Why outsource to Brazil?

19 August 2013 | Articles

By Vinicius Pinheiro, VP of Business Development at e-Core

By and large, Brazil can deliver a unique proposition to companies making a sourcing decision due to three key characteristics: improved communications, cost efficiency and in-depth technical expertise.

Since the term “outsourcing” became relevant in the United States during the 1980’s, a lot of companies have been struggling to implement strategies in this field especially for service projects, which are more complex when compared to the production of goods. It is not difficult to find companies that tried different offshore locations, had problems and, eventually, brought their projects back onshore. Past failures, on the other hand, do not diminish the pressure for finding a solution that delivers cost-effective and tangible results.

nearshore model is a way to use a “close to home” approach in which companies can benefit from the cost saving with a combination of geographical and time zone proximity as well as cultural affinity. Brazil, which is only 2 hours ahead of EST and is the biggest economy in Latin American, is an important player in this arena, especially for companies in the Eastern United States.

Brazil has a mature IT market and is a reference for innovation in different fields such as online banking, tax return and election systems. The Brazilian Payment System (SPB) is amongst the most sophisticated, efficient and reliable in the world. As a result, Brazil is one of the few countries in which inter-banking fund transfers can be made electronically in real time.

Counting on a large pool of talented technical people, the country has one of the biggest communities of Java programmers in the world. Moreover, the International Data Corporation (IDC) recognizes Brazilian workers as quality oriented, committed, innovative, creative, flexible and not afraid of facing challenges.

Furthermore, the time zone proximity allows work across borders without disrupting communication and avoiding additional spending and issues resulting from resources working overnight shifts. Brazil has a cultural compatibility with the U.S due to the similar mixture of cultural influences (Portuguese, Italian, German and Japanese), which makes it easily adaptable to many cultures. Having better communication, cultural fit and working in the same time zone improves the quality of the work performed and reduces the need for onsite management, dropping costs. Consequently, companies that count on a nearshore team in Brazil save 40% to 60%, when compared with prices in the USA, without forsaking quality.

Companies have their own objectives, needs and concerns when deciding on a location and provider for an outsourcing project. However, Brazil has to be considered a serious candidate for any software outsourcing project. Why not take advantage of cost reduction, benefiting from a “close to home” approach and leveraging the technical competences that the main Latin American country is able to offer?

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