INFORMATION TECHNOLOGIES IN THE BRAZILIAN SERVICES SECTOR - DIFFUSION AND IMPACTS ON COMPETITIVENESS

The services sector is particularly suited for fast Information Technologies (IT) diffusion, since its production process is information-intensive. Furthermore, IT diffusion in the services sector is a basic requirement to increase firms' competitiveness. However, specific sub-sectoral conditions (type of service, size of firms, etc.) define the pace and shape IT diffusion. In addition, in developing countries like Brazil IT diffusion is hampered by structural deficiencies like poor telecommunications infrastructure. In this paper the following issues are addressed: first, we describe conditions of IT diffusion in the services sector in Brazil, focusing on banks, transportation and media & publishing companies. Second, we consider obstacles to IT diffusion that restrain firms' efforts to increase their competitiveness. Finally, we discuss policy measures that can lead to increased IT diffusion in the services sector in Brazil.