Entrepreneurship in the Brazilian offshoring industry Essay

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Case 1: Entrepreneurship in the Brazilian offshoring industry
Brazil is one of the nations included in BRIC (Brazil, Russia, India, and China). In the past, Brazil’s outsourcing industry has been the smallest of the four BRIC nations. This is very surprising due to the close proximity to the United States and the current trend of “near-shoring”. However, due to recent governmental backing and inflows of capital Brazil has begun to improve and could possibly overtake Russia, India and China in the offshoring industry. The most promising sector in Brazil is their IT sector.
Capital Access Index 2009 Access to Capital
Brazil is the fourth-best country in Latin America for access to capital for entrepreneurs. Much of this improvement
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Access to Research & Development
One reason for Brazil’s success is due to their rapid spending in science and government incentives. However, concerns over rising inflation and an overheated economy has led Brazil’s newly elected President to implement across-the-board government spending cuts, totaling close to $30 billion. Resulting from the cut was a $577 million reduction in funding for the Ministry of Science & Technology, which was about 11% of the previous year’s budget. This lack of R & D spending could become a weakness for the future of Brazil[4].
In response to the growing concern, Brazil’s government established a new panel to study the future of science in the country. The panel will draw up long‑term plans for sustaining R & D within the country[4].
Technology
In IT technology Brazil is well staffed with its 250,000 IT professionals, 23,000 annual IT graduates, and infrastructure capable of supporting double-digit growth. According to the Brazilian Association of Information Technology and Communication Companies (BRASSCOM), Brazil's offshore outsourcing market hit $1.4 billion in 2008, rising 75 percent in a single year. An October, 2009 report from Gartner states that "Brazil's economic footprint combined with having the largest domestic IT consumption in all of Latin America, as well as international recognition as one of the most promising and rapidly emerging economies, makes it a natural
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