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OUTSOURCING IT IN BRAZIL


Robert Janssen

Robert Franz Janssen
rjanssen@outsourcebrazil.com.br

Robert Janssen, a dual citizen of the United States and Brazil, having lived equal amount of time in both countries, is a managing partner in an advisory company, Outsource Brazil, and manages the Brazilian government's export promotion program, Brazil IT, advising the Brazilian IT Services companies in international market development in the Outsourcing space and is ready to respond about the companies' capability statements and past performances for Results Oriented Global Nearshore Outsourcing with great performance in the Finance, Energy, Health Care, Retail, Industrial Manufacturing and Oil & Gas segments.

Robert Janssen

MESSAGE FROM THE CHAIR

Everything we read, everything we hear is that the main focus is short term. The current economic crisis has spread like fire on dry grass around the world, and with that, the medium long term thinking has taken second seat to the immediateness of urgent action. Companies are struggling to make the basic ends meet, like payroll, producing massive layoffs, which in turn, put additional pressure on the companies as a result of less consumption of goods and services.

Every report available today, mentions most companies are only looking for immediate cost-cutting solutions, and that it is imperative that the results are shown in the same fiscal year. In other words, now it is time for short term thinking combined with innovative ways of doing things.

This calls for a special kind of breed. It calls for a breed that has experienced having to sell lunch to be able to eat supper. It calls for a breed that saw money burn in their pockets at a rate faster than one could blink. It calls for a breed that understands the future is right this next minute. It calls for a breed that has the immediateness mind set embedded in its cultural DNA.

This is why, when companies seeking IT services providers, they need to check out Brazil. Brazilian businessmen and professionals have a PhD in handling crisis and developing short term strategies which produce immediate results. Brazil lived through several years of high inflation coupled with many unorthodox economic plans, (a total of 7 in 8 years), which made the rules of the market change almost on a daily basis.

Brazilians would wake up every morning not knowing to which direction they should run in order to make ends meet. Because of this, they have developed an expertise on how to land running. Dealing with constant changing economic environments under crisis has become part of their DNA.

Being able to react in fast and adequate fashion is imperative for survival times like this. "In a crisis situation, there are so many urgent matters, that there is little difference between short and long term goals. The future is now right this next minute. Historical experience show us that, the immediate actions should be the basis for a long-term strategy" - Michael Porter, March 2009.

So, we hope to bring you in this new section, relevant content about companies and solutions that can make the difference and have a positive impact. So, don’t forget to check back with us from time to time. You may be positively surprised to find a solution provider that has actual experience in being creative and effective through constant changing times.

Robert welcomes your suggestions and requests. He can be reached at rjanssen@outsourcebrazil.com.br and you can read his popular blog at http://brasilexportati.com.

Regards,

Robert F. Janssen
Director, Outsource Brazil
R. Dona Mariana, 213/403
Rio de Janeiro Brazil
BR Tel.: +55 21 9335-7470
US Tel.: + 1 415-738-4749


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Featured Content

Brazil in the spotlight: “Brazil Takes Off”

Brazil’s recession is long gone and even then, the country showed a great performance in private consumption throughout the cyclical downturn. Going forward, local government forecasts a 5 % minimum GDP growth for 2010. With the upcoming hosting of the FIFA Football World Cup in 2014 and the Summer Olympic Games in 2016, (first country ever to host the two largest world events back to back), Brazil is set to have continuous economic growth for at least the next 10 years.
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Overview of the US Brazil BPO Summit in New York

The event had some notable speakers address a crowd of approximately 80 people, between American and Brazilian businessmen plus a few Brazilian Government officials. And the main message by all speakers was that Brazil, as already known, is one of the “guys” in the spotlight, but it needs to rise to the occasion. The opportunity is there to be seized and Brazilian policy makers and businessmen need to work fast, because time to market and speed to answer is also part of the equation to be successful.
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The Real Challenge for the Brazilian IT Services companies to become global

Brazil is currently in a very favorable spotlight, especially after being able to weather the economic storm without major casualties, and also after winning the right to host the two largest world sporting events: The Football World Cup in 2014 and the Olympics Summer Games in 2016. Actually, it is the first time that a country is able to host these two events back to back. So it seems that the window of opportunities is wide open. The question is, however, for how long.
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B2C + I 0 Back to Core with Innovation

Times like the ones we have been living in the last 18 months, where the common is a recessive economy and everyone is learning that "less is more", it seems that going back to the core of business has been what has made many organizations survive. And it is not just going back to core, but it is also looking ath the core and seeing how innovation is possible, in order for companies not only protect market share, but also grab those shares that are now up for grabs.
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The Software Factory as a tool to Support Applications - Eletronic Means for Pay

The attps Group acts as solutions integrator in information technology and is composed of specialized firms with strong capacity in generation of applied technology, working in a bold, creative and innovative, always seeking to add a significant value to the business of its customers.
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Cinq is near in time and distance to your business needs

Cinq Technologies works in three major areas: Solution Design Lab, Certified Software Factory and Professional IT Services a company specialized in software development projects and IT solutions design for major technology suppliers and corporations.
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Application Maintenance in Brazil: The New “Nearshore” Frontier

Politec's creativity, commitment to quality and utilization of proven methodologies fuel its ability to deliver innovative solutions that generate revenue and reduce application maintenance spending. This report is for business professionals who manage the recurring costs associated with legacy information systems, and for IT managers interested in improving the quality and efficiency of legacy application maintenance.
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The Global economic meltdown and its impact on Outsourcing

Analysis of how the current economic downturn will change the market dynamics for the Outsourcing industry.
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Market Scan 2008 - IT Outsourcing panorama of USA

This report highlights several significant trends observed in analysis of a market research survey, covering key pointers like current and emerging location analysis, decision metrics for vendor selection , pricing models among others.
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Looking at Brazil IT´s Exports

Brazil is becoming one of the new upcoming near shore alternatives for organizations around the world that are looking to mitigate their risk, while at the same time, locate services and development needs where they can receive further cultural compatibility enhancement. But as countries in South America, look to be increasingly competitive with India, specially Brazil, they still have some great challenges to overcome. Check what one of the foremost outsourcing professionals in Brazil has to say. With the mic, Alex Jacobs!
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Don't forget the check out the Brazilian alternative

In times of crisis, cost cutting becomes the major issue for many companies, which need prioritize price performance while at the same time look to streamline business alignment with IT strategies and plans. Because of the pressures caused by economic downturns, it becomes imperative for vendors to have strong business expertise, and be able to provide constant value even under pressure and in adverse environments. Economic dynamics’ changes have embedded in the professional DNA of many Brazilian IT organizations. Any enterprise looking for vendor solution providers that are capable of rising above just the plain cost cutting approach, needs to check out the Brazilian offer. They are certain to be surprised.
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The Whale Strategy

For many IT services companies, having access to markets and capital is critical, especially when having to go head to head with the big multinationals like IBM, Accenture, EDS and others like the Indian companies. Most of them have a global presence and are able to access high value contracts worldwide. So how can other smaller IT providers compete at the same level? The whale strategy approach is one of the alternatives. Check out how Brazilian IT companies are looking for creative ways to build greater punch in the market.
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What is the Real Difference in the End?

The present times could not be so trying and challenging. The regular approach from the old days will not “cut the mustard”. These are times, where there is a big adjustment taking place, and the underlying message is that we had been living in wonderland up until now. It seems that the day has finally arrived, where everyone begins to realize that not only there is no free lunch, but there is also something called “the law of diminishing returns”.
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InnoVest comes to Brazil searching for suppliers and Projects could total up to $ 170 million

After coming to Brazil during Carnaval, and coming back a second time, and learning what are the current capabilities and successful past performances that the Brazilian IT companies have, The InnoVest group is moving ahead and will form a consortium of best of breed till July 4. The purpose is to have company, actually a set of companies, that can provide price competitiveness, quality and timely delivery to existing projects the companies has.
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Outsourcing Toward Brazil – Moving Forward

Much has changed in the outsourcing space in the last 10 years. Much has changed in Brazil, since 1994, after the Real economic plan by Fernando Henrique Cardoso, which help stabilize the economy. Brazil moved from a commodity pursuit to a value added delivery in which now begins to shine. For some reason or another, Brazil, however, remains an unknown commodity, and has a chance now, to become of the leading players.
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Brazil – A proven sourcing destination

Getting off the plane at Sao Paulo and heading out into the city gave me my first visual impression – a much cleaner and orderly India. I couldn’t help but make such a comparison given my Indian origins and a professional need to establish some first-hand impressions when visiting a new country. I remember a particular incident a few years ago when I was accompanying a few top management representatives from a client organization on their first visit to India. What struck me most was that their first visual reaction on getting into the car [while driving to the hotel in Mumbai] remained for a long time, and did shape some initial perspectives. So here I am in Sao Paulo, known and usually compared with Mumbai and Tokyo for its population density, trying to arrive at some impressions. An hour later I had a feeling of déjà vu, but one with more pleasantness than while driving in Mumbai. Infrastructure is what you notice the most, which for me while not being significantly different than any other Asian nation, struck me as comprehensive and progressive.
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