Brazil IT and Outsourcing Industry Forecast to 2011

The report "Brazil IT and Outsourcing Industry Forecast to 2011” underlines the issues related to the success of the industry and provides a prudent analysis on its various aspects. It is a comprehensive overview of the past and current performance of the IT industry, including software, hardware and services industry.

The report evaluates the factors, like better manpower services at relatively low cost and huge potential for the foreign investors to invest in the ICT sector, that define why companies are opting Brazil as an outsourcing or rather offshore development hub.

The issues related to human capital and the IT professional cost provides an overview to compare the Brazil outsourcing industry with respect to other emerging outsourcing destinations across the globe.

For the purpose of this report, IT market has been defined as the total spending on IT industry, including spending on hardware, software and software services market.

Key Findings

§ Brazil software and service exports are estimated to grow at a CAGR of 35.72% from 2007 to 2010.
§ Hardware industry in Brazil climbed up at a CAGR of 18.93% from 2004-2006.
§ Low cost outsourcing services and qualified talent pool are driving the industry.
§ The burgeoning IT industry provides opportunities to consultancy firms, R&D centers and ICT industry.
§ With the development of IT outsourcing industry, enormous opportunities emerge in the ICT industry and education service market for the global as well as domestic players.

Key Issues & Facts

§ How big is the Brazil IT industry?
§ What are the current IT industry trends in Brazil?
§ What are the factors that are critical to the success of IT outsourcing?
§ What are the various challenges and opportunities for the industry?
§ How is the low cost and cultural proximity driving the IT outsourcing industry?
§ Who are the key players in the industry?

Research Methodology Used

Information Sources
Information has been sourced from various credible sources like books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.

Analysis Method
The analysis methods include ratio analysis, historical trend analysis, linear regression analysis using software tools, judgmental forecasting, and cause and effect analysis.

Table of Contents

1. Analyst View
2. Industry Overview
2.1 Global IT Market
2.2 Global Software Market
3. Latin America IT Market
4. Why Brazil as Outsourcing Destination?
4.1 Time Zone
4.2 Low Cost Labor
4.3 Education System
4.4 Competitive Labor Force
4.5 Industry Association Support
4.6 Tax Incentives
4.7 Government IT Infrastructure Expenditure
4.8 IT Market
4.8.1 Hardware Market
4.8.2 Software & Services Market
4.8.2.1 Software
4.8.2.2 Software Services
4.8.2.3 Software & Services Export
5. Future Growth Scenario
5.1 By Verticals
5.1.1 Financial Sector
5.1.2 Insurance Sector
5.1.3 Services
5.1.4 Manufacturing
5.2 Outsourcing
5.2.1 IT Infrastructure Services
5.2.2 Capitive IT Consultancy Services
5.2.3 Nearshore Outsourcing
5.3 Human Resource
5.3.1 Low Cost
5.3.2 Consultancy Firms
5.4 Others
5.4.1 Growing SMB & IT Spending
5.4.2 Education Services Market
5.4.3 ICT Industry
6. Issues faced by IT Market in Brazil
6.1 Stiff Competition from India & China
6.2 Quality of Service
6.3 Language Barrier & Low Presence
6.4 Software Piracy
6.5 Lack of Training
6.6 Size & Certification
7. Key Players
7.1 Datasul
7.2 CPM Braxis
7.3 DBA
7.4 Paradigma
7.5 Politec

List of Tables

Table 7-1: Datasul - Key Financials (in ‘000 BRL), Q2 2006 & Q2 2007
Table 7-2: CPM Braxis - Key Financials (in Million BRL), 2006

List of Figures

Figure 2-1: Global - IT Market (in Billion €), 2005-2008
Figure 2-2: Global - IT Market by Region (%), 2006
Figure 2-3: Global - Software Market (in Billion US$), 2001-2006
Figure 2-4: Global - Forecast for Software Market (in Billion US$), 2007-2011
Figure 3-1: Latin America - IT Market (in Billion US$), 2005 & 2006
Figure 3-2: Brazil - Share in Latin America IT Market (%), 2006
Figure 4-1: Emerging ITO Destinations - Average Annual Salary (in US$), 2005
Figure 4-2: Brazil - ITO Labor Cost at Different Levels (in US$), 2005
Figure 4-3: Brazil - Government IT Infrastructure Expenditure (in Billion BRL), 2006 & 2007E
Figure 4-4: Brazil - IT Expense by Region (%), 2006
Figure 4-5: Brazil - IT Market (in Billion US$), 2004-2006
Figure 4-6: Brazil - Forecast for IT Market (in Billion US$), 2007-2011
Figure 4-7: Brazil - Hardware Market (in Billion US$), 2004-2006
Figure 4-8: Brazil - Software & Services Market (in Billion US$), 2004-2006
Figure 4-9: Brazil - Forecast for Software & Services Market (in Billion US$), 2007-2010
Figure 4-10: Brazil - Share of Software & Services Market (%), 2006
Figure 4-11: Brazil - Software Market (in Billion US$), 2004-2006
Figure 4-12: Brazil - Software Market by Type (%), 2006
Figure 4-13: Brazil - Software Market by Type (in Billion US$), 2006
Figure 4-14: Brazil - Domestic & Foreign Software Production (in Billion US$), 2006
Figure 4-15: Brazil - Standard & Custom Domestic Software Production (in Million US$), 2006
Figure 4-16: Brazil - Segmentation of Software Users (%), 2006
Figure 4-17: Brazil - Number of Software Companies (2005 & 2006)
Figure 4-18: Brazil - Number of Development & Distribution Software Companies (2005 & 2006)
Figure 4-19: Brazil - Software Services Market (in Billion US$), 2004-2006
Figure 4-20: Brazil - Number of Software Service Companies (2005 & 2006)
Figure 4-21: Brazil - Software & Services Export (in Million US$), 2004-2006E
Figure 4-22: Brazil - Forecast for Software & Services Export (in Million US$), 2007-2010
Figure 5-1: Brazil - IT Investment by Financial Sector (in Billion BRL), 2006 & 2007E
Figure 5-2: Brazil - Forecast for Spending on IT Industry by Insurance Sector (in Million US$), 2007-2011
Figure 5-3: Brazil - Forecast for Spending on IT Industry by Life Insurance Sector (in Million US$), 2007-2011
Figure 5-4: Brazil - Forecast for Spending on IT Industry by Non-Life Insurance Sector (in Million US$), 2007-2011
Figure 5-5: Brazil - Forecast for Number of Internet Users (in Million), 2007-2011
Figure 5-6: Brazil - Forecast for CRM Market (in Million US$), 2007-2011
Figure 5-7: Brazil - Forecast for Enterprise Management Software Market (in Million US$), 2007-2010
Figure 5-8: Emerging Outsourcing Destinations - Forecast for Average Annual Salary (in US$), 2010
Figure 5-9: Brazil - IT Security Spending by SMB (in Million US$), 2006 & 2007E
Figure 5-10: Brazil - Number of Broadband Connections (in Million), 2005-2011F
Figure 6-1: Brazil - PC Software Piracy Loss (in Million US$) & Piracy Rate (%), 2003-2006
Figure 6-2: Brazil - PC Software Piracy Rate in Comparison with Global & Latin America (%), 2005 & 2006

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