Brazil Will Rio Be the Next Bangalore?

    May 18, 2005
    WebProNews Staff

The country wants to become an outsourcing superstar like India, but they have a long way to go.

Brazil wants to move on from its past as a provider of coffee, iron ore, and sugar. According to a New York Times report, Brazil’s government wants to turn the country into the next outsourcing center.

The government’s trade minister has made several international trips to promote his country’s cause. “The image of Brazil is soccer, coffee and samba, not sophisticated technology products. But that’s out of date,” said Luiz Fernando Furlan in California recently.

Mr. Furlan announced the Brazilian government would suspend for five years federal taxes on exports of software and telecom services. The country only exported $400 million in software and information technology services last year, a far cry from India’s $15 billion in exports.

Brazil doesn’t want to be India, they just want to meet American demand for outsourcing services closer to home. And Sao Paolo has some advantages that can help, like a state of the art telecom infrastructure, as well as being in time zones similar to US ones.

One disadvantage would have to be addressed by the education system. While Brazil graduates thousands of engineering students each year, most are not fluent in English. That would have to change to suit American customers.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.