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A Brit in Brazil: A few myths and        a wealth of opportunity…            Mark Hillary: CEO of IT Decisions            ...
Agenda•   Outline of Brazil•   IT myths•   The famous bureaucracy•   Opportunities
A Brit in Brazil          j.mp/markhillary• Seven books about technology and  globalisation so far, next is on Twitter• Ru...
Think back to 2005• Tom Friedman sold  millions of books  explaining the  globalisation of services• Focus was on the back...
BRICs• I explored the  BRICsand offshoring  in 2007• I also wrote another  book that year with Dr  Richard Sykes of  Intel...
Global Services• This was 5 years ago,  but we showed that  global IT is a lot more  complex than just  cheap offshore  of...
Most predictions were wrong…• Focused on the Friedman view that new  markets were opening up and would  become the global ...
Myths of IT in Brazil• It’s not cheap and ‘offshore’ – one US  company boss recently told me his IT staff  are lower cost ...
Economic changes• The world is changing – you can see this  in the news from the US and EU each day• EIU predicts by the e...
Need a job? Try Brazil…• Prediction of 8m new professional job  openings from now to 2015• 1.9m new jobs that were created...
Changing Class                          Class A = > £3300 pm … class E = < £370 pm           2003                         ...
Bureaucracy• Paperwork needed for foreigners to reside in  Brazil can be a headache, even when  married to a local• A comp...
BureaucracyConcept of proving identity    with just a passport or  other single document isquite alien in Brazil… leads   ...
Opportunities• In 2010 CapGemini bought a controlling  stake in CPM Braxis• In 2011, Indra bought Politec• Other IT firms ...
OpportunitiesFIFA World cup 2014 and Rio Olympic  games 2016 – investment in £               Hospitals                 Ene...
SummaryBrazil is a market to work with, not a low-  cost offshore outsourcing locationGlobal IT players all there nowMany ...
Mark Hillary There is now a panel     session for Q&A          ------But if you want to stay in touch, you can find       ...
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Brazil and ICT

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Brazil and ICT

  1. 1. A Brit in Brazil: A few myths and a wealth of opportunity… Mark Hillary: CEO of IT Decisions Embassy of Brazil London, January 20, 2012
  2. 2. Agenda• Outline of Brazil• IT myths• The famous bureaucracy• Opportunities
  3. 3. A Brit in Brazil j.mp/markhillary• Seven books about technology and globalisation so far, next is on Twitter• Running IT Decisions in São Paulo, focused on tech research, analysis, advice, consulting… very close to Brazil CIOs• Blog for Huffington Post, Reuters etc… shortlisted for ComputerWeekly business blogger of the year award in 2009 and 2011
  4. 4. Think back to 2005• Tom Friedman sold millions of books explaining the globalisation of services• Focus was on the back office services, outsourcing, offshoring, nearshoring…. Often involving labour arbitrage
  5. 5. BRICs• I explored the BRICsand offshoring in 2007• I also wrote another book that year with Dr Richard Sykes of Intellect, commenting on the global flow of services
  6. 6. Global Services• This was 5 years ago, but we showed that global IT is a lot more complex than just cheap offshore offshoring…• Locations such as the UK can contribute just as much as India – ask Richard today, he will tell you!
  7. 7. Most predictions were wrong…• Focused on the Friedman view that new markets were opening up and would become the global ‘back office’ for EU and US firms…• Global crash changed growth expectations• Brazil now looks like a market that should be explored for partnerships – not a back office
  8. 8. Myths of IT in Brazil• It’s not cheap and ‘offshore’ – one US company boss recently told me his IT staff are lower cost back in the US• It’s not a market created only by the IT boom since the millennium• $165.7bn ICT spend in 2010 with only $2.4bn of services exported• There are several industry sectors where Brazil has outstanding world class resource – banking, mining, oil & gas… and the IT expertise supporting these industries!
  9. 9. Economic changes• The world is changing – you can see this in the news from the US and EU each day• EIU predicts by the end of this decade, the new world order in GDP will be: China, USA, India, Japan, Brazil• Just this month, Brazil’s GDP grew larger than the UK
  10. 10. Need a job? Try Brazil…• Prediction of 8m new professional job openings from now to 2015• 1.9m new jobs that were created in 2011• 34,000 job openings in IT alone in 2012• Lowest unemployment (6.7%) in recent history• 40,000 graduates of engineering each year, but industry needs three times as many!
  11. 11. Changing Class Class A = > £3300 pm … class E = < £370 pm 2003 2009 2014AB 13 20 31C 66 94.9 113DE 96 73.3 5929 million entered class C between 2003 and 2009In the period to 2014, class A and B will grow by 50%Source: Social Policies Centre of FGV-Rio
  12. 12. Bureaucracy• Paperwork needed for foreigners to reside in Brazil can be a headache, even when married to a local• A company can be started quite easily, but does require paperwork (at least 15 documents) and many cartorio (notary) visits• Different regulations at federal, state, and municipal level means you need good advice – and you have to trust your accountant!
  13. 13. BureaucracyConcept of proving identity with just a passport or other single document isquite alien in Brazil… leads to some Kafkaesque situations…
  14. 14. Opportunities• In 2010 CapGemini bought a controlling stake in CPM Braxis• In 2011, Indra bought Politec• Other IT firms being watched – Brasscom chief approached ‘every week’ by companies keen on IT M&A• Remember those spending numbers, almost $200bn on ICT in 2010…
  15. 15. OpportunitiesFIFA World cup 2014 and Rio Olympic games 2016 – investment in £ Hospitals Energy Security Stadiums Ports/Airports Sanitation Hotels Urban Transportation 0.00 5.00 10.00 15.00 20.00 25.00 30.00
  16. 16. SummaryBrazil is a market to work with, not a low- cost offshore outsourcing locationGlobal IT players all there nowMany local IT firms already being snapped up or entering partnershipsBureaucratic, but can be worked around with good adviceWith the EU turmoil, where better to be working?
  17. 17. Mark Hillary There is now a panel session for Q&A ------But if you want to stay in touch, you can find me here: www.markhillary.comtwitter.com/markhillary

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