| Sound Infrastructure |
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As with any economic sector, the development of the IT-BPO industry depends on a robust infrastructure. Brazil offers a world-class infrastructure and a strongly globalized market, especially in the IT-BPO sector, with a mature regulatory environment and business practices. Brazil`s basic infrastructure is currently undergoing wide-ranging expansion through the Program for Accelerated Growth (PAC), launched in 2007 by the federal government. Within the scope of this program, the public and private sectors intend to invest around US$ 390 billion in energy, logistics, social, and urban infrastructure until the of 2010. TECHNOLOGY PARKS Brazil has speeded up the growth and maturity of technology parks since 2000, and the objective is to invest in further development and grow. All major tech parks have an educational center as an active component. Brazil currently has 30 technology parks, including units already operating and those in the final stage of implementation, which form dynamic networks and connect various points in the value chain, including IT-BPO companies, universities, research institutes, consulting and service firms, the government, business fostering agencies and clients. The report details information on 18 of these technology parks, those that are fully operational and with the required infrastructure in place for Brazilian and international companies to operate. COMMUNICATIONS Communications services have spread throughout Brazil and continue to develop rapidly. Gartner states that Brazil`s infrastructure can support the expected double-digit annual growth in IT-BPO services. High quality and 100% digital fiber optic networks connect all large cities internally and also to hubs outside the country, providing high-speed internet connections. Internet access doubled from 2005 to 2008 and the broadband sector is expanding rapidly. Recent data released by the British research institute Point Topic shows that Brazil ranks ninth globally in total broadband connections. Brazil`s mobile telephone market is the fifth largest in the world, with 150,6 million handsets, and the fixed-line telephony market is the fourth largest. Brazil?s IT-BPO infrastructure has an advantage over that in the other BRIC countries, according to the Economist Intelligence Unit, whose methodology takes into account the money spent on hardware, software and IT services, as well as the number of computers and broadband connections. HOUSING MARKET Large Brazilian cities have experienced expansion of their housing markets, due to greater demand fueled by economic growth and greater access to finance. Prices are internationally competitive and have an advantage over cities in India and Russia. As an example, the average price of commercial rent in São Paulo, Rio de Janeiro and Brasília is around one third of the price in Mumbai and Moscow. In areas close to the technology parks of other Brazilian capitals, such as Porto Alegre, Belo Horizonte and Recife, the average price of rent can be up to 50% lower. A trend towards geographical decentralization is helping move IT-BPO centers to these areas, offering scale, professional qualification, quality, and communications infrastructure comparable to the large centers. ENERGY Brazil has a guaranteed, safe, diversified and green supply of energy. The electricity generation network includes 2,065 stations, including hydroelectric facilities (75% of the sector´s capacity), thermoelectric, solar, wind and nuclear powered stations. Electricity prices are established at tender and the market is regulated by the National Electrical Energy Agency (Aneel). Generation capacity, at 103,502 MW, has grown 42% over the last nine years. The forecast is that this trend will continue and that by 2013 the amount of energy supplied will have grown by another 19% on today?s levels. The current infrastructure serves almost the whole country?s population. Brazil produces more oil than it consumes, thus being less susceptible to a fluctuation in prices. The world`s leader in deep water exploration, the country is preparing for a leap in production. The recent discoveries of reserves in ultra deep water (7,000 meters) indicate that the Brazil`s oil and gas reserves will at least double over the next few years, placing Brazil amongst the five largest exporters. This production growth, combined with the construction of new refineries, will also make Brazil self-sufficient in oil-based products, such as gasoline. Brazil has the most advanced biofuel technology in the world. Its sugar cane-based ethanol production model is considered by the UN an example to be followed, with the lowest costs and highest environmental sustainability levels. Annual ethanol production is the second largest in the world - it has reached 23,69 billion liters in the 2009/2010 harvest. TRANSPORT Brazil`s road system covers 1.6 million kilometers and serves the whole country. Brazil also has a 44,000-kilometer water transport system, which is important in transporting agricultural production for exports. The country`s rail system is 30,000 kilometers long.
The country has 35 large international airports, 33 domestic airports, and 2,498 smaller airports. Domestic and international airlines offer short-haul direct flights, easily connecting main Brazilian cities to main cities in North America and Europe. |