E-Building Opportunities Changing In LatAM.

Large Corporations across Latin America spend on average $1.2 million per project for online Web development and e-commerce initiatives, according to a soon to be published Report by the Yankee Group. Latin America’s e-builders are regional Web site developers and IT service providers that have served the Latin markets since the mid-1990s. While some have grown into pan-regional powerhouses, even local players are gaining strength, competing head-to-head with the top-five consultancies and integrators.

“Many e-builders have regionally based but highly mobile project teams that work closely with corporate clients to strategize and build next-generation Web sites and e-commerce infrastructure. The e-builders’ lower cost structures mean they can underbid the competition while providing high-quality design and implementation,” said Andres Broner, an analyst with the Yankee Group located in Buenos Aires. “Corporations are contracting recurring business with the larger pan-regional and Brazilian e-builders, which, in turn, have acquired or created proprietary software and applications that are reused across many markets and client projects,” according to Luciana Hayashi, a senior analyst for the Yankee Group based in Sao Paulo.

Industry migration toward e-business has not been uniform. The Yankee Group’s research uncovers that financial services, telecommunications, and manufacturing companies have been heavy users of e-builder services. Pent-up demand exists in wholesale, government, and health-care verticals that have extended purchase cycles and consulting-intensive strategy needs. Key trends in Latin America include:

–Payment and Logistics Solutions. E-builders surveyed indicated that solutions for payment and goods shipment are still the weakest links of e-business projects, although corporate client demand for these e-business enablers is high.

–E-Government Solutions. Revenues are on the rise and expected to account for 16% of e-builder revenues by 2003. The demand for market-specific, highly customized applications as well as government impetus to steer projects toward firms perceived as “local” are good news for e-builders.

–E-Builders–A Growing IT Marketing Channel. Demand is high for buy-side e-commerce storefront solutions, multi-language management tools, and hosting services, but most equipment and service provider communications with the e-builder portion of the channel are far from effective.

For more information at http://www.yankeegroup.com.