Can Brazil Become a Global Competitor in the Information Technology Outsourcing Business?

616 Words Mar 6th, 2014 3 Pages
Minicase: Can Brazil Become a Global Competitor in the Information Technology Outsourcing Business?

1. Use the theories of international trade and investment that have been presented in this chapter to help explain Brazil’s intentions and actions regarding the international information technology sector.

The IT Service industry has expanded rapidly. Many companies worldwide have made the decision to outsource this industry to offshore companies. Worldwide demand has increased growth to 40 to 50 percent on an annual compounded rate basis. Many developing nations like Latin America and Asia have made an attempt to obtain some of the IT offshoring business from countries like the United States because it is seen as not only a source
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Brazil's culture and values are also much more Westernized and when you are dealing in business that may not make a difference to some, but to others, it can be critical to being able to relate effectively with their new "team" members and subsequently increasing efficiency. The aggregate total of these strengths have meant that large US based corporations like IBM, Accenture, Hewlett-Packard and many more have expanded their IT offshore activities to Brazil.

2. What recommendations would you give to the Brazilian government and its outsourcing industry in order to improve their prospects for success in building a strong international competitive position in the information technology outsourcing business?

Brazil does have some weaknesses that need to be addressed in order to effectively sustain growth in this fast-growing market. I would suggest that attention and subsequently, investment be given to the country's sources of electricity generation. There have already been many issues with electrical failure resulting in brownout and even blackout in some areas. There should be free classes offered in English for their potential IT candidates as well in order to increase the chances of success in this market. Experience in dealing with international markets and clientele is also needed. I would suggest some training classes that allowed for these issues to be addressed in