An Overview of Latin American Talent                                                            March , 2011This report is...
ObjectiveScope    This report is intended to provide location and talent pool    information across key cities in Latin Am...
Agenda                                               Location Analysis                                                 Bue...
Campinas (Brazil)                                                                                                         ...
Campinas (Brazil)                                                                                                         ...
Campinas (Brazil)                                                                                                         ...
Campinas (Brazil)                                                                                                         ...
Campinas (Brazil)                                                                                                         ...
Campinas (Brazil)                                                                                                         ...
Campinas (Brazil)                                                                                                         ...
Campinas (Brazil)                                                                                              Major Compa...
Campinas (Brazil)                                                                                                         ...
Additional Information  The full report provides location and talent pool information   across the following other key ci...
Full report on the Latin America Talent Hotspots can be accessed                                                          ...
Zinnov LLC4701 Patrick Henry Dr.Building 7Santa ClaraCA – 95054Phone: +1-408-716-843221, Waterway Ave,                    ...
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An Overview of Latin American Talent


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Latin America has grown to be a region of great promise for the global sourcing industry. It has the attributes that have made emerging markets attractive to outsourcers, such as low wages, modern and extensive infrastructure, sizeable talent pool etc.

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An Overview of Latin American Talent

  1. 1. An Overview of Latin American Talent March , 2011This report is solely for the use of Zinnov client and Zinnov personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Zinnov
  2. 2. ObjectiveScope This report is intended to provide location and talent pool information across key cities in Latin America (highlighted in the map). More specifically, the report looks at following key dimensions for analysis  Location insights  Business landscape  Regulations Heredia, Costa Rica  Government Initiatives Panama City, Panama Bogota, Colombia  Incentives  Infrastructure & Connectivity  English Proficiency  Geopolitical environment  Quality of life, Cultural compatibility & Cost of living  Risks Eldorado del sur, Brazil  Talent ecosystem  Overall talent pool availability (at a country level) Campinas, Brazil  Talent pool across specific domains including IT Services, Product development (Hardware & Santiago, Chile Buenos Aires, Argentina Software), BPO and Tech support  Talent pool distribution by innovation and support activities Support CenterPREVIEW REPORT The current document is a preview to the complete study and covers one city, Campinas Support / Innovation Center (Brazil) on the location and talent pool aspects
  3. 3. Agenda Location Analysis Buenos Aires (Argentina) Panama City (Panama)PREVIEW REPORT The current document is a preview to Campinas – Sao Paulo (Brazil) the complete study and covers one city, Campinas (Brazil) on the location and talent pool aspects Eldorado – Porto Alegra (Brazil) Santiago (Chile) Bogota (Colombia) Heredia (Costa Rica)
  4. 4. Campinas (Brazil) OverviewCampinas, the third largest city in the state of Sao Paulo in Brazil, is a majoreconomic and commercial hub City Overview – Campinas is one of the major cities in the state of Sao Paulo and the 10th richest city in Brazil – It represents 0.96 percent of all Brazilian GDP2 – The literacy rate of Campinas city is around 95.01 percent and Human Development Index is 0.852 which is considered quite high – The city concentrates around one-third of industrial production of Sao Paulo state6 – Campinas main economic activities are agriculture , auto, machinery, telecommunications, e-commerce and services4 – The prominent services sourced from Campinas include hosting, application support & development and customization4 – Portuguese is the official national language, and thus the primary language taught in schools. But English and Spanish are part of the official high school curriculum City Statistics – Campinas has a large number of educational institutes as well as technical schools. The University of Campinas City Population1 (2010 Census) 1,080,999 (UniCamp) produces 1,935 graduate and post -graduate students every year and is also ranked as the institution Population Growth Rate1 1.8% producing the highest number of patents in Brazil5 City Area1 795.6 KM2 – The region around Campinas is known as the Brazilian “Silicon Valley” due to the presence of a large number of Official Language2 Portuguese research centers, universities (13), high tech industries GDP (Campinas Metropolitan Area) USD 42 Billion and MNCs5Source: Map – 1. Brazilian Institute of Geography and Statistics, 2. CIA – World Fact Book / Brazil, 3. Zinnov Research and Analysis 4. KPMG Global Frontier Report, 5. NaiGlobal, Global MarketReport (Campinas), 2008 6.
  5. 5. Campinas (Brazil) Qualitative AnalysisThe city boasts of having a number of prominent high-tech MNCs such as IBM, Ciscoetc., thanks to recent government initiatives to promote the outsourcing industry • The region hosts more than 10,000 medium and large companies, many of which are among the 1,000 largest and best in Brazil1 Business • The Campinas Metropolitan Region is home to many national and international high-tech industries, including IBM, Motorola, Freescale, Lucent, Nortel, Compaq, Celestica, Samsung, Alcatel, Bosch, TI Landscape • The largest companies have a global turnover of more than USD 80 billion, larger than many Latin American countries1 • Brazil is ranked 120th worldwide (2011 ranking) for ease of doing business at the country level (high ranking Measuring indicates the regulatory environment is more conducive to starting and operation of a local firm) Business • In terms of starting a business, its world wide rank is 125 while it’s 148 when it comes to paying taxes Regulations4 • Campinas boasts the largest number of high-tech business incubators and industrial parks (a total of eight) • The Secretariat of International Cooperation (SMCI) was created with main goals as the following: Government • Attraction and facilitation for the arrival of new investments to the city - Initiatives • Expansion of activities of companies that are already established in the city • Perpetuation of the relations between the city, its international community and partners • Sao Paulo / Campinas offers local tax incentives for IT firms to set up offices . The following are some of the benefits offered: • Reduction in social security contributions up to 50 percent1 Incentives • PIS/Cofins tax exemption for products purchased for export • Reduction in tax rates on services to two percent3 • Reduction in amount of Annual Real Estate tax from 30 to 50 percent3 • Exemptions from fees and emoluments3Note: Ease of Doing Business Ratings are done at country levelSource: 1. Wiki Encyclopedia / Campinas 2. 3. KPMG Global Frontier Reports 4. Ease of Doing Business – World Bank 5. Zinnov Research and Analysis
  6. 6. Campinas (Brazil) Qualitative AnalysisThese MNCs were attracted by the excellent infrastructure support from the city andavailability of English speaking talent pool • Campinas is a major transportation and telecommunications hub for the State of Sao Paulo, as it is located on the major highways that connect the capital to the Northwest and Northern parts of the State Infrastructure • Campinas has 1 five-star hotel and several other four-star hotels in the city, with a total of about 3,900 rooms3 • A scientific and technological park has been planned in Campinas, and is intended to be a hub for R&D activities and also offer incubation facilities for technology companies4 •The highway road system in Sao Paulo is one of the best in Latin American cities with a length of around Connectivity 34,650 km •More than 90 percent of population dwells within 5km of a paved road •Traffic congestion is common during peak hours in some parts of the city3 •Viracopos International Airport is located 14 kilometers (8.7 mi) from downtown Campinas and 99 kilometers (62 mi) from the city of São Paulo, and can be reached by the highways2 • English language skills are limited but education in English is being encouraged3 English • The official language is Portuguese, though Spanish and French are also commonly spoken languages2 Proficiency • English is often studied in schools and increasingly in private courses. It has replaced French as the principal second language among educated people1 • The violence and crime rates are particularly high in the Campinas City including robbery ,kidnapping and Geopolitical cargo theft. In 2006 the Campinas government partnered with Bosch and put in a security system with Environment around 270 CCTVs to keep the crime rate under check3 • The state of Sao Paulo witnessed criminal attacks against the police and some civilians in May 2006,which led to several casualties3Source: 1. Wiki Encyclopedia / Campinas 2. 3. KPMG Global Frontier Reports 4. University of Campinas, website 5. Zinnov Research and Analysis
  7. 7. Campinas (Brazil) Talent PoolIn addition, low cost of living & a truly cosmopolitan culture has helped attractprofessionals from other locations turning the region into a breeding ground forquality talent Quality of Life • Sao Paulo has a quality of life ranking as 119th 1, 11th in Latin America according to the Quality of Living survey by Mercer • According to a study from Getúlio Vargas Foundation, this is the best city to work in the country 3 Cultural Compatibility Catastrophic Risks• Some parts of the city are prone to • Sao Paulo is home to the floods, especially in summer 5 largest Asian population in Brazil, as well to the largest Japanese community outside of Japan itself• On February 17th 2003, a storm caused Key Highlights of Campinas by a cold front impacted a large area of • 0.9 % of population in Campinas is Southeastern Brazil and in Campinas Asians 3. 75 percent of the this event was the second severest in population comprises of whites 3 120 years according to the Ins-t i tuto Ag ronômi co de Campina s 6 • Languages used in Campinas are Cost of Living Index2 Portuguese, English and Spanish • The cost of living in Sao Paulo is one of the lowest among global cities. It ranks 161 (of the 241 cities) • The city does not have many places according to the Cost of Living Survey by Mercer. for tourist attraction unlike other • Consumer Price Index (Exc. Rent): 92.35 Latin American cities 3 • Rent Index: 33.80 • Groceries Index: 53.93 • Restaurants Index: 64.03 • Local Purchasing Power: 56.38Note: Cost of living index provided is relative to New Yorl City (NYC), which means that for New York City, each index is 100(%)Source: 1. Mercer Quality of Living Survey 2. Numbeo Database for Cost of living worldwide 3. 4. Zinnov Research and Analysis 5. KPMG Global Frontier Reports, 6.
  8. 8. Campinas (Brazil) Talent PoolHi-tech companies can tap talent from the sizeable working population (countrylevel) of whom nearly two-thirds are employed in the services sector Filter 1 Filter 2 Filter 3 Population above the Employed Population in Sector legal age Organized Sector analysis Labor force distribution1 Service: 66% 203.4 million 149.9 million 103.6 million Brazil’s Total Legally Employable Working Population1 Population Agriculture: 20% Population Industry: 14% Demographics Legal Environment Resource Details Sao Paulos population is The legally employable age in Unemployment rate is growing at 1.8 percent Brazil is 14 years around 9.3 percent1 More than 70 percent of  Extensive social security and Over 60 percent of the Brazil’s total population is legally labor regulations govern working population is employed employable employer/ employee relations in services industry1Note: The above data is country specific. City specific research is in progress, 1. Legally employable population constitutes of the total population >14 yrs of age 2. Working population constitutes of the total labor force in urban areas of Brazil (2010est.)Source: 1. *CIA World Fact Book / Brazil 2. ** 3. Zinnov Research and Analysis
  9. 9. Campinas (Brazil) Talent PoolThe talent pool in Sao Paulo has a large concentration of BPO and IT services professionals dueto the opportunity presented in the domestic market in addition to other geographies Product Development IT Services BPO Tech Support Total* Talent Mapped Domains Software Hardware Total 92400- 18600- 25100- 43700- 150800- Total Talent Pool* (2010) 57500-60375 344400-361620 97020 19530 26355 45885 158340 City Level Highlights Sao Paulo Talent Pool Distribution (2010 est. ) – Talent Base: – Sao Paulo / Campinas has the largest base of BPO talent that is growing at a fast pace Tech Support – Attrition: Sao Paulo has 10-15 % higher attrition when compared to country average BPO – People costs: 17% – The total annual cost per FTE for IT centers for Sao 44% Paulo is USD 51,000 to 53,000 which is higher than for Curitiba in the range of 43,000 to 45,000 – Salary levels in Sao Paulo are on an average 10-15% PD ( H & S) 12% higher than the rest of the country – Business Opportunity 27% – A number of IT-BPO companies setting up centres in Campinas are looking to exploit opportunities in the large domestic market for IT services in Brazil IT Services – Unlike IT Services, BPO & Tech Support domains that are clustered in Sao Paulo/Campinas, Product Development is predominant in Tier II and III cities Total Talent = 344400 – Technical Support in Sao Paulo is mainly dominated by the MNCsNote: 1. Total talent refers to the average total value taken across the mapped domains 2. . Total Talent as in the entire city of Sao Paulo / Campinas,Makati City and OrtigasSource: 1. 2. KPMG Global Frontier Reports 3. Zinnov Research and Analysis, Primary Interviews
  10. 10. Campinas (Brazil) Talent PoolThe number of BPO and IT professionals in Sao Paulo has been rising steadily and isonly expected to gain further momentum in the coming years Sao Paulo Talent Pool Distribution 500,000 449500 450,000 CAGR: 14.2 % 393300 72,900 400,000 344400 64,800 350,000 302000 57,500 300,000 264500 51,000 197,600 Talent Pool 250,000 45,500 172,600 150,800 200,000 132,000 115,000 30,200 150,000 27,500 22,300 25,100 20,300 100,000 23,000 18,600 21,000 17,000 15,500 126,500 50,000 108,100 79,000 92,400 67,500 0 2008 2009 2010 2011 2012 IT Services Software Product Development Hardware Product Development BPO Services Tech Support ServicesNote: Above numbers are determined by estimations and hence must be seen with a tolerance of -10% to +10%, Sao Paulo‘s population is close to 11 millionSource: Zinnov knowledge base, Primary Interviews
  11. 11. Campinas (Brazil) Major CompaniesThe following is a list of key companies mapped for the Campinas/Sao Paulo talentpool analysis  Unisys  Adobe Innovation  TCS  Avaya Centers  Softek  Autodesk  Atos Origin  Lenovo  Microsoft  Mahindra Satyam  HP  IBM  TCS Support Centers  Accenture  Gemalto  CPM Braxis  Atento  Teleperformance  TelefuturaNote: Innovation and support centers include the functions mentioned in the initial overviewSource: Zinnov Research and Analysis, Company Websites
  12. 12. Campinas (Brazil) Case StudyPolitec is Brazil’s largest privately owned IT services provider with 6,000 employees Background and Business Description Scale of Operations – The company provides a broad range of – Establishment in Brazil – 1970 applications and infrastructure services, and has operations in China, Japan, – Facilities in Brazil – Bahia, Minas Gerais and Rio Grande do Sul, Belem, Europe, and the US Sao Paulo – Politec signed a memorandum of – 6500 understanding to collaborate with – FTEs ramp-up (Brazil) Chinese vendor Neusoft, and is – CEO – Dalton Luz planning a stock market flotation in order to fund the expansion of its – Partners – NA offshore business Key Groups Talent Insights – Support services offered: Business Process Services, HR, CRM, F&A, Training, Learning & Recruiting, Supply Chain Management, Support & Maintenance, – Employees provide technical Call Center expertise and service excellence for – Innovation Services offered: IT Services, Application Development, customers around the world Application Management, – The company is certified by the – Industry Focus: Banking, Finance, Communications highest IT standards such as CMMI level 5, MPSBr level A and ISO 9001, and has a strong delivery model and scale capacity. Support Services Innovation Services  Source: Zinnov Research and Analysis, Politec company website
  13. 13. Additional Information  The full report provides location and talent pool information across the following other key cities in Latin America  Buenos Aires (Argentina)  Panama City (Panama)  Eldorado del sur (Brazil )  Santiago (Chile)  Bogota (Colombia )  Heredia (Costa Rica)
  14. 14. Full report on the Latin America Talent Hotspots can be accessed Global Talent & Location Product through the Zinnov Talent & Location Portal 1. Locations: 80+ Countries, 400 Sign Up today for your free trial account Cities 2. Talent: Installed (5 domains, 31 functions and 155 skills) & Fresh University talent 3. Cost : Across cities, domains, functions and experience levels including productivity tax 4. Monitor: Pro actively monitor key trends, risks and other parameters by city and country 5. Peer Group: Benchmarking Information on over 7,000 companiesSnapshot of Zinnov’sTalent & Location Through this tool, companies can access data across any combinationProduct For more information, visit of the above mentioned categories.’s Global Talent & Location product empowers HR and Engineering leaders withlocation and talent specific data to make strategic, operations and transformationdecisions
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