Fragmentation in Latin America IT Services

We regularly get asked about the number of software development and IT services companies in Latin America (Latam for short). The updated information below is needed to understand the space's fragmentation.

We created this analysis (link below) to assess the number of players in Latam and the relevant countries to focus on.

Latin America - Software Development Companies

Clearly, Mexico is at the top of the list, capturing a fifth of the custom software development companies in the region. We have noticed that Mexico-based IT services companies, like Brazil, tend to serve domestic customers and have not historically focused on exporting their services to the US or North America. Their internal markets are robust. Nevertheless, Brazil was listed with 169 companies as of Q3 2022, capturing 11%.

Argentina and Colombia have a similar number of custom software development companies, each with 17% and 16%, respectively, out of the total number of companies in the region.

We decided to extend the analysis to all the countries we could map from our source.

At Alten Capital, we focus on investing in technology services companies with North American revenue. We don't know what percentage of these companies primarily serve the domestic market versus which ones focus on the North American market. We are focused on learning more about these businesses. We have connected with dozens of players in the Latam region and continue to build strong relationships there.

If you run an IT services company in Latin America and are curious about an investment, please reach out to us to explore a partnership. We want to hear from you!