Who will take over Brazil IT?

Posted by By at 9 May, at 17 : 13 PM Print

Who will take over Brazil IT?

If you want to understand why the IT market in Brazil is so healthy, take a look at how business in general is doing – in short business is booming. Just browse the FT Tilt summary of Q1 in corporate Brazil here for proof.

Any modern organization needs strong support from IT. Retailers, bankers, telcos – none of them could function without strong IT to support their business, which is something that was unthinkable even a decade ago. IT has moved from playing a support role to being the enabler of new innovation and growth.

This is increasing the spotlight on IT in Brazil and with such strong growth across a diverse group of industries, it looks like the local IT sector has some interesting clients – and challenges – to manage.  Just at some of the recently published Q1 2011 highlights:

The strong growth continues across industry sectors as diverse as food production, drinks and beverages, and telecoms. Brazilian companies are seeing enormous growth and the IT service sector has not been slow to notice.

How does this compare to the economies of the US and Western Europe? Those economies were most battered by the global economic crash in 2008 and have barely recovered. These are the “zombie economies” where consumers are being asked to spend more to stimulate growth, but without job security, and with credit being harder to obtain, the days of free and easy spending are long gone.

The IT service players of the emerging markets, such as India, have all moved to Brazil, seeking business here. Over ninety per cent of the business undertaken by Indian technology giant Infosys in Brazil is for local clients. Capgemini moved into this market last year and bought a majority stake in CPM Braxis – entering the market quickly through acquisition.

When IT Decisions recently met the head of Brazilian IT trade body Brasscom, Antonio Gil, he said that foreign IT firms are often meeting with him asking for the best way to break into this market. He also said that he believes Brazil needs two or three of its own large players in the IT service sector – rather than being entirely foreign-owned IT firms servicing Brazilian clients.

Short of banning foreign investment and acquisition, how can this be achieved? The industrial growth-taking place in Brazil is too attractive for Americans and Europeans to ignore, as they find no takers for business in their home markets.

How long will it be before the next acquisition of a Brazilian IT services firm – and does it matter? The UK has no remaining major brand in IT services, yet millions of British people are employed by foreign companies in the IT service sector.

Will the same happen soon to Brazil?

Photo by Jordi Martorell licensed under Creative Commons

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17 Comments

  1. IT Decisions, 2 years ago Reply

    Record profits in Brazilian companies for Q1 2011 – IT needed more than ever, but will IT remain in Brazil? http://bit.ly/kiJfXM

  2. Mark Hillary, 2 years ago Reply

    @fttilt data on Brazil – but what about IT firms? http://bit.ly/kiJfXM

  3. IT Decisions, 2 years ago Reply

    @fttilt data on Brazil – but what about IT firms? http://bit.ly/kiJfXM

  4. Eliana Gomes, 2 years ago Reply

    RT @itdecs: Record profits in Brazilian companies for Q1 2011 – IT needed more than ever, but will IT remain in Brazil? http://bit.ly/kiJfXM

  5. IT Decisions, 2 years ago Reply

    @lojasrenner up 29%, Hering up 43%, Bradesco up 30%, Embraer up 400%, Vale up 325% – will IT stay in Brazil though? http://bit.ly/kiJfXM

  6. Mark Hillary, 2 years ago Reply

    @lojasrenner up 29%, Hering up 43%, Bradesco up 30%, Embraer up 400%, Vale up 325% – will IT stay in Brazil though? http://bit.ly/kiJfXM

  7. Softtek Nearshore, 2 years ago Reply

    Interesting: RT @itdecs: Who will take over Brazil IT? #itdecs http://bit.ly/ljVGEx

  8. IT Decisions, 2 years ago Reply

    @brasscom feature in new @itdecs story on Brazil IT ownership http://bit.ly/kiJfXM

  9. Mark Hillary, 2 years ago Reply

    RT @itdecs: @brasscom feature in new @itdecs story on Brazil IT ownership http://bit.ly/kiJfXM

  10. Diego de Souza Costa, 2 years ago Reply

    RT @itdecs: Record profits in Brazilian companies for Q1 2011 – IT needed more than ever, but will IT remain in Brazil? http://bit.ly/kiJfXM

  11. Diego de Souza Costa, 2 years ago Reply

    RT @itdecs: @brasscom feature in new @itdecs story on Brazil IT ownership http://bit.ly/kiJfXM

  12. Wagner Freitas, 2 years ago Reply

    Reportagem muito boa sobre o mercado de TI do Brasil, visto por quem está fora daqui. http://lnkd.in/VZ459x

  13. Brazil internet ambitions dwarfed by South Korea | IT Decisions, 2 years ago Reply

    [...] in the twenty-first century has failed to see that this is the printing press of our generation. Brazil’s companies are booming already, but just imagine what they could do if the citizens of Brazil – however rich or poor – [...]

  14. IT Decisions, 2 years ago Reply

    Will foreigners come in and buy up every Brazilian IT firm? http://bit.ly/kiJfXM

  15. IT Decisions, 2 years ago Reply

    Not so many of you seemed to notice this story – no major UK tech players left, will the same happen to Brazil? http://bit.ly/kiJfXM

  16. Yuryi Ferber, 2 years ago Reply

    RT @itdecs: Will foreigners come in and buy up every Brazilian IT firm? http://bit.ly/kiJfXM

  17. Diego de Souza Costa, 2 years ago Reply

    RT @itdecs: Will foreigners come in and buy up every Brazilian IT firm? http://bit.ly/kiJfXM


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