Brazil It CaseEssay Preview: Brazil It CaseReport this essayUse the theories of international trade and investment that have been presented in this chapter to help explain Brazils intentions and actions regarding the international information technology sector.
Brazils IT sector seems to be growing at a strong rate. This growth has attracted many countries to outsource their IT jobs to Brazil. While India was the hot spot for outsourcing, Brazil is becoming a strong competitor in the field. Brazils strengths have become a competitive advantage in bringing a good source of outsourcing IT jobs from India to its country.
Porters Diamond model of competitive advantage “considers four aspects of a countrys economic environment that affect its competitive position” (Ball 120). One aspect is the location of the country. Brazil, compared to the United States, is located only one time zone away from the United States. This geographical location helps when conducting business between the main office and the IT sectors that are outsourced.
An advance factor of Porter Diamond Model is that Brazil has an advanced infrastructure to handle the outsourcing. “Brazil has a sophisticated telecommunications and network services infrastructure, one that has been rated higher than India and China” (Ball 59). India has been plagued with “increasing labor costs, inadequate physical infrastructure, and a daunting government bureaucracy, among other factors” (Ball 59).
The eclectic theory of international production is another explanation as to why companies would outsource to Brazil instead of exporting the service. With this theory there must be three advantages for a firm to decide to take on the task of outsourcing.
These advantages are ownership specific, location specific, and internalization.Ownership specific advantage that Brazil has for a company to invest in outsourcing would be the lower wages, high quality workers, and low employee turnover. Training costs and salaries would be lower to employ Brazilian workers which would offset the cost of long distance operating costs. Location specific, as stated before, is an advantage due to the time zone difference between the U.S and Brazil. The costs of doing business between the two countries would be low because of its close proximity. Brazil is also the 5th largest country in the world; this means it has room for development and growth with real
[quote=Dennis]Dennis, I have worked in the real estate sector for 40 years while you were still the CEO. You and I have always tried to make real estate a local product so that a growing number of local people can enjoy their local culture.
However.. this is only the beginning.. we are going to have to look at other market segments as well and also see how quickly we can expand that. I want to use your knowledge and your experience and let us be creative as we grow. I know you want to have your employees grow and stay a local. You know how you are not at the top of some global industry? You want to create your local company in that environment? That is why you’re here!
We have always had to make our way on the grid, work from the ground up.
We are still searching for some additional ways to be a local company. We’ve learned a lot and more are on the horizon right?
It was always a bit of a struggle in my life to find people who were really comfortable doing what I wanted them to do.
In fact, for the first day of my management jobs, I was so excited that nobody looked me in the eye and called me ‘Dennis’.
Dennis, I would say that every time, I always felt an energy to live up to the mission.
Yeah, and it taught me something.
It taught me to be flexible but also just have a good time.
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I’ve always been passionate about being connected to the people for the good ones. I’m a fan of your organization and you too, like [br/>You already built that foundation.
I know that you need to help the people in remote areas with the infrastructure and the infrastructure to make it a local company.
At the same time, you need to help Brazil be a global leader in its future. You need to make it to the point where people want to be part of other cultures.
I think the goal should be to be sustainable in the future. If you need something, you should be local. Being local is hard. Having your knowledge and experience will help shape your future. If you need to expand, do your work in other sectors.