 million

Local Development

The Peruvian Chamber of Commerce estimated that approximately 150 firms operated in the Peruvian software market in 1998. The Chamber is made up of 25 member companies who produce software locally on a small-scale basis. Such software ranges from sophisticated banking and financial applications to customized applications for small businesses. Among the more popular customized applications are accounting, taxation, procurement, sales and entertainment. Some of the Chamber's most important companies include: Softtek del Peru, SA; Grana y Montero Digital (GMD) SA; Ingenieria y Sistemas de Avanzada SA (INGESA); Cosapi Soft SA and Navarro, Calderon & Asociados. Some of this locally produced is exported to Latin American countries, including Venezuela and Uruguay.(32)

According to Strategis, local Peruvian software producers compete with foreign companies to carve out a niche providing services to small and medium businesses. Demand in this niche is expected to grow as Internet use continues to grow in Peru.(33)

Foreign Companies

Peru is also home to many of the well-known worldwide software companies, including Microsoft, IBM, Novell, Oracle, PeopleSoft, 3Com, SAP, and others. These companies either have their own local offices, or local distribution representatives. Or, as is the case for German software company SAP, some firms have joint ventures with local producers. Aside from expertise in the Peruvian market and language skills, local companies are often engaged because Peruvians often feel more comfortable with a local company than a foreign one. United States firms dominate the Peruvian market much as they do in the rest of the world.(34)

Software Piracy

Software piracy remains a problem in Peru, as detailed in the legal environment.

Last update: December 15, 2000 by Jeffrey S. Bernstein.