Offshore Business Potential in Brazil

Forget India, Poland or China. If you are serious about offshoring a business look no further than Brazil. Bags of potential make it an attractive proposition for any business professional.

When you look around the world for likely IT offshore outsourcing destinations you may want to open your view a little to the south toward Brazil. Software programming is becoming a global commodity and Brazil offers the clear advantage of time zone, easy travel, and low cost IT professionals. Imagine skilled English speaking IT professionals at 50-70% less, working in the same business day as the Eastern U.S.A. The bill rate may not be as low as India and China, however, your ability to benefit from joint creativity during all parts of the development life cycle will far out weigh the difference. Top people in all countries seldom work nights. With Brazil’s time zone, the best and brightest are working in the same work day that you work. Even with well documented requirements, if your team can’t communicate often and freely due to time zone, you may not end up with what the user really wants?

Yes I know, you are probably wondering why you seldom hear of Brazil. This country hardly ever hits the radar when the decision is made to start looking offshore. And those U.S. companies that find Brazil seldom flaunt it, keeping it a best kept secret. Companies like AGCO, Alcatel, American Express, Blue Cross Blue Shield, Caterpillar, Citibank, Deutsche Bank and the list goes on. Brazil unlike India, has a huge domestic IT market that has only recently looked offshore for opportunities.

One good reason to consider doing business with Brazil is security. They respect your patent, copyright, and trade mark under penalty of law. Enforcement of intellectual property laws should be a major concern of businesses that venture offshore for IT development. Brazil has intellectual property protection legislation that is substantially similar to that of the United States which should put you at ease. Brazil enacted its first intellectual property law in 1887 and has current laws that are in line with international standards. Legal penalties for infringement can be civil or even criminal in Brazil.

In today’s world, data security is very important. Brazil rates better (62)on Transparency International’s Corruption Perceptions Index for 2005 than India (88), Russia (126), China (78),Saudi Arabia (70), and the Philippines(117) to name a few.

Some other reasons to consider Brazil for your next offshore outsourcing project include:

1. Brazil is an $18 billion IT industry and one of the largest IT industries in the world. It has a large and experienced work force.
2. Billing rates in Brazil are very competitive. They come in less than Canada and slightly more than those of India.
3. This is a highly educated professional work force. Brazilian Universities are very competitive to get into and very inexpensive to stay in. Expect to find professionals with advanced degrees.
4. Brazil has 1-3 hours different in time with U.S. Eastern Standard Time. Time zones do matter if you are traveling or trying to collaborate with someone long distances away. You can easily call your Brazilian project team during your work day.
5. English is a very popular skill and not hard to find with technical professionals in Brazil. English language capability is expected of young and middle aged high tech professionals in Brazil.
6. Air travel to Brazil is convenient and affordable. Sao Paulo is a 10 hour direct flight from Atlanta, Ga.
7. Good industrial infrastructure and low cost telephony service.
8. Brazil has excellent hotels and restaurants also at a low cost.
9. Brazil offers a friendly culture with similar racial diversities, religions and family life styles as in the U.S.A. This similarity facilitates remote cross cultural team building.
10. Brazilian women play a leadership role in business and in government. Traveling female executives are no surprise in Brazilian conference rooms or leading negotiations.

If you consider Brazil remember that it is as large as the Continental United States. Just as the salaries of IT professionals varies between a high in New York and fall as you travel south, salaries vary in Brazil as well. Professionals working in Sao Paulo or Rio may well garner a higher wage than similarly skilled professionals in Curitiba or Belo Horizonte. Your business stay in either of these smaller cities would be cheaper and have a comfortable tempo.

Mr. Johns has over 25 years of experience in global project management and is currently the President of Vision TRE, Inc., a Georgia based IT outsourcing company. More about the author can be found at http://www.visiontre.com/aboutUs.htm

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