Despite the crisis, the AT Kearney survey of the global Offshore Outsourcing market reports growth of over 20% in the year. Improved competitiveness positions Brazil as a strategic player ready to vie for this US$ 31 billion market over the next two years

On April 16th Brasscom published a study showing a vision of the global Information and Communication Technology (ICT) market and Brazil’s position on it. Carried out by international consultancy AT Kearney, the study – which came out of a partnership with FINEP and the Brazilian Government and was backed by the MCT, MDIC, BNDES, Apex-Brasil and ABDI – shall be used to direct joint efforts between the Government and private initiative to position Brazil amongst the three leading global players in the ICT sector.

AT Kearney says that Brazil has stepped up its competitiveness as an offshore market, up from 10th place in 2005 to 5th in 2007. Brazil’s potential is becoming increasingly evident, and it has become a reference point for the leading nations competing with it, such as India, the leader in the segment.

The global market blossomed from US$ 50 billion in 2007 to US$ 70 billion in 2008. Although the outlook for growth has been reviewed as a result of the credit crunch, AT Kearney estimates that by 2010 the offshore outsourcing market will have expanded by 20%, to US$ 101 billion. Of the US$ 31 billion to be turned over in the next two years, half will certainly go to one place alone: India. The other half, however, will be competed for by Brazil and other emerging markets, such as China, Mexico, Argentina, and Chile.

In order to grab a significant slice of the market and establish itself in a leading position, AT Kearney states that Brazil has become more competitive in offshore outsourcing and has been gaining a growing share. Brazil is now ranked third in terms of human resources and its business environment, and is braced to supply game-changing solutions through its highly specialized resources and sophisticated domestic market, especially in vertical markets, such as finance, retail, manufacturing, communications and services.

In global terms, North America and Europe account for 77% of the demand for ITO / BPO services, with the international market generating US$ 819 billion in 2008, up 9.4% year-on-year. The region is also the leading buyer of offshore outsourcing.