When you think about outsourcing, you might be thinking about India. Why? Because India has experienced outsourcing giants like Wipro and Infosys that can do IT outsourcing in a customized way.What about Brazil? With nearshoring taking roots in Brazil, outsourcing to Brazil gives North American companies a way to outsource while still keeping a tab on the work done. Recently, Brasscomâ€™s outsourcing summit for Latin America was held in Brazil. Brasscom is Brazilâ€™s trade association.
Just like India, China and Russia, Brazil is a member of the BRICs group of countries projected to lead several industries in the near future. Nonetheless, not many people combine Brazil with business. Still more staggering is the fact that the country has managed to survive the global economic downturn with a 9 percent GDP growth in the last three months. This is in stark contrast to the U.S. or Europe, where recession is still a stark reality and companies are still figuring out a way toward recovery. The current growth is the highest level of growth for Brazil in the last 14 years.
Analysts say that the biggest advantage in outsourcing to Brazil is the sheer size of the industry along with widespread knowledge of business that exists in the fifth biggest country by land area. Incidentally, Brazil has a 50-year heritage in the IT field with about 2 million employees. These IT firms are said to be flexible too. In essence, the nature of Brazil itself is to be open, flexible and adapting.
However, there are some cons to outsourcing to Brazil as well. Since the IT market has been in boom for many years in Brazil, they have not relied on the global economy. This implies that Brazilians would rather do business in Portuguese than English. On a cost advantage basis,Â outsourcing to BrazilÂ is cheaper than doing IT in the U.S., but still costlier thanÂ outsourcing to IndiaÂ and Asian giants like the Philippines and China.Nonetheless, if your company is not looking solely at cost, and is looking for a nearshoring angle, then surely Brazil can work for you. The IT market in Brazil is still an undiscovered goldmine, in terms of the numbers of experts who have worked in the local industry for decades and now their skills are open to the rest of the world.