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.
Brazil's forthcoming years
Much was said and published in the last few years about Brazil finally proving it has finally gotten its’ act together. The final test was the actual worldwide financial crisis, which it was able to weather it quite well. Going forward, the challenge is to keep the momentum. The economy continues to thrive and with interest rates finally reaching one digit, the lowest money cost in the history of the country. According to the economic consultants, a 2 point percentage drop in actual interest rates means an additional incentive up to 1.5 percentage points for the gross domestic product. With actual interest rates reduced to 5 %, as expected this year, the growing potential of the Brazilian economy raises from 4 % to at least 5, 5% a year.
According to Arminio Fraga, former Chairman of the Brazilian Central Bank ...
The Right BPO
From the corporate perspective, there are many views as to what are the new trends being pushed forward by the client organizations, when going forward and reengineering there BPO requirements and vendors selection. The economic crisis at the end of the last decade, besides creating an enormous financial burden for the companies at first, it also had many organizations rethink their strategies and how they would need to realign their current vendor relationships.
Companies did not want to engage with true vendors any longer. They needed ...
Outsourcing/Offshoring – To be or not to be!
IT offshore outsourcing, like other industry segments, also suffered the impact of the global financial crisis. Many IT service providers had to re negotiate their existing contracts and saw a freeze for contracting new services. However, unlike many sectors still feeling the pinch, the offshoring of outsourcing is on the rebound, as many organizations continue, and even deepen, their cost reduction initiatives as a means to maintain their competitiveness.
After the global financial meltdown and the intervention by governments to save the day ...
Exports grow, but challenges remain
Even though IT exports grew 33 % from last year, reaching US $ 4 billion, Brazil’s worldwide participation in the global market still remains small relative to other main destinations like India, Philippines and China.
Brazil ended 2010 with a total software and services exports reaching US $ 4 billion. This is US $ 500 million above the initial forecast made by one of the sector’s main industry associations, and it represents a 33 % growth in regards to total exports in 2009, when a total of US $ 3 billion worth of software and IT services were exported.
These are the statistics
I have often said in the presentations I give around the world, that before the internet, we could only be sure of 2 things throughout our lives: We will die one day and we will always have to pay taxes. Now, after the coming of the internet and its pervasive penetration in everyone’s lives, both, personal and professional, we are now sure of 4 things: We will die one day, we still will pay taxes throughout our livelihood, and now, we also will have to manage change on daily basis and we will probably not do anything alone anymore. We now live in a collaborative world.
This is has been our main message at all the events we have participated around the world, be it in India, South Africa or United States, and also the basis for the “PARTNERTITION” proposal ....
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.
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.
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.
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.
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.
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”.
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.
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.