Companies are increasingly considering nearshore places such as Brazil while researching potential offshore locations in search of advancing good outcomes at significant cost savings. Many international organisations have been working with Brazil for a long time. The management teams of these multinational corporations recognised Brazil’s nearshoring capabilities and have worked tirelessly over the years to build a world-class development centre in Uberaba, Minas Gerais, that consistently provides outcomes that satisfy its clients.
Brazil is an appealing alternative to traditional offshore web sites such as China and India because to its proximity to the United States. It has the world’s seventh-largest financial system and the largest financial system in Latin America. Brazil has excellent electricity and telecommunications infrastructure and is also home to various IT giants such as IBM, Microsoft, and SAP. Here are seven compelling reasons to consider outsourcing to Brazil. This article discusses the several reasons why nearshore Brazil might be useful.
Fundamental advantages of nearshoring to Brazil:
- Good scope of Development: Because Brazil has a large pool of professional specialists, possible candidates are hired and placed through rigorous training to assess the structure, method, requirements, and equipment necessary for developing trustworthy business applications. Even the most experienced engineers go through this training as we build groups for customers to guarantee that everyone is on the same page. To ensure an excellent fit between the builders and the demands of the client, the organisations also change their training to meet the customer’s structure and requirements as needed. A shipping supervisor is also in charge of the company’s scattered improvement projects at the headquarters. This enables enterprises to quickly analyse concerns, detect instances where the standard operational model is inapplicable, and include availability of quality delivery of products.
- Increased Profit Margins: Businesses outsource their internal processes to decrease costs and shop time. It is costly and time-consuming to lease and educate an internal staff, especially in nations with high labour and operating costs. However, major outsourcing hubs in Brazil, such as Sao Paulo, have lower living costs than cities in the United States or Europe. This gap within the cost of living results in lower firm resources and lower worker pay. As a result, by outsourcing to Brazil, firms in the United States and Europe may reduce operating costs while increasing profit margins. For more information on the country’s revenue figures, see our entire guide on average salary in Brazil. Furthermore, due to overstock, global outsourcing leaders such as India and Ukraine would be less cost-effective for firms in their early stages.
- Good Business Practices: Brazil is a democratic country with a largely stable political environment and a growing economy – characteristics critical for attracting outside investments. Brazil’s ranking in the Political Stability Index (2019) (based entirely on World Bank data) is higher than that of Latin American nations such as Colombia and Mexico, as well as outsourcing hotspots such as the Philippines and India. Furthermore, the Brazilian government has implemented ground-breaking policies throughout time to improve the business environment and aid the outsourcing sector there. The goal of federal projects such as the Super intendency for the Development of Amazonia (SUDAM) and the Super intendency for the Development of the Northeast (SUDENE) is to expand commercial opportunities in the north-east. Expanding software and IT solutions firms, both locally and worldwide, are experiencing economic resource funding on both the national and federal levels. Brazil is also one of the few countries in the world that actively trade renewable energy assets such as biofuels. Renewable energy assets provide around 45 percent of Brazil’s primary power consumption. Because of its environmental policies, the country has an advantage over other developed and developing countries, which may also stimulate future economic growth. Brazil’s financial system, like that of many other Latin American countries, was damaged by the Coronavirus outbreak. However, trigger measures, together with a monetary stimulus package, have slowed the recovery.
- Strong Digital Infrastructure: Brazil has significantly improved its virtual infrastructure in recent years. It has caused the kingdom’s IT outsourcing business to rapidly expand. By the year 2021, Brazil will have over 35 company accelerators and over 90 manufacturing parks. Its Science and Technology Parks (STPs) promote innovation and research while also supporting societal and financial development. These technology centres include a high concentration of companies delivering data generation services, as well as contemporary virtual infrastructure. Campinas, near Sao Paulo, is one such place that is commonly referred to as Brazil’s Silicon Valley. Furthermore, due to its severe intellectual property (IP) laws, Brazil has only been mentioned a few times in relation to cybersecurity and intellectual property (IP).
- Competent Workforce: For a country’s services economy to thrive, qualified labour should always be available. As a result, Brazil’s federal government prioritises academic changes and has been effective in developing a dependable and vibrant workforce. One of the most often outsourced services in Brazil is software development, which necessitates programmers with valuable IT experience. To meet this need, the monarchy is brimming with outstanding technology colleges. For example, in 2021, The University of Sao Paulo is ranked 122nd internationally and first among several of the Best Global Universities in Latin America. Because many software programme outsourcing firms have facilities near such colleges, they may quickly lease and expand Brazilian builders when they graduate. It entails instructing pupils in sought-after talents like as coding and development. Employees in the ITO (Information Technology Outsourcing) industry transfer jobs far less frequently in Brazil due to lower competition in compared to India and China. In reality, Brazil has the lowest worker turnover rate in Latin America. Brazilians’ English language skills have improved as the presence of large enterprises has grown. Brazil is also home to a diverse range of cultures and ethnic groups. Because many Brazilians speak French, Spanish, and Portuguese in addition to English, this enables local BPO and contact with middle sectors.
These were the major benefits of nearshoring in Brazil. Due to these benefits, one can see a major growth in the nearshore IT staffing in Brazil.