Majority of Brazilian IT/BPO exports go to US: IDC Study 2011

October 21, 2011: United States is Brazil’s main client when it comes to IT/BPO exports. This is according to a study conducted by research firm IDC and Brasscom. Moreover, the study states that US based multinational companies like Accenture, IBM and HP are the biggest revenue generators. Brazilian companies like Stefanini, T-systems and Ci&T rank next in the list. Brazil’s biggest customers are in Latin America and Europe after the US. Last year Brazilian companies had exported around US$ 2.4 billion worth of IT/outsourcing services.

Brazil’s ICT market is worth around US $ 165.7 billion in 2010.In this IT/BPO sector contributed around US$ 85 billion. Brazil is the eighth biggest domestic technology market worldwide. Brazil’s main revenues come from different services like shop, integration and consulting, infrastructure management, development and maintenance and support. The global financial industry is Brazil’s big client as Brazil has excellent expertise in that vertical.

Apart from this, telecommunications, oil & gas, mining and manufacturing are also some of the biggest clients of Brazilian BPO and IT sector. Apart from this, customers keep turning to COBOL development in Brazil. A lot of companies use this language and we also see that most of the financial companies use this language as it is the “Business language.” Brazil also has one of the largest java communities worldwide with a large section of SAP solution developers.

‘In-house IT’, is the system in which a company or a government agency makes its own solutions or systems and is responsible for 46.4% of the domestic industry. Hardware constitutes about 23%, and then next is services at 15.6%, Software at. 6.3% and finally BPO at 2.8%.

The new findings place the Brazilian IT market at second place in the midst of emerging nations with China first. Brazil has the potential to become one of the world’s top five centers of IT by 2022 according to Brasscom officials.

Transnational corporations from major developing countries like India are now   an important part of Brazil’s IT and BPO sector. These companies compete with those from the developed countries. There has been a development of indigenous technology mainly from countries such as Mexico, India, and Taiwan and Brazil. We see that there are major technology outflows from such transnational companies of developing countries, leading to the emergence of TNC’s in the global landscape. Globalization has made possible an increase in international knowledge transfer. They are also leading to the emergence of these TNC’s. These technological inflows are also narrowing the gap between the developing and the developed countries.

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