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Brazil attracts technology projects performed by multinational enterprises
December 14, 2005
Gazeta Mercantil (Sao Paulo)
By mid-2007, all data centers of 17 Latin-American units of Johnson & Johnson will be concentrated in Brazil. After migration, neighboring countries will have only one basic infrastructure. From Sao Jose dos Campos, in the state of Sao Paulo, the Brazilian office will control the whole IT sector in the region.
The company counts on having only four of such centers of excellence in the whole
world. From 2000 to 2008 the IT sector in Brazil will have received US$ 30 million
in investments. "Investment used to be fragmented in the region and today it
is focused in the Country" states Jose Luiz Goncalo, J&J's vice-president of IT for Latin-America.
The plan to make Brazil a sole host of IT infrastructure is not exclusive to Johnson
& Johnson. All Motorola cell phones will have passed through the hands of Brazilians
before reaching the market, since the company chose Brazil to host the only world
center for the integration and verification of software for Motorola products & Brazil Test Center, with a US$ 20 million investment.
Two years ago, Siemens started a similar process, unifying its management system
integrated (ERP), web and e-mail servers.
IBM manages all their IT outsourcing clients in Latin-America and some in the United
States from Hortolandia, in Sao Paulo. "The Brazilian data center is a
world-renowned center, with 200 clients, locally and globally" says Ney Cruz,
the manager for the IBM center.
Brazil offers qualified and inexpensive labor, all of which contribute to attract
multinational businesses to focus their activities there. The demand for IT services
in Brazil itself is a decisive factor for the selection. At Siemens, Brazil is
responsible for 80% of IT use in all Latin-America. The main IT CIOs also point to
the robust structure of the IT sector as favoring migration. "Brazil has the
greatest volume of transactions and it already had the infrastructure of a data
center" states Siemens CIO for Mercosur, Jorge Luis Moukarzel.
According to the world CIO for Rhodia, Xavier Rambaud, it's the Brazilians
themselves who turn the spotlights on their country. "We have many
opportunities in Brazil due to low costs of living highly qualified
professionals" he explains.
In 2005 Rhodia invested US$ 7 million for the Brazilian branch to implement the
Project Americas, aiming at unifying management systems, replacing software used in
each subsidiary in the American continent for one platform only, which will serve
the group globally. Low cost qualified labor in Brazil makes it the ideal candidate
selected to manage IT for large business groups.
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