Brazilian executives kiss and hug one another in the office. Wipro Technologies' president for enterprise solutions, says plans call for the Brazilian foothold to rapidly grow to 200 people.īrazil brings its own national quirks to the globalization game.
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, paid $50 million for a Portuguese software company, taking on 70 staffers in Brazil. In June, Wipro Technologies, a division of Bangalore's Recently, Indian firms have started making moves in Brazil, as well. That leaves Brazil as the top choice for staffing big "factories," industry lingo for the campus-like centers where workers monitor computer systems, write software or handle calls. Skilled Mexican workers tend to drain northward to the U.S., and Chile's citizenry, though well-educated, numbers only 16 million, compared with Brazil's 190 million. "The government would call on Friday and say that on Monday the currency will have three less digits," saysĪs a result, the country has more programming talent available than regional rivals. And to cope with runaway inflation, big banks had to develop sophisticated computer systems. During the 1980s and 1990s, a ban on importing some business computers spurred domestic manufacturing. Ironically, Brazil's technology sector got a big boost from its chaotic past. Now industry consultants are starting to talk up Brazil and predict 2007 will be the year it gains recognition as an outsourcing destination.
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to create a road map for Brazil's industry and launched a series of presentations at conferences and for companies last year in the U.S. To burnish Brazil's profile, the government and a new trade organization, Brasscom, paid consulting firm A.T. "The first question is 'Is it safe?' The second is 'When do we go to Rio?' " saysĪ former Lucent Technologies executive who recently started a software firm, Daitan Labs, outside of São Paulo. Outsourcing companies say their biggest stumbling block is that the only things many Americans have heard about Brazil are its soccer prowess and its samba music or its violent slums. Whirlpool didn't answer questions about U.S. computer operations, that work also landed in Brazil, saysĪ Whirlpool vice president for global information systems. So when it decided in 2005 to outsource management of some of its U.S. The appliance maker had been paying IBM to provide desktop support in Portuguese for its Brazilian division. Staffing has grown quickly since them - IBM added 2,000 people last year in Brazil to bring its total to 10,000 - mostly to handle new work from clients such as Whirlpool. For instance, in 2004 IBM began putting $100 million into its Brazil operations, based principally in its former computer factory outside of São Paulo, Brazil's commercial capital. Now some are quickly redeploying to capture international jobs.
That means many big technology companies already have a Brazilian presence. Unlike India, Brazil already has a large domestic market for computers and services, worth about $7.7 billion a year, according to estimates. " 'Yes' in Brazil typically means 'yes.' In India, it may mean 'no,' " says Another pitch heard frequently is "shared values," a reference to cultural mismatches that have sometimes gummed up projects in Asia. That compares with 11 or 12 hours for India.
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Now the $47 billion market is ballooning at more than 20% a year, too fast for India to keep pace, according to the Everest Group LP, a Dallas-based consultancy that advises companies on how to outsource.īrazil's major selling point is that its big cities are just one to three hours ahead of New York, depending on the time of year. Major Indian firms such as Tata Group made doing computer and office work for less abroad into a huge business. While Brazil isn't as cheap as India, wages here are still substantially lower than in the U.S. corporations and says that so far it has several small contracts worth $1 million each but expects 2007 to be a banner year.īrazil's chances in the outsourcing market are a spillover of India's success. launched a "near-shore initiative" to get work from U.S. Brazilian-owned firms, which are tiny by global standards, are also trying to get business in the U.S.
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