Brazil | Global Outsourcing Choices - IT, Services, and Programming

Brazil is fast becoming an outsourcing resource conduit in the global formation of multi-national enterprise (MNE) services. Both provider and recipient site for outsource developments in business process services; Brazil?s tertiary linguistic culture poses both a challenge and a potential point of leverage in management of service relationships in sectors such as finance.

How well Brazil is able to integrate outsourcing agreements into current trade law has much to do with the legislative attention to new business elements and requisite statutory provision designed to coincide with Government subsidized finance. As in most developing markets, Brazil?s global and legal maturity is defined by regulatory leniency attractive to entrepreneurs and investors alike.

Redefinition of ?offshore? in the era of outsourcing in Latin America has led to the concept interchangeable economic units as a norm within global business. The rise of business services outsourcing (BPO) in the context of international trade forces the reinterpretation of organizational value and places oversight as well as servicing in core infrastructure operating areas such as IT administration in the hands of less costly firms in developing economies like Brazil.

Regional considerations related to control of corruption in outsourcing agreements is pointed in recent MERCOSUR debates on trade. As countries in South America compete for capital, outsourcing plays an increasing role in the world of onshore commerce. Issues stemming from money laundering, regulation, sovereignty, trust, unfair tax competition, and resultant reputation problems are threats to potential profits, sustainability and growth to Brazilian firms in the course of participation. Investors in sectors where outsourcing is used widely now generally require more accountability in BPO process models than in the prior business context.

Companies conducting trade with financial and other key organizations in collaboration with outsourcing units in the e-commerce sphere, for example, present significant risk as more information services firms used by capital institutions are located in developing markets. Data and intellectual property security and privacy outlined in strict rule interpretation in developed markets may or may not be part of the scope of current legal protections in Brazil. If Brazil and other developing markets are subject to somewhat flexible security provisions, those risks run along a continuum where BPO providers located in free trade zones present the most peril.

With aggregate performance of South America?s economy in the last several years on the upswing, the probability that outsourcing in Brazil will grow is likely. Econometric analysis of Brazil?s position in the global market is relative to jurisdictional distinctions between that country and its trade partners.

The advancement of business-to-business outsourcing services available through Brazilian organizations will largely depend upon continuity in a pool of low wage, educated and skilled workers in priority BPO sectors (i.e. information services); and vital partnerships in the country?s banking and legal sectors required for the start-up or transfer of capital.

Competitive advantage sought in the immediacy of attracting more outsourcing businesses from abroad to Brazil?s labor force corresponds with tax incentives and other concessions in fee exempted work permits and foreign labor limits, as well as governance of international transactions, transfer pricing and other transparency issues.

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