Uruguay’s technology sector reached 4.4% of GDP and significantly expanded its markets

This is the only survey carried out at the national level focused on the sector and its results are used as a reference by the IT companies for decision making.

On this occasion, the Chamber presented the results corresponding to the period from January to December 2023, in which the technology sector reached a billing of 3,381 million dollars, 4.4% of the Gross Domestic Product (GDP) of the country. In addition, an increase of 500 jobs was recorded in the area and USA remained the main destination of the exports. These reached a total of 2,168 million dollars, which represented an increase of 19% compared to 2022.

Likewise, 76% of the companies consulted reported sales to clients outside the country, while sales in the domestic market They increased 19% compared to the previous cycle. During 2023, most companies in the national technological universe registered a annual billing greater than 1 million dollars, although those that declared an annual turnover equal to or greater than 5 million dollars were those that concentrated 92% of the total sales of the sector.

The processed data represents the target universe of 262 CUTI member companies, identified as IT producers, which were classified based on their size (measured by their annual turnover) and main activity segment.

Record employment and expanding markets

He employment level of companies in the sector reached a record, reaching 20,375 jobs, which represents a growth of 500 positions compared to the estimated figure for 2022. However, a slight decrease was recorded in the female participation, which went from 35% to 33% of the total.

Meanwhile, during 2023, USA remained the main destination for the sector’s exports, representing more than 80% of the total. Besides, United Kingdom once again positioned itself as the second export destination in the sector, while Spain, France and Mexico They entered the top 10 destinations.

As for the domestic market, 76% of sales were directed to the business private sectorincluding financial institutions. Almost 60% of these sales were to large companies and the remaining 40% to micro, small and medium-sized companies. 12% were sales marketed to public companies and 7% to the national government.

The president of CUTI Amílcar Perea He evaluated these figures very positively: “We must take into account that it is a strong growth, that it is a very good growth, in a year with a context for our main export market, which is the United States, which is quite complex. It was not the ideal year for that market and we still grew 19%,” he told Scope.

Asked about the reasons for this growth, Perea said that “what we can summarize is the use of technologythe impact of technology on the lives of all of us is increasingly stronger, increasingly demanding of services, products, and effort from technology companies, and that means that even in a complex context, growth is enormous.” “That is to say, we predict for now, leaving the issues in the international market, that the growth will be even better for the coming years,” he expressed.

“It is an unstoppable advance, we see everything today, in the science of life, in the energy of each value, we are adding value to other chains such as agro, which are traditionally much less technological. The same thing happens with health, with biotechnology, where each time advances allow us to improve and produce medicines more quickly. The merit of Uruguayan companies and technicians is to have the quality to be able to take advantage of these opportunities,” said the president of CUTI.

Challenges and claims to the political system

“The biggest challenge we have is to take advantage of the opportunity,” said Perea, when asked about what lies ahead for the national technology sector. “This is like a wave that you have to ride to surf. The wave is coming and you have to ride it. “If we don’t have the ability to get on, well, we’re not part of that,” he added.

“That implies several things. On the one hand, continue maintaining the country’s commitment to that Technological Uruguay, maintain the conditions of investment, continue doing that very beneficial cycle of arriving from multinationals that bet on Uruguay and that they spill into the entire sector. And on the other hand, the always necessary long-term commitment to training, that more kids study technology, that people continue to prepare well, that there is educational continuity of the people who entered the sector with short courses and whatever, but they need to continue training,” he explained.

Asked what they expect from the political system and the new government that will take office next year, Perea highlighted that the technology issue has been made a State policy: “What we have discussed with all the candidates and now with the two options that are in conflict for this Sunday is precisely to maintain the conditions of support for the industry and demonstrate that we have a lot to grow, we have 15,000 jobs to create for the next five-year period, we can reach 10% of the GDP for the next five-year period. So, what we expect from the next government is that, whoever it is, they fulfill what they have promised us in this regard,” he stated.