BRAZIL: An IT Giant Goes Global

ABOUT BRASSCOM
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Brasscom Today
VISION VISION

BRASSCOM concentrates its efforts on positioning Brazil as one of the three key global IT centers in the world, aligning public and private sectors, professionals and unions, generating formal and qualified jobs.

MISSION MISSION

Contribute to the local and global economic development through an agenda that reflects and spreads the excellence and innovation capabilities from the IT to other private and public sectors, increasing their productivity and quality.

ABOUT BRASSCOM

Brasscom programs

SUBSIDIZED PUBLIC CREDIT DRIVES TECHNOLOGY

BRASSCOMS AGENDA

THE IT-BPO SECTOR

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Global IT-BPO Market

THE IT-BPO SECTOR

Global IT-BPO Market

THE IT-BPO SECTOR

Brazilian IT-BPO Market

2008 ICT MARKET - USD Billion TOTAL IT SPENDING BPO EXPORTS COMMUNICATIONS IT IN-HOUSE TOTAL
Source: Brasscom, IDC

29.4 4.0 2.2 80.0 23.5 139.1

SPENDING ON IT-BPO, ADDED TO EXPORTS AND THE COMMUNICATIONS SECTOR, ACCOUNTS FOR 7% OF BRAZILS GDP

THE IT-BPO SECTOR

Brazilian IT Market Highlights

Strong and diversified internal market 3rd largest in PC installations in 2010 72 million Very competitive and open market Intensive use of diverse platforms: Oracle, SAP, TOTVS, BI, CRM, SOA, EAI, Mainframe, Unix, Linux, .Net, Java, Natural Adabas, among others Strong business-technology approach acquired from local market: Financial Services, e-Gov, Manufacturing, Telecom, Oil & Gas, Utilities, Retail

THE IT-BPO SECTOR 9

BRAZILS VALUE PROPOSITION

INDUSTRY AND BUSINESS KNOWLEDGE QUALIFIED HUMAN RESOURCES SOUND INFRASTRUCTURE GOVERNMENTAL SUPPORT ECONOMIC, POLITICAL AND LEGAL ENVIRONMENT CULTURAL COMPATIBILITY TIME ZONE PROXIMITY

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Economic Strength and Market Maturity

8th Largest Economy in the World and 1st in Latin America
2009 GDP: US$1.5T 2010 GDP expected growth: 5,0%

FDI 2008: US$ 45 B - 2nd largest globally

Source: Economist Intelligence Unit

45 Years of Investments in IT: strong and diversified IT market

8th largest in the world and 1st in Latin America

Industry Power: 45 of 50 largest multinationals are in Brazil

Global Brazilian Companies: Petrobras, Embraer, Vale, CSN, Gerdau, Aracruz, Suzano, Sadia, Inbev, Itau / Unibanco, Bradesco

Food Power
Worlds leading exporter of coffee, soy beans, beef, poultry, sugar and orange juice

BRAZILs VALUE PROPOSTITION

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Resources
Strong Telecom Infrastructure
Country wide network access 170 million mobile phones (2009) 15 million broadband connections (2009)

Strong Energy Infrastructure

Best among emerging countries Green: Leader in renewable energy

Strong Transport Infrastructure

Worlds 2nd largest country in number of airports - 34 international and 35 domestic Direct and fast access to Europe and US Federal and state highway system covers the whole country Efficient post office and availability of all major fast delivery operators
BRAZILs VALUE PROPOSTITION 12

QUALIFIED HUMAN RESOURCES

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Brazilian labor pool

Highly experienced IT professionals, starting 45 years ago 1,7 Million IT professionals in the market 100,000 new professionals per year in IT-related courses (technical, graduation and postgraduation)

PEOPLE AND KNOWLEDGE: THESE ARE THE DRIVERS IN THE ITBPO SEGMENT IN BRAZIL

2,281 Universities (Federal, State and Private) 6 million students in professional education 1,714 IT-related courses 220,000 people are being prepared to enter the IT market
QUALIFIED HUMAN RESOURCES 14

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Time zone proximity

SUBSIDIZED PUBLIC CREDIT DRIVES TECHNOLOGY

TIME ZONE PROXIMITY

Key IT-BPO verticals

Finance Inter-banking fund transfers in real time Sophisticated solutions in automation, internet banking, operations via mobiles, and ATMs Sound and dynamic electronic payment system 514 million cards in the market 5.3 billion transactions Manufacturing, Retail and Services Responsible for the greatest volumes of IT investments Intensive use of ERP, BI, SCM, R&D systems, CRM and e-commerce Telecom EXPERIENCE Healthcare Energy, Food & Commodities AND CAPACITY TO INNOVATE SET BRAZIL APART
BRAZILs VALUE PROPOSTITION 17

GOVERNMENT SUPPORT
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Direct Incentives
Strategic for the Brazilian Government, the IT sector has direct incentives in payroll and income taxes, and also in human resources qualification programs Law 11774: reduction of social security contributions on company payrolls by 50% depending on the amount of exports Law 11908: income tax deductions of 200% of the amount spent on staff training and R&D Tax deductions on technology transfers, licenses and royalties Fiscal incentives for special projects, such as reduction of Property Tax and Service Tax North and Northeast regions: from 40% to 60% of the research-focused staffs salaries are subsidized Training programs financing, increasing certifications and innovation

GOVERNMENT SUPPORT

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Total cost advantages

BRAZIL - COST ADVANTAGES

LOW TRAVEL AND COMMUNICATION COSTS LOW LEVELS OF REWORKING LOW MANAGEMENT COSTS TIME ZONE: REAL TIME INTERACTION HIGH PRODUCTIVITY AND BUSINESS KNOWLEDGE HIGH LEVEL OF CULTURAL COMPABILITY OPTIMIZED ON SITE X OFFSHORE RATIO

COST EFFICIENCY

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Brazilian Association of Information Technology and Communication Companies

Thank You

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