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, Brasscom’s outsourcing summit for Latin America was held in Brazil. Brasscom is Brazil’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, outsourcing to Brazil is cheaper than doing IT in the U.S., but still costlier than outsourcing to India 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.
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6 users commented in " Outsourcing To Brazil Instead Of India "
Follow-up comment rss or Leave a Trackbackfor manufacturing, fine.
But for industries that need fluency in English, the Philippines is a better answer, and although Tagalog is the official “language”, most people know some English and learn it in school. It’s on the TV, and even the local language is “taglish” with many English words.
Brazilians speak Portuguese, their TV and culture is all Portuguese, so even if they learn it in school, they don’t get the language reinforced.
I agree, the Philippines is still better when it comes to English proficiency and great customer service. Filipinos easily adapt to change and to different cultures.
My company has been providing U.S. companies with IT staff augmentation services out of Brazil since 2004. We recruit world class English speaking IT professionals in Java, .Net, Oracle, and all the skill set used in the U.S.
Here are the key problems in Brazil:
1. Brazil does not have the volume of English speaking IT professionals or BPO workers found in other area. It is easy to find yourself in a situation where another offshore company enters the market and drives the prices you are paying for resources up substantially.
2. The Brazilian Real is over valued and changes in value almost daily.
3. The cost of Brazilian IT professionals will continue to rise due to the increasing domestic demand in this growing economy.
There are other LATAM locations that may be better best kept secrets.
Nearsourcing as a strategy defeats the purpose of outsourcing (all other factors being the same). With due apologies, it smacks of territorial-ism.
Now, every developing countries compete to gain the IT projects from developed countries
As long as quality service is maintained and the clients are happy, outsourced services will continue to grow.
The Philippines advantage is the American Education that we have. No matter where you are in the Philippines, if you are a foreigner who speaks English, communication won’t be a problem.
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