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Brazilian Offshoring Sector - Essay Example

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In term of access to capital, the Brazilian offshoring sector offers competitive opportunities to clients. According to the Milken Institute’s latest Capital Access Index, Brazil has improved capital access for its entrepreneurs with the intent to stimulate the nation’s economic growth (LBC para. 1). …
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Brazilian Offshoring Sector
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Brazilian Offshoring Sector

According to the Milken Institute’s latest Capital Access Index, Brazil has improved capital access for its entrepreneurs with the intent to stimulate the nation’s economic growth (LBC para. 1). In addition, the Brazilian offshoring sector is characterized by better access to human capital. The case study clearly indicates that the country’s ICT-related technical and graduate courses generate nearly 100,000 graduates annually. According to official data, Brazilian universities produced over 220,000 graduates in 2008. Access to R&D and Technology The Brazilian government gives special concessions to the country’s R&D and technology sectors. To illustrate, the government provides companies with 50% excise tax reduction to purchase R&D equipment and 100% reduction to import software development materials. Brazil’s R&D expenditure in the 1997–2002 period was greater than that of India. The Brazilian Federal Government gives particular attention to technology and considers software and IT services industry as strategic. In addition, the Brazilian Development Bank offers extensive credit facilities to foster technology projects. Capabilities Brazil has a fast growing economy capable of making the country an attractive destination for global investors. Information technology has been well developed in Brazil and it represents approximately 7% of the country’s GDP. ...
nline business sector, Brazil is the largest market in Latin America and the country’s online market grew by 20% over the last year to 40.5 million users (European Travel Commission para. 11). The case study reflects that the country’s total ICT market reached $139.1 billion in 2008. The Brazilian market is export oriented and pays specific attention to global brand performances. The government places great emphasis on the country’s domestic market so as to ensure the sustainability of its traditional industrialists. Regulatory Framework While analyzing the country’s regulatory framework, it seems that Brazil adopts a friendly approach to foreign companies. The case study notes that Brazil has the highest Regulatory Quality index as compared to other emerging economies such as India and China. This situation provides outsourcing firms with a favorable business environment in the country. In addition, the country’s lowest FDI Restrictive Index Scores claim that it is one of the most open economies for FDI. Culture While considering Brazilian culture, it is observed that many Brazilian companies face challenges in handling the country’s English proficiency. This situation persuades Western companies to refrain from outsourcing jobs and businesses to Brazil. From the case study, it is clear that the Brazilian culture attaches great importance to teamwork in software development projects. In addition, Brazilian culture is closer to that of the West in terms of race, religion, and family lifestyle. Hence, Brazilians can better understand Western business rules and market environments (Case Study 8). 2. Unlike the case of India, Brazil developed its software sector mainly to meet the needs of its domestic firms. Evidence suggests that Brazilian IT companies have ... Read More
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