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					BRAZIL IT-BPO
BOOK
2008-2009
BRAZIL IT-BPO BOOK
           2008-2009
brazilian association of information technology
and communication companies – Brasscom

President of the board
Rogério Oliveira

President
Antônio Gil

directors
Edmundo Oliveira
Nelson Wortsman
Ricardo Asse
Sérgio Sgobbi



BraZil it-Bpo Book 2008-2009

coordination
Ricardo Asse
Daniella Koncz

technical suPPort team
Thaís Trapp
Sergio Pessoa

sPonsorshiP
Apex-Brasil
Brasscom members
Accenture
BRQ
Cast
CPM Braxis
IBM Brazil
Itautec
Stefanini
Tivit

acknowledgements
Alessandro Teixeira
Mauricio Borges
André Limp
Mauro Peres
Antonio Almeida
Daniel Cunha
Argemiro Leite
José C. Labate
Cássio Dreyfuss
Members of Brasscom’s Marketing Work Group



brasscom
Rua Funchal, 263, conjunto 151
04551-060, São Paulo, SP, Brazil
Phone 55 11 3053-9100
Fax 55 11 3053-9115
www.brasscom.org.br
BRAZIL IT-BPO BOOK
           2008-2009
  message from the PresiDents
  p. 7




                 global it-bPo trenDs
                 p. 8




SUMMARY
         brasscom’s agenDa
         p. 12
the brazilian it-bPo sector
p. 20




                                  brazil goes global
                                  p. 24




brazil’s ValUe ProPosition
Industry and business knowledge
p. 32

Qualified human resources
p. 36                                                    conclUsion
Sound infrastructure                                     Cost efficiency
p. 42                                                    p. 66

Governmental support
p. 50

Favorable economic, political and legal environment
p. 54

Cultural compatibility
p. 60

Time zone proximity
p. 62




                                                      aPPenDiX
                                                      p. 70
6   brazil it-bpo book 2008-2009




                                   Brazil: a safe harbor
                                              for IT-BPO
                                                                                                    message from the presidents   7




Information Technology (IT) plays a key role in the day-to-day lives of companies and nations.
If business needs to be expanded, it provides the essential input for planning, executing and
controlling action. If costs need to be rationalized, it provides the vital tools for enabling
more efficient operations and management. The process is global and Brazil takes a dynamic
and creative part in it. The IT industry has provided the country with great service for over
four decades. The eighth largest IT market in the world is planned here, and information and
communications technology represents about 7% of Brazil’s gross domestic product (GDP).


In this publication Brasscom offers the world a snapshot of Brazil’s IT industry. It is based on
recent studies carried out for Brasscom, which have outlined the comparative outlook for
domestic and global markets, and provided indispensible primary data for the industry and
for investors.


Recent evidence shows that Brazil is rapidly becoming a safe harbor for offshore IT and
business process outsourcing (BPO) services. This is the focus of this report, which is designed
for companies and opinion makers in the industry. It aims to reduce the imbalance in
information provided to agents in the area and to add value to their business decisions.


Above all, this publication seeks to share data and open up horizons. This is why it begins with
an overview of the global IT-BPO services market, which has shown to be resilient in face of
a global economic crisis, and continues to grow. It then presents the position held by Brazil’s
industry and its potential for expansion. It shows why Brazil has arisen as a consistent and
strategic offshore alternative.


This publication also proffers the point of view held by analysts of this market, identifies the
resources and advantages enjoyed by Brazil in global terms, and provides comparative data
on other traditional and emerging players. It also focuses on aspects of infrastructure, human
resources and policies for the industry, with special emphasis on the firm support offered by the
Brazilian government. The situation presented here may surprise some readers, and certainly
reveals a secret that has been well-kept in recent years but which now, with the country’s
projection in IT-BPO, is becoming an ever-more incontestable fact.


Many people, companies and institutions collaborated in the preparation and publication of
this report. Special mention must be made of the Brazilian Trade and Investment Promotion
Agency (Apex-Brasil), which embodies the Brazilian government’s commitment to our industry.
We also extend our warm thanks to our member companies and consultancies International
Data Corporation (IDC), A.T. Kearney, and Booz & Company.




Rogério Oliveira                             Antônio Gil
President of the Brasscom Board              President of Brasscom
global
it-Bpo
trenDs

     CREATING JOBS, BOOSTING PRODUCTIVITY,
     COMPETITIVENESS AND PER CAPITA GDP,
     THE IT-BPO SECTOR IS TODAY A GROWTH
     DRIVER FOR ThE COUNTRIES
                                                                                                                      global it-bpo trends   9




Extensive market intelligence research carried out by Brasscom – the Brazilian Association of
Information Technology and Communication Companies – has shown how vital Information
                                                                                                          IT-BPO TUrNED
Technology (IT) is to the economic development of any country that wants to be a part of the
global market. Over the last few decades the IT industry has become the main growth driver in
                                                                                                          OVEr US$1.23
the leading global economies, illustrated by such indicators as job creation, a general rise in
productivity, increased competitiveness and rising per capita gross domestic product (GDP).
                                                                                                          TrILLION
This strength and dynamism is best exemplified by Information Technology (IT) and Business                GLOBALLY
Process Outsourcing (BPO) services, sectors whose strong growth forecasts have been
maintained despite the global crisis. In 2008 IT-BPO generated US$ 1.23 trillion globally, with           IN 2008
outsourcing processes (both domestically and internationally) accounting for US$ 819 billion
of this total, having grown 6% a year from 2004 to 2008. This growth rate is expected to
reach 7.4% a year from 2007 to 2012, according to consultancy A.T. Kearney.


Demand is distributed as follows: applications (IT consulting, system development,
integration, expansion and management), US$ 289 billion; infrastructure (including software
development and software sales), US$ 271 billion; BPO, US$ 171 billion; and hardware
services, US$ 87 billion.


GLOBAL IT-BPO SERVICES MARKET                                                                                                  CAGR*
USD Billion
                                                                                                                         2007-12   2004-08

                                                                                                            1404
                                                                            1316             1359
                                                  1233             1274                                                   3%        3%
                       1186
    IT-BPO Services                                                                                         1069
    (in-house and                                                                             997                         7.4%     6%
    outsourced)                                                             932
                                                    819            872
                        748

     IT-BPO Services
     (outsourced)


                                                                                              121           145
                                                     70             84      101
                        50                                                                                                20%       40%
     IT-BPO Services
     (offshore)
                                                                             2010e




                                                                                                  2011e




                                                                                                              2012e
                                                                    2009e
                        2007




                                                    2008




                         * Compounded Annual Growth Rate.
                         Source: Gartner, A.T. Kearney analysis.
10   brazil it-bpo book 2008-2009




                                    BPO grew 8.2% a year from 2004 to 2008, a trend which is expected to continue even more
                                    rapidly (8.7% a year) until 2012. We estimate that the rate of expansion will also increase in
                                    infrastructure (7.2% a year from 2008 to 2012, compared with 5.9% in the previous period),
                                    applications (6.6% compared with 5.2%) and hardware (2.8% compared with 2.3%).


                                    In 2007 the United States accounted for 42% of demand, and Europe for 35%. Finance,
                                    manufacturing and the public sector were the main vertical segments in the market.


                                    Companies mainly opt to outsource services in order to expand their operations, to increase
                                    revenue, to reduce costs, to streamline processes, and to concentrate their efforts in their
                                    areas of expertise. Today, many companies are contracting service providers in developing
                                    countries to take advantage of labor cost arbitrage, which leads to reduced costs.


                                    ‘Offshore Outsourcing’, which means outsourcing to other countries, is the segment that has
                                    expanded the most, growing an average of 40% a year from 2004 to 2008 and turning over
                                    US$ 70 billion in 2008 alone. From 2008 to 2012 average annual growth is expected to be
                                    20%, turning over US$ 145 billion.


                                    India is by far the largest supplier in this market, having exported US$ 41 billion from 2007 to
                                    2008, according to A.T. Kearney. In the same period, however, Brazil, China, Russia, Mexico
                                    and the Philippines, amongst other players, significantly increased their market shares.


                                    Analysts in the sector forecast that over the next few years around 50% of the market will be
                                    fought over by emerging players. Companies hiring services will need to create new strategies
                                    to globally outsource (for example, prioritizing suppliers closer to their borders, which is
                                    known as nearshore outsourcing), which will create clear opportunities for Brazil. A report
                                    published by Gartner Group at the end of 2008 stated that Brazil is a natural choice when it
                                    comes to potential investment in IT-BPO services.



BrAZIL HAS BECOME A STrATEGIC GLOBAL
PLAYEr IN IT-BPO. WHAT WILL ITS rOLE BE IN
THE NEAr FUTUrE?
                                    The Brazilian IT-BPO market is among the strongest and most mature in the world. Over the
                                    last few decades it has been evolving in size, coverage and complexity, in line with the other
                                    economic sectors. Brazilian companies operate in the country, along with multinational firms.
                                    The main hardware manufacturers have facilities in Brazil, and are also one of the main
                                    consumers in this market. In 2008, according to consultancy IDC, Brazil was ranked fourth
                                    in global computer sales, behind only Japan, China and the United States. Brazil’s software
                                                                                                                  global it-bpo trends   11




 OFFSHORE COMPETITIVE SCENARIO
 Spending – USD Billion                             Estimate


 110                                                  101
                                                                         India
  90                                   84                      USD 31
                                                               Billion
                          70                                             Brazil
  70                                                                     China
                                                                         Russia
           50                                                            Mexico
  50                                                                     Philippines
                                                                         Others
  30
                                                       2010e
                                        2009e
           2007




                          2008




                                                                         Source: Gartner, A.T.Kearney analysis.




industry has greatly improved training, quality and competitiveness. IT services are vital for all
sectors – government, industry, retail and services – and are the country’s flagships regarding its
standing on the international market.


The private sector and the Brazilian government share ambitious goals to position the country as
an increasingly relevant and strategic global player in IT-BPO.


Goals were established as a part of a development program for the sector within the government’s
Productive Development Policy (PDP), launched in 2008 by the Ministry for Development, Industry
and Foreign Trade. These goals included strengthening the microelectronics segment, enlarging
the production chain, and expanding the infrastructure for digital inclusion. Furthermore, the
Brazilian government set a goal for 2010 to boost IT-BPO exports, from US$ 2.2 billion to US$
3.5 billion. Projects to create 100,000 jobs in the area are also being implemented, and two large
Brazilian technology groups are being consolidated.


Initiatives that involve the federal government, Brasscom, and other industry associations are
handling expanded access to computers and broadband internet connections, professional
training, and job creation.


Finally, comprehensive, shared agendas to combat the crisis take in specific measures for the IT-
BPO sector, given the consensus regarding its relevance as a strategic sector of the economy.
brasscom’s
agenDa


 LARGE COMPANIES IN THE IT-BPO SECTOR, RESEARCH
 CENTERS, UNIVERSITIES AND INSTITUTIONAL PARTNERS
 WORK TOGETHER TO PROJECT THE EXCELLENCE OF THIS
                                                    Juscelino Kubitschek
 INDUSTRY IN BRAZIL AND WORLDWIDE                   Bridge, Brasília
                                                                                                                   brasscom’s agenda   13




Brasscom – The Brazilian Association of Information Technology and Communication
Companies – represents the main IT-BPO companies, both Brazilian and international,
                                                                                                BrASSCOM
which account for 70% of Brazil’s gross domestic product (GDP) in the sector, as
well as research centers, universities and institutional partners. Founded in 2004,
                                                                                                SEEKS TO GET
Brasscom works to position Brazil amongst the world’s three leading strategic IT-BPO            THE MOST
centers. To this end, it seeks to align public policies with the private sector and local
and international markets, as well as to encourage cooperation with employees and the           OUT OF THE
associations that represent them.
                                                                                                ADVANCES IN
Its agenda is built around promoting Brazil’s excellence and innovative capacity in
IT-BPO, which is essential to increased efficiency and productivity in every sector             THE IT-BPO
of the economy. In five areas of operation, Brasscom works to consolidate the
relevance of the IT-BPO sector in Brazil.
                                                                                                SECTOr




                                   Language training
 BRASSCOM’S                                                                                         Market intelligence
                                   Technical training               Infrastructure
 AREAS OF                                                                                           Opinion makers
 OPERATION                         IT-BPO career promotion          Digital TV
                                                                                                    Demand generation
                                   Universities                     Digital inclusion
   Institutional relations                                                                          Public relations
                                   Technical schools                Brazilian Digital
   Labor law                                                        Convergence Index               Publications
                                   Government incentives
   Legislation & taxes                                              Innovation                      Events
                                   Educational methods
   International agreements                                         Mobility                        Media & web
                                   Local government
   IP & piracy control             relations                        Broadband                       Branding

                                        EDUCATION &                           DIGITAL
         REGULATORY                                                                                  MARKETING & EXPORTS
                                      HUMAN RESOURCES                       CONVERGENCE




   National councils     Market strengthening     Institutional relations     Institutional communication    Public relations

                                                         INSTITUTIONAL
14   brazil it-bpo book 2008-2009




  A COMPETITIVE,                    REGULATORY FRAMEWORK
                                    Brasscom aims to establish a competitive, fair, and ethical environment for the IT-

FAIr AND ETHICAL                    BPO sector. It works together with other associations, unions, and governmental
                                    institutions to propose bills of law that will benefit the sector, and to get these
   ENVIrONMENT                      bills passed into law.


  FOr THE IT-BPO                    Law number 11,774, of September 17, 2008 reduced social security contributions on
                                    company payrolls by 50% (from 20% to 10%).
       INDUSTrY
                                    Law number 11,908, of March 3, 2009 allows information technology and
                                    communications companies to make tax deductions of 200% of the amount they spend
                                    on training their employees working in software development, when the ‘actual profit’ tax
                                    calculation system is employed.


                                    Brasscom is monitoring the bill of law that deals with outsourcing services. It is also
                                    working to improve the legal framework for intellectual property, digital convergence,
                                    data security and privacy, and tackling software piracy.


                                    The association is working on a standard to be used when IT-BPO professionals are hired,
                                    based on current legislative principles (Consolidation of Labor Laws), allowing self-
                                    regulation of work on the IT-BPO market.


                                    EDUCATION AND hUMAN RESOURCES
                                    Brasscom works actively with governments, universities, training centers,
                                    institutions and companies to influence, create, manage and take part in technical
                                    and language training programs in line with company needs.


                                    A study amongst Brasscom members appraised the demand for IT-BPO professionals in
                                    relation to geographical location, technical, and language needs. Based on these results,
                                    a package of local, regional and federal programs is being offered, including the Sector
                                    Qualification Plan – Information Technology (Planseq – IT), Forsoft and Pós-Técnico,
                                    designed to train programmers and developers, and Englisoft, training people in English.


                                    Brasscom takes part in several institutional forums designed to raise awareness at
                                    various governmental levels of the need to adapt school curricula and to awaken an
                                    interest in the IT-BPO area. This aligns training and education more closely with the
                                    market. In addition, funding is sought to fill the existing gaps in this area.
                                                                                                                     brasscom’s agenda     15




DIGITAL CONVERGENCE
Brasscom provides a guide to the IT-BPO industry regarding the challenges in
infrastructure, digital convergence, and innovation.


Digital convergence is at the core of the profound transformation the IT-BPO sector
is undergoing globally. The fast adoption of new technologies, combined with the
continuous growth in the number of users, is changing the way in which consumers
interact with companies. This rapidly changing landscape demands a constant review of
the technologies and business models being used, and Brasscom coordinates a range of
programs in this area:


   A digital TV work group has been set up within the association to deliberate the
   massive business opportunities created by interactivity which will require a large
   number of trained professionals to develop applications and other software platforms.


   Brasscom prepares and publishes The Brazilian Digital Convergence Index, which
   indicates that Brazil has been evolving in this area. The most recent issue of the
   index shows dynamic growth in the indicators associated with the technological
   platform (hardware, software and IT-BPO services) and convergence (connectivity,
   communications, media, and digital access to services and products).


   In partnership with consultancy Booz & Company, Brasscom has provided a wide                         Broadcast tower and TV antennas,
                                                                                                        Resende, Rio de Janeiro
   range of recommendations for the Brazilian government to strengthen the IT-BPO
   industry and stimulate the national economy. The program is based on a balance
   between the five pillars of cost, coverage, awareness, training, and regulation. The
   plan is to attract investments of around US$ 407 million in wireless broadband,
   generating 15,000 jobs to build this infrastructure, adding one million new
   broadband access points in Brazil, selling five million new computers, creating
   50,000 formal jobs and adding US$ 35 million in investments in Lan Houses
   (Internet access for fee locations similar to Internet cafes).



    BRASSCOM PROGRAM FOR IT-BPO INFRASTRUCTURE
    Agenda                                                 Impact

     BROADBAND 1.0                                                     UP TO 5 MILLION              CREATION OF
                                                                       NEW PCS – GREATER            AT LEAST
     COMPUTER FOR EVERYONE 2.0                                         PENETRATION                  15,000 JOBS
     LAN HOUSES 3.0
                                                             FORMALIZATION           SPILLOVER EFFECT             OVER 1 MILLION
     TRAINING FOR SMES                                       OF UP TO               IN OTHER ECONOMIC             NEW BROADBAND
                                                             50,000 JOBS                  SECTORS                 ACCESS POINTS
     ACCELERATE KEY REGULATORY PROCESSES

     LAW N. 11,774 (EMPLOYMENT COST)                                   US$ 35 MILLION                   US$ 407 MILLION
                                                                       INVESTED IN                      INVESTED IN
     IT-BPO IN THE GOVERNMENT                                          LAN HOUSES                       WIRELESS BROADBAND
16   brazil it-bpo book 2008-2009




             THE TArGET:            INTERNATIONALIZATION, EXPORTS AND INVESTMENTS’ ATTRACTION
                                    Brasscom positions and promotes Brazil’s potential in IT-BPO on both the domestic
                 US$ 3.5            and international markets, focusing on increasing Brazil’s export volumes and
                                    building investment in the sector.
                 BILLION
                                    In January 2009, Brasscom, together with Brazilian Trade and Investment Promotion
              BY 2010 IN            Agency (Apex-Brasil), launched a joint initiative to boost IT-BPO exports to US$ 3.5
                                    billion by 2010. The agreement concentrates on the implementation of a comprehensive
                EXPOrTS             international program, with actions for promoting the sector internationally, fostering
                                    business, and improving relationships with key influencers and decision-makers.


                                    Over the next two years several projects will be rolled out involving ministries, funding
                                    agencies, sector associations, chambers of commerce and international business
                                    promotion agencies. The scope of these projects include the promotion of the sector
                                    in Brazil and internationally, participation in strategic international events, and the
                                    organization in Brazil of conferences and visits by analysts, journalists, and specialists
                                    in the area.


                                    The association maintains a close relationship with the main international organizations
                                    and key stakeholders from the global IT-BPO industry, offering the best and most
                                    accurate information about the Brazilian market.


                                    INSTITUTIONAL
                                    Brasscom represents the IT-BPO sector in Brazil and internationally.


                                    Brasscom is a member of the Economic and Social Development Council, linked to the
                                    Presidency of the Republic, and also of the Private Sector’s Consulting Council (Conex),
                                    linked to the Ministry for Development, Industry and Foreign Trade, at which it discusses
                                    proposals to promote economic and social development and to improve foreign trade
                                    policies. It also participates in national forums on competitiveness.


                                    The association operates as a hub connecting the Brazilian IT-BPO sector to potential
                                    markets, and promoting Brazil’s competitive advantages. Brasscom has been acting as a
                                    facilitator for potential partnerships, mergers and acquisitions, joint ventures, alliances
                                    and other joint efforts between Brazilian and international companies.
                                                                                                          brasscom’s agenda   17




 ABOUT APEX-BRASIL
                                                                          The Brazilian Trade and Investment Promotion
                               Apex-Brasil headquarters, Brasília
                                                                          Agency’s (Apex-Brasil) mission comprehends
                                                                          a series of endeavors which include the
                                                                          promotion of exports of Brazilian products and
                                                                          services to foreign countries, the development
                                                                          of the internationalization of Brazilian
                                                                          companies and undertakings focused on
                                                                          attracting foreign investment into the country.


                                                                          The Agency seeks to increase the number of
                                                                          Brazilian exporting companies and to add
                                                                          value to the list of Brazilian exported products.
                                                                          On the other hand, the Agency also strives
                                                                          to consolidate the country’s presence in
                                                                          traditional markets and to open new markets
                                                                          for the Brazilian products.



At the moment, Apex-Brasil gives support to over 70 sectors of the Brazilian economy, ranging from agribusiness
to machines, technology, architecture and civil construction, entertainment and services to fashion and industrial
equipment. The Agency develops and builds the image of these productive sectors by means of solid marketing
activities and publicity campaigns directed to entrepreneurs and consumers of highly potential purchasing power. Every
year, Apex-Brasil provides assistance to Brazilian companies’ participation in more than 600 events – both in Brazil
and abroad.


To achieve these objectives, Apex-Brasil offers products and services in the following areas:


    Information
    Export training                                    Positioning and image
    Commercial promotion                               Backing for international expansion


Apex-Brasil has stepped up action to attract direct foreign investment in Brazil, seeking to identify opportunities,
holding strategic events and supporting investors throughout the process in Brazil.
SUPPORTED BY CONTINUOUS AND
RAPID GROWTH IN RECENT YEARS,
BRAZIL’S IT-BPO INDUSTRY IS
READY TO PLAY A LEADING ROLE
ON THE GLOBAL MARKET




                     the
                     brazilian
                     it-Bpo
                     sector
                                                                                                    the brazilian it-bpo sector   21




BrAZIL HAS THE EIGHTH LArGEST DOMESTIC
IT-BPO MArKET IN THE WOrLD


In 2008 the sector turned over US$ 59.1 billion, including exports and IT-BPO areas that are
part of the structure of Brazilian companies in every economic sector. If the communications
sector is included, which forms the ICT complex, turnover exceeded US$ 139.1 billion.


The country’s IT-BPO sector is 45 years old, has grown in step with Brazil’s economy and has
developed sophisticated solutions for companies in several business segments. Some of these
companies compete on the global market and are amongst the leaders in their fields. Examples
of such companies include Ambev (part of AB Inbev, the world’s second-largest beverage
company, after Coca-Cola), BrasilFoods (the largest chicken processor in the world), Petrobras
(the world’s 12th largest oil company), Embraer (the world’s third-largest commercial jet
manufacturer), Vale (the world’s largest producer and exporter of iron ore), CSN (the world’s
fifth-largest steel maker), Gerdau (the largest producer of long steel in the Americas), and
Aracruz (a global leader in the production of eucalyptus pulp). Brazil’s financial system is also
relevant in this scenario, and is considered by both the World Bank and the Gartner Group,
one of the most advanced in the world, with all the institutions connected to a fully developed
national network.


Hardware still has the largest market share in the IT-BPO sector, mainly servers, storage
devices, peripherals (printers, portable devices), and network equipment, followed by services
(including planning, development, support and systems and process management), BPO
and software.
22   brazil it-bpo book 2008-2009




                      SPENDING ON
                  IT-BPO, ADDED TO
                  EXPOrTS AND THE                                                        IT-BPO AND COMMUNICATIONS
                                                                                         IN BRAZIL, 2008
                  COMMUNICATIONS                                                         USD Billion



             SECTOr, ACCOUNTS FOr



                                                                          23.5
                7% OF BrAZIL’S GDP




             IT SPENDING, 2008
                                                                     69




             USD Billion

                   HARDWARE
                                                          2.2




                   SOFTWARE
                                                                11




                   SERVICES
                                                      4




                                          10
                                                                                         1. IT SPENDING
                                                                                         2. BPO
                  16.2                                                                   3. EXPORTS               7% of
                                                                                                                  Brazil’s
                                                                                         4. HARDWARE FOR          GDP
                                                                                            COMMUNICATIONS
                                    3.2
                                                                                 139.1




                                                                                         5. TELECOM SERVICES
                                               29.4




                                                                                         6. IT IN HOUSE
                                                                                         7. TOTAL
                                                1     2    3    4    5     6      7

                                                                                         Source: Brasscom, IDC.
                                                                                                    the brazilian it-bpo sector   23




According to A.T.Kearney, the sector currently employs around 1.7 million people, including
programmers, systems analysts and managers, having grown by around 6.5% a year on
average since 2005 as a result of the constant expansion of the sector. Specialized schools
throughout Brazil produce around 77,000 new professionals for the market every year. Brazil is
recognized for its intensive use of global standard platforms, architectures and methodologies
– including Java, Unix, Linux, Cobol, Natural, .Net, C++, Oracle, SAP, Totvs, Siebel, PeopleSoft,
SOA, EAI, CMMi, ISO, and ITIL, amongst others.


Strong in vertical segments, such as financial services, manufacturing, communications, oil &
gas, retail and government, the Brazilian market is completely open, with both Brazilian and
international companies competing on it.


The Brazilian IT-BPO sector combines technological expertise with an extensive knowledge of
business processes for specific sectors. It currently provides mature solutions for agribusiness,
the aerospace and automotive industries, health services, e-commerce, insurance, banking,
and fiscal and tax operations, amongst others.




                A survey carried out by the Center for Applied Information
                Technology at Eaesp-FGV at the beginning of 2009 has shown
                that there are 60 million computers being used in
                Brazil, in both the business and residential segments. In 2008
                12.2 million units were sold – over 30,000 a day – up
                16% on 2007, when for the first time computer sales surpassed
                those of television sets. Today the country has one computer
                for every three inhabitants and the forecast is that by
                2012 this number will have increased to one computer for
                every two inhabitants. The survey also stated that Brazilian
                companies spend and invest and average of 6% of
                their net revenue on IT, an amount that has doubled in
                twelve years.
brazil goes
global
        THE BRAZILIAN IT-BPO
        INDUSTRY REAChES ITS
        MATURITY WITH A RECORD
        OF EXPORTS AND IS READY
        TO MEET EVEN MORE
        AMBITIOUS GOALS
                                                                                                                     brazil goes global     25




HEADED BY IT SErVICES, BrAZIL’S
EXPOrTS GO FOWArD SHOWING
DYNAMISM AND VErSATILITY


Brazil’s IT-BPO export market turned over US$ 2.2 billion in 2008 – including IT-BPO services,    BRAZIL’S IT-BPO OFFSHORE
captive centers and software.                                                                     REVENUES, BY SERVICES, 2008


Revenue comes mainly from IT services, and most (73%) is related to development, which is
a higher proportion than in other countries. According to the IDC, the biggest growth is in the                             4%
                                                                                                                                 7%
integration and consulting areas, as in the rest of the world, but development will continue to
dominate for a long time.
                                                                                                                                      16%


In the BPO segment demand is concentrated in call centers, which account for 40% of business
activity. These usually involve multinational company branches working for the head offices
(“captive centers”). Operations focusing on the market outside Brazil are mainly help-desks,              73%

B2B, and B2C call centers.



                                                                                                           CUSTOM APPLICATION DEVELOPMENT
BRAZIL’S OFFSHORE SERVICES MARKET, 2008                                                                    INFRASTRUCTURE SERVICES
USD Million
                                                                                                           BPO
                                                                                                           IT CONSULTING
1                                                                                 2013
                                                                                                   Source: Brasscom, IDC.
2       187

3                                                                                         2200

1. IT SERVICES & BPO
2. SOFTWARE LICENSES & RELATED SERVICES
3. TOTAL
Source: Brasscom, IDC.
26      brazil it-bpo book 2008-2009




            BRAZIL’S IT-BPO OFFSHORE          The main demand for IT-BPO services comes from the manufacturing sector, which may be
                    SERVICES MARKET,          explained by the fact that the country is especially strong in ERP – followed by the finance
                    BY INDUSTRY, 2008         sector. Combined they account for 46% of this market. The main services include application
                                              management, testing, and infrastructure, amongst others.
                              3%
                                   9%
                  24%                         US companies are the main clients, accounting for over 80% of demand, followed by Latin
                                        9%
                                              America (especially Argentina, Chile, Colombia and Mexico), and Europe (especially Germany,
                                              Spain, France, England and Portugal).
                                        15%

            22%                               The Brazilian market is very diversified, and offers services in several formats. COBOL
                                              dominates, for two main reasons: the presence of heavyweight companies using this
                                18%
                                              language, and a significant financial sector. The country also stands out in Java applications
                                              – it has one of the three largest contingents of Java programmers in the world, and is a
                                              reference point in this technology. Its consolidated history in ERP has also attracted some
             MANUFACTURING
             FINANCE                          global projects to the country.
             IT
             TELECOM
                                              Brazil’s strategic position and its positive business environment have driven the development
             OIL & GAS
             OTHERS                           of shared service centers and IT-BPO regional centers to serve Latin America.
             SERVICES

     Source: Brasscom, IDC.                   CAPTIVE CENTERS
                                              Captive centers are development centers created by companies to serve the IT BPO
                                              demands of their head offices. They are becoming more common in Brazil as the result
                                              of a combination of factors:
             BRAZIL’S IT-BPO OFFSHORE
                  SERVICES MARKET, BY
              IMPORTING REGION, 2008              A significant presence of multinational companies


                                                  Consolidation of IT-BPO operations in Latin America


                                                  Total cost competitiveness


                                                  Increased presence on the local market


                                                  Global sourcing strategies increasing demand for Latin America


                                                  Favorable geographical location

             USA 80.5%
                                                  Government incentives
             LATIN AMERICA 8.5%
             EUROPE 7.8%
             CANADA 1.2%
            JAPAN 0.7%
             OTHERS ASIA/PACIFIC 0.8%
             MIDDLE EAST 0.5%

     Source: Brasscom, IDC.
                                                                                                  brazil goes global      27




                                                 JOHNSON & JOHNSON: MULTIPLYING EXCELLENCE
                                                 Johnson & Johnson has important operations in Brazil, in all three
                                                 of its business segments – Consumer, Medical and Pharmaceutical.
                                                 This was one of the reasons it set up a global service center in
                                                 São José dos Campos, São Paulo, with a small initial investment
                                                 that leveraged the existing structure of its industrial unit.
                                                 The innovative and creative capacity of the people involved in
                                                 development also had an influence on the decision. “In four years we
                                                 went from 10 to over 400 professionals, including direct employees
                                                 and outsourced workers,” says Argemiro Leite, J&J’s IT director.

            Johnson & Johnson industrial unit,
            São José dos Campos, São Paulo



“WE HAVE INTEGRATED A NETWORK THAT OFFERS
GLOBAL SOLUTIONS, SUPPORTING INTERNAL IT
STRUCTURES”         The time zone benefits Brazil, especially in serving the USA and
                                                 Canada, which account for practically 90% of the services provided.
                                                 English is the official language at the center, but the use of Spanish
                                                 is increasing, in step with the development of the Latin American
                                                 market. “We have an English service desk, 24 hours a day, 7
                                                 days a week,” says Leite. The development and management
                                                 of internet portals and websites are among the projects carried
                                                 out by the center. There are hundreds of them, including the
                                                 institutional portal.


                                                 Johnson & Johnson has 250 companies in 57 countries, with a
                                                 complex IT structure. The Brazilian global service center was the
                                                 first to obtain the international certification CMMi 2, certifying the
                                                 excellence of its processes. “Information technology is not our core
                                                 business, but we still believe that we need to match the level of
                                                 quality expected of companies in this sector,” Leite explains, adding
                                                 that rigor is in part of Johnson & Johnson’s DNA. The Brazilian
                                                 team’s focus on results is also praised: “Our professionals are
                                                 trained to solve problems quickly, as the sector requires continuous
                                                 improvement”. Leite offers an example of a Brazilian solution that
                                                 combined innovation and proactivity. “We developed a quantifying
                                                 application, based on precise parameters, to effectively measure
                                                 the cost of each IT project carried out at Johnson & Johnson. The
                                                 tool became a global standard.”
28   brazil it-bpo book 2008-2009




                                                                CITI: A BANK OF SOLUTIONS
                                                                Synergy with teams from North America and Europe, a small time
                                                                difference, an attractive alternative for the needs to decentralized
                                                                operations, a talent pool with expertise in banking technology,
                                                                and competitive costs – these are, in short, the main advantages
                                                                recognized by Citi that justified the set up of a global delivery center
                                                                (GDC) in São Paulo. “We support the bank’s critical applications,
                                                                especially those for institutional clients,” explains José Carlos
                                                                Labate, head of Citi’s GDC, which was set up five years ago.


                                                                Brazil benefits from flexibility, readiness, and maturity. Labate
                          Citi headquarters, Paulista Avenue,   says that technical knowledge in Brazil normally goes hand in
                          City of São Paulo
                                                                hand with practical experience, as many professionals work while
                                                                attending training courses. “In other countries, people wait
                                                                until the course is over to finally start working. Our dynamics
                                                                benefit project development.” Low personnel turnover, at around
                                                                3%, also makes teams stronger and improve productivity.



FLEXIBILITY, PROMPTNESS, AND MATURITY ARE KEY
FACTORS IN FAVOR OF BRAZIL

                                                                Transition – the Achilles’ heel for internationalization projects – has
                                                                been identified as one of the main successes for Citi’s GDC. “All our
                                                                transitions, with the transfer of knowledge and activities, were
                                                                a success. They followed a plan, stuck to the parameters set by
                                                                head office and had no impact on the continuity or the quality of
                                                                services, which is crucial for a banking institution,” says Labate.


                                                                Brazil has been gaining in strategic relevance. “We also work on
                                                                segmented projects, carried out simultaneously in India and Europe,
                                                                delivering high level solutions. We need to speed up the process
                                                                to become even more competitive, which may be achieved with
                                                                government incentives for premises, training personnel, and reducing
                                                                payroll taxes. This is a very dynamic market,” Labate concludes.
                                                                                                                    brazil goes global       29




In 2008, IDC carried out a survey of IT-BPO service exports amongst Brazil-based companies,
ranking them in terms of total revenue. The Brazilian offshore market can be split into three main
blocks – large multinational companies, with a long-standing and significant presence in the
country; Brazilian companies with a mature international status; and new players, both domestic
and international. Some companies position themselves as full-service providers, and others as
niche players, specialized in a certain business process, vertical operation, or technology.




 RANKING OF IT-BPO EXPORTERS                                                     RANKING OF CAPTIVE CENTERS, 2008
 IN BRAZIL, 2008                                                                 Total revenue
 Total revenue


 1º IBM                                                                          1º IBM

 2º ACCENTURE                                                                   2º EXXON MOBIL

 3º EDS                                                                         3º MOTOROLA

 4º BT                                                                          4º DELL

 5º STEFANINI                                                                   5º JOHNSON & JOHNSON
          6º CPM BRAXIS                                                                   6º HSBC

          7º BRQ                                                                          7º EDS

          8º DTS                                                                          8º CITI

          9º SONDA PROCWORK                                                               9º GM

         10º TATA CONSULTANCY SERVICES                                                  10º BASF
                  11º GRUPO ASSA                                                                  11º SHELL

                  12º CI&T                                                                        12º ROCHE

                  13º TIVIT                                                                       13º JP MORGAN CHASE

                  14º SATYAM                                                                      14º AMBEV

                  15º DELOITTE                                                                    15º FORD
                           16º T-SYSTEMS                                                                16º GOOGLE

                           17º GFT                                                                      17º RHODIA

                           18º BEARINGPOINT                                                             18º AVAYA

                           19º ATOS ORIGIN                                                              19º DUPONT

                           20º RESOURCE                                                                 20º BOSCH
                                    21º POLITEC                                                               21º CATERPILLAR

                                    22º UNISYS                                                                22º PHILIPS

                                    23º SOFTTEK

                                    24º OGEDA                                                                                    Source: Brasscom, IDC.
brazil’s
VALUE
PrOPOSITION




City of São Paulo
                                                                   1
                  INDUSTrY AND BUSINESS KNOWLEDGE
                                                                   2
                          QUALIFIED HUMAN rESOUrCES
                                                                   3
                                SOUND INFrASTrUCTUrE
                                                                   4
                               GOVErNMENTAL SUPPOrT
                                                                   5
FAVOrABLE ECONOMIC, POLITICAL AND LEGAL ENVIrONMENT
                                                                   6
                                CULTUrAL COMPATIBILITY
                                                                   7
                                     TIME ZONE PrOXIMITY




                          hERE ARE SEVEN STRATEGIC REASONS FOR
                    ChOOSING BRAZIL FOR CONSISTENT INVESTMENT
                     IN THE IT-BPO SECTOR – A UNIQUE COMBINATION
                   OF FACTORS THAT MAKE THE COUNTRY ONE OF THE
                           MOST COMPETITIVE IN COST EFFICIENCY
32   brazil it-bpo book 2008-2009




1
       INDUSTrY
       AND BUSINESS
       KNOWLEDGE

     EXPERIENCE AND
     CAPACITY TO
     INNOVATE SET
                                    Information technology plays a major role in all productive sectors in Brazil, and there is an
     BRAZIL APART                   increasing awareness of its essential role in achieving real economic gains for the economy. This
                                    explains why the country can put itself forward as a global strategic player in the IT-BPO industry.


                                    Brazilian companies in the sector have created a very strong industry over the years (as we
                                    have seen in the previous chapters). They have accumulated knowledge through decades
                                    of experience, they have innovated to achieve excellent results in various business and
                                    governmental areas, and they have grown in step with increased domestic demand.


                                    FINANCIAL SEGMENT STANDS OUT
                                    The financial area is one of the best examples of this strength. Having faced through the
                                    difficult years of hyper-inflation and constant rule-changes in the 1970s and 1980s, Brazilian
                                    professionals have developed an unmatched agility and innovative capacity. The Brazilian
                                    Payment System (SPB) is amongst the most sophisticated, efficient and reliable in the world –
                                    Brazil is one of the few countries in which inter-banking fund transfers can be made electronically
                                    in real time. The country provides technological solutions that are benchmarks in banking
                                    automation, internet banking, operations via mobile phone, ATMs, serving Brazilian giants
                                    such as Itaú/Unibanco, Bradesco, Banco do Brasil and Caixa Econômica Federal, as well as
                                                                                       Salvador, Bahia




international banks, such as ABN/Amro/Real,     system once again confirms Brazil’s position     to the Brazilian Credit Card and Services
Santander, HSBC and Citi – leaders amongst      as a pioneer and a global reference point in     Association (Abecs), there were 514 million
more than 100 banks in operation.               business-related technology solutions for the    cards on the market, including credit, debit,
                                                financial services sector.                       and private label cards. That year around 5.3
The most recent far-reaching project                                                             billion transactions were performed, 20%
involving banking operations is being           Brazil’s Stock Market and Commodities            more than in the previous year.
launched in 2009: authorized direct debit       Exchange (BM&F Bovespa) is a leader in
(DDA), a system that will allow all payments    Latin American equity and derivatives, and an    The companies that make up the financial
to be received electronically by the banks      international financial center trading shares,   system, such as banks, private pension,
that serve individuals and corporations. To     commodities and other financial instruments.     insurance, finance and brokerage firms,
illustrate the impact of this change, monthly   BM&F Bovespa is recognized for its IT-           account for around 20% of the total
school bills, purchases, mortgages and car      supported operational excellence.                spent on IT in Brazil, according to IDC.
loans, amongst others, leave a paper trail                                                       In 2008 the segment was responsible for
of around 2 billion printed banking slips per   Brazil has a sound and dynamic payment           42.8% of the total investment in servers
year. Besides saving paper and postage,         system. Electronic payments have been made       (including mainframes) and 29.3% of the
DDA will offer benefits in terms of speed       in the country for over 50 years, supported by   investment in data storage.
and security. The implementation of the         innovative IT companies. In 2008, according
34   brazil it-bpo book 2008-2009




                                    MANUFACTURING, RETAIL AND SERVICES

     BrAZIL EXPANDS                 The manufacturing segment accounts for the greatest volume of IT investments in
                                    Brazil due in part to its competitiveness. Companies, especially in the chemical,

     BEST PrACTICES                 base metal and pharmaceutical sectors, are intense users of integrated Enterprise
                                    Resource Planning (ERP), Business Intelligence (BI), Supply Chain Management
       IN E-GOV AND                 (SCM) and Research and Development (R&D) systems. It is not unusual for
                                    organizations to be challenged by the need for new product or process innovations,
      STANDS APArT                  enabled by technological solutions developed in short timeframes.


     ON THE GLOBAL                  The Brazilian retail sector, with its large companies, poses similarly large challenges
                                    for IT-BPO companies and professionals. Giants such as Pão de Açúcar and B2W (which
           SCENArIO                 includes Americanas and Submarino) invest massively in technology in order to expand
                                    their businesses, especially in Customer Relationship Management (CRM), e-commerce
                                    and, more recently, radio-frequency identification (RFID), a system that helps monitor
                                    the transport of goods carrying intelligent labels from the pallets in the plants to their
                                    arrival in the supermarkets.


                                    ELECTRONIC GOVERNMENT
                                    Information technology-based public services are on the rise in Brazil. Best practices are being
                                    promoted throughout the most diverse areas – health, education, public safety, and finance,
                                    amongst others – and in the three spheres of the government – federal, state and municipal.
                                    Communications with society are increasingly done via computers. A law approved in May
                                    2009, for example, requires that government agencies report all their revenue and spending
                                    on the internet, consolidating a practice that had already been in use by some agencies.


                                    Some Brazilian e-government case studies are internationally recognized successes. Electronic
                                    voting was used for the first time in the municipal elections of 1996. In the most recent
                                    municipal elections, held in 2008, in which mayors and city councilors were elected, electronic
                                    ballot boxes were available to the entire electorate. The numbers involved are impressive
                                    and show how complex the operation was in terms of information technology: 5,563 cities,
                                    371,874 electoral sections, and over 110 million voters. Almost all the votes were counted
                                    before midnight on the same day of the election.


                                    Another example that adds to Brazil’s credibility is its tax return system, which is almost
                                    exclusively internet-based.


                                    It is also worth to highlight the Brazilian Federal Government’s Electronic Procurement System
                                    (ComprasNet), considered by the Inter-American Development Bank (IADB) to be a reference
                                    point in the procurement of goods and standard services for the public administration,
                                    providing an intuitive and secure application.
36   brazil it-bpo book 2008-2009




2
       QUALIFIED
       HUMAN rESOUrCES

       Paulista Avenue,
       City of São Paulo




      PEOPLE AND
      KNOWLEDGE:
                                    The great scale and the quality of labor currently available in the country, as well as the ability
      ThESE ARE ThE
                                    to prepare an increasing number of professionals to meet the market demands in an effective
      DRIVERS IN ThE                manner, set Brazil apart.
      IT-BPO SEGMENT
                                    In step with its economic growth, Brazil has invested over the last two decades in the
      IN BRAZIL
                                    universalization of its education. Amongst 7 to 14 year-olds, 97.6% – around 27 million
                                    young people – are in school, attending 9 years of primary education. Secondary school’s
                                    duration is 3 years, with 9.4 million students. Professional education, including technical
                                    schools (4 years), short-term technical courses, and professional training courses, take in
                                    6 million people. According to the last Post-Secondary Education Census, in 2007 over 1.5
                                    million people entered post-secondary education, in 2,281 institutions.


                                    The challenge of meeting the labor needs of the IT-BPO market, which has been growing
                                    at an annual average rate of 6.5% over the last four years, is shared by public and private
                                    institutions throughout the country. A Ministry of Education survey carried out in 2007
                                    revealed that there are 1,714 courses, from technical to university courses, directly linked to
                                    information technology in Brazil. Over 220,000 people are estimated to be currently being
                                    prepared to enter the market. This estimate includes courses in mathematics, physics and
some engineering areas, as it is not uncommon in Brazil for professionals from those courses to get into the IT-BPO area. There is an ongoing
plan to double the current number of vacancies offered by the federal technical and technological area to 500,000 places by 2010.
A qualification in information technology will be a priority in this initiative.


QUALIFICATION IN ENGLISH IS ALSO A PRIORITY
Foreign language skills must also be included in the qualification of IT-BPO professionals, especially when the focus is on the external market.
In Brazil, English is a mandatory language course on the school curricula in primary, secondary, and post-secondary schools.



                                       ENGLISH SPEAKERS, 2007 Million                                                            % total population

                              BRAZIL                                                                 10.2                                      5.4%
(selected countries)




                           COLOMBIA                                                    7.4
   Latin America




                                                                                                                                             15.7%
                               CHILE                                       5.9                                                               34.7%
                             MEXICO                                  4.9                                                                       4.5%
                           ARGENTINA                           3.8                                                                             9.8%

                               INDIA                                                                                            90.6           8.2%
            Others BRICs




                               CHINA                                                                10.0                                       0.8%
                              RUSSIA                                             6.8                                                           4.8%
                                       Source: A.T. Kearney.
38                 brazil it-bpo book 2008-2009




                                       QUALITY OF ENGLISH AS A SECOND LANGUAGE, 2007 Score (out of 120) – IBT*
                           ARGENTINA                                                                     94
(selected countries)




                               CHILE                                                                88
   Latin America




                              BRAZIL                                                            86
                             MEXICO                                                             85
                           COLOMBIA                                                       80


                              RUSSIA                                                           84
            Others BRICs




                               INDIA                                                           84
                               CHINA                                                    78
                                       * Internet based TOEFL.
                                       Source: A.T. Kearney analysis.




Many students also attend supplementary courses in English as a second language (ESL),
which are widely available throughout the country. Out of the largest developing economies,
Brazil has the second-highest number of English speakers (10.2 million), behind only India.


Spanish and French are also widely taught in Brazil, especially in private, independent courses.
The immigrant community also provides professionals fluent in Italian, German, Japanese and
Arabic, amongst other languages.


The development of language skills is a priority as Brazil moves forward with its internationalization
process. To this end, Brasscom has been working hard in close partnership with the government and
private businesses to implement programs over the short, medium, and long term.


BRAZILIAN WORKERS ARE RECOGNIZED
FOR THEIR COMMITMENT AND FLEXIBILITY
According to IDC, Brazil has one of the largest communities of COBOL and Java programmers
in the world. It also certifies a large number of professionals every year in Unix, Linux, Natural,
.Net, C++, as well as other programming languages.


Based on interviews with executives in the sector, IDC has concluded that Brazilian workers
are recognized for the quality of their work and their commitment. They are considered to
be flexible, not afraid to face challenges, and they are also not afraid to draw attention to
problems that arise in projects. This can be explained by their curiosity and more holistic view
of the process. They are also considered innovative and creative.


Turnover in Brazilian teams is around 4% on average, and is even lower in global projects.
For the clients, especially offshore outsourced services, this has a significant impact on
productivity, quality, training and transition costs and, consequently, on the total cost of the
project. Stable teams maintain their knowledge of the business processes and systems, which
is usually transferred in the initial phases of the project.
                                                                                                     qualified human resources     39




RANKING OF DEGREE COURSES IN INFORMATION TECHNOLOGY, 2007


  1          Unicamp-Universidade Estadual de Campinas                                     Computer Engineering
  2          Unicamp-Universidade Estadual de Campinas                                     Computer Sciences
  3          UFRGS-Universidade Federal do Rio Grande do Sul                               Computer Engineering
  4          UFRGS-Universidade Federal do Rio Grande do Sul                               Computer Sciences
  5          ITA-Instituto Tecnológico de Aeronáutica                                      Computer Engineering
  6          Unicamp/Limeira-Universidade Estadual de Campinas                             Technology in Information Technology
  7          PUC-RJ-Pontifícia Universidade Católica do Rio de Janeiro                     Computer Engineering
  8          ICMC-USP/São Carlos-Instituto de Ciências                                     Computer Sciences
             Matemáticas e de Computação da USP
  9          Poli-USP-Escola Politécnica da Universidade de São Paulo                      Computer Engineering
10           UFMG-Universidade Federal de Minas Gerais                                     Computer Sciences
11           PUC-RJ-Pontifícia Universidade Católica do Rio de Janeiro                     Information Systems
12           Poli-USP-Escola Politécnica da Universidade de São Paulo                      Engineering, emphasis in Computing
13           UFRJ-Universidade Federal do Rio de Janeiro                                   Computer Sciences
14           ICMC-USP/São Carlos-Instituto de Ciências                                     Information Technology
             Matemáticas e de Computação da USP
15           IME-USP-Instituto de Matemática e Estatística da USP                          Computer Sciences
16           UFPE-Universidade Federal de Pernambuco                                       Computer Sciences
17           UFSCar-Universidade Federal de São Carlos                                     Computer Engineering
18           UFPE-Universidade Federal de Pernambuco                                       Computer Engineering
19           UFSCar-Universidade Federal de São Carlos                                     Computer Sciences
20           UFMG-Universidade Federal de Minas Gerais                                     Information Systems
21           PUC-RS-Pontifícia Universidade Católica do Rio Grande do Sul                  Information Systems
22           UFSC-Universidade Federal de Santa Catarina                                   Computer Sciences
23           Unisinos-Universidade do Vale do Rio dos Sinos                                Computer Sciences
24           Unisinos-Universidade do Vale do Rio dos Sinos                                Information Systems
25           PUC-RS-Pontifícia Universidade Católica do Rio Grande do Sul                  Computer Sciences
26           Fiap-Faculdade de Informática e Administração Paulista                        Information Systems
27           Unesp/Bauru-Universidade Estadual Paulista Júlio de Mesquita Filho            Computer Sciences
28           Unesp/Bauru-Universidade Estadual Paulista Júlio de Mesquita Filho            Information Systems
29           UFF-Universidade Federal Fluminense                                           Computer Sciences
30           Unesp/Rio Claro-Universidade Estadual Paulista Júlio de Mesquita Filho        Computer Sciences
31           Unesp/S.J. Rio Preto-Universidade Estadual Paulista Júlio de Mesquita Filho   Computer Sciences
32           PUC-SP-Pontifícia Universidade Católica de São Paulo                          Computer Sciences
33           PUC-Campinas-Pontifícia Universidade Católica de Campinas                     Electrical Engineering, major in Telecommunications
34           UCB-Universidade Católica de Brasília                                         Computer Sciences
35           PUC-PR-Pontifícia Universidade Católica do Paraná                             Computer Engineering
36           UFCG-Universidade Federal de Campina Grande                                   Computer Sciences
37           UEL-Universidade Estadual de Londrina                                         Computer Sciences
38           UFRN-Universidade Federal do Rio Grande do Norte                              Computer Sciences
39           UEM-Universidade Estadual de Maringá                                          Information Technology
40           PUC-MG/Poços de Caldas-Pontifícia Universidade Católica de Minas Gerais       Information Systems
Source: Info Exame.
40     brazil it-bpo book 2008-2009




RANKING OF THE POST-GRADUATE COURSES IN INFORMATION TECHNOLOGY, 2007


  1          Coppe UFRJ-Instituto Alberto Luiz Coimbra                     Computing and Systems Engineering
             de Pós-Graduação e Pesquisa em Engenharia
  2          UFPE-Universidade Federal de Pernambuco                       Computer Sciences
  3          ICMC-USP/São Carlos-Instituto de Ciências Matemáticas         Computer Sciences and Computing Mathematics
             e de Computação da USP
  4          UFMG-Universidade Federal de Minas Gerais                     Computer Sciences
  5          PUC-RJ-Pontifícia Universidade Católica do Rio de Janeiro     Information Technology
  6          Unicamp-Universidade Estadual de Campinas                     Computer Sciences
  7          Poli-USP-Escola Politécnica da USP                            Electrical Engineering-Digital Systems
  8          IME-USP-Instituto de Matemática e Estatística da USP          Computer Sciences
  9          UFF-Universidade Federal Fluminense                           Computing
10           ITA-Instituto Tecnológico de Aeronáutica                      Electrical Engineering and Computing
Source: Info Exame.




INFO EXAME SURVEY
The following criteria were included to rank degree courses: academic reputation; integration
with the labor market; number of staff with doctorates; number of exclusively dedicated staff;
infrastructure for research; percentage of students graduated in the minimum period and
candidate/vacancy ratio in the College entrance exam. For post-graduate courses, the criteria
included academic reputation; Capes assessment; number of articles published; integration
in the labor market; number of staff with doctorates; number of PhDs awarded, number of
Masters Degrees awarded, and infrastructure for research. The last criterion is assessed by
connectivity, computer ratios, high technology research, and integration with the market.




                                                                                                                    RIO GRANDE DO NORTE

                                                                                                                    PARAÍBA

DistribUtion of selecteD                                                                                            PERNAMBUCO
technology coUrses                                                                                                  DISTRITO FEDERAL
The 50 graduate and post-graduate courses
                                                                                                                    MINAS GERAIS
identified in the ranking by Info Exame are in
                                                                                                                    RIO DE JANEIRO
nine of Brazil’s States and the Federal District.
                                                                                                                    SÃO PAULO

                                                                                                                    PARANÁ

                                                                                                                    SANTA CATARINA

                                                                                                                    RIO GRANDE DO SUL
42   brazil it-bpo book 2008-2009




3
       SOUND
       INFrASTrUCTUrE
       Norte Fluminense Thermal Power Station,
       Macaé, Rio de Janeiro




     BRAZIL’S
     INFRASTRUCTURE
     RESPONDS WELL TO
     ThE ChALLENGES                              As with any economic sector, the development of the IT-BPO industry depends on a robust
                                                 infrastructure. Brazil offers a world-class infrastructure and a strongly globalized market,
     OF GROWTH IN THE
                                                 especially in the IT-BPO sector, with a mature regulatory environment and business practices.
     SECTOR AND WILL                             Brazil’s basic infrastructure is currently undergoing wide-ranging expansion through the
     EXPAND                                      Program for Accelerated Growth (PAC), launched in 2007 by the federal government. Within
                                                 the scope of this program, the public and private sectors intend to invest around US$ 273
                                                 billion in energy, logistics, social, and urban infrastructure.


                                                 COMMUNICATIONS
                                                 Communications services have spread throughout Brazil and continue to develop rapidly.
                                                 Gartner states that Brazil’s infrastructure can support the expected double-digit annual
                                                 growth in IT-BPO services.


                                                 High quality and 100% digital fiber optic networks connect all large cities internally and also to
                                                 hubs outside the country, providing high-speed internet connections. Internet access doubled
                                                 from 2005 to 2008 and the broadband sector is expanding rapidly.
                                                                         LINHAS DE TELEFONE
                                                                         CELULAR NO BRASIL
                                                                         EM MILHÕES
                                                                         150                                                            BROADBAND CONNECTIONS



                                                                                                                                150,6
                                                                                                                                        Million, march 2009
                                                                         120
                                                                                                                         121            Ranking   Country                  Connections
                                                                          90
                                                                                                                99,9



                                                                                                                                          1       China                    88.0
                                                                                                        86,2




                                                                          60
                                                                                                 65,6




                                                                                                                                          2       United States            83.9
Recent data released by the British research institute Point Topic shows that Brazil ranks ninth
                                                                                         43




                                                            30                                                                            3       Japan                    30.6
globally in total broadband connections. Brazil’s mobile telephone market is the fifth largest in the
                                                                                1,7




                                                              0
world, with 150.6 million handsets, and the fixed-line telephony market is the fourth largest.                                            4       Germany                  24.1
                                                                                2002

                                                                                         2003

                                                                                                 2004

                                                                                                        2005

                                                                                                                 2006

                                                                                                                         2007

                                                                                                                                2008




                                                                                                                                          5       France                   18.0
Brazil’s IT-BPO infrastructure has an advantage over that in the other BRIC countries, Cisco
                                                                    Fonte: Anatel, Teleco e Barômetro
                                                                                                                                          6       UK                       17.6
according to the Economist Intelligence Unit, whose methodology takes into account the
                                                                                                                                          7       South Korea              15.7
money spent on hardware, software and IT services, as well as the number of computers
                                                                                                                                          8       Italy                    12.4
and broadband connections.
                                                                                                                                          9       Brazil                   10.0

                                                                                                                                          10      Canada                   9.5
                                                                         MOBILE PHONE LINES IN BRAZIL
    IT INFRASTRUCTURE INDEX                                              Million                                                          11      Mexico                   8.01

1                                                          13.4   2008                                                        150.6       12      Russia                   7.9
2                                                  10.6           2007                                               121                  13      India                    6.1
3                    5.2                                          2006                                   99.9                             14      Turkey                   6.0
4 1.3
                                                                  2005                               86.2                                 15      Netherlands              5.8
    1.   BRAZIL
    2.   RUSSIA                                                   2004                       65.6                                         16      Taiwan                   4.6
    3.   CHINA
                                                                  2003                  43                                                17      Poland                   4.3
    4.   INDIA
    Source: EIU (Economist Itelligence Unit) IT industry          2002       1.7
    competitiveness index, 2008.                                                                                                          18      Argentina                3.1
                                                                         0         30           60        90            120       150
                                                                                                                                          19      Belgium                  3.0
                                                                         Source: Anatel, Teleco e Barômetro Cisco.
                                                                                                                                          20      Sweden                   2.9

                                                                                                                                                                  Source: Point Topic.
     44   brazil it-bpo book 2008-2009




                                         REAL ESTATE
                  rEAL ESTATE            Large Brazilian cities have experienced expansion of real estate, due to greater demand

                   PrICES ArE            fueled by economic growth and greater access to funding. Prices are internationally
                                         competitive and have an advantage over cities in India and Russia. As an example, the

                    GLOBALLY             average price of commercial rent in São Paulo, Rio de Janeiro and Brasília is around one third
                                         of the price in Mumbai and Moscow.
                  COMPETITIVE            In areas close to the technology parks of other Brazilian capitals, such as Porto Alegre, Belo
                                         Horizonte and Recife, the average price of rent can be up to 50% lower. A trend towards
                                         geographical decentralization is helping move IT-BPO centers to these areas, offering scale,
                                         professional qualification, quality, and communications infrastructure comparable to the
                                         large centers.


                                         TRANSPORT
                                         Brazil’s road system covers 1.6 million kilometers and serves the whole country. Brazil also has
                                         a 44,000-kilometer water transport system, which is important in transporting agricultural
                                         production for exports. The country’s rail system is 30,000 kilometers long.
Cumbica Airport, Guarulhos, São Paulo

                                         The country has 35 international airports, 33 domestic airports, and 2,498 smaller airports.
                                         Domestic and international airlines offer short-haul direct flights, easily connecting main
                                         Brazilian cities to main cities in North America and Europe.


                                         Air and land transportation are key contributors to the efficiency of the postal service, offering
                                         an express delivery system that covers the whole country and delivers over 32 million letters
                                         and packages every day. All large international dispatch companies, including FedEx, UPS, and
                                         DHL operate in Brazil.
                                                                                                           sound infrastructure   45




ENERGY
Brazil has a guaranteed, safe, diversified and green supply of energy. The electricity generation
network includes 2,065 stations, including hydroelectric facilities (75% of the sector’s
capacity), thermoelectric, solar, wind and nuclear powered stations. Electricity prices are
established at tender and the market is regulated by the National Electrical Energy Agency
(Aneel). Generation capacity, at 103,502 MW, has grown 42% over the last nine years. The
forecast is that this trend will continue and that by 2013 the amount of energy supplied will
have grown by another 19% on today’s levels. The current infrastructure serves almost the
whole country’s population.




SAFE AND DIVErSIFIED
ENErGY DISTINGUISHES BrAZIL

                                                                                                    Sugar and alcohol refinery,
                                                                                                    Ribeirão Preto, São Paulo

  BRAZIL’S ENERGY
  MATRIX, 2008
         PETROLEUM AND DERIVATIVES 37.3%
         BIOMASS 31.4%
             SUGARCANE PRODUCTS 16.6%
             WOOD 11.4%
             OTHERS 3.4%
         HYDRAULIC AND ELECTRICITY 13.9%
         NATURAL GAS 10.2%
         COAL 5.7%
         URANIUM 1.5%




  RENEWABLE RESOURCES
  BRAZIL 45.4%

  OCDE 6.7%

  WORLD 12.9%



  Source: National Energy Report 2009, Ministry of Mines and Energy.
46   brazil it-bpo book 2008-2009




                    BrAZIL IS SELF-SUFFICIENT IN OIL, AND WILL
                  INCrEASE ITS PrODUCTION IN COMING YEArS.
            IT ALSO HOLDS CUTTING-EDGE TECHNOLOGY IN THE
                         PrODUCTION OF rENEWABLE ENErGY
                                    Brazil produces more oil than it consumes, thus being less susceptible to a fluctuation
                                    in prices. The world’s leader in deep water exploration, the country is preparing for
                                    a leap in production. The recent discoveries of reserves in ultra deep water (7,000
                                    meters) indicate that the Brazil’s oil and gas reserves will at least double over the next
                                    few years, placing Brazil amongst the five largest exporters. This production growth,
                                    combined with the construction of new refineries, will also make Brazil self-sufficient in
                                    oil-based products, such as gasoline.


                                    Brazil has the most advanced biofuel technology in the world. Its sugar cane-based
                                    ethanol production model is considered by the UN an example to be followed, with the
                                    lowest costs and highest environmental sustainability levels. Annual ethanol production is
                                    the second largest in the world – it should reach 27 billion liters in the 2008/2009 harvest
                                    – trailing only the United States.




                                    Tucuruí Hydroelectric
                                    Power Station, Pará
48   brazil it-bpo book 2008-2009




TECHNOLOGY PARKS
Brazil has speeded up the growth and maturity of
technology parks since 2000, and the objective is to
invest in further development and grow. All major
tech parks have an educational center as an active
                                                                                                                     2
component. Brazil currently has 30 technology
                                                                                                                      9
parks, including units already operating and those
                                                                                                                         13
in the final stage of implementation, which form
dynamic networks and connect various
points in the value chain, including IT-
BPO companies, universities, research
institutes, consulting and service firms,
the government, business fostering agencies
and clients. The report details information on 18 of
these technology parks, those that are fully operational
and with the required infrastructure in place for Brazilian
and international companies to operate.


1 Paraíba technology                          2 Porto digital technology                      3 sergiPetec technology Park
Park – PaqtcPb                                Park – recife                                   ICT Companies: 19
ICT Companies: 70                             ICT Companies: 117                              Revenue: $ 5MM
Revenue: $ 16MM                               Revenue: $ 236MM                                Target area: energy, ICT, biotech
Target area: ICT, design, digital TV          Target area: ICT                                Universities: UFSE
Universities: UFCG                            Universities: UFPE


               4 brasília technology Park                       5 itajubá technology Park
               ICT Companies: 5                                 ICT Companies: 39
               Target area: biotech and ICT                     Revenue: $ 0,75MM
               Universities: UnB                                Target area: energy, ICT
                                                                Universities: UNIFEI



6 uberaba technology Park                     7 Petrópolis tecnopólis technology Park
ICT Companies: 1                              ICT Companies: 70
Revenue: $ 6MM                                Revenue: $ 137MM
Target area: biotech, clean energy, ICT       Target area: ICT
Universities: Uniube                          Colleges: Universidade Católica de Petrópolis
                                                                                                                        sound infrastructure             49




                                                              8 rio de Janeiro technology Park           9 Vale do Paraíba technology
                                                              ICT Companies: 15                          Park – univap
                                                              Revenue : $ 10MM 2008e                     ICT Companies: 10
                                                              Target area : ICT, energy                  Revenue: $ 120MM
                                                              Universities: UFRJ                         Target area: ICT
                                                                                                         Universities: Univap, ITA




                                                                                                         10 são carlos technology cluster
                                                                                                         ICT Companies: 30
                                                                                                         Revenue: $ 5MM
                                                                      1
                                                                                                         Target area: ICT
                                                                          2                              Universities: USP, UFSCar


                                                                  3           11 campinas technology cluster
                                                                              ICT Companies: 100 +
                                                                              Revenue: $ 1,4 Bn
                                                                              Target area: ICT
                                                                              Universities: Unicamp


                   4
                                                                   12 londrina technology Park                    13 curitiba technology Park
                                                                   ICT Companies: 2                               ICT Companies: 28
                                                                   Revenue: $ 10MM                                Target area: ICT
                                                                   Target area: chemistry, ICT, electronics       Universities: UFPR
                       6                                           Universities: UEL, UNOPAR


                                  5
                  10                      7
                                              8
                  11         9
     12
                                                    14 alfa technology Park                15 iPtec-ijuí technology cluster
                                                    ICT Companies: 42                      ICT Companies: 8
            13                                      Revenue: $ 160MM                       Revenue: $ 2MM
                                                    Target area: ICT                       Target area: ICT
                                                    Universities: UFSC                     Universities: Unijuí
             14

15     17
      16                   16 são leopoldo                 17 Vale do rio dos sinos                      18 Puc-rs technology Park –
     18                    technology cluster              technology Park – Valetec                     tecnoPuc
                           ICT Companies: 39               ICT Companies: 12                             ICT Companies: 25
                           Revenue: $ 175MM                Revenue: $ 53MM                               Revenue: $ 210MM
                           Target area: ICT                Target area: ICT, leather                     Target area: biotech, clean energy, ICT
                           Universities: Unisinos          goods and shoes                               Universities: PUC-RS
                                                           Universities: Feevale
                                                                                                         Notes:
                                                                                                         ICT: Information and Communication Technology
                                                                                                         Revenue 2007
                                                                                                         Source: Anprotec, A.T. Kearney analysis.
50   brazil it-bpo book 2008-2009




4
       GOVErNMENTAL
       SUPPORT
       Palácio do Planalto
       (Presidential Complex), Brasília




     STRATEGIC FOR
     ThE GOVERNMENT,
     ThE SECTOR                           Over the last ten years the Brazilian government has viewed the IT-BPO industry as strategic,
     RECEIVES                             which has led to the prioritization of incentives and the creation of institutional support.
     IMPORTANT                            These measures have improved the competitiveness of companies, both in domestic and
                                          international markets.
     INCENTIVES AND
     SUBSIDIES                            DIRECT INCENTIVES:
                                          TURNOVER TAXES, PAYROLL TAXES, AND INCOME TAXES
                                          Spending on staff training and development, and R&D can be deducted against income tax
                                          at 200% and 160% to 200%, respectively. There is also a 50% deduction on excise tax (IPI)
                                          when purchasing equipment for R&D, and this tax is exempt when software development
                                          materials are imported. Another benefit is the tax deductibility on technology transfers,
                                          licenses and royalties.


                                          For exporting companies, the social security (INSS) contributions may be reduced by up to
                                          50%, depending on the $ amount of exports. They are also exempt from contributing to a
                                          network of employer entities known as the “S System”. When products are purchased to be
                                          exported, social charges (PIS/Cofins taxes) are not applicable.
In downtown São Paulo, as an example, municipal project “Nova Luz” is revitalizing the
region and promoting the creation of a complex of IT-BPO companies. The project offers
several fiscal incentives, such as a 50% reduction on Property Tax (IPTU) and a 60%
reduction in Service Tax (ISS). Companies installed in technological parks, in any region,
do not pay property taxes and receive discounts on service taxes. In the Northern and
Northeastern States of Brazil, the government subsidizes 40% of salaries paid to research-
focused staff. If they work in technology parks, the subsidy increases to 60%. Other benefits,
such as subsidized infrastructure, are offered by municipalities or States that wish to attract
IT-BPO companies.


INVESTMENTS
IT-BPO companies in Brazil can count on several public credit facilities at subsidized rates.
The Brazilian Development Bank (BNDES) is the main public funding agency and Finep, an
agency that finances scientific innovation and technological research and is subordinated to
the Ministry of Science and Technology, offers a special credit line for technology projects. The
main public banks in the country – Banco do Brasil and Caixa Econômica Federal – also offer
credit at special rates and terms.
52   brazil it-bpo book 2008-2009




                                                 PUBLIC FUNDING                                                     The government also stimulates the
                                                 USD Billion
                                                                                                                    establishment of consortiums and joint
                                                 120                                                                ventures in the sector, as well as investments




                                                                                                            120
                                                                                                                    through funds and venture capital into small
                                                 100                                                                and mid-sized companies, and business
                                                                                                                    incubators.




                                                                                                     92
                                                  80


         SUBSIDIZED                                                                                                 QUALITY




                                                                                              69
                                                  60
                                                                                                                    The Brazilian government has also
              PUBLIC                                                                                                systematically supported, together with




                                                                                    50
                                                  40



                                                                         42
                                                                                                                    Brasscom and other sector-related entities,
                                                               37
       CrEDIT DrIVES



                                                                                                            33
                                                  20                                                                initiatives aimed at qualifying human




                                                                                                     24
                                                                                              19
                                                                                                                    resources and increasing certifications and
        TECHNOLOGY                                                                  14
                                                               13

                                                                         12
                                                    0                                                               innovations.
                                                               2002


                                                                         2003


                                                                                    2004


                                                                                              2005


                                                                                                     2006


                                                                                                            2007
                                                              TOTAL PUBLIC FINANCE                      BNDES
                                                              SOURCES

                                                 Source: BNDES, The Central Bank of Brazil.




FISCAL INCENTIVES

     DIRECT INCENTIVES                                          INDIRECT INCENTIVES

     Turnover taxes                                             Expenditure deduction on income tax base
     Payroll taxes                                              R&D
     Income taxes                                               Training
                                                                Accelerated depreciation
                                                                Tax credit (e.g. payroll expenses as VAT credit)
                                                                Reduced property tax
                                                                Import duty exemption


CO-INVESTMENTS INCENTIVES

     FINANCING                                                                                                     INCENTIVES FOR PRIVATE INVESTMENTS

     Special credit lines for selected industries, with reduced interest                                           Infrastructure
     rates and longer maturity                                                                                     Subsidized real estate and infrastructure
     Government agencies programs

     Source: A.T. Kearney.
54   brazil it-bpo book 2008-2009




5
       A FAVOrABLE
       ECONOMIC, POLITICAL
       AND LEGAL
       ENVIrONMENT

 ThE TENTh LARGEST
 ECONOMY IN ThE
                                    Covering 8.5 million square kilometers, almost double the size of the European Union, Brazil
 WORLD, BRAZIL                      has the fifth-largest population in the world and massive reserves of natural resources (such as
 ENJOYS POLITICAL                   iron ore and oil). With over 300 million hectares of agricultural land in privileged geographical
 STABILITY AND                      conditions, its territory is also safe from natural disasters. Factors such as these put the
                                    country in a relevant position on the global market.
 SOCIAL PROGRESS
                                    Recent economic growth confirms this positive outlook. From 2002 to 2008, real GDP in
                                    US dollars doubled, going from US$ 724 billion to US$ 1.5 trillion, with constant growth
                                    from 2004 onwards. Brazil is today the tenth-largest economy in the world, ahead of Russia
                                    and India, and the largest in Latin America. The country was classified by the United Nations
                                    Development Program (UNDP) as having a high Human Development Index (HDI), ahead of
                                    the other BRIC countries (Russia, India and China).


                                    Brazil is an important player in global markets such as mining, aerospace, energy, agriculture
                                    and cattle farming.


                                    With a population of 191 million people, Brazil’s domestic market is expanding as a result
                                    of economic growth and income distribution policies. Household consumption has grown
                                    vigorously over the last few years, reaching US$ 243 billion in 2008.
                                                                                                                                                          BRAZIL’S REAL




                                                                                                                                                                                                             1570
                                                                                                                                                          GDP EVOLUTION
                                                                                                                                                          USD Billion
    This expansion has been influenced by gains in the lowest income bracket. Between 2004




                                                                                                                                                                                                     1313
    and 2008, according to a survey carried out by Fundação Getúlio Vargas (FGV), the Brazilian
    middle class grew from 42.2% to 51.9% of the population, while the low income segment fell
                                                                                                                                                                                            1115
    from 46.1% to 32.6%. In this period, high income and middle class brackets accounted for
    large sections of the population, totaling around 122 million consumers.
                                                                                                                                                                                    961




                                       SELECTED DEVELOPING
                                                                                                                                                                           775




                                       COUNTRIES’ GDP, 2007 USD Billion
                                                                                                                                                          724

                                                                                                                                                                   699




                              BRAZIL                                             1313
(selected countries)




                             MEXICO                               893
   Latin America




                           ARGENTINA      262
                           COLOMBIA 172

                               CHILE 164


                               CHINA                                                                                                               3242
            Others BRICs




                              RUSSIA                                            1290
                                                                                                                                                           2002

                                                                                                                                                                   2003

                                                                                                                                                                            2004

                                                                                                                                                                                    2005

                                                                                                                                                                                             2006

                                                                                                                                                                                                      2007

                                                                                                                                                                                                             2008




                               INDIA                                      1137
                                       Notes: 2007 amounts; forecasts made on Oct. 24th 2008.                                                             Source: A.T. Kearney, IPEA, The Central Bank of Brazil.
                                       Source: IPEA, The Central Bank of Brazil, Economist Intelligence Unit, World Bank, A.T. Kearney analysis.
     56   brazil it-bpo book 2008-2009




                                                                                      INFLATION, 2000 to 2008
                                                                                      (IGP-M)


                                                                                                                25.3%




                                                                                                                                            12.4%
                                                                                        10%                                  8.7%
                                                                                                                                                                                           9.8%
                                                                                                    10.4%
                                                                                                                                                                                 7.7%

                                                                                                                                                                  3.8%
                                                                                                                                                      1.2%




                                                                                      2000


                                                                                                 2001


                                                                                                             2002


                                                                                                                          2003


                                                                                                                                         2004


                                                                                                                                                   2005




                                                                                                                                                                              2007


                                                                                                                                                                                        2008
                                                                                                                                                               2006
                                                                                      Note: Inflation index calculated from prices of goods and
                                                                                      services collected in 12 Brazilian cities up to day 20 of each month.
                                                                                      Source: FGV.



Embraer jets assembly line,
São José dos Campos, São Paulo
                                         This positive scenario was recognized by credit rating agencies Standard & Poor’s and
                                         Fitch, which in the first half of 2008 classified Brazil as ‘investment grade’. According to
                                         the analysts, this reflects a continuing trend in its economic policy, focused on inflation
                                         control and in a floating foreign exchange rate system, low external debt and a public debt
                                         profile in line with that of other countries with a similar risk classification.


                                         This progress has attracted foreign direct investments, which more than doubled from
                                         US$ 17 billion in 2005 to US$ 45 billion in 2008, the highest value since the Central Bank
                                         of Brazil began tracking this indicator.


                                         Brazil has commercial partnerships with countries on every continent. China, Europe and
                                         the United States, along with South America and Japan, are among the main commercial
                                         partners and are helping boost Brazilian trade. According to the Ministry of Development,
                                         Industry and Foreign Trade, exports and imports tripled between 2002 and 2008, from                                                                   55
                                         US$ 107,6 billion to US$ 371.1 billion.
                                                                                                                                                                                               50
                                         BRAZIL’S FOREIGN TRADE
                                         USD Billion
                                                                                                                                                                                               45
                                         400
                                         350
                                                                                                                                 371.1




                                         300                                                                                                                                                   40
                                         250
                                                                                                                 281.3




                                         200
                                                                                                  228.9




                                         150                                                                                                                                                   35
                                                                                     191.9
                                                                             159.3




                                         100
                                                                2003 121.4




                                                                                                                                                Source:
                                                   2002 107.6




                                          50                                                                                                    Ministry of Development,
                                           0                                                                                                    Industry and Foreign Trade.
                                                                                                                                                                                               30
                                                                             2004



                                                                                     2005



                                                                                                  2006



                                                                                                                 2007



                                                                                                                                 2008
                                                                                                                         a favorable economic, political and legal environment                                                     57




         FDI* INFLOWS, MAIN RECIPIENT
         USD Billion                                                                                                                                                                               * Foreign Direct Investment.
                                                                                                                                                                                     Source: Economist Intelligence Unit, Unctad.



         140




                                                                                                                                         138
         120


         100




                                                                                                                                               92
           80




                                                                                                                                  78




                                                                                                                                                                                         70
           60




                                                                                                                                                                                    52
          40




                                                                                                                                                                      46
                             45
                        35




                                                                                                                                                                           32




                                                                                                                                                                                                                          2007
                                                                                                                                                                                                                                   2008
                                                                                                                                                                                                                   2006
          20
                                                                                                      25




                                                                                                                                                             24
                                                                                                                                                        20
                   19




                                                                                                 19


                                                                                                           19
                                                                     17
                                                            14




                                                                                       11
                                               7




                                                                                   9




             0
                                                        7
                                           6




                                                                          6
                                     5




                    BRAZIL          ARGENTINA           CHILE             COLOMBIA               MEXICO                                CHINA             INDIA              RUSSIA




         The democratic system, political stability and consolidated institutions also position Brazil as
         one of the safest destinations for investments. With the status of a political leader in Latin
         America, and with good relations with neighboring countries, the country has not been
         involved in a war since World War II.


         Since the 19th century, Brazilian foreign policy has aimed to increase the country’s
         international presence, following the principles of commercial collaboration. Brazil currently
         has diplomatic representations in 114 countries.


         The Brazilian political system is Federative (26 states make up the Federation) and the
         presidential mandate is four years, renewable for another four.


                                                                                                                NET PUBLIC DEBT
                                                                                                                In % of GDP
                                                                                                                Source: The Central Bank of Brazil.
JAN 00




                    JAN 01




                                                                                                                                                                                                                          JAN 08
                                                                          JAN 03




                                                                                                       JAN 04




                                                                                                                                                                                              JAN 07
                                                                                                                                                             JAN 06
                                                                                                                              JAN 05
          JUL 00




                                               JAN 02




                                                                                        JUL 03




                                                                                                                JUL 04




                                                                                                                                                                                                          JUL 07
                                                                                                                                               JUL 05




                                                                                                                                                                                                                                          JUL 08
                                  JUL 01




                                                            JUL 02




                                                                                                                                                                           JUL 06
58   brazil it-bpo book 2008-2009




INTELLECTUAL PROPERTY
Brazil has an advanced legal framework regarding the defense of intellectual property. Since
1970 there has been an agency (INPI) regulating and supervising intellectual property rights
and since the 1990s there has been a national council to fight piracy.


Software is protected by law for 50 years (during which time a license is required from
the owner in order to offer technical assistance) and confidential information is protected.
Copyright infringement is punishable by imprisonment and victim compensation for any
eventual damage. Brazil is also a signatory of the Berne Convention, the Patent Cooperation
Treaty (PCT), the Paris Convention, and the Agreement on Trade-Related Aspects of Intellectual
Property Rights (TRIPS).




                                                                                                                                                                          DEGREE OF PROPERTY
              POLITICAL STABILITY 2007                                                                                                                                    RIGHTS PROTECTION
              The Economist Index (high=10)                                                                                                                               (high=5)

      CHILE                                                                                          8.3                                                          CHILE                                                                  5.0

     BRASIL                                                                                      8.1                                                             BRASIL                                                  4.0

     MEXICO                                                                             7.1                                                                     MEXICO                                                   4.0




                                                                                                                                                                                                                                           Highest degree of protection
 ARGENTINA                                                                             6.9
                                                                                                             higher political stability




                                                                                                                                                              COLOMBIA                                         3.4

      INDIA                                                                     6.0                                                                               INDIA                                         3.4

  COLOMBIA                                                           5.4                                                                                      ARGENTINA                                  3.0

     RUSSIA                                                       5.1                                                                                            RUSSIA                              2.7
      CHINA                                                       5.1
                                                                                                                                                                  CHINA                        2.4
              Source: Economist Intelligence Unit,
              TSE, A.T. Kearney analysis.                                                                                                                                 Source: Economist Intelligence Unit, Sebrae, MCT, A.T. Kearney analysis.




              COMPOUND INSTABILITY INDEX
              (high=45)                                                                                                                                                    CRITERIA

      CHILE                                                        19.3                                                                                                           Political instability

     BRASIL                                                          19.8                                                                                                         Risk of armed conflict
                                                                                                                                          Least instability




     MEXICO                                                                21.7                                                                                                   Defense spending
                                                                                                                                                                                  Risk of social unrest
 ARGENTINA                                                                      22.4
                                                                                                                                                                                  Transfer of power rating
      INDIA                                                                              26.5
                                                                                                                                                                                  Terrorism threat
      CHINA                                                                                   27.7
                                                                                                                                                                                  International disputes and tensions
  COLOMBIA                                                                                            31.1
                                                                                                                                                                                  Level of corruption
     RUSSIA                                                                                            31.9
                                                                                                                                                                                  Impact of crime
              Note: Every criteria is rated from 1 to 5, where 5 means higher
              Source: Economist Intelligence Unit, A.T. Kearney analysis.
60   brazil it-bpo book 2008-2009




6
      CULTUrAL
      COMPATIBILITY
        Flamengo Landfill,
        City of Rio de Janeiro




     CULTURAL
     DIVERSITY SETS
                                    Brazil has a rich mixture of cultures. Native-Indian, European and African roots form the base,
     BRAZILIANS                     which was formed after the 16th century. The European connection was reinforced by the
     APART                          intense migration that occurred after the 19th century. In addition to the Portuguese, there
                                    soon came Italians, Germans, Spaniards, and Polish, creating a strong link and contributing
                                    to development and diversity. The arrival of a large number of Japanese and, more recently,
                                    immigrants from other Asian countries, as well as from its South American neighbors, has
                                    increased the multicultural nature of the Brazilian society.


                                    The large variety of ethnic groups living together in the country has molded a tolerant and
                                    plural society. Brazilians respect different cultures, and easily incorporate new habits and
                                    working methods. In outsourcing contracts they integrate quickly with local customs when
                                    working in other countries, and they easily understand the demands made by other countries.


                                    This diversity extends to belief systems. Religious freedom is guaranteed under the Federal
                                    Constitution. Catholicism predominates, followed by Protestantism, Judaism, Buddhism,
                                    Islamism, Umbanda, Candomblé, and others.
10 million                               18 million              1,8 million
Arabic-Brazilians                                                Polish-Brazilians
                                         German-Brazilians

                    25      million
                    Italian-Brazilians
                                                   1,6 million
                                                   Japanese-Brazilians
                                                                             15 million
                                                                             hispano-Brazilians
62   brazil it-bpo book 2008-2009




7
      TIME ZONE
      PrOXIMITY


     GEOGRAPhICAL
     LOCATION FAVORS
     COMMUNICATIONS
     AND TRANSFERS                  Time zone proximity has a positive impact on IT-BPO outsourcing contracts signed with Brazil
                                    enabling more effective communications and reduction in costs.


                                    On the one hand, it contributes to an easier interaction between the client and the offshore
                                    team. New York, for example, has only a two-hour difference in relation to the main Brazilian
                                    cities, and London has a three-hour difference. This facilitates telephone contact between the
                                    units installed in different countries, and avoids additional spending for night shifts.


                                    In additional, Brazil’s location allows for shorter and less expensive overnight flights to
                                    many developed countries that take from 8 to 12 hours, leading to better use of time and
                                    reduced costs.
WORKING HOURS
TIME ZONE




   WORKING HOURS TIME ZONES (9am to 6pm)

   ASIA
                                         9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
     BEIJING                                                                  6pm
                                                    9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
     DELHI                                                                              6pm

   EUROPE
                                                              9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
     MOSCOW                                                                                         6pm
                                                                       9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
     PARIS                                                                                                  6pm
                                                                       9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
     ROME                                                                                                   6pm
                                                                       9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
     BERLIN                                                                                                 6pm
                                                                            9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
     LONDON                                                                                                     6pm

   SOUTH AMERICA
                                                                                        9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
     BRASÍLIA RIO DE JANEIRO SÃO PAULO                                                                                      6pm


   NORTH AMERICA
                                                                                                 9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
     NEW YORK                                                                                                                          6pm
                                                                                                     9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
     CHICAGO                                                                                                                               6pm
                                                                                                          9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
     DALLAS                                                                                                                                    6pm
                                                                                                               9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
     LOS ANGELES                                                                                                                                   6pm


   Source: A.T. Kearney analysis.
64   brazil it-bpo book 2008-2009




TIME DIFFERENCES IN REGARD TO BRAZIL




                                                                                                                                                        Moscow
                                                                                                                                        Berlin          +6h
                                                     Chicago                                                  London                    +4h
                                                     -3h              New York                                +3h           Paris                                                 Beijing
                                                                      -2h                                                   +4h          Rome                                     +11h
                                               Washington                                                    Madrid                      +4h                     Delhi
                                                          -3h                                                +4h
                                                                                                                                                                 +8,5h
                              Los Angeles   Dallas                Miami                                                                                                                     Tokyo
                              -5h           -4h                   -2h                                                                                                                       +12h




                                                                            Brasília                                              Luanda
                                                                                                                                  +4h
                                                                                              Rio de Janeiro
                                                                                        São Paulo

                                                                                                                                            Cape Town
                                                                                                                                            +5h




                                                     EXAMPLES OF DIRECT FLIGHTS TO BRAZIL


                                                                                                                TAKE-OFF                             ARRIVAL             FLIGHT TIME


     IN 2008, BrAZIL                                    NEW YORK - SÃO PAULO                                      9h30 pm                            8h05 am               9h35

                                                        LONDON - SÃO PAULO                                        9h45 pm                            5h15 am              11h30
       rECEIVED, ON                                     DALLAS - SÃO PAULO                                        7h45 pm                            7h40 am               9h55

       AVErAGE, 570                                     PARIS - SÃO PAULO                                        11h20 pm                            5h50 am              11h30

                                                        MADRID - SÃO PAULO                                       10h50 pm                            5h05 am              11h15
     INTErNATIONAL                                      WASHINGTON - SÃO PAULO                                   10h00 pm                            8h20 am               9h20


            FLIGHTS                                     MIAMI - RIO DE JANEIRO                                   10h10 pm                            7h30 am               8h20

                                                        LOS ANGELES - SÃO PAULO                                     9h pm                            1h20 pm              12h20

         EVErY WEEK                                     LISBOA - RECIFE                                             4h pm                            7h50 pm               7h50




                                                     Source: American Airlines, British Airways, Delta Airlines, Air France, TAM, TAP, US Airways.
     66    brazil it-bpo book 2008-2009




Subway Station at Copacabana District,
City of Rio de Janeiro




conclUsion
COST
EFFICIENCY
IN PROSPECTING FOR POTENTIAL
SUPPLIERS IN IT-BPO, BRAZIL IS A SAFE AND
ADVANTAGEOUS PARTNER
                                                                                                 conclusion cost efficiency   67




MAXIMIZING GAINS FrOM
INFOrMATION TECHNOLOGY
OUTSOUrCING

Companies outsourcing IT services and business processes have an undeniable aim in
common: to improve cost efficiency. They also share the view that delegating tasks to
partners outside their borders may work to their advantage. They are opting to strengthen
their roles in management and control whilst delegating tasks connected to the operation
and the development of solutions. The natural evolution of this strategy was to extend the
geographical frontiers of partnerships, identifying markets in other countries that would
maximize outsourcing gains.


Since the beginning of this movement, one of the main challenges faced by CIOs has been
to evaluate the cost of outsourcing in order to justify their decisions. Inspired by models
such as Total Cost of Ownership (TCO) created by Gartner, which introduced rationality
to the evaluation of direct and indirect costs related to the implementation of IT-BPO
solutions, new models were developed, adjusted to the variables that must be considered in
offshore outsourcing. This produced the Total Cost of Engagement (TCE) model, offering a
comprehensive and holistic view of the costs involved in this type of employment, which go far
beyond project team’s salaries.


This report has presented Brazil as a potential offshore IT-BPO supplier (or near-shore, for
some strategic markets), and has revealed aspects which must be taken into account in a
mature study.
    68    brazil it-bpo book 2008-2009




    A unique combination of aspects makes Brazil one of the most competitive destinations in terms
    of cost. Brazil has a consolidated and mature IT-BPO industry, knowledge of business, strong
    economic indicators, sound infrastructure, qualified human resources, high productivity levels
    and low staff turnover, a favorable geographical position, a time zone close to that of the United
    States and Western Europe, and is culturally compatible. Furthermore, the Brazilian government
    is consistently attracting investments in the IT-BPO sector, making it even stronger.


    From any angle that the IT-BPO industry in Brazil is looked at, the challenges and opportunities
    lead to the same conclusion: Brazil’s opportunity to be one of the three main global centers in
    Information Technology.




         OPTIMIZED ON SITE X OFFSHORE RATIO
                                                                              LOW TRAVEL & COMMUNICATION COSTS




                                                                                                             LOW LEVELS OF REWORKING




                                                                 BRAZIL
                                                                  COST
                                                               ADVANTAGES

                                                                                                                     LOW MANAGEMENT COSTS


HIGH LEVEL OF CULTURAL COMPATIBILITY




                                                                                                   TIME ZONE: REAL TIME INTERACTION




                                             HIGH PRODUCTIVITY & BUSINESS KNOWLEDGE
70   brazil it-bpo book 2008-2009




                                    Appendix
soUrces
This report includes data and analysis produced by Brasscom, public and private research
bodies and institutions and consultancies that specialize in the IT-BPO sector.


main sources
Next steps in the Strategic Agenda for the “IT Offshore Outsourcing” sector, A. T. Kearney
(carried out for Brasscom and the Ministry of Science and Technology).
    A.T. Kearney is an international consultancy with 60 offices in over 30 countries.
    It advises high-profile companies in their segments on gaining and maintaining
    competitive advantages in the markets they operate in. It offers consulting services in
    various areas, from strategy and organization to information technology and operation.
    It combines its expertise in the industrial sector with management and solutions
    consulting to add value to its clients.
    www.atkearney.com


Brazil’s offshore services market in 2008, IDC – International Data Corporation
(carried out for Brasscom).
    IDC is dedicated to consulting and providing information for the information technology
    and communications sectors. It uses its extensive knowledge base on the market, providers
    and consumers to help its clients on strategic issues related to the supply and the use of
    technological solutions. It has over 1,000 analysts in 110 countries, and provides global,
    regional and local information on technology, opportunities, and trends. IDC is a subsidiary of
    IDG, a global leader in technology media. In Brazil, IDC has followed the market since 1990.
    www.idc.com


Digital Brazil – leveraging ICT for economic stimulus, Booz & Company
(carried out for Brasscom).
    Booz & Company is an international consultancy that supports companies, public
                                                                                                      Photo credits
    institutions and organizations all over the world. It uses vision and knowledge, profound         p.8 StockXpert; p. 12 Patrick Grosner/
    specialization and a practical approach to develop skills and have a real impact for              Folha Imagem; p.14 Diomedia;

    its clients. It is recognized for its significant global studies and the development of           p.15 Marcos Issa/Argosfoto; p. 17 Apex-Brasil;
                                                                                                      p. 20 Diomedia; p. 24 Eric Gevaert/
    administrative key-concepts since the 1940s. It publishes the management magazine
                                                                                                      Veer Marketplace; p. 27 Johnson & Johnson;
    strategy+business.                                                                                p. 28 Citi; p. 30-31 Diomedia; p. 32-33 Diomedia;
    www.booz.com                                                                                      p. 33 Vinícius Tupinambá/Veer Marketplace;
                                                                                                      p. 36-37 Cia da Foto; p. 37 Diomedia;
                                                                                                      p. 42-43 Cesar Duarte/Argosfoto; p. 44 Anac;
Analysis of Brazil as an Offshore Services Location, Gartner Group.
                                                                                                      p. 45 Claudio Rossi/Argosfoto;
   Gartner produces objective and profound analysis on information technology and provides            p. 46 Salomon Cytrynowicz/Olhar Imagem;
   consulting services on business and technology decisions for executives and public                 p. 50-51 Alan Marques/Folha Imagem;

   and private companies. It has 3,700 associates, including 1,200 research analysts and              p. 51 Galina Barskaya/Veer Marketplace;
                                                                                                      p. 54-55 StockXpert; p. 55 Veer Marketplace;
   consultants in over 75 locations worldwide. Among other events of relevance to the sector,
                                                                                                      p. 56 Cássio Roosevelt /Folha Imagem;
   it holds the annual conference in Brazil on the future of technology.                              p. 60-61 StockXpert; p. 62-63 Nasa;
   www.gartner.com                                                                                    p. 63 Diomedia; p. 66 Cesar Duarte/Argosfoto.
brazilian association of information technology
and communication companies – Brasscom

boarD

        ROGéRIO MARCOS
        MARTINS DE OLIVEIRA
        President of the Board
        IBM General Manager for
        Latin America



        JAIR RIBEIRO DA SILVA NETO
        Vice-President of the Board          LAéRCIO JOSé LUCENA                              MARCO ANTONIO
        President of the Executive           COSENTINO                                        SILVA STEFANINI
        Committee of the Board               Vice-President of the Board                      Vice-President of the Board
        of CPM Braxis                        CEO of TOTVS                                     President of Stefanini




        BENJAMIN QUADROS                     CLáUDIO VITA FILHO
        Member of the Board                  Member of the Board                              HéLIO SANTOS OLIVEIRA
        President of BRQ IT                  Itautec Executive                                Member of the Board
        Services                             Commercial Vice-President                        President of Politec


        JACQUES FRANçOIS
        DEPOCAS                              LUIz ROBERTO                                     OSCAR VAz CLARKE
        Member of the Board                  NOVAES MATTAR                                    Member of the Board
        Center Head of HSBC Global           Member of the Board                              Intel Brazil General
        Technology Center Brasil             CEO of TIVIT                                     Country Manager




eXecUtiVe boarD



        ANTôNIO GIL
        President




                                      NELSON WORTSMAN                                                            SéRGIO SGOBBI
        EDMUNDO OLIVEIRA              Digital                              RICARDO ASSE                          Education and
        Institutional                 Convergence                          Marketing and                         Human Resources
        Relations Director            Director                             Exports Director                      Director
                                          accentUre                                          atech
                                          www.accenture.com                                  tecnologias críticas
                                          55 21 4501 9107                                    www.atech.br
                                          We work with clients from all industries           55 11 3040 7300
                                          to help them become high-performance               Air Traffic, Defense, Health, Transport,
                                          businesses.                                        Law Enforcement, Space, Logistics,
                                          Management Consulting, Systems                     International, Environment and Energy.
                                          Integration & Technology Services, and             Conceptualizes; Specifies; Integrates;
                                          Outsourcing.                                       Manages problems, challenges and
                                                                                             innovates to make progress and find better
                                                                                             solutions.




atos origin                               brQ                                                bsi                                          bt
www.atosorigin.com.br                     it serVices                                        tecnologia ltDa                              www.bt.com/globalservices
55 11 2183 2344                           www.brq.com/en                                     www.bsitecnologia.com.br                     55 11 2101 9800
Consulting and Information Technology     EUA 1 516 541 3100                                 55 11 4613 7700                              IT & Telecommunications.
Services.                                 Application Management Outsourcing and             IT Outsourcing, Development                  Connectivity, Infrastructure, Managed
Consulting, systems integration and       Global Delivery.                                   and Integration of Systems, IT               Services and Outsourcing Solutions.
management services. C&SI Consulting      Applications Management and Maintenance            Management, Infrastructure
                                          - Custom Development - IT Consultancy
and Systems Integration; MO - Managed                                                        Management, Automation and Human
                                          - Systems Architecture - Software Factory –
Operations; Software Factory/ Offshore.                                                      Capital Management.
                                          Training - Test Services - Solutions: Portal, IT
                                          Governance, e-commerce, BPM, Web 2.0, BI,
                                          RFID, ERP, ECM e SOA.




                                          cast                                                                                            cesar
                                          informÁtica sa                                                                                  recife center for aDVanceD
                                          www.cast.com.br                                                                                 stUDies anD systems
                                          55 11 5105 0371                                                                                 www.cesar.org.br
                                          55 61 3429 7300
                                          Software Development Centers, Testing
                                                                                             MEMBERS                                      55 11 2166 7100
                                                                                                                                          Private innovation center that creates
                                          Centers, IT Outsourcing, System Maintenance                                                     Information and Communication Technology
                                          Centers, Legacy System Refactoring,                                                             products, services and new ventures.
                                          Business Intelligence, Enterprise Content                                                       Open innovation for organizations in the
                                          Management, IT Consulting, Projects Office,                                                     telecom, electro-electronics, finance,
                                          Information Security and Business Process                                                       media, health and utilities sectors.
                                          Management.




cisco                                     cPm braXis                                         cti                                          eDs
cisco Do brasil ltDa                      www.cpmbraxis.com                                  center for information                       an hP comPany
www.cisco.com.br                          EUA 1 212 717 8500                                 technology - renato                          www.eds.com
0800 702 4726                             CPM Braxis vision is to be among the Top           archer                                       0800 7700 130
Leading supplier of networking            10 global IT companies. Already the largest        www.cti.gov.br                               Leading global technology service company
equipment and network management          Brazilian IT and outsourcing company               55 19 3746 6000                              delivering business solutions to its clients.
for the internet.                         providing IT consulting, application, ERP and      Development of software technologies,        A broad portfolio of information technology
                                          infrastructure services.                           electronic components, prototypes and        and business process outsourcing services
                                          Industry expertise spans financial services,       products in the area of information          to clients in the manufacturing, financial
                                          telecom, consumer goods, manufacturing,
                                                                                             technology, as well as internet tools and    services, healthcare, telecommunications,
                                          retail, energy and media sectors.
                                                                                             applications.                                energy, transportation, consumer and retail
                                                                                                                                          industries, and to governments around
                                                                                                                                          the world.
gft                                            gPti                                         hsbc                                    hUghes
brasil consUltoria                             tecnologia Da                                global technology                       www.hughes.com.br
informÁtica ltDa                               informação sa                                www.hsbcglt.com.br                      55 11 3818 7500
www.gft.com                                    www.gpti.com.br                              55 41 3778 5555                         Global leader in satellite
55 11 2176 3253                                55 11 3218 4700                              Offshoring to HSBC Group                telecommunication equipment
One of the leading international IT service    One of the largest information technology    operations.                             and services.
providers for the financial services sector.   service providers in Brazil.                 Development, Support, Tests and IT
GFT offers IT based services covering          ITO and BPO solutions through Consulting/    Operations.
consultancy, application development           Mentoring, Projects and Outsourcing.
and management.




ibm                                            intel                                                                                itaUtec
brazil                                         semiconDUtores brasil                                                                www.itautec.com.br
www.ibm.com/br                                 www.intel.com                                                                        55 11 3543 3000
0800 707 1426                                  55 11 3365 5500                                                                      Hardware manufacturing (PCs, commercial
Information Technology.                        Leading manufacturer of computer,                                                    and banking automation) and services.
Strategic consulting and solutions             networking and communications                                                        Helpdesk and service desk; IT training,
involving Services, Hardware,                  semiconductors.                                                                      outsourcing and customized projects.
Software and Financing.                        Develops technology, products and
                                               initiatives to continually advance the way
                                               people work and live.




                                               microsoft                                    Politec                                 resoUrce
                                               www.microsoft.com.br                         www.politec.com                         www.resource.com.br
                                               55 61 2107 7243                              EUA 1 770 771 6500                      55 11 3748 6000
                                               Software and Services in IT                  Nearshore IT Outsourcing, Application   Outsourcing, Software Factory,
                                                                                            Development, Maintenance, Testing,      Professional Allocation, Card Solutions,
                                                                                            Strategy/Transformation, Consulting,    Oracle Service Line, Business
                                                                                            IT Infrastructure Management, plus      Intelligence, EMC Solutions, Business
                                                                                            a standalone SAP SI practice.           Applications Performance Monitoring -
                                                                                            Focus on Financial, Public Sector,      SiteSeeing, Contact Center, SOA/BPM,
                                                                                            Manufacturing, Utilities, Telecom,      Quality Assurance and Infrastructure.
                                                                                            Gas and Natural Resources.




                                               siemens
                                               ag
                                               www.siemens.com
                                               GERMANY 49 89 6 36 00
                                               With the largest green portfolio in
                                               the world, the company is a world
                                               leader in many fields with activities
                                               in Infrastructure, Industry, Energy,
                                               Medicine, IT, always focusing on
                                               innovation.
                                        soFttek                                    stefanini                                        sUn
                                        www.softtek.com                            it solUtions                                     microsystems
                                        55 11 3748 0333                            www.stefanini.com                                www.sun.com.br
                                        Global provider of IT and business         EUA 1 954 229 9150                               EUA 1 800 786 0404
                                        process solutions.                         Stefanini IT Solutions is a global provider      Finance, Industry, Commerce, Services,
                                        Application Development, Software          of onshore and nearshore IT Consulting,          Telecommunications and Government.
                                        Testing & Quality Assurance, SAP           Systems Integration and Outsourcing. The         Consulting, Training, Infrastructure,
                                        Services, AMS, Application Security,       company has over 7,400 employees with            Solution Architect, Implementation &
                                        Data Integration, BI, Web Projects         36 offices in 16 countries, and more than        Migration, Installation, Management,
                                        (Java and .NET).                           350 active clients in a variety of industries.   Support.
                                                                                   Services include: Application Life Cycle
                                                                                   Management, Infrastructure Administration,
                                                                                   BPO, Custom Software Development, ERP,
                                                                                   Systems Architecture (SOA).




tcs                                     tiVit                                      totVs                                            uBik do Brasil
tata consUltancy                        terceirização De                           sa                                               www.ubik.com.br
serVices                                Processos, serViços e                      www.totvs.com                                    55 11 3179 1102
www.tcs.com                             tecnologia sa                              0800 70 98 100                                   Manufacture, Telecom, Finance, Insurance
55 11 3306 7000                         www.tivit.com.br                           Software and support services for                and Systems integration services,
Financial, Manufacturing, Retail &      55 11 3757 2222                            corporate management.                            Data Center, Security, IT outsourcing,
Distribution, Telecommunications,       Large-scale critical-mission operations,   Software, Technology, Consulting,                Software development and IT
Energy & Utilities and Media. IT        process reengineering and business         Support, BPO, E-learning and                     infrastructure.
Infrastructure, Enterprise Solutions,   knowledge for various industries.          Service Desk.
Consulting, BPO, BI, Engineering &      IT Infrastructure, Application Systems
Industrial Services.                    and BPO integrated services.




                                        Unisys                                     Uol                                              VirtUs
                                        www.unisys.com.br                          UniVerso on line                                 www.virtus-ti.com.br
                                        55 11 3305 7100                            www.uol.com.br                                   55 11 3847 0105
                                        Services and IT solutions.                 55 11 3038 8100                                  Information Technology (Software)
                                        Consulting, systems integration,           UOL is the largest internet portal in            Virtus IT provides comprehensive tools and
                                        outsourcing and infrastructure             Brazil, with a complete platform of              services to enable efficient management
                                        services, combined with                    products and services for the web                of today’s sophisticated IT and converged
                                        enterprise servers.                        environment, such as communication,              communication environments. Service
                                                                                   e-commerce, host and security.                   assurance, software and hardware
                                                                                                                                    monitoring, IT and telecoms performance
                                                                                                                                    management and capacity planning are
                                                                                                                                    just some of the areas covered by our
                                                                                                                                    portfolio of products.




                                                                                   institUtional
                                                                                   members
                                                                                   B2B magaZine
                                                                                   uFpe - Universidade Federal
                                                                                   de Pernambuco
                                                                                   unesp - Universidade
                                                                                   Estadual Paulista Júlio de
                                                                                   Mesquita Filho
                                                                                   unicamp - Universidade
                                                                                   Estadual de Campinas
76   brazil it-bpo book 2008-2009




                                www.brasscom.org.br
Cover: Delfim Martins/Pulsar Imagens

				
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