Connect33 Newsletter | January 2026

February 3, 2026

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Hi readers, welcome to our January edition covering last month’s Latin American software and technology trends, expansions, and M&A. Thanks for reading—whether you’ve been here since year one or just joined us.

January brought continued investment in Brazil from Tata Consultancy Services and Dell, fintech expansion and acquisition activity, and Constellation Research’s first AI-first service firms list, which recognized LATAM’s Qubika and Atrium AI, our first client.

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McKinsey: Latin America’s productivity opportunity: Amid a shifting global landscape, Latin America can capitalize on its competitive strengths and assets to jump-start productivity and unlock its full potential. This report analyzes seven sectors for transformative investment.

Our take: This McKinsey analysis validates what we’re seeing in the market across IT services (referred to as digital services in the report): Latin America’s competitiveness in digital services isn’t just about low costs anymore—it’s about strategic positioning across multiple geographies that matter to global tech companies. The report highlights the established IT services ecosystems in Argentina, Brazil, and Mexico, built around regional champions such as Globant, BairesDev, Stefanini, and Softtek, and also recognizes the promising contender outlined below.
This explains the growing acquisition activity in the region—acquirers aren’t just buying technology; they’re buying into proven delivery ecosystems with deep local expertise and existing talent infrastructure. McKinsey estimates, based on low- and high-case scenarios, that Latin America is positioned to capture between 1–5% of the European market and 5–20% of the potential US market by 2040.

Promising contenders on the IT services side are Chile, Costa Rica, and Uruguay, where global companies such as Globant and Tata Consultancy Services have set up operations. Moreover, Costa Rica hosts digital development centers for 16 of the top 100 IT companies globally and 32 Fortune 500 companies in corporate and business processes, while Uruguay boasts 400 domestic tech firms delivering high-quality tech solutions.

Tata Consultancy Services (NYSE: TCS), the global IT services and consulting company, started construction on its largest Latin American delivery center in Londrina, Brazil, with a USD 37 million investment expected to create over 1,600 jobs by 2027. (TCS)
Dell Technologies (NYSE: DELL), the multinational technology company, started production of its first AI-dedicated server at its Hortolândia, Brazil, manufacturing facility, developed with AMD for intensive workloads, including generative AI and large language models. (BNamericas)
Revolut, a UK-based digital banking platform, launched full banking operations in Mexico as the first independent digital bank to obtain a Mexican banking license through direct application, and applied for a full banking license in Peru, expanding to its fifth Latin American market after Brazil, Mexico, Colombia, and Argentina. (Reuters)
Numen, a technology solutions company specializing in SAP, AWS, Salesforce, and Celonis implementations across Brazil, Europe, and North America, acquired a 25% stake in Backlgrs, a São Paulo-based Salesforce partner with over 100 completed projects across Latin America. (Numen)
Infoblox, a network security and DNS management company, announced its planned acquisition of Axur, a Brazil-based AI-powered digital risk protection provider. (GlobeNewswire)
Capital One (NYSE: COF), a leading U.S. financial services company, announced its $5.15 billion acquisition of Brex, an AI-native finance platform founded by two Brazilian entrepreneurs serving over 25,000 companies in more than 50 countries. (Capital One)
dLocal (NASDAQ: DLO), the Uruguay-based payments platform, announced plans to expand its presence in Asia throughout 2026 while maintaining its leadership position in Latin America, targeting 30% of payment volume from Asia over 3-5 years. (Bloomberg)
RKTech, a Dallas-based subsidiary of Vietnam’s Rikkeisoft and affiliate of Sumitomo Corporation, made a strategic investment in Entropy, a Miami-based IT services firm operating across seven Latin American countries, including Argentina, Brazil, and Colombia. (Intelligent CIO)
JumpCloud, a provider of unified identity, device, and access management platforms, acquired MacSolution, the largest JumpCloud managed service provider in the Americas, to establish a strategic go-to-market hub in São Paulo, Brazil. (JumpCloud)
Valsoft Corporation, a Montreal-based vertical software company, acquired Fast Medic, a Brazilian public healthcare management software provider based in Curitiba, Paraná. (Yahoo Finance)