US software provider CA (NYSE: CA) is expecting double digit revenue growth in Latin America during its fiscal year 2009, which will end March 31, despite challenges posed by the strengthening US dollar, the company's senior VP of area sales for Latin America, Kenneth Arredondo, told BNamericas.
Arredondo said CA expects growth across Latin America, but that sales have been strongest in Brazil, followed by other countries such as Chile and Mexico.
"Brazil is [Latin America's] largest economy," he said. "The growth rate is solid. The economy is stable and the investments that are being made in technology are relatively high."
The executive said CA's strongest vertical markets were banking, telecommunications, government, and retail. The company is expanding its product focus, and expects an increase of server and IT infrastructure management service sales.
CA currently pursues a mix of direct and indirect sales in Latin America, with channel partners accounting for 25-30% of the firm's revenues in the region. Arredondo said the company was working to strengthen its channel partners by providing training on CA's products and services, as well as techniques to improve interactions with clients.
He added that the company is looking to add specialized channel partners to sustain growth in Latin America.
"We are definitely pursuing channels as part of our overall model," he said. "We're looking for very specialized partners that can provide us with value-added capabilities... like performance monitoring."
COMPANY WORKING TO ADJUST TO RISING DOLLAR
At the same time, the strengthening of the US dollar relative to Latin American currencies has had an impact on the company's regional operations.
On one hand, the strong dollar has lowered operational costs in Latin America, but on the other, CA's products have become more expensive for consumers in the region, Arredondo said.
"We are adjusting to make sure we remain competitive in the market," he continued. "If stay in the situation where the dollar is driving up the cost of our software so that it's relatively higher, then we need to be aware of that as we look at our pricing model."
CA posted a US$209mn global net profit in the second quarter of fiscal year 2009, ended September 30, jumping 53% compared to US$137mn in the year-ago period. Revenues were US$1.11bn, up 4% year on year.
In Latin America, CA has offices in Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Venezuela.
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