References

Sadia is one of the world’s leading producers of chilled and frozen foods. Established in Brazil in 194...
Cyrela Brazil Realty is the largest residential real estate developer in Brazil. Considered one of the m...
Today, Banco do Brasil is the largest financial institution in the Country with 24.4 million clients and ...
CPFL Energia is a holding company in Brazilian electricity sector, operating through its subsidiaries in ...
Copersucar S.A. is the largest Brazilian sugar, ethanol and bioenergy company and a significant player in...

ICT- Information and Communications Technology Industry

Brazil is Latin America's largest IT market. It accounts for more than 45% of total investments in the IT sector in the region. The Business Monitor International has projected the growth of Brazil’s ICT sector at over 11% for the period 2008-2013.

Brazil has a mature market with expenditure properly distributed within segments such as software, hardware and services. The southeast region of Brazil accounts for 60% of spending in Singular regional structure. The northeast region of Brazil only accounts for 8.3 % of investments. The state of Parana is the fastest-growing region mainly because of government incentives for development of the ICT sector.

Small and medium companies account for 42% of private investment in the sector. There is large non-attended demand for hardware and services solutions, and this factor will be responsible for stipulating demand in the market. The domestic consumption of PCs, mobile phones, digital cameras accounts for 20% of the Latin market.

Banks are also projected to increase their IT spending, which would be around 20% of national IT spending. The Brazilian market has a high growth potential with special focus on mobile market. The country has over 150 million subscribers and the count is continuously increasing.

The government has chalked out a growth acceleration plan with an objective to create 100,000 jobs and revenues up to $1 billion by the year 2010.

The banking sector in Brazil promises moneymaking opportunities for telecom services, IT and security providers. The banking sector accounts for huge infrastructure investment in terms of:  ATMs, branches, back-office systems and technology investment and telecom expenses. New technologies such as digital certification, wireless LAN and mobile data transmission have great potential for particular market segments. The overall investment in levels of technology in the ICT sector is bound to grow in future. 

The future of the ICT sector is considered bright as 70% of retail and 50% of wholesale banks offer Internet banking services to the clients. The increase in online volume of bank transactions and constant losses incurred due to hackers shows a growth potential for banking security applications.

The public and financial sectors, telecoms, healthcare, SMEs and utilities also present strong growth opportunity. The banking sector particularly shows great opportunities as they integrate their IT systems, launch new products and develop good security and recovery plans.

 

Software and Services:

This sector projects an estimated annual growth rate of 10%. The fastest growing segments in this sector are business process management, business intelligence and business continuity. IT/Telecom convergence also shows a healthy growing trend.

 

Telecom and Broadband:

The number of broadband subscribers is expected to increase to 22 million in the coming five years. This provides a high growth potential as the penetration point reaches 10% by year 2013.

The fastest growing segments of the market are business continuity, business process management and business intelligence. IT/telecom convergence also shows a growing trend in the short/medium term. In the long term, software as a service will show more flexibility with less complexity and lower costs. In addition, flexible systems (Dynamic IT), and Green IT tend to be increasingly present in organizations’ business processes.

There are many reputed international companies that have recorded high growth in Brazil’s ICT industry. Dell reported a growth of 52% in sales in 2008.

The Brazilian government has also revised the high tariff rates, and the current rates are based and acceptable on GATT (General Agreement on Tariffs and Trade) which make the ICT sector lucrative for foreign investors.

Company profiles

Banco do Brasil

Today, Banco do Brasil is the largest financial institution in the Country with 24.4...