Brazil might not be a country you associate with tech, but never forget that this is the Silicon Valley of Latin America.
What exactly does that mean? Well, the sheer size of Brazil combined with its well-educated workforce and abundant natural resources mean that everything from IT outsourcing to startups is going strong. It’s no wonder around 30% of all global internet traffic goes through this country at any given time.
Brazil’s advantages as a tech hotspot: what made it known as the Silicon Valley of Latin America?
The advantages that Brazil has for being a technological hotspot are many. But here we highlight three main aspects that helped the country to become known as the Silicon Valley of Latin America.
1) Huge market potential: with an estimated population of 200 million people, and a GDP of nearly $2trillion, there is no doubt that Brazil has potential. And yet with a current internet penetration rate of only 28%, this huge potential goes untapped.
2) The largest Portuguese-speaking country in the world: millions of Brazilians speak both Portuguese and Spanish, making the country one of the most diverse in the world both linguistically and culturally. This gives tech companies a fascinating range of translation services. Furthermore, many multinationals are based in Brazil due to its natural resources such as iron ore or bauxite.
3) A large economy: while still an emerging market, Brazil is one of the biggest players in South America. For example, it boasts one of the largest economies in Latin America and is considered to be one of the BRIC countries along with Russia, India, and China.
Why Brazil is becoming so popular for companies looking for outsourcing IT services?
First of all, Brazil has the brains to make it happen. While the idea may be simple, companies must consider the implications of outsourcing before they can proceed.
When companies decide to outsource their software development or hardware manufacturing, they are still relying on a team that they may not know anything about–which means potential problems could arise. Brazil is different because it has an abundance of well-educated workers who can do the job right.
The country also has an enormous pool of IT engineers and programming experts that many other countries simply don’t have. They’ve embraced technology early on, and at this point, 42% of all Brazilians are using smartphones – that’s more than any other country in Latin America -. In addition, Brazil has a number of dedicated learning institutions, such as UniRitter, that provide excellent education in STEM (Science, Technology, Engineering, and Mathematics) fields.
Another advantage of Brazil is its low price. As per the International Monetary Fund, the currency was pegged to the dollar from 2003-2004, which means that its value has remained stable for the past 10 years. Even in the midst of the global financial crisis, this country kept its currency at par with the dollar.
Do you want to know more about the aspects that make Brazil considered the Silicon Valley of Latin America? Download a free e-book on the subject by clicking here.