In an event organized by the Lima Chamber of Commerce (CCL), FTI Consulting and Amazon Web Services (AWS) highlighted the speed of public services in countries such as Chile and Argentina thanks to the cloud, as well as the improvable scenario in Peru.
The expansion of the cloud in the public and private sectors of Latin America is a reality that deserves a separate discussion. Its implementation generates considerable economic strength and is also an engine for job creation. This statement is not gratuitous: this Tuesday the 20th, the study “Economic Impact of Cloud Adoption in six Latin American countries” was presented at the Lima Chamber of Commerce (CCL), with the collaboration of Amazon Web Services (AWS).
For its part, the report was prepared by the Mexican consulting firm FTI Consulting, whose methodology included the estimation of current adoption rates, as well as the projection of future rates. Likewise, the multifactor productivity of public cloud adoption was estimated, based on global observations.
The discussion panel was attended by speakers from various fields such as Alain Dongo, secretary of the Secretariat of Government and Digital Transformation of the Presidency of the Council of Ministers; Renzo Hurtado, Vice President of Technology at Excellia-Grupo Romero; Pablo Ramírez, vice president of the CCL Digital Transformation and Artificial Intelligence Commission; Maru Leguizamón, CDO & Central Manager of Segments and Analytical Marketing at Interbank; and Karla Wong, Country Leader of AWS Peru. Each of the participants contributed diverse positions regarding cloud adoption, from the public and private sectors.
THE PERFORMANCE OF THE ANALYZED COUNTRIES
Hit by a severe economic crisis, Argentina still maintains great potential in its workforce. The 2022 Global Cloud Ecosystem Index from MIT Technology Review Insights maintained that the southern country ranks first among countries in terms of human capital. On the other hand, Argentina is ranked 11th among the nations with the highest digital adoption.
In this way, FTI predicts that if the Argentine economy implements the public cloud, in the next 15 years (2023 - 2038), 1.2 million jobs, US$ 15.5 billion in labor income, US$ 12.6 billion in income would be obtained. fiscal, among other indicators. It is not a crazy option for a nation with a growing startup ecosystem and the need for urgent economic adjustment measures. In fact, positive results have already been partially seen in specific cases. For example, the Municipality of Córdoba reduced the cost of maintaining its online tax database by 90% compared to mainframe architecture , thanks to the adoption of the cloud.
On the other side of the mountain range, in Chile, this system has also streamlined public administration services. FTI reports that in 2021, the Chilean Social Security Institute (IPS) increased its users served by 900% thanks to work with AWS. This would be one of the first steps in a more ambitious plan known as “Digital Chile 2035.” It consists of a digitalization of all public services in the country by 2035. In parallel, FTI maintains that the adoption of the public cloud in the Chilean economy in the period 2023-2038 would have a key role in reducing CO2 emissions from health centers. data by 53%. In turn, 151,000 jobs would be created and GDP would grow by US$25.3 billion.
On the other hand, in Colombia, the MIT 2022 cloud ecosystems report has classified the country as the most outstanding in electronic participation. This is a rating that takes into account digital interactions between citizens and the government. Although at the same time, the coffee-growing country only reaches 55th place in the placement of data servers. Regarding cloud adoption, private initiatives stand out, such as the migration of Bancolombia's marketing, treasury and risk operations to the AWS cloud. In this way, the bank's related costs were reduced by 60%.
A similar result, but oriented to the environmental area, occurred in Mexico. Rotoplas, a company that produces drinking water tanks, managed to reduce 4.5 metric tons of CO2 over the course of a year, thanks to the transfer of operations to the cloud. This advance is important, as it allows the company to provide drinking water to remote communities. In macro figures, FTI maintains that 3.0 million jobs would be created and 158,000 metric tons of CO2 would be reduced over the next 15 years.
Uruguay is an interesting case, because although it is positioned as the largest software exporter per capita in Latin America, the Uruguayan country still has obstacles to the adoption of the cloud with data protection laws that limit communications between countries with different frameworks. regulatory. Among the main achievements of the cloud in neighboring Argentina and Brazil is the case of the meat retailer Gourmeat, which improved its productivity by 40%, after turning to AWS to improve its inventory management system.
PERU'S WASTED POTENTIAL
Finally, Peru, the host country of the conference, is in a scenario that can be improved. The MIT study points out that it ranks only 69th in digital adoption in government and business. Likewise, there are notable, although isolated, efforts, such as the interest of the Ministry of Energy and Mines in using artificial intelligence to predict power outages. But if we talk about pioneering initiatives, the FIT highlights the National Institute for Research in Glaciers and Mountain Ecosystems (INAIGEM). This institution was the first to adopt cloud technology and was able to drive savings of 80% by replacing the use of items such as messaging, office supplies and printers.
During the conference, Damián Martínez, director of FTI Consulting, highlighted that the public cloud in Peru already supports US$ 11.8 billion of GDP and at least one million jobs. As in the Uruguayan experience, the development of a regulatory framework and a stable ecosystem is vital for the growth of the sector.
"Let's not only think about the investment and direct jobs of suppliers, but about the impact on the productivity of companies that use the cloud, the benefits for their value chains, and the general positive effect on consumption The FTI study estimates that by 2038 the public cloud will support more than US$20 billion of Peruvian GDP, as well as 1.7 million jobs,” Martínez said.
Along the same lines, Rosa Bueno de Lercari, president of the CCL, pointed out the importance that business responsibility plays in promoting new technologies. Starting from that premise, he announced the launch of the Digital Transformation and Intelligence Commission. It is a CCL project that explores alternatives that promote the ethical use of technology, which aspires to have a positive social impact.
“Let us remember that innovation, with emphasis on digital transformation and AI, is, like integrity, a transversal axis in our public policy proposals,” added Bueno de Lercari.
