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
“For 2010 the figures are very positive and the forecast for the Brazilian IT market is for expansion of approximately 15%, comparing with 2009.”
