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Above overall economic growth
The Brazilian information technology economy has stood out on the international scenario for some years. In addition to the excellent results released by India - and recognized worldwide – the global market is enormous and certainly there is a place specially reserved for Brazil, which has displayed its potential and quality to take it. Despite the retraction of the Brazilian economy in the Brazilian IT industry thrived, growing by 7.8% (software, hardware and services) on 2008. For 2010 the figures are even more cheering and, according to IDC Brasil, the forecast is for expansion of approximately 15% year on year.
Brazilian and multinational companies with operations in Brazil are looking forward to taking up an even more strategic position on the international scenario. The market is thriving, the sector is hiring people, and companies are investing in training programs and professional qualifications. International companies are increasingly looking to Brazil and the Brazilian companies have also moved into new markets. IT exports have leapt in recent years, from US$ 2.2 billion in 2008 to R$ 3 billion in 2009. In 2010 the target for the Production Development Policy (PDP) of US$ 3.5 billion in exports is expected to be reached.
Overall, private initiative has fulfilled its role. What Brazil lacks to be globally recognized as a strategic player in information technology, however, is more active government involvement. A new tax model, preventing labor risks, altering the current format of payroll contributions to billing – reducing excessive burdens; and instituting an efficient model of human resource training and qualification, including foreign language training, especially English, are needed. The industry has grown at unprecedented rates, but incentives are required to keep this up.
With a better regulated sector – mainly as far as employment tax is concerned – service costs would fall, the industry would be more competitive and growth figures would be even more surprising. The government is responsible for getting the Brazilian information technology market to take off and to become, once and for all, one of the three largest strategic IT centers in the world. With changes, obviously, the IT sector would have much to gain, but the country would also have reason to celebrate. Brazil is in a unique position globally and must recognize as soon as possible the importance of this industry to the development of its population and, moreover, to the performance of the economy.
What we ask, therefore, is not a tax break but, rather, better regulation of the sector, which today accounts for 3% of Brazil’s Gross Domestic Product (GDP) and employs more than 1.7 million people. We are absolutely convinced that with the adoption of a new tax model on labor, companies in the sector will thrive; professionals will have more contractual security and the government itself will be able to expand its tax base without losing the revenue that finances social security.
Antonio Gil
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Time Zone proof
Brazil would clearly benefit from its geographical position to attract the development of software and IT services. This was the summary of a unique study in Brazil carried out by Pontifícia Universidade Católica do Rio Grande do Sul (PUC-RS). Entitled “Does Time Zone Proximity Matter for Brazil? A Study of the Brazilian I.T. Industry,” it was done in partnership with Professor Erran Carmel, a specialist in the globalization of IT, from American University. “Almost 100% of Brazil’s Information Technology clients have a time zone overlap with its country of origin and this is convenient for both sides,” says Rafael Prikladnicki, Coordinator of Project Management at the Technology Management Agency (AGN) and professor at the IT Faculty (FACIN) at PUCRS.
According to Prikladnicki, this overlap facilitates synchronous communication and helps create closer relationships between Brazilians and their foreign clients. “In the relationship between the United States and Asia, for example, the simple act of scheduling a meeting can become burdensome and can rapidly create delays because of inconstant communications,” he says.
According to the study, 38% of Brazilian companies use time zone proximity as an advantage in their promotions material. “India’s IT market has positioned itself as ideal in terms of time zone, based on the idea that “we get the work done while you're sleeping.” The Brazilian IT industry, to differentiate itself from India’s, has begun to focus on this idea: “we are accessible and easy to work with because we're working while you're working,” sums up Prikladnicki.
The study’s complete report can be found at: http://ssrn.com/abstract=1647305
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Brasscom goes global
Since July, Brasscom has held the vice presidency of the International Association of Outsourcing Professionals (IAOP). Represented by Sergio Pessoa, marketing director in the United States, Brasscom will lead discussions related to the Latin American IT market. “We began our relationship-building at the beginning of this year and now we have made more progress. The positioning of Brasscom with the IAOP will give us enormous visibility and result in countless benefits for the Brazilian IT industry,” says Pessoa.
With over 110,000 members and affiliates worldwide, the IAOP is a US organization that leads the transformation of companies and businesses through outsourcing, offshoring and shared services. To structure its operations homogeneously, the institution has created Regional Advisory Boards to guarantee global planning, leadership and decision making that favors its members in every region of the globe. “The Latin American Advisory Board is the newest of the IAOP’s boards and will generate good results shortly,” says Pessoa.
Among Brasscom’s main attributions are: using the IAOP as a platform to increase Latin America’s visibility as an outsourcing destination; creating programs as a basis of excellence in service provision; working directly with clients to help them better position outsourcing as a strategic business tool, and structuring and adding value to long-term relationships.
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Conference debates the “cloud”
What advantages and differentials enable virtualization and cloud computing? To discuss this issue, the first Conference on Virtualization and Cloud Computing will be held in São Paulo on August 18th and 19th. It is organized by Informa Group and supported by Brasscom. It will being together large companies from the services, industry, education, retail, finance, and air transport sectors. In all, mine successful case studies will be presented at the event, illustrating the experience of companies such as Ambev, Lojas Renner, Azul Linhas Aéreas and Grupo Accor. “This is a great opportunity for companies that are still undecided to understand the tools and learn about the benefits they offer the business,” says Nelson Wortsman, director of Digital Convergence and Infrastructure at Brasscom.
One of the case studies to be analyzed will be steelworks, Iesa, whioch adopted am information security system with solutions hosted in the cloud. The technology was implemented by Microsoft, whose Windows Server & Virtualization product manager, Danilo Bordini, will explain how the steelworks successfully faced the main challenges of virtualization. The panels will thus be practical analyses of the economic advantages provided by adopting cloud computing, based on comprehension of the challenges involving security, privacy and regulatory compliance.
For further information go to: www.informagroup.com.br/cloud
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R$ 12.5 million for IT research
Brazil’s National Scientific and Technological Development Board (CNPq) last month published two reports that together inject R$ 12.5 million into Software Residency and Innovative Extension in IT. The initiative is part of the board’s effort to foster technological specialization programs and to expand knowledge applied to the IT production chain. “The investment will undoubtedly contribute to increasing the number of interested parties in the area with solid scientific backgrounds,” says Sergio Sgobbi, director of Education and Human Resources at Brasscom.
The first notice (06/2010) offers R$ 2.5 million, split into R$ 1.3 million for residency programs in software and R$ 1.2 million for innovative extension in IT. Project that encourage the consolidation of technological specialization programs and the expansion of knowledge through the promotion and execution of IT extension courses will benefit.
The objective is to foster the prospecting of demand and to promote the qualification of human resources in areas of interest on the market.
The second notice (09/2010) provides R$ 10 million in investments and will support projects run by groups or centers involving major research challenges in computing. The projects may involve already consolidated groups, or new ones, defined by themes proposed by the Brazilian Computation Society (SBC), such as management of information in large volumes of distributed multimedia data; computational modeling of complex artificial, natural, social and cultural systems and man-nature interaction, and the impact on the computation area of the transition from silicone to new technologies.
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