Brazil has the biggest financial system in Latin America and is a culturally numerous nation that boasts a wealth of tech expertise.
International funding soared in Brazil final yr with a report $91 billion invested within the financial system. Regardless of a forecast of solely .3 p.c progress for 2022, Brazil’s GDP truly grew by practically three p.c final yr.
These components make nearshoring in Brazil a beautiful possibility for corporations in 2023. On this article, we are going to spotlight the various advantages of nearshoring particularly for the IT and tech industries.
We will even take a look at what questions it is advisable contemplate earlier than nearshoring in Brazil, for instance, do you want an employer of report in Brazil?
What does nearshoring imply for enterprise?
Let’s outline what nearshoring is. Nearshoring is a enterprise technique the place an organization strikes a few of its operations or processes to a close-by nation, normally inside the similar area.
This method is usually used as an alternative choice to offshoring, the place operations are moved to a extra distant nation. Nearshoring may also help companies enhance effectivity and productiveness, whereas additionally sustaining a better stage of management and oversight over their operations.
The benefits of nearshoring in Brazil:
There are a number of benefits on your firm to discover nearshoring in Brazil. Listed here are 5 glorious advantages of nearshoring.
- Low labor prices
- Time-zone alignment
- Expert IT workforce
- Digital infrastructure
- Glorious return on funding
Under we are going to look at every of those Brazilian nearshoring advantages in additional element.
1 – Low labor prices
Outsourcing may also help companies cut back prices and save time, finally resulting in elevated revenue margins.
Creating and coaching an inside workers could be each costly and time-consuming, notably in nations with excessive labor and working prices.
For instance, an entry-level software program developer within the US can anticipate to obtain a wage of about $80,000 USD per yr, whereas a Brazilian software program developer doing the identical job can anticipate to make around $60,000 Brazilian Reais per yr (roughly $11,600 USD). That equals an incredible price saving of round 85 p.c!
As well as, nearshoring in Brazil presents a decrease residing price in comparison with main cities in the US or Europe.
2 – Time-zone alignment
Brazilian employees have comparable work hours to their counterparts in the US, Mexico, and Canada.
Since Brazil shares a timezone overlap with North America, there’s a potential for as much as eight hours of synchronous work. This allows seamless group collaboration and eliminates any delays in challenge completion.
It makes Brazil the perfect place to arrange a regional hub, so you possibly can facilitate enterprise operations throughout Latin America.
3 – Expert IT workforce
Brazil’s IT trade is ranked primary in Latin America and thirteenth globally for outsourcing software program improvement. This makes it a super location for nearshoring.
With its in depth connectivity, together with direct flights to the US, nearshoring turns into not solely handy however mandatory.
Brazil has over 400,000 software program builders, indicating that companies of any dimension and from any sector can seemingly discover succesful help to satisfy their particular necessities.
Past the 400,000 builders, the estimated total variety of individuals working within the IT sector within the nation is round 2 million, widening the scope of the workforce and attracting overseas corporations to spend money on Brazil.
4 – Digital infrastructure
Brazil has made nice strides in enhancing its digital infrastructure, resulting in a major enlargement in its IT outsourcing enterprise.
The nation has greater than 35 firm accelerators and over 90 manufacturing parks, with Science and Expertise Parks (STPs) driving innovation and analysis whereas supporting each social and financial improvement.
These STPs are house to quite a few corporations providing information technology providers and cutting-edge digital infrastructure, with Campinas close to Sao Paulo emerging as a hub like Silicon Valley.
Brazil’s stringent mental property legal guidelines have resulted in minimal mentions of the nation in relation to cybersecurity and IP.
5 – Glorious return on funding
Nearshoring in Brazil presents a profitable return on funding resulting from vital labor financial savings, entry to a big pool of certified tech employees, and improved effectivity ensuing from the timezone crossover.
This implausible ROI is why the world’s main tech giants corresponding to Microsoft, SAP, Google, and IBM have workplaces there.
Is Nearshoring in Brazil proper for your corporation?
Earlier than continuing with nearshoring, you will need to contemplate a number of components and ask your self some necessary questions:
Is it tough to seek out native expertise?
If discovering staff in your present location is dear or difficult, nearshoring in Brazil could also be a cheap possibility. Working with a neighborhood companion can even save effort and time in recruitment.
Are you snug with digital distant challenge administration?
Nearshoring depends closely on digital connectivity, which can require a cultural shift in your group if your corporation sometimes depends on in-person communication.
What’s your total objective?
Do you intend to rent full-time staff in Brazil, or do you want tech expertise on a per-project foundation? This determination will affect the native employment rules it is advisable work with. For instance, do you want an employer of report?
Is Brazil the suitable location for your corporation?
Whereas Brazil is turning into a preferred nearshoring vacation spot resulting from its giant pool of software program builders and engineers, different Latin American international locations additionally supply enticing choices with rising tech expertise swimming pools and potential price financial savings.
Biz Latin Hub can help you with nearshoring in Brazil
At Biz Latin Hub, we provide complete market entry and back-office options in Brazil, the remainder of Latin America, and the Caribbean.
We specialise in a variety of providers, together with nearshoring in Brazil, in addition to hiring and PEO, accounting and taxation, firm incorporation, and company authorized recommendation.
Our workplaces are positioned in main cities throughout the area. As well as, we’ve established partnerships in quite a few different markets, offering our shoppers with an in depth community of sources.
This in depth protection makes us well-equipped to assist market entry and cross-border operations throughout a number of international locations.
Get in contact with us in the present day to be taught extra about our providers and the way we will help you with your corporation endeavors in Latin America and the Caribbean.