Transcript Brazil Software and Services Outlook

BRAZIL - IT
Software solutions and services provider outlook
Agenda
Brazil and the ROW
Brazil and South America
Brazil and BRIC
Brazil’s economic indicators
Brazil’s innovation indicators
Brazil’s cultural DNA
Brazil’s IT environment
Why Brazil is competitive
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Brazil and the Rest of the World
Countries with area
> 4 million km²
Countries with population
> 100 million
Bangladesh
Nigeria
Russia
Pakistan
USA
Indonesia
Brazil
Australia
China
Canada
India
Japan
Mexico
Spain
France
Germany
Italia
Netherlands
UK
South Korea
Countries with GDP
> US$ 500 billion
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Brazil and South America
Colombia
Venezuela
Guiana
Suriname
French Guiana
Ecuador
Facts and figures:
Borders with 10 countries
Brazil
Brazil
Peru
Bolivia
Paraguay
Paraguay
Argentina
Chile
50% of South America surface
– More than 8 million Km2
50% of South American Population
– 184 million people
50% of South American GDP
Uruguay
– US$ 690 billion
– 8th largest in the world (PPP*)
*Purchase Power Parity
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Brazil and BRIC
Largest transports infra-structure among BRIC countries
67 Airports and 75 million people transported every year
31.000 Km railways (11th in the world considering
transported cargo)
1.7 million km of roadways (3rd in the world)
54 Maritime Ports
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Brazil’s Economic Growth
Sustainability
GDP – Accumulated 12 months
US$ Billion
459
486
Dec/02
Jul/03
506
Dec/03
561
Jul/04
688
603
Dec/04 Jul/05
Solid bases:
Inflation control – inflation rates converging to the target
Budgetary control – primary surplus
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Increasing Integration to Global
Trade
Diversified Exports Portfolio
1,9 %
57,6 %
29,3 %
Basic Products
Semi-manufactured
Manufactured
Special Operations
12,3 %
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Increasing Integration to Global
Trade
Brazil is :
– The 5th largest population in the world,
– The 11th largest economy in the world,
– The 4th largest aircraft manufacturer in
the world,
– The 8th largest automotive manufacturer
in the world.
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Increasing Integration to Global
Trade
Brazil has:
– The 2nd largest commercial air fleet in the world,
– The 2nd largest agriculture vehicles market in the
world,
– The 3rd largest market for TV sets in the world
– And the consumer may choose from:
– 450 different car models.
– 87 different typs of tomato sauce.
– 120 different brands of beer
– 180 different tennis shoes models
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Innovative and Technological
Environment
Investments in education
More than 8,000 doctorates graduated in 2003
2006 forecast: 10,000 doctorates
Investments in trainning and technical education
Stimulation to scientific and technological innovation
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Brazilian’s cultural DNA
Brazil´s characteristics
Respect to democratic institutions and to international laws
Peace promotion – Brazil has historically friendly, peaceful
relations with all its 10 neighbours
Brazilian people´s characteristics
Flexibility
Sense of humor
Affectivity
Hospitality
FRIENDSHIP
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SOFTEX – Brazil’s National Software
Export Promotion Program
Non-profit organization
Around 1,300 software
companies associated
Belém
Integrates government,
academia and private
companies efforts to support
software and services
competitiveness
Focus on business
generation, quality, industry
statistics and support to
government policies
21 Offices, 21 Cities, 13
States
Fortaleza
Campina Grande
Recife
Salvador
Brasília
Uberlândia
Belo Horizonte
Vitória
Juiz de Fora
São Carlos
Rio de Janeiro
Campinas
Petrópolis
São Paulo
Curitiba
Pato Branco
Joinville
Blumenau
Florianópolis
Londrina
Maringá
Porto Alegre
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Special quotes about Brazilian’s
ingenuity
Alice Amsden - MIT: “The information technology production in
Brazil is one of the best-kept secrets of the world.” …“Even
unknown abroad, the Brazilian software is becoming a treasure.”
Craig Barrett - Intel: “Now you have to focus on software and
services.”
The Economist: “Brazil is not far behind and score more highly in
other areas” (regarding offshore)
Java World Community: “Brazil holds the two biggest
Java communities in the world, just behind the USA.”
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Key Message
If you are looking for software solutions and IT
services...
...will find in Brazil a source of world class suppliers
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A background on Brazil IT
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Domestic Software and Services Market
($MM – 2003 IDC data)
15.600
13.950
7.315
4.125
2.320
Canada
China
Brazil
India
Singapore
2.116
Mexico
1.520
Poland
720
715
680
Malasia
Phillipines
Czech
Republic
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Brazil IT environment
98% of Income Tax filled through the Web
“Survey findings indicate that
government is seen as a more important
driver of e-commerce in Brazil than in
the rest of the world. For example, the
Brazilian government influences internet
diffusion by requiring taxpayers to use
online services”
Prof. Nick von Tunzelmann SPRU,
University of Sussex, UK
Source: TSE [Supreme Electoral Court] Final Reports, 2004
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Brazil IT environment
Digital Inclusion – % of population
National Program of Digital Inclusion
drives Internet users growth
Broad Band Penetration – million
Number of household with
Broadband in Brasil
5,8
Estimated Increase
of Internet Users in
Brazil
12%
4,7
3,7
6%
2,7
3%
40%
1,6
9%
1,0
10%
2003
2004
Natural
Growth
Connected
PC´s
Connected
Schools
Others
Source: Gov of Brazil data, IBGE and IBSG projection
2004
2005
2006
2007
2008
2015
Sources: IDC Blackbook 2004 v.3
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Brazil IT environment
Banking
The Brazilian banking system is a worldwide reference in
terms of technology and uses
SPB – Sistema Brasileiro de Pagamentos (Brazilian Payment
System)
– On-line transfer of funds among any financial
institution anywhere in the country
– Security and reliability: reduction of risk of
irreversible credit of payments
80% of 30 billion bank transactions are made automatically
(ATM, phone, fixed and mobile, Web...)
Source: Banco Central do Brasil (Central Bank of Brazil)
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Brazil IT environment
Banking
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Brazil IT environment
Elections – Electronic Balloting
General elections for president, governors, senators, and
legislators in 2002
– Carried out in electronic ballot boxes specially designed (HW
and SW)
– Total number of voters: 115 million throughout 5,657 cities
(18,880 candidates running for 1,654 vacancies)
– Period of time to count the ballots: 10 hours
– Solution exported to Mexico, Argentina, Uruguay
Source: TSE [Supreme Electora Court] Final Reports, 2002
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Brazil IT environment
e-Government
Over 1,700 services available on the Internet
More than 23,000 links installed
Over 35 million pages accessed per month
More than 6,000 auctions made
Citizens Portal
Car licenses annual renewal through ATMs
Almost 13% of Brazil’s population utilized
some sort of e-Gov service in the last 12 months
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Why is Brazil Competitive?
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Software solutions and IT services
Brazil’s competitive advantages - Sustainability
Brazil economic
background
(before 1994)
Qualified demand
Multi cultural
country
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Software solutions and IT services
Brazil’s competitive advantages - Sustainability
Brazil economic
background
(before 1994)
Constant economic instability and
changes established a solid DNA
for:
–
Fast understanding
–
Creative solutions
–
Efficient process implementations
–
Technology constantly updated
Current global IT environment
reflects same conditions with
shorter innovation cycles
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Gartner
Brazil: strong points as a source of global IT
services
Trained professionals
– 200,000 graduated IT professionals
– 23,000 additional/year
Extremely flexible and adaptable task force
Good fine tuning with the client
Creativity, easy acceptance of innovation (young
population)
Good technical abilities
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Software solutions and IT services
Brazil’s competitive advantages - Sustainability
Qualified
demand
The most representative multinationals are present in Brazil
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Software solutions and IT services
Brazil’s competitive advantages - Sustainability
Multi cultural
country
Easy understanding and adaptation to any culture
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Software solutions and IT services overview
Qualified human resources education
Universities*
Graduation Courses - 875
Enrolled – 159,984
Graduates – 18,279
Masters*
Masters Courses – 29
Enrolled – 2,467
Dissertations defended - 847
Doctors*
Doctoral Courses – 11
Enrolled – 560
Theses defended - 80
(*) Annual Average
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Software solutions and IT services overview
Export volume and growth
The size of Brazilian IT
industry was US$ 12
billions in 2005. It
ranked the 6th largest
in the world. Exports of
software and services
accounted for only
about 3% of the total
industry
The Brazilian IT industry
has been growing at
10%/yr since 2001 and is
expected to grow at
approximately 8.3%/yr in
the next three years
+US$ 315
million
US$ 100
million
Softex estimate
2001
2004
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Scope re-evaluation
“Demand Generation” was not a major issue
The real issue was “Organizing the Offering”
Revised plan:
Segmentation by verticals
Value proposition by vertical
Targeting and promotion by vertical (w/ few exceptions)
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Brazilian SW Industry Positioning
Value Proposition – “Resolutiveness” (Capacity to
effectively deliver solutions to resolve problems)
Differentiators:
– Innovation and updated technology
– Specialization
– Pro-activity in creating solutions with emphasis in the western
culture affinity and cultural plurality
– Geographic convenience and time zone proximity
Qualification Indicators:
– Competitive costs
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Areas of Expertise
Verticals
Financial Services
Telecommunications
IT Security
E-Government
Enterprise Applications
Education & eLearning
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Areas of Expertise
Verticals
Airline
Operations
Electric
Power
E-Commerce
Healthcare
2.378.279
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New Government Programs
International buyers financing: BNDES Prosoft
Exportation
Duty free regimen for exportation companies:
companies that export 80% or plus of their software or
services revenue are free of taxes
FCHS: to prepare HR for software and services industry
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New Government Programs
Programs to Increase the Quality of Software
and IT Services Process Development
– CMMi – Capabilitiy Maturity Model integrated
– MPS.BR – Melhoria dos Processos de Software Brasileiro:
Brazilian version for CMMi, sponsored and funded by
Interamericam Development Bank
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Thank you!