Observations From Brazil

My first whirlwind trip to Brazil confirmed much of what I’d expected.  Brazil is booming.  Traffic in the cities is horrendous.  The buzz of helicopters in Sao Paulo is incessant.  And, there is huge opportunity for IT vendors and services providers.  But contrary to what I had expected, IT preparation for the upcoming mega-events seems to be getting off to a slow start. 

Several analysts from Forrester traveled to Brazil this week to participate in events sponsored by the Brazilian Chamber of E-Commerce, the Brazilian Association of Information Technology and Communications Companies (BRASSCOM) and the Brazilian Association for Promoting the Software Export (Softex), and iO2. 

We also met with a distinguished list of Brazilian IT services firms in both Rio and Sao Paulo, including PromonLogicalis, CMP Braxis, Cast, BRQ, Dimension Data, CI&T, iO2, and Sedna Partners. 

What did we hear?

  • Good times for Brazilian IT industry, which was recently among the strategic industries given a tax break to promote its competitiveness.
  • Currently many Brazilian IT services firms are experiencing 30%-40% annual growth. 
  • And, many are looking to double their revenues in the next few years.
  • Unlike their Indian counterparts, they have built their businesses domestically with 80%-90% of their revenues coming from Brazil.  Great partners for vendors looking to enter the Brazilian market.
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