Case Study: Brazil Technology Outsourcing
Brazil technology outsourcing as a Global Competitor
Some of the largest dealers in technology companies such as CapGemini, have made a great outsourcing agreement with the technology service provider known as CPM Braxis, which is a big Brazilian outsourcer. This particular agreement was worth $300 million (Brasscom, 2011). This is one of the many agreements proving that Brazil has the potential of becoming a major competitor in the market of technology outsourcing. However, it has s few more strategies to implement in order to reach this particular level. Competitiveness was one of the major issues that were pointed out as limiting the Brazilian outsourcing companies from reaching their full potential. The Brazilian companies have to show the other countries in the global market that they are offering what the other major outsourcing countries such as India and China cannot offer.
Recommendations for Success
The panel in the Brasscom forum addressed a few strategies that could be used in order to put the country at the top of the technology outsourcing market. The main message that was passed across in this forum was that the IT companies had to find a way to distinguish themselves from the services being offered by the competitors. The Gartner’s vice president of research by the name Cassio Dreyfuss stated that the directors of the big domestic companies make one major mistake when conversing with potential clients. They always use such terms as “we also offer” instead of “we are the only one who offer” (Pacheco, 2011). The former term shows that they are not different from the competitors.
The major step to take in order to propel to higher heights is to come up with ways of offering unique solutions to the common problems. Offering what every other outsourcing company is offering, in the same way, will not push the domestic companies even a step further. The Market Research and Outsourcing, IDC vice president by the name David Tapper, stated that the domestic outsourcing companies must adopt a consulting posture. According to Tapper, the domestic companies should do the best in what they are best at instead of doing what the other countries such as India are doing. If they are to continue with the same direction they are taking currently, then the comparison between Brazil and India will be like a small supermarket (Brazil) trying to compete with the big chain stores known as Walmart (Pacheco, 2011).
The domestic companies need to offer something unique as a country, then offer individual ways of solving different solutions as individual country. In other words, the domestic companies need to first win the global clients as a country, and then incorporate the individual company strategies in order to have local competition.
Brazil’s Intensions and Actions
Brazil is ready to implement strategies in order to make sure that emerges the top in the market of technology outsourcing. After the forum, the companies were motivated to start new products that would make the clients dependent on them if the country will not manage to beat China and India. During the forum, an example of the Apple Company’s CEO, Steve Jobs was given. He knew that the company would not move ahead of Microsoft. However, the company came up with products that make the customers dependent thus making it hard for them to loose any customers (Pacheco, 2011).
It is a high time that the Brazilian companies acted. It is not about waiting for the promising tomorrow but rather an opportunity of acting today. The Brazilian companies intend on coming up with the strategies discussed as soon as possible so that the results can be seen as early as possible. Starting small is the main goal. Different models will be considered in order to do away with the models that were used by India a long time back. By implementing new ideas, models and strategies, Brazil will be where it should be in a few years time.
Brasscom. The Event. Web. Brasscom.com, 2011. Web 14 January, 2012.
Pacheco, Filipe. Brazil IT’s Global Success Hinges on Being Unique. Web. Sourcing Brazil, 2011. Web. 14 January, 2012.