As the pandemic accelerated the will for working and learning remotely, the IT outsourcing industry has been showing a strong growth. Organizations worldwide discovered that the level of digitalization in all spheres should be enhanced. Indeed, it allows them to optimize their resources, staffing, communication, and business processes. Overall, offshore staffing can be a game changer. Discover the benefits of IT outsourcing to Brazil:
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Why should you outsource your IT to Brazil ?
Ranked 15th by Tholons as a digital Nation, Brazil continues to rise as a serious outsourcing location. Being the fifth largest country in the world, Brazil offers a large scope of assets for companies looking to outsource. Here are the main benefits that make Brazil a major outsourcing alternative to other outsourcing hotspots such as Ukraine, India, or the Philippines.
High-value skilled developers
Outsourcing your labor work implies that a firm is not limited to local candidates. Above all, education and expertise of the IT workforce is a significant reason for outsourcing in Brazil.
The country is a hotspot to hire experienced IT specialist Brazilian developers’ : the developer’s skills are ranked 38th by HackerRank and 16th by TopCoder.
Also, there is a great diversity when it comes to programming skills. Most Brazilian programmers are comfortable using progressive programming languages from C++ to Java to Python to Perl.
The quality of computer science education in the country has risen. Brazil hosts today 6 universities ranked in the top 500 universities in the world. Universities offer some of the top IT education programs in the world which allows the country to fill its developer pool with high-qualified workers.
Vast talent pool
Availability of the IT workforce is an important asset when it comes to making outsourcing decisions. To this extent, the Brazilian IT industry is supported by a solid basis of software engineers.
The Brazilian software developer pool stands at 500 000. The unusually young Brazilian workforce makes the country an up-and-coming country for IT outsourcing.
As software development involves the continuous availability of experienced and high-value skilled developers, Brazil’s tech talent pool is constantly growing and filled with Science, Technology, Engineering and Mathematic students every year. A considerable part of these students graduate from the University of São Paulo which is ranked 1st in the Best Global Universities in Latin America and 115nd globally.
Cost saving
The first reason why companies are outsourcing is saving time and money. Whether a firm is looking to implement a local entity or to manage an IT project, it is usually more cost-effective to outsource than to expand operation internally.
First, the difference in wages between western countries and Latin America is more than substantial. In 2021, the median salary for software developers in Brazil is $10,488 when the average worldwide stands at $101,140. Also, and due to the over-saturation of the market, IT outsourcing giants such as India and Ukraine are becoming less interesting in terms of cost effectiveness.
Not only is outsourcing cheaper, but it also cuts out some of the complexities and costs of employment. The hiding cost of the hiring search, or in-house training and payroll management or administration is usually underestimated especially in countries with high labor costs. Outsourcing an activity which is not your core business leads to a significant reduction in costs and time.
Thereby, North American and European firms can reduce their costs, save time and ultimately maximize their profit margin by outsourcing to Brazil.
Large It Market
When looking at the best-fit country to outsource your IT, it is pivotal to investigate the evolution of the start-up sector. Moreover, the following two markups, quality and quantity of investments, are usually excellent gauges of IT market progress in the said country.
Brazil has made substantial progress over the last decades. By conducting the digital transformation strategy, it stands now as technology leader, top-performer in Mobile Development and ranked 2nd as an emerging country in America Latina (Source: Coursera Global Skills report). Added to the 422,300 companies evolving in the IT sector, about 85,000 new businesses have been created in Brazil.
Brazil carries over its information technology growth during 2021 and is expecting to be the hotbed of IT investment in Latin America. For instance, according to IDC, analytics, cloud computing and securities are the three key areas for investors.
IT infrastructures
Most importantly, the shape of infrastructures of a country can prove the real state of the IT landscape and unlock a highly sought-after talent base.
Firstly, the infrastructure of Brazil’s IT ecosystem has been thriving over the years and today, the country hosts at least 90 tech centers and 35 accelerators offering cutting-edge digital material.
Secondly, several Brazilian tech hubs are globally renowned and stand at the region’s powerhouses. They aggregate knowledge and know-how from dynamic research centers. Tech firms and start-ups, support organisations and institutes and a high density of promising talents are also nurtering this dynamics.
Supportive business policies
Furthermore, the business climate is another important asset to assess when outsourcing to another country.
A stable political climate is one of the most significant factors to consider. The political stability is improving and the country is twice more stable today than last year according to The Global Political Index.
Additionally, supportive business policies guarantee business and technical spheres development and innovative and progressive ideas fostering. Many supportive policies have been implemented and attracted investment. The Inside Venture Capital report states that there were US$ 5.2 billion in investments.
Time zones
The time zone in Brazil is another beneficial factor.
Collaboration in real-time is a real asset and Brazil time zone is one hour different from the US East Coast time zone. Working in the time-zone makes it easier to get immediate response from both parties and engage in real-time meetings.
The average time difference is 4-5 hours behind of the Western European countries. This little difference is highly convenient for responsive and collaborative development
Culture and communication
Seamless communication and culture understanding are also the keys to a successful cooperation.
A strategic partnership with a culturally and geographically IT firm or individual could be quite challenging. And it is most important to know that cross-border collaborations are not always smooth. As a result, being aware of cultural differences will help you narrow down the differences in order to organize a performance-driven cooperation.
Today, most IT developers and consultants speak English. In terms of communication, the strong presence of multinational companies has led to improvement in English among Brazilian workers. Brazil is the unique portuguese-speaking country in Latin America however, most Brazilian understands Spanish. Moreover, Brazil also hosts many French and Spanish speakers which could be an important asset for IT outsourcing in Brazil.
How can Europortage benefits your business ?
We are an Employer of Record (EOR) company in Brazil. With our EOR and Payroll Services, we hire and onboard your candidates while managing compliance. Besides, we manage your payroll in Brazil. Do you have a project in Brazil ? Contact us now!
