madison

Brazil's struggle to market its IT services misses its best asset

By | June 13, 2010, 7:39am PDT

Summary: Brazilian IT companies are trying to market their services but seem to be missing their best asset - Brazil’s incredible beauty…

I’m enjoying meeting Brazilian IT services companies and various IT associations as part of my trip this week to Sao Paulo and Rio de Janeiro.

The Brazilian IT sector is very sophisticated and it wants its share of the global outsourcing pie — the same pie that India and China enjoy.

This morning we heard presentations from several very senior government officials from the state of Rio de Janeiro. The overall message was that Rio de Janeiro has 8 out of ten of the country’s top science and technology schools; it produces 14,000 PH.d graduates a year; it has expertise in BPO and call centers; there are science and technology business parks; there is government financing, R&D credits, etc.

It’s very much the same message that every other place around the world is using in their efforts to attract global IT services business.

But when there are so many regions around the world now offering pretty much the same things, how do you distinguish yourself?

That was one of the questions put to the Brazilian officials and they didn’t have a good answer.

Antonio Gill, president of Brasscom, the Brazilian IT industry association, finished up the meeting by saying that there is a lot more work that needs to be done in getting the message out to the world that Brazil has a sophisticated IT services sector that is the equal of India or China.

“We are not very good at marketing,” he lamented.

As he finished, the curtains in the conference room were rolled back and sunlight poured in through the large windows. And the vista was breathtaking.

We were right across from the iconic beaches of Ipanema, golden sands stretching for miles, the surf tumbling in, thudding and whooshing, people relaxing, playing volleyball, blue skies and blue water. Wow.

It was my first real view of Rio de Janeiro because we had arrived late the previous evening. I’d seen plenty of pictures of Rio but none captured how stunning this city really is.

Endless golden beaches ring the bay, similar to San Francisco bay, but this bay is studded with spectacular islands that tower hundreds of feet above the water. Behind, there is a ring of steep, lush green, cathedral-like mountains, on which one stands the massive statue of Christ the Redeemer.

And that’s what struck me as the best way Brazil can distinguish its IT industries from any other place in the world:

“We have Rio de Janeiro.”

After all, when all things are equal, why would you want to work with outsourcing teams in India, or China, when you could have Rio?!

Consider this:

- India and China take a full day and night of travel to reach and you arrive horribly exhausted and unproductive.

- You have to deal with massive jet lag.

- You are stuck in places where you can barely see the sun through the pollution.

- It takes another 24 hours of travel to get home, you arrive horribly exhausted and with massive jet lag and are unproductive for days.

- You have to stay up late at night to communicate with your teams in India or China.

- You have to deal with significant cultural differences both in business management and popular culture, which affects communications.

Brazil has the same things that India and China have: established IT services firms; a highly educated workforce; lots of engineering graduates; tax and financial incentives.

But also:

- Rio de Janeiro and Sao Paulo are within one to four hours of the same time zone as US companies.

- There’s no need for US managers to stay up late at night to talk with their teams.

- Travel time is a lot shorter than India or China.

- Hardly any jet lag coming or returning which means you are productive instantly on arrival.

- Brazilians have a very good understanding of US culture and especially business culture, which makes for far better collboration.

- And the most important selling point - Brazil has Rio de Janeiro.

Here is my contribution to the marketing of Brazilian IT services in the US, just use this slogan: “It’s Brazil” along with images of Rio.

You can even play around with the “IT” in Information Technology: “IT’s Brazil” … along with some appropriate images of the great lifestyle in Rio.

In a similar way as in the movie “Spinal Tap,” when the lead guitarist shows of his custom amps that have dials that go to “11,” and is asked questions about what makes them so special compared with other amps, he keeps saying in a puzzled tone, “Yes, but these go to 11…”

If companies looking for IT outsourcing services ask questions, comparisons with Bangalore, etc, just repeat in a slightly puzzled tone, “Yes, but this is Brazil…” Because Rio takes Brazil to 11.

In the global IT outsourcing marketplace, when all things are equal — as they trend towards that point anyway — great lifestyle will be the next best selling point. And on this Rio de Janeiro can’t be beat.

As soon as Brazilian IT services companies figure this out, that the answer to their marketing problem is staring them in the face, they will do very well indeed. They just need to roll back the curtains.

- - -
Here is a Pearltree representing web sites related to this story:

Brazil and Tech

Kick off your day with ZDNet's daily e-mail newsletter. It's the freshest tech news and opinion, served hot. Get it.

Topics

Tom Foremski reports on the business and culture of Silicon Valley at the intersection of technology and media.

Disclosure

Tom Foremski

Tom Foremski is the editor and publisher of Silicon Valley Watcher and Silicon Valley Watch. Tibco Software is an advertiser.

Biography

Tom Foremski

In May 2004, Tom Foremski became the first journalist to leave a major newspaper, the Financial Times, to make a living as a full-time journalist blogger. He writes the popular news blog Silicon Valley Watcher--reporting on the business of Silicon Valley.

Tom arrived in San Francisco in 1984, and has covered US technology markets for leading computer journals around the world.

Talkback Most Recent of 13 Talkback(s)

  • There might be perception issues as well.
    1. China is in its own special category.
    2. India is viewed as a poor but neutral to semi-friendly nation.
    3. Brazil is viewed as an anti-American, possibly pro- terrorist nation.
    ZDNet Gravatar
    Bill4
    13th Jun 2010
  • ZDNet Gravatar
    DonnieBoy
    13th Jun 2010
  • RE: Brazil's struggle to market its IT services misses its best asset
    @Bill4
    Bill4, could you enlighten us with your definition of Brazil? Brazil is a democratic country with the population being majorly Catholic. The country has not been involved in any war since the Second World War when it fought alongside the Allies. Try to do some research before demonstrating such ignorance in public.
    ZDNet Gravatar
    Finnus
    13th Jun 2010
  • RE: Brazil's struggle to market its IT services misses its best asset
    @Bill4 "Brazil is viewed as an anti-American, possibly pro- terrorist nation."

    What?!?!?! No and no.

    All of the BRIC countries have pros and cons except Russian which I just wouldn't touch. Not that Russian doesn't have talented people, it does, but the mafia run state makes conducting any sort of legitimate business there difficult. I work with people in all three as part of my job.

    India has English going for it. For all of our complaints about Indian phone support, English is so widely spoken in India that it can be considered a primary, not secondary language to most educated indians. Once you adjust to the dialect and remember to strip cultural references, communication isn't bad. There are some cultural differences though, and the infrastructure can be quite poor in places though that is changing.

    China has world-class manufacturing as this point, but the cultural and language barriers can be pretty steep from a services standpoint.

    Brazil has several things going for it. The proximity and timezone mentioned in the blog are pretty big advantages. Culturally they are really more similiar to the US than any other BRIC country. Verbal communication in my experience is trickier than India, because english is more of a second language. Crime against foreigners is a little more prevalent than India or China.
    ZDNet Gravatar
    SlithyTove
    26th Aug 2010
  • Brasil is a biiiig country, there is more to it than Rio...
    The time difference with Brasil is a plus. Saying that Brasil has Rio de Janeiro is like saying the USA has San Francisco. Your IT people may be in Sao Paolo or Resende (like saying New York, Los Angeles). But if they are in Rio de Janeiro, and You have to go to check out the operations from time to time, then why not? (have been to Copacabana and Ipanema, but there is also Barra de Tijuca a bit farther to the south - beautiful multi-racial people)
    ZDNet Gravatar
    Roque Mocan
    13th Jun 2010
  • RE: Brazil's struggle to market its IT services misses its best asset
    Tom,
    I agree with you on Brazil, but not on Rio de Janeiro. I believe most Americans would regard Rio's lifestyle as too relaxed (pleasant as it may be) for serious business. Perhaps Sao Paulo, which is Brazil's biggest city and industrial powerhouse, would be a better alternative as it's a city usually seen as more "down to business" than Rio.

    BTW, please ignore Bill4's comments regarding Brazil, he/she clearly doesn't know what he/she's talking about. Here's what the Department of State has to say about it: "
    The Brazilian government continued to be a cooperative partner in countering terrorism, including investigating potential terrorism financing, document forgery networks, and other illicit activity."
    ZDNet Gravatar
    city_zen
    14th Jun 2010
  • RE: Brazil's struggle to market its IT services misses its best asset
    I disagree. Brazil's best asset is its commitment to getting the work down. Working with a server team in Sao Paolo, I find they're much more invested in my success than are our teams in India. Personally, I don't care if their native language is one that clicks and pops, because they consistently do the right job in a timely fashion, the Brazilians are rockstars in my mind. The Indian teams are invested in following scripts -- not in meeting the need at hand.
    ZDNet Gravatar
    AllesK
    14th Jun 2010
  • RE: Brazil's struggle to market its IT services misses its best asset
    Bill4 says "Brazil is viewed as an anti-American, possibly pro- terrorist nation." -- This is completely nonsense. Have you ever talked to any brazilian person?

    "The biggest problem for Brazil is language." -- And what do people speak in China? Btw most IT people speaks english, no matter where they live.
    ZDNet Gravatar
    eddc
    14th Jun 2010
  • RE: Brazil's struggle to market its IT services misses its best asset
    @eddc I believe Bill4 has confused Brazil with the cantankerous, Chavez-led Venezuela.
    ZDNet Gravatar
    ejhonda
    14th Jun 2010
  • RE: Brazil's struggle to market its IT services misses its best asset
    We also have Fortaleza... the "Miami" of Brazil. We also have direct overnight flights! Not many Americans with IT experience living here, just me. But the scenery and beaches here can't be beat!
    ZDNet Gravatar
    howard.computerdoctor@...
    14th Jun 2010
  • RE: Brazil's struggle to market its IT services misses its best asset
    @howard.computerdoctor@... I am an American who would love to move to Fortaleza. My wife is from Fortaleza. I need to find a job there. I work for HP in Dallas. PLEASE email me if you have any opportunities. Would move there in a second. so45920@hotmail.com
    ZDNet Gravatar
    so45920
    14th Jun 2010
  • Business meetings under a canopy on the beach?
    This could sell most anyone, unless they are 100% sold on politically correct management.
    ZDNet Gravatar
    Too Old For IT
    14th Jun 2010
  • CPM Braxis Capgemini and Brazil -- The New Face of IT Outsourcing
    Tom, thanks for raising awareness about the benefits of Brazil IT. Brazil has many unique characteristics which make the country a compelling outsourcing option for North American companies considering Nearshore IT services. CPM Braxis Capgemini's leadership explains why...
    http://www.youtube.com/watch?v=0Z-_kJZ1mak
    ZDNet Gravatar
    cschutz@...
    25th Mar

Talkback - Tell Us What You Think

Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]
Click Here

The best of ZDNet, delivered

ZDNet Newsletters

Get the best of ZDNet delivered straight to your inbox

Facebook Activity

White Papers, Webcasts, & Resources