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Posted by Hansa Iyengar on November 13, 2013
Although Brazil’s IT sector has frequently been compared as an up and coming challenger for India’s share of the offshore pie, Brazilian vendors are keener to position themselves as potential local partners rather than as nearshore alternatives. The reasoning is simple - with tremendous opportunity for growth existing locally, there is less motivation to pursue growth in untested and unknown markets. According to statistics provided by Brasscom, the domestic market for ICT is pegged around $123 billion in 2012 with a growth rate of about 10% year-on-year[i]. Moreover, the vendors lack serious muscle in terms of scale, and factors like limited availability of resources and an inability to differentiate on cost adds to this reluctance to compete with Indian offshorers.
The raison d'être of the Brazilian IT sector is quite different from that of India and is heavily focused on providing solutions and services to the huge domestic market that exists both within the country and in the rest of Latin America (Latam). Some key features of Brazilian vendors are:
Although Brazilian vendors are wells suited for supporting the local operations of clients, there are a few things that sourcing professionals should bear in mind when engaging with them. These include:
[i] Figures from IDC but provided by Brasscom
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