São Paulo – Looking for new target markets for their exports of software and information technology services, representatives of the Brazilian IT industry will attend the Forrester’s Sourcing & Vendor Management Forum EMEA 2012, due in June 19 and 20 in Paris, France. The Brazilian attendance will aim to conquer clients in the Middle East, Africa and Europe.
The Brazilian delegation will include representatives of the Brazilian Association of Information and Communication Technology Companies (Brasscom), the Association for the Promotion of Excellence of Brazilian Software (Softex), and of the enterprises Asyst International + Rhealeza and Stefanini. The country’s participation in the Forum will take place under the brand Brasil IT+, established via a partnership between Brasscom, Softex and the Brazilian Export and Investment Promotion Agency (Apex) to represent the technology industry abroad.
“The intention is to increase the visibility of Brazilian companies,” says the Brasscom market development director Sérgio Pessoa. He explains that currently, 75% of all Brazilian IT exports concentrate on the United States, and that the new organization aims to diversify the target markets by seeking specific opportunities.
“We are segmenting and assessing which locations have a potential for each sector. We are also assessing the different capabilities of Brazilian enterprises,” he says. According to him, the main products supplied by Brazilian enterprises and which may appeal to the Arabs are financial services software programs, especially those targeting the oil and gas industry. “This is a field in which there is strong potential and it holds great promise in the Middle East,” he says.
“Oil drills send out information in real time. There is a growing level of sophistication in the oil and gas industry,” he explains. In 2011, total revenues of the Brazilian IT industry stood at US$ 103 billion, out of which only US$ 2.6 billion originated from exports. Of that sum, Middle East and Africa countries accounted for less than 1%, but the scenario is amenable to change. “As the oil and gas industry grows, that figure might double or triple,” he says.
He also lists the main obstacles to increasing Brazilian IT exports, such as exchange rates and labour costs, among others. “Labour costs are very high in the services sector, and we also have a dearth of IT professionals. Another factor is, the Brazilian domestic market is growing at more than 10% per year. In 2011, it grew by 11.3%,” he says. According to Brasscom figures, the services sector accounts for 70% of total Brazilian IT exports, software accounts for 20%, and other items account for 10%.
Another point of interest to Brazil abroad is foreign investment attraction. “Out of all foreign direct investment into Latin America in 2011, US$ 67 billion went to Brazil. We want these investments to leverage the IT sector. Right now, there are centres such as IBM’s and GE’s, and other enterprises are establishing their own research and development centres in the country,” says the Brasscom executive.
In addition to the event in France, Brasscom is considering attending the Gitex fair, in Dubai, United Arab Emirates, aiming to export to the Arab market as well.
*Translated by Gabriel Pomerancblum
