29/05/2008 - Agência Brasil - www.agenciabrasil.com

A previsão é do presidente da Associação Brasileira das Empresas de Software e Serviços para Exportação (Brasscom), Antonio Carlos Rego Gil, que falou sobre TI ontem (28) durante o 20º Fórum Nacional, promovido pelo Instituto Nacional de Altos Estudos (INAE), no Rio de Janeiro.

Brazil as a major IT center in the world

Information Technology has helped the world to develop economically, socially and culturally, and it is currently going through significant developments. Several technologies are entering the market. Mobile technology, digital TV, broadband and the Internet itself are means of crossing over from B2B to B2C and even to C2B, which will potentially create a leap in the use of IT and communications. These new technologies and the large number of newcomers to the system force us to adapt everything that has been created in 45 years of IT development to current technical advances. The world has today, for instance, 4.1 billion mobile phones that will interact with every system already developed.

At the same time, companies need constantly to invest in IT in order to control, develop and expand their businesses globally. And it is vital that they do this progressively faster and at lower costs. IT investments represent on average 5% of a company's budget and each percentage point subtracted from it will have a direct and positive impact on profitability.

These are the engines of an industry that will reach US$ 1.3 trillion in the world in 2010, with an annual growth rate of about 3%. Leading this growth are offshore outsourcing services, which will reach US$ 101 billion in 2010 and have been growing 20% yearly. Offshore outsourcing will soon become a US$ 300 to US$ 400 billion business.

Brazil has the eighth largest internal IT market and an IT industry that ranks among the most advanced in the world such as in finance and government systems, yet it only exports US$ 2.2 billion in offshore outsourcing services (2008). Why is a country that is so competent in meeting internal needs such a small participant in the world market?

It´s a matter of strategy. In order to export IT services, no trucks, roads or ports are needed. With current telecommunications, one needs only to press a computer key. But a simple key press is also needed for any other country to export their IT services to Brazil. The industry is undergoing such a profound transformation that exporting has become a vital necessity.

BRASSCOM was created to pursue those goals. The market is searching almost desperately for offshore outsourcing alternatives to India, which holds US$ 50 billion of the US$ 84 billion market in 2009.

More important, after many years boasting that it would become an IT power, Brazil has finally taken concrete steps to make good on that claim. The recently issued Law 11,774, which reduced labor taxes for the IT sector in an unprecedented way, was the result of a great effort, undertaken mostly under BRASSCOM´s leadership.

The challenge now for BRASSCOM and for the IT companies is to persevere in the effort to turn Brazil into one of the three greatest technology centers in the world, on a par with India and China. There are many hurdles to overcome. But with the political support we now have, we will show that we are qualified to make this project a reality.

Antonio Carlos Rego Gil
President of BRASSCOM

Brasscom aims to establish a competitive, fair, and ethical environment for the ITBPO 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 bills passed into law.

Law number 11,774, of September 17, 2008 reduced social security contributions on company payrolls by 50% (from 20% to 10%).

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 selfregulation of work on the IT-BPO market.

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.

ForSoft (Human Resources Formation in Software) is a pilot project that tests the creation of a new training and recruitment model for technically skilled labor, specifically focused on information technology. BRASSCOM is the project mentor and has the goal of training programmers for the job market in order to meet the high demands of the IT sector.

The project is applicable in a national scale in partnership with interested companies, Federal, State and City governments, through distance learning (EAD). It is in line with the national efforts for digital inclusion. The goal is to reach an underprivileged portion of the population without giving up quality and competitiveness.

The project started late in 2006 with 27 classes in 16 cities. It tracks the performance of its graduates in the beginning of their professional carriers, in supervised internships in participating companies (called ?sponsor-companies?). Because it is a pilot project, one of the main objectives is to analyze the opinions and experiences of the companies and students involved, as well as to evaluate the results of the program in order to contribute to the development of future projects.

ForSoft received resources from the Science and Technology Ministry to hire teachers and supporting staff and to pay for logistics, creation of materials and recording classes on DVDs. There are three phases in which the students are trained and later evaluated within the ?sponsor-companies? that hire them.

ForSoft is currently in its second phase and has trained students in four languages: Dot Net, Cobol, Java and Progress.

To learn more about this project click here

Political Organization:

• Federative Republic with 26 states and Federal District
• Independent Judiciary with three levels
• Supreme Court appointed by President, need Senate approval
• Congress with Senate and House (81/513)
• Elected Governors and Houses
• Elected Mayors and Councils
• Labor laws dating of 1939
• Ministry of Labor / Special Labor Courts
• Tough legislation on environment and sweat-labor

Brazil numbers in a nutshell:

• Population: 192 million (80% urban)
• GNP: US$ 1.5 trillion
• GNP growth in 2007: 5.4 % - 2008 (est.): 5%
• FDI 2008: US$ 45 billion
• Inflation under control 200: 4.31%
• Exports 2008: US$ 198 billion
• Currency reserves are over US$241 billion and external debt of 50% of reserves
• Investment grade rating

Infrastructure:

• Comprehensive telecom network offers country-wide access
• 170 million mobile phones in operation in the end of 2009
• 15 million broadband accesses (2009)
• Fast air access to Europe and North America (9-12 hours flights)
• Brazil has the world´s second largest private aviation fleet
• Federal and state highway system covers the whole country growth assured through private concessions
• Efficient domestic post office system, most major fast delivery operators present (UPS, Fedex, etc)

Educational System:

• 9-year Elementary school today reaches 100% of population
• High-school: 3 years
• Technical schools: with 1 more year, ready to enter in the IT job market
• Technical schools and universities form 246,000 IT-related professionals per year
• 111 post-graduate IT-related courses
• 2,270 federal, state and private universities, with 5.8 million students
• More than 250 new public technical schools will be created by the end of 2010

IT Market:

• IT-GNP of over US$ 20.6 billion (IDC, 2007)
• US$ 9.0 billion in services
• 15% growth in 2004-2005, 25% in 2006-2007
• Competitive services market: Accenture, Atos Origin, BRQ, BT, Cast, CPM Braxis, Datasul, DTS, EDS, GPTI, GFT, HSBC, Hughes, IBM, Intel, Itautec, Microsoft, Politec, Promon, Satyam, Softtek, Siemens, Stefanini, Sun, TCS, Tivit, Totvs, Virtus, Ubik, Unisys
• Local PC makers have outperformed traditional manufactures like HP, Dell, Acer, with strong sales, support organization and competitive prices
• Highly experienced IT professionals
• IT professionals: more than 1.7 million
• Intensive use of different platforms, Mainframe, Unix, Linux, .Net, Java, Oracle, SAP, Natural Adabas
• Brazil ranks second (after USA) in world?s mainframe population, with an experienced pool of COBOL professionals
• Brazil is leader in Java programmers, with several JUGs and has the largest JUG in the world (18,000 members, IDC)
• Labor pool developed from a business-technology approach, with deep industry knowledge

Advantages:

• Industry knowledge
• Cultural compatibility
• Strong and diversified internal IT market
• Favorable time-zone
• Absence of natural disasters
• No ethnical or terrorism problems
• Western and democratic legal system
• Political and economical stability
• 45 years of IT investments

National IT Program (results in three years):

• US$ 5 billion in exports
• 100,000 new professionals
• Federal Incentives:
  
  • 10% reduction on labor charges
  • 3.1% reduction on contributions to the "S System"
  • Income tax reduction for education and innovation in R&D

• Local Incentives:
  • Facilities and infrastructure
  • Local tax incentives

Click here to watch our institutional video

The Brazilian Index of Digital Convergence (Índice Brasil para Convergência Digital - IBCD) ? is a BRASSCOM initiative developed by RCR Consultoria e Gestão Empresarial. The study proposes to keep track of the structure and the dynamics of the Brazilian information and communication technology (TIC) market, as well as aspects of innovation and digital convergence.

The IBCD targets different segments of society. For public administrators it is a reliable analysis tool for developing public policy. For the private sector it is a powerful tool for designing market strategies. For researchers, the IBCD provides opportunities for analyses regarding Information and Communication Technology development that are based on the relationships between the different indicators and the evolution of digital convergence in Brazil.

Download pdf

About BRASSCOM

BRASSCOM, the Brazilian Association of Information Technology and Communication Companies, was created in 2004 with the objective of positioning Brazil as a key player in the global IT services market. The Association gathers all major national and multinational IT companies operating in Brazil, as well as research centers and universities, representing 65% of Brazilian IT-GDP and over 90,000 professionals.

Presently the main mission of BRASSCOM is to create and spread international knowledge about the huge potential of the Brazilian IT industry. The entity also works to improve this sector through the development of its members, in accordance to the needs and expectations of the global sourcing market. Studies and analysis led by world-renowned institutions have been made to provide a higher degree of information about the market and to design the guidelines to pursue our mission.

BRASSCOM heads the insertion of Brazilian Information Technology in the global offshore/nearshore outsourcing market by discussing and representing the interests of its members along with the government as well as with national and foreign opinion makers. The strong relationship with federal, state and municipal authorities is a key factor to foster national policies for the sector.

The association expects to reach US$ 5 billion in Brazil´s IT services exports and develop 100,000 new IT professionals by 2011, with the support of federal and local governments, promoting incentives for development.

Committed to all these objectives, BRASSCOM strategically disseminates, domestically and internationally, the Brazilian IT competence as a synonym for a trustful and competitive market both on price and quality for offshore and nearshore outsourcing needs.

The role of BRASSCOM

• Working with governments, universities, companies and institutions on the promotion of programs and technical learning of foreign languages, especially English.
• Developing and disseminating, both nationally and internationally, the Brazilian potential of IT.
• Increasing the volume of Brazilian exports in the sector.
• Promoting partnerships between local and international companies.
• Helping the IT industry face the challenge of promoting digital convergence and innovation.
• Creating, maintaining and spreading a database on Brazil´s IT industry.
• Taking effective measures to establish a competitive, fair and ethical environment for the IT industry.

Why Brazil

Boasting the largest economy in Latin America and the 7th economy in the world, Brazil is becoming a world player in the Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) arena. The country has the largest IT labor pool in Latin America, and has achieved excellence in applications management, infrastructure services and security technologies.

Brazil has a large population with strong technical skills, particularly in the IT, engineering, financial, manufacturing, communications and health care sectors. The country is increasing graduation and company quality certification rates. Most of the multinational companies that established major global IT and service centers in Brazil have opted for this country given all these qualities and our "nearshore" advantages.

The Advantages of Brazil

Cost Effectiveness:

Currently, the best combination of scale, infrastructure, HR costs, low turnover rates, geographic position, high productivity and business knowledge make Brazil one of the most competitive locations for offshore and nearshore outsourcing operations in a Total Cost comparison.

Industry Expertise:

Forty five years of investments in Information Technology have led to the creation of a strong and diversified internal IT market, comprehensive infrastructure, world-class universities and a highly-skilled labor pool.

Location and Geopolitics:

Favorable time-zone
Absence of natural disasters
No terrorism or ethnical conflicts
Political and economical stability

Cultural Compatibility:

Most Brazilian professionals are exposed to the business practices and managerial concepts adopted by global companies
Western and democratic society

Government Support:

Federal incentives allow for a reduction on labor charges and income taxes for education, innovation and R&D
Infrastructure and local tax incentives

Brazil´s IT industry has been developed for almost five decades with expressive government and private investments. Industry expertise and a consolidated internal market, together with a National IT Program, put Brazil in a unique position as one of the three international key players in Global IT Sourcing. The country is undergoing a strategic moment to play aggressively the offshore/nearshore outsourcing game, and Brasscom is the main driver to achieve this goal.

Members

Accenture
www.accenture.com

Atos Origin
www.atosorigin.com.br

B2B
www.b2bmagazine.com.br

BRQ
www.brq.com

BT
www.btglobalservices.com

Cast
www.cast.com.br

C.E.S.A.R - Recife Center for Advanced Studies and Systems
www.cesar.org.br

Cisco
www.cisco.com.br

CTI
www.cti.gov.br

CPM Braxis
www.cpmbraxis.com

EDS - Eletronic Data Systems
www.eds.com

GPTI
www.gpti.com.br

GFT
www.gft.com

Google
www.google.com

HSBC
www.hsbc.com.br

Hughes
www.hughes.com.br

IBM
www.ibm.com.br

Intel
www.intel.com

Itautec
www.itautec.com.br

Lenovo
www.lenovo.com.br

Microsoft
www.microsoft.com

Politec
www.politec.com.br

Resource
www.resource.com.br

Serasa S.A.
www.serasa.com.br

Softtek
www.softtek.com/brasil/

Stefanini IT Solutions
www.stefanini.com

Sun
www.sun.com

TATA Consultancy Services (TCS)
www.tcs.com

TIVIT Terceirização de Tecnologia e Serviços
www.tivit.com.br

Totvs
www.totvsbmi.com.br

Ubik do Brasil
www.ubik.com.br

UFPE
www.ufpe.br

UNESP
www.unesp.br

Unicamp
www.unicamp.br

Unisys
www.unisys.com.br

Uol
www.uol.com.br