Discussing the state of Information Technology in Peru, showing that the current environment is not conducive for huge IT investments.
Examining how the IT revolution has encouraged people to look for opportunities in different countries, particularly the third world countries which have been successful in providing the basic amenities at a cost lesser when compared to developed nations. This study is an effort to rank Peru as a possible IT destination for businesses that are planning to expand into other countries. Looks at a history of IT in Peru, infrastructure, Telecom companies in Peru, government initiatives, internet availability, hard and software production, the business climate for investing and legal issues concerning the IT sector.
“As the world is witnessing an unprecedented growth in technology and science, business managers are trying to find new avenues to apply their knowledge and experiences, which would eventually help their business. Among other things, the choice of a new destination is determined by a variety of factors. These may include technology preparedness and literacy of the local population, stability and policies of the government that is favorable to the industries and the infrastructure of that country. The most important factor that encourages business managers to look for new avenues to do business is the spiraling cost both in terms of infrastructure and manpower. In the IT sector it is accepted worldwide that in developed countries like USA, Germany and Britain, the cost involved in maintaining an IT team is far more that maintaining a similar team in a less developed country. This has been one of the prime reasons, which has encouraged companies to outsource a major chunk of their projects to third world workforce. This tendency has been most pronounced in the IT sector. The problem of setting up a new business is much more difficult for IT companies because unlike other industries, an IT venture cannot be started from scratch because it needs many supporting facilities and a computer literate population which the company can at least hope to deploy after adequate training. (Bracker, 1994) Since training in computers requires an above average education level as a prerequisite, the task is all the more difficult for IT managers to find a suitable place for setting up their industry.”