IT-BPO BOOK

BRAZIL

Cover/Photo: Sunset, Rio de Janeiro - Brazil.

BRAZIL IT-BPO BOOK 2010-2011

TABLE OF CONTENTS
04. LETTER FROM THE PRESIDENT

05.

THE INFORMATION TECHNOLOGY MARKET a. Brazilian IT-BPO Market b. Brazilian IT-BPO Exports c. Global IT-BPO Market

11.

BRAZIL AS A GLOBAL PLAYER a. Business Knowledge

b. Qualified People c. Robust Infrastructure d. Government Support e. Favorable Economic, Political and Legal Environments f. Cultural Compatibility g. Time Zone Proximity

29.

CASE STUDIES a. Agriculture - Investment in innovation generates growth and sustainability b. Science as business c. Cloud computing d. Energy, Oil and Gas - Brazil as a global reference e. Brazilian food and beverages industry - a model of IT solutions f. Financial Services in Brazil: the leading edge of IT g. Social Media: new business and great opportunities h. Sustainability allied to IT i. Automotive sector: sophisticated technology and a global reference point

75.

BRASSCOMS AGENDA a. Main Programs b. The Board c. Members d. Supporters

85.

APPENDIX

Antonio Gil and Rogerio Oliveira. Photo: Luis Prado

BRAZIL: PROVEN LEADERSHIP IN IT

The Brazilian Information Technology (IT) industry is going through a virtuous moment in the post-recession and post-globalization economy, with a turnover of US$ 85.1 billion in 2010 the eighth largest in the world - and sophisticated solutions in several sectors of the economy. Advanced systems in financial services, e-government, flex-fuel engines, agricultural production management, oil and gas exploration and production automation not only help improve the countrys productivity and competitiveness, but also showcase Brazilians innovative DNA. The window of opportunity is open to the country during this decade, characterized by new technological trends, economic growth and demographic bonus in emerging countries. Brazil has the capabilities and excellence to double the sectors revenue and become one of the five major IT centers in 2022. The second edition of the Brazil IT-BPO Book provides an outlook of the Brazilian IT market and includes cases that prove the excellence of the solutions developed in the country, the innovative capacity offered by the professionals, and the robustness of the infrastructure. The collection and organization of information for this book required a great effort, and we would like to thank Apex-Brasil (Brazilian Trade and Investment Promotion Agency), BNDES (Brazilian Development Bank) and the Ministries of Science and Technology (MCT) and Development, Industry and Foreign Trade (MDIC) for their support. We are also grateful for the participation of Brasscom members and the dedication of the professionals involved in the production of this material. Best regards, Rogerio Oliveira Chairman of the Brasscom Board Antonio Gil President of Brasscom

03 04 LETTER FROM THE PRESIDENT

THE INFORMATION TECHNOLOGY MARKET

Nacional Museum, Braslia. Photo: Luis Prado

Brazilian IT-BPO Market Brazilian IT-BPO Exports Global IT-BPO Market

BRAZILIAN IT-BPO MARKET

Brazil has the seventh largest domestic Information and Communication Technology (ICT) market in the world, accounting for 8% of Gross Domestic Product (GDP), with revenue of US$ 165.7 billion in 2010. Brazil is expected to leap from 7th to 5th largest economy during this decade. It is perfectly possible that it will also leap from 7th to 4th largest ICT market in the world, as the Brazilian industry has the scale, business knowledge, technical expertise, and innovative capacity to do so. The largest share of the IT-BPO market is still accounted for by IT in-house, which is technology developed by the government and companies from other sectors of the economy. Hardware comes next - especially servers, storage devices, peripherals (printers, handheld devices) and networking equipment - followed by services (including planning, development, and system and process support and management), BPO, software and exports, with total revenue of US$ 85.1 billion in 2010, which makes Brazil the eighth largest domestic IT market in the world. In little more than five decades, the Brazilian IT industry has shadowed the countrys economic expansion, created sophisticated solutions to meet the increasingly complex demands of a diversified - and growing - industry base, thus becoming a highly creative and competitive market. Combining technical expertise and business skills, Brazil produces mature solutions for specific areas such as agribusiness, aerospace, automotive engineering, healthcare, commerce, insurance, banking automation, fiscal and tax operations, among others. Data released by Gartner in July 2010 shows Brazil as the most balanced IT market among the BRIC nations (Brazil, Russia, India and China), particularly because of the market size, the quality of Among the Brazilian companies with a global profile using IT services are Ambev (part of AB InBev - Anheuser-Busch InBev, the largest brewing and marketing platform in the world), BRF Brasil Foods (the worlds largest poultry exporter, the largest protein company in the world in market value), Petrobras (the 4th largest energy company in the world), Embraer (the 3rd largest manufacturer of commercial jets in the world), Vale (the worlds leading producer of iron ore and pellets, and the 2nd largest producer of nickel), CSN - Companhia Siderurgica Nacional (the 5th largest steelmaker in the world), Gerdau (the largest producer of long steel in the Americas) and Aracruz (the worlds leading producer of eucalyptus pulp). The financial system is also outstanding in this scenario. It has been named by the World Bank and Gartner as one of the worlds most advanced, with all the institutions connected to a national network that was developed entirely in Brazil. Brazil is recognized for its intensive use of world-class platforms, architectures and methodologies - such as Java, Unix, Linux, Cobol, Natural, .Net, C + +, Oracle, SAP, Totvs, Siebel, PeopleSoft, SOA, EAI, CMMi, ISO, ITIL, and others. Strong in vertical segments such as financial services, manufacturing, communications, oil and gas, retail and government, the Brazilian market is totally open, with Brazilian and international companies competing on it. resources, and the robustness and stability of the economic and political environments. The same survey ranked the Brazilian IT market as the 2nd largest among emerging nations - after China and identified Brazil as the Latin American headquarter of globally competitive firms, responsible for the creation of innovative and sophisticated technology.

05 06 THE INFORMATION TECHNOLOGY MARKET

Total IT 2010 (US$ Billion): 85.1

Brazilian ICT Market (2010, US$):
Hardware

Total IT Comunicaes Total

Source: IDC

85.1 bi 80.6 bi 165.7 bi

Analysis: Brasscom

19.8 39.5 13.3 2.4 4.7 5.4

Services Software BPO Exports In-house IT

Source: IDC Analysis: Brasscom

BRAZILIAN IT-BPO EXPORTS

In 2010 Brazils IT-BPO exports earned US$ 2.4 billion, with growth of 11% forecast for 2011, according to IDC. Services such as applications development, maintenance and support, infrastructure management, consulting, and staff augmentation, accounted for the largest share. Greatest demand comes from the finance and manufacturing sectors, followed by telecommunications, mining, oil and gas services. Brazils key clients are the United States, followed by countries in Latin America and Europe.

Ranking of IT-BPO Exporters in Brazil, 2010.

Total revenue

1. IBM 2. Accenture 3. HP/EDS 4. Stefanini 5. T-Systems 6. CI&T 7. CPM Braxis 8. DTS 9. BRQ 10. GFT

11. Tivit 12. Deloitte 13. TOTVS 14. Softtek 15. Tata 16. CSC 17. Sonda Procwork 18. Grupo ASSA 19. HCL 20. AtosOrigin

21. Cast 22. Unisys 23. Resource 24. Politec 25. Satyam 26. Neoris 27. Bull 28. Lgica 29. Algar 30. Ogeda
Source: IDC Analysis: Brasscom

GLOBAL IT-BPO MARKET

The IT industry has established itself over the last few decades as a key growth acceleration factor for the major global economies. This is clear upon analysis of certain aspects of its maturity, such as job creation, overall productivity growth, rising levels of competitiveness, and growth in GDP per capita. The best example of this strength and dynamism is the sector that combines IT services and business process outsourcing (BPO), whose growth forecasts remain high. Overall, IT-BPO services generated US$ 1.14 trillion in 2010 and is expected to reach US$ 1.2 trillion in 2011, with an annual growth of 5.2% between 2009 and 2014, according to AT Kearney projections. Of this total, outsourcing processes (performed inside and outside the country) contributed with US$ 769 billion in 2010. IDCs forecasts indicate that the global IT market will grow by 6.3 % in 2011 on 2010. The consultancy also states that mature countries in technology acquisition, such as the United States and Japan, will develop at lower rates than emerging economies, such as Brazil, where the IT industry is expected to grow by 13 % in 2011. Companies hiring outsourced services are also driven by the need to expand operations, reduce costs, increase revenue and optimize processes. As a result, the offshore IT market, which was worth US$ 58 billion in 2010, is also growing fast: between 2009 and 2014 the average annual growth is expected to be 8.3 %. According to data from AT Kearney, in 2011 this market will be worth US$ 62 billion and is expected to reach US$ 79 billion in 2014.

Global IT-BPO services market

In billions of US dollars
1413

Annual growth* 2009-14

1197 1262 1333 864

1096

1143

5.2%
824 908

763

769

788

3.5%

50

58

62

67

73

79

8.3% 2014e
Outsourced offshore IT-BPO services

2009

2010

2011

2012e

2013e

IT-BPO Services (in-house and outsourced)

* Compounded Annual Growth Rate. Source: Gartner. Analysis: A.T. Keamey.

Outsourced IT-BPO services

07 08 THE INFORMATION TECHNOLOGY MARKET

Rio de Janeiro
Niteri Contemporary Art Museum built by Oscar Niemeyer, Rio de Janeiro.

BRAZIL AS A GLOBAL PLAYER

Business Knowledge Qualified People Robust Infrastructure Government Support Favorable Economic, Political and Legal Environments Cultural Compatibility Time Zone Proximity

Brazil: OVERVIEW 2010

210.5 million mobile phone lines (more than one line per capita) 34 Brazilian companies in the Fortune Global 2000 40.9 million broadband connections 1.2 million highly trained IT professionals Second-highest growth rates in IT investment 4rd largest PC market in the world 6th largest market for mobile phones 7th largest ICT market in the world

Brazil: Abundant Natural Resources, Diversified Economy, Vibrant Cities

22% of arable land on the planet. 15% of the of drinking water on the planet: - Russia 8%, China 5% and India 3% Self-sufficient in Oil. Since 1994 with effective policy to control inflation. Diversified manufacturing and services. 83% of the population in urban centers: - Different from China and India, the urbanization started in 1960 - So Paulo: 11 mi inhabitants - Rio de Janeiro: 6 mi inhabitants

Industrial clusters Vehicles Motorcycles Steel/Mining Petroleum Ethanol Orange Juice Technology Parks Eucalyptus Pulp Regional Jets Beer (29 factories) Meat Packing & Processing

Source: UNESCO, IBGE, BNDES, Petrobras Website, The Boston Consulting Group - BCG, SECEX

11 12 BRAZIL AS A GLOBAL PLAYER

BUSINESS KNOWLEDGE AND INNOVATION

With domestic demand presenting new challenges on a daily basis, the Brazilian Information Technology sector has developed the ability to create effective and innovative solutions for a variety of industries. This has made Brazil one of the worlds best-prepared, most versatile and sophisticated technology markets.

Information Technology serving the people

Brazil uses technology services in the federal, state and municipal governments, with world-class levels of effectiveness and efficiency. The filing of tax returns for private individuals and companies is a good example, since it is completely done via the Internet in a practical and secure manner. Electronic voting also illustrates the excellence of Brazilian technology and is well-respected internationally. According to Brazils Superior Electoral Court (TSE), some 135 million voters participated in the elections in 2010, when, among other important positions, the new President was chosen. Developed in 1995, the system was used for the first time in the elections of the following year. The electronic ballot box is a small, robust, lightweight microcomputer with a keypad and LCD screen. The equipment comprises of two terminals: the first is used by the clerk to verify if the voter belongs to that precinct and is eligible to vote. The second is the electronic ballot box itself, where the data are stored. The high level of information security is also worth mentioning. Each vote is deposited randomly in a table on a memory card, which guarantees the absolute confidentiality of the information, as required by the Brazilian Federal Constitution. Once voting is over, a report is printed, making the result public knowledge. Votes are again recorded on a memory card - digitally signed and encrypted - and taken to a handover point. The technology is sophisticated enough to process about 300,000 votes per minute. The data transmission via satellite has also modernized Another example of using technology in society is the Electronic Filing of Police Reports. The service, established in 2000 by the Department of Public Security in the State of Sao Paulo, allows police reports on thefts and losses of documents, telephones and vehicles, as well as missing persons cases, to be handled on the Internet. The document has the same value as a report filed in person, as it includes verification and signing by a police officer. Brazilian elections. More than 400 municipalities used this to speed up the vote count. In less than three hours after the closing of sections, the whole country had the election results for president, governors, state and federal members of congress and senators. In addition to the electronic ballot box, the Brazilian elections in 2010 included new developments. In a pilot program, more than one million voters also used a biometric system. Fingerprint identification, handled by a high definition scanner, confirmed the voters identity by comparing the data provided with any database registered in the electronic voting programs, ensuring more security in the process. According to the TSE, by 2018 every municipality should have been provided with this technology.

IT in the financial sector

The Brazilian economy has gained increasing prominence in the world stage, and information technology has played a key role. In the financial services industry, the high inflation of the 1970s and 1980s intensified the need for automation and led to fast and efficient technology solutions. The countrys economic situation has since stabilized, but the recent economic boom and the need for competitive advantage continue to foster innovative developments, and professionals in this industry continue to develop significant business technology knowledge and expertise.

The Brazilian Payment System (SPB) is one of the most sophisticated, efficient and reliable in the world - Brazil is among the few countries in which interbank funds transfers can be made electronically in real time. The country provides technology solutions that are benchmarks in banking automation, Internet banking, mobile phone operations and interlinked ATMs, serving many of the leading banks worldwide and making life easier for users. The use of credit and debit cards is also on the rise in Brazil. The Brazilian Association of Credit Cards and Service (Abecs) estimates that by the end of 2011 Brazil will have about 437 million cards (debit and credit) in circulation. Together

with store cards, it will represent 685 million, having grown by over 430% in the last decade. This has led to changes in relationships between consumers and retailers. It is increasingly common for retailers to accept this form of payment, even for low value purchases. Besides banks, BM&F Bovespa is the leading equities and derivatives market in Latin America and serves as an international center for equities, commodities and other financial instruments, offering recognized operational excellence supported by IT.

Interbank transfers in real time. Sophisticated solutions in automation, Internet banking, transactions via mobile phones and ATMs. Solid and dynamic electronic payment system.

Electronic ballot box with biometric system. Photo: Nelson Jr./ASICS/TSE

13 14 BRAZIL AS A GLOBAL PLAYER

QUALIFIED PEOPLE: STRONG INTELLECTUAL CAPITAL

Brazil is the 5th largest country in landmass, and its population descended from immigrants from all over the world. In 2008, nearly three million classroom teaching positions were offered in higher education, representing an increase of 5.7% over the previous year, as surveyed by the Anisio Teixeira National Institute of Studies and Surveys (INEP), linked to the Ministry of Education (MEC). The survey also showed that the network of federal universities reported 14,462 new positions compared with 2007, representing a growth of 9.3%. According to the Ministry of Education, about 10,000 PhDs and 36,000 masters graduated in 2008. Scientific output increased 13.3% per year from 2005 to 2009, 5.6 times more than the global average. The data also show that Brazil is growing not only in number of vacancies, but also in the quality of its intellectual output.

Increase in world scientific output

USA
3.2% 3.2%

China
11.1% 15.1%

Mexico
4.5% 4.89%

3.0%

-2.5%

Japan

6.5%

13.3%

6.5%

13.3%

8.3%

9.5%

Chile

Brazil

India

Economic growth forecast by the OECD for 2010 Source: OECD www.oecd.org Scientific production growth from 2005-2009 Source: Scival Country Map

Education
The Brazilian IT market is booming and offering great career opportunities. The IT sector employs 1.2 million people, 400,000 in IT companies and 800,000 in other sectors. The demand for labor in the IT sector is growing around 6.5% a year, and wages are often twice the national average. In order to meet the challenge of increasing by 50% the relative weight of the Information Technology sector in the Brazilian GDP, the country will need to integrate 750,000 new professionals into the market in the next 10 years. To meet the growing demand for skilled labor, public and private institutions across Brazil are offering undergraduate and technical courses and IT training projects. The Higher Education Census of 2008, a survey conducted by the Ministry of Education, revealed a steady growth rate in technological education courses. In universities alone, there was an increase of 28.9% over the previous year. Considering universities and colleges, 650 new technological education courses were registered in Brazil, resulting in a total of 4,355 IT related undergraduate courses. In addition to vacancies on regular courses, 464,108 opportunities were offered in technical education courses in 2008, an increase of 17.9% over 2007. Besides English, languages like Spanish and French are commonly taught in the
Science and Technology Park of PUCRS (Tecnopuc). Photo: Gilson Oliveira

Priority for teaching foreign languages

To keep up with the growing internationalization of the market, Brazilian professionals invest constantly in English courses and private tutoring to complement the compulsory English classes in Elementary and High school. Among the major developing economies, Brazil has the 2nd largest number of English speakers, after India. Aware of the importance of fluency in English for IT professionals, Brasscom works with the government and the private sector to implement various courses in order to increase the English proficiency not only of IT professionals but also of the younger population.

country, especially in private courses. The ethnic mixing in the Brazilian population and the existence of large immigrant communities ensure a steady supply of professionals with proficiency in Italian, German, Japanese and Arabic, among other languages. The federal government has several projects for teaching foreign languages - one of them, deserving of recognition for its sheer size, is the Ol, turista! (Hello, tourist!), a partnership between the Ministry of Tourism and the Roberto Marinho Foundation. Using e-learning tools, the initiative will provide free English courses for 80,000 people by the 2014 World Cup. Priority will be given to people living in Rio de Janeiro, Bahia and Amazonas states, considered to be major tourist gateways. The Federal Government is investing US$ 7.9 million in the program.

15 16 BRAZIL AS A GLOBAL PLAYER

ROBUST INFRASTRUCTURE
Brazils infrastructure is ready to meet the global market demands. Because of the importance of the sector to the sustainable development of the economy, the Brazilian government has established a specific agenda for investments in the area, through public-private partnerships, and support from federal funds. The Growth Acceleration Plan (PAC), launched by Brazils federal government in 2007, was a great boost to the development of Brazils infrastructure. Since its inception, the program has invested about US$ 350 billion in transportation, energy, sanitation, housing and water resources, through state enterprises and the private sector. The great news is that PAC 2 is already underway. The first phase of the programs investments alone, officially published in November 2010, will involve 1,258 public works and projects throughout the country, in an investment totaling US$ 9.8 billion.
Bairro do Recife, Recife. Photo: Ascom Porto Digital

Communications
The Brazilian communications sector is highly structured and growing at a rapid pace. The use of computers, for example, is widespread. According to a survey by the Getulio Vargas Foundation (FGV), in 2012 there will be one computer for every two households, totaling over 100 million units in residential and commercial use. The same survey says that companies invest about 6% of net sales in IT, an increase of 100% compared to 12 years ago. Brazil offers yet more surprising results in Internet access. According to the Brazilian Telecommunications Association (Telebrasil), internet access in 2011 has reached 40.9 million people. Fixed access grew by 24.7% in 2010, from 12.3 million to 15.3 million in 2011. Mobile access grew by 77.4%, to 25.6 million. Telephony services also continue to expand considerably. According to Anatel and Teleco, by mid-2010, there were 41.6 million fixed telephone lines and 2.6 million VoIP lines. With 202.9 million mobile phone lines, Brazil has more than one cell phone per capita, accounting for one third of the Latin American market. Information from Teleco and consultancy RCR shows that in the international arena Brazil ranks 6th on the mobile phone market. The average fixed connection speed increased by 70% from 2008 to 2010, reaching 1.7 Mbps. The average speed of connection via cell phone or 3G modem increased to more than 600 Kbps.

The real estate market

Major cities in Brazil, such as Sao Paulo, Rio de Janeiro and Brasilia, have a complete and well-structured urban infrastructure and real estate prices much lower than Mumbai or Moscow, for example. Other smaller but also well-structured towns, such as Porto Alegre, Belo Horizonte, Recife, and Campinas are close to technology parks and have real estate prices that are up to 50% lower than in large cities. These locations are therefore an excellent alternative for companies wishing to invest in Brazil, since they are wellstructured and offer quality and scale similar to the large metropolis, as well as qualified professionals and good communication infrastructure.

Global reference in clean and renewable energy production. 10th largest oil reserves in the world. Worlds first producer of ethanol made from sugarcane.

Energy
The power system in Brazil is safe, diverse, clean and renewable. It is the leader among emerging countries in environmental sustainability. The network is made up of hydropower plants (75% of the sector), thermoelectric, solar, wind and nuclear plants. The power generating capacity has grown by 42% in the last nine years and in 2013 is expected to be 19% larger than at the moment. The country is self sufficient in oil, producing a larger amount than it consumes. Brazil is also the worlds 2nd largest ethanol producer, behind the United States, and the worlds first producer of ethanol made from sugarcane. The UN has identified the Brazilian model of producing ethanol as the most sustainable form of production, and considered it an example of high productivity and low costs.

Transport
With a landmass of continental proportions, Brazil has developed a system that integrates various forms of efficient transportation. The highway network, chiefly responsible for transport in the country, covers 1.7 million kilometers throughout the entire national territory.The river network, which is essential to agricultural exports, covers 44,000 kilometers, and the railroad network, also used for cargo transport, covers more than 30,000 kilometers. The Brazilian air transport infrastructure is also prominent on the global stage. There are 33 domestic and 35 international airports, in addition to 2,498 smaller ones. Domestic and international flights link Brazilian cities directly to major destinations in North America and Europe, plus several other locations, with over 880 international weekly flights. In order to further enhance the efficiency of the Brazilian transportation system and meet future demands across the whole country, the federal government plans to invest US$ 75 billion in the sector in the coming years, through the Growth Acceleration Program (PAC).

2nd largest number of airports around the world. 880 international weekly flights.

17 18 BRAZIL AS A GLOBAL PLAYER

GOVERNMENT SUPPORT
The Information Technology sector is of strategic importance to Brazil. Strengthening the sector and stimulating its growth are top priorities in the Federal Governments industrial and technological agenda. There are multiple incentives, programs and institutional support for IT, in order to make businesses more competitive in Brazil. The government provides capital for small and medium businesses in the form of investment funds and venture capital, and encourages the formation of consortia and joint ventures.

Strategic to the Brazilian Government, the ICT sector gets direct tax breaks on payroll and income, and also in manpower training programs.
Law No. 11,774: reduces social security contributions on exports by up to 50%. Law No. 11,908: allows up to 200% income tax deductions on spending on manpower training and R&D. Goodwill Law (Lei do Bem): allows spending on technology transfers, licensing and royalties to be offset against income tax. Tax breaks for special projects, such as the reduction of property and services taxes. North and Northeast Regions: 40% to 60% subsidies on wages for research professionals. Funding for training programs, increasing innovation and certification.
National Congress, Braslia.

Juscelino Kubitscheks Memorial, Braslia. Photo: Luis Prado

Incentives
The investment made by companies in manpower training can be deducted at up to 200% from income tax; when applied to research and development (R&D) it can be deducted from income tax at between 160% and 200%.

exports volumes. In addition, exports are partially exempt from contributions to a network of employers known as System S. Purchases of goods for export do not incur social taxes (PIS/Cofins).

Among the main investments made by FINEP is the national economic subsidy, whose regulations were released in 2010, worth US$ 284 million. These funds will support innovation projects in six key areas: information and communications technology, energy, biotechnology, healthcare, defense, and social development. In IT, companies developing solutions for the 2014 World Cup and 2016 Olympics will be supported.

Investments
In addition to tax breaks, IT companies operating in Brazil can choose from various public credit lines at preferential lending rates. Banco do Brasil and Caixa Economica - the largest public banks in the country offer favorable terms, as does the Brazilian Development Bank (BNDES).There is also a credit line specifically for technology projects, offered by the Financier of Studies and Projects (FINEP), an agency linked to the Ministry of Science and Technology (MCT), which funds scientific innovation and technological research.

There is a 50% reduction in the Brazilian Federal Excise Tax (IPI) on purchasing equipment for R&D, and the importing of materials for the purpose of developing software is exempt of excise tax. There are also tax reductions available on investments made in technology transfers, licensing and royalties. Regarding exports, companies get a reduction of up to 50% on contributions to social security, varying according to

19 20 BRAZIL AS A GLOBAL PLAYER

FAVORABLE ECONOMIC, POLITICAL AND LEGAL ENVIRONMENTS

Brazil has attracted an increasing number of foreign investors interested in opportunities in various industry segments, especially information technology, tourism, oil and gas, biotechnology and electronics. From 2005 to 2011, foreign investment increased from US$ 17 billion to US$ 60.3 billion. Because of the global crisis, in 2009 there was a slight decrease in the volume of foreign investments. The recovery in Brazil, however, did not take long and, according to the World Investment Report 2010, from UNCTAD, more than US$ 7.9 billion was invested from January to May, a new record for the period. Brazils political stability and economic strengh explain much of this. After almost three decades of democracy in a multi-party system, with free elections, three separate branches of government (the executive, legislative and judiciary) and regulatory agencies, Brazil has become a political reference for other Latin American countries, acting both as a debater and a mediator of global relevant issues. Brazil was one of the countries least affected by the crisis that shook the global economy in 2008, with economic performance outstripping that in rich economies and other emerging nations in 2009. Prior to the crisis, from 2002 to 2008, - GDP grew from US$ 724 billion to US$ 1.5 trillion. GDP grew by 7.5% in 2010, well above the global GDP growth rate of 4.6%, according to the Organization for Economic Co-operation and Development (OECD). Factors such as control of inflation, a floating exchange rate, low foreign debt, a priority agenda for tax reform, and international reserves of over US$ 280 billion in 2010, also add to the attraction of the Brazilian economy. Brazils 190 million people, spread across 8.5 million square kilometers, experience on a daily basis the results of income distribution policies, stability and sustainable economic growth. Data from the last household census (PNAD) show that besides social ascension - and the consequent increase in purchasing power - Brazilians living standards have improved significantly. The growth in education at all levels and significant gains on the labor market, with more people formally employed, are clear signs of improvement. The significant reduction in inequality in the country is another point that should be taken into account. According to a survey conducted by the Getulio Vargas Foundation (FGV), some 19 million Brazilians joined the ranks of the middle class in 2010. This is now the fastest growing section of society, reaching 101 million Brazilians (53% of the population). In 2010, social classes A, B and C accounted for 74% of the population. The diversification and maturity of the Brazilian industry also contribute to the attractiveness to foreign investors. Brazil has produced successful case studies in areas such as deep water oil exploration, in which it is a world leader, aircraft production with a focus on business, defense and commercial aviation, research and development for tropical agriculture, and technology for agricultural production. Brazil has been doing business with countries in every continent. China, the United States, Japan, and some European and South American countries are among the countrys main trading partners.

7th largest economy in the world and 1st in Latin America. GDP growth in 2010: 7.5%. FDI in 2010: US$ 38 billion.
Source: Economist Intelligence Unit, FMI / Brazilian Central Bank

Industry Positioning on the global stage 3rd largest manufacturer of aircrafts. 5th best in the regulation of capital markets. 6th largest manufacturer of automobiles. 8th largest IT-BPO market.

Oscar Niemeyer Museum, Curitiba.

Influence of Foreign Direct Investment on GDP

Intellectual property and combating piracy

Operating since 1970, the National Intellectual Property Institute (INPI) regulates and enforces intellectual property rights. In

25% 21%

1990 it took on the responsibilities of the National Council on Combating Piracy and Crimes Against Intellectual Property (CNCP). A signatory to the Berne Convention, the Patent Cooperation
10%

13%

Treaty (PTC), the Paris Convention and the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS), Brazil legally ensures 50 years of protection for software, as well as protection against disclosure of confidential information.

Brazil

Russia

India

China

Source: World Investment Report 2010 - UNCTAD

21 22 BRAZIL AS A GLOBAL PLAYER

CULTURAL COMPATIBILITY
The intense migration that occurred in Brazil in the 19th century helped populate the country and established an atmosphere of tolerance and plurality in the Brazilian society. Moreover, religious freedom is guaranteed by the Constitution, a fact which ensures the diversity of beliefs. Brazilians respect different cultures and customs and are able to easily incorporate new habits and work methods. That is why they can easily adapt to working in international companies and meeting the demands of other countries. This also creates a very conducive environment in Brazil for international business. Flexibility, a result of this interesting mix of cultures and traditions, means Brazilian professionals provide excellent services and are recognized for delivering good results.

10 million

Arabic-Brazilians

25 million

Italian-Brazilians

18 million 1.6 million

Japanese-Brazilians

German-Brazilians

African-Brazilians

96.1 million

1.8 million

15 million

Polish-Brazilians

Hispano-Brazilians

TIME ZONE PROXIMITY

One of the key benefits for European and North American companies doing IT-BPO deals with Brazil is the proximity of time zones. This is crucial to better interaction between teams, it minimizes costs and allows travel from Brazil to different locations around the globe without any major impact on schedules. According to the report The time zone really matters to Brazil - a case study on the Brazilian IT industry, led by the Catholic University of Rio Grande do Sul (PUC - RS), Brazils time zone is a decisive factor for many international companies when they need to sign new contracts and strengthen relationships with Brazilian companies. This is because time zone proximity facilitates the exchange of information and ideas in real time, and enables Brazilian companies to better understand the needs of their customers. The result is increased confidence and familiarity between the two parties. Another major advantage is a reduction in shift changes. While in Asian countries IT professionals need to drastically change their schedules due to meetings or work programs, in Brazil only 19% of companies make changes to their shifts as a result of time differences.

Optimized On-Shore / Off-shore Ratio Time zone: Real time communication. Nearshore: low costs of administration / travel. High Quality Low levels of reworking. High Productivity Knowledge of the industry and business. Cultural compatibility. Low turnover rates.

Time differences to Brazil

Moscow London Los Angeles Dallas New York Miami Madrid Berlin Rome Beijing New Delhi Tokyo

Braslia Rio de Janeiro So Paulo Cape Town

-8h

-7h

-6h

-5h

-4h

-3h

-2h

+2h +3h +4h +5h +6h +7h +8h +9h +10h +11h +12h +13h +14h

23 24 BRAZIL AS A GLOBAL PLAYER

Bridge Octavio Frias de Oliveira (Estaiada Bridge), So Paulo. Photo: Luis Prado

So Paulo

Many countries. One global team.

The Best Practices In Latin America

Top Latin American ITO vendors top honors overall Global Top 50 Outsourcing Provider for three consecutive years Top 1 Globally in Help Desk Outsourcing for Tier 1 and Mid Tier customers Top 1 Globally in IT Infrastructure Outsourcing for Mid Tier customers

The 2010 Global Outsourcing 100

*Brazil, United States, Mexico, Canada, Argentina, Chile, Peru, Colombia, Venezuela, Panama, Angola, United Kingdom, Belgium, France, Portugal, Spain, Italy, Denmark, Germany, Switzerland, Sweden, Poland, Romania, India, China, Philippines, Australia.

With presence in 27 countries*, Stefanini counts on a team of professionals who are committed to providing IT solutions with agility and flexibility. The company received various international awards from IAOP, Frost & Sullivan, and The Black Book of Outsourcing which further confirms Stefaninis historical progression to be one of the best IT services provider in the World. Check out more at www.stefanini.com and see a world of possibilities for your business.
IT and Business Consulting - Systems Integration - Outsourcing

CASE STUDIES

Alberflex. Photo: Luis Prado

Agriculture Science as business Cloud Computing Energy, Oil and Gas Food and beverages industry Financial Services Social Media Sustainability Automotive sector

AGRICULTURE - INVESTMENTS IN INNOVATION STIMULATE GROWTH AND SUSTAINABILITY

Because of the efficiency, diversification and sustainability of its agricultural sector in recent years, Brazil has become the worlds major food supplier, accounting for 25% of world trade. The natural characteristics of the Brazilian lands, such as large size, fertility, and favorable environment for the cultivation of many different products, as well as the availability of skilled professionals and the investments in research and technology made by the agricultural machinery industry, strongly contributed to this position. In this scenario, Brazils agricultural machinery sector is also According to the Ministry of Agriculture, Livestock and Supply, Brazil is the 2nd largest exporter of agricultural products. Agricultural exports from Brazil totaled US$ 76.4 billion in 2010, and agribusiness accounted for 37.9% of Brazils total exports. Brazil is the worlds largest producer and largest exporter of coffee, sugar, sugarcane-based ethanol, and orange juice. It is a leader in exports of beef, chicken and tobacco. It is also one of the major producers of cocoa, nuts, leather, pork, cotton, corn, and fresh fruit. The federal government invests regularly in measures to protect and boost the agricultural productivity. Examples of this policy are the US$ 2.7 billion in credit for agriculture in 2008, to safeguard the sector from the negative effects of the global crisis and to ensure adequate resources during the 2008/2009 planting season, and US$ 3 billion in livestock farming in the same year. The result of the investments in the sector - and the quality and sustainability of Brazils agricultural industry - has been continued growth in Brazils exports, even in times of economic crisis or exchange rate disadvantage. Forecasts for next year remain as optimistic as in recent years. According to projections by the Ministry of Agriculture, Livestock and Supply, the Brazilian agribusiness has great potential for growth. The most dynamic products in 2018/19 will be soy, corn, wheat, meat, ethanol, soybean meal, soy oil and milk. Production of grains such as soybeans, corn, wheat, rice and beans is expected to reach promising. According to the Brazilian Automotive Industry Yearbook 2010, there were about 800,000 tractors in use in Brazil in 2006, when the last agricultural census was conducted by the Brazilian Institute of Geography and Statistics (IBGE). According to the publication, production of agricultural machinery reached over 66,000 units in 2009. That same year, nearly 15,000 machines were exported, including planters, tractors, track tractors, combines and backhoes. 180 million tons in 2018/19, compared with 139.7 million tons in 2007/08.The production of beef, pork and poultry will increase by 12.6 million tons in the same period. Other products also expected to see increased production are sugar, at over 14.5 million tons, ethanol, at 37 billion liters, and milk, at 9 billion liters. According to these estimates, in 2018/19, Brazilian beef will account for 60.6% of world trade, pork, 21%, and chicken, 89.7%.

Brazil:
2nd largest exporter of agricultural products. Main supplier of food, representing 25% of world trade. Largest producer and exporter of coffee, sugar, sugarcane-based ethanol and orange juice. A leader in international sales of beef, chicken and tobacco.

29 30 CASE STUDIES

Technology for sustainability: the rational use of water in agriculture

One of the priorities for the Brazilian government is to raise the countrys agricultural production without harming the environment. Forecasts by the Ministry of Agriculture, Livestock and Supply show that Brazil is expected to double agricultural productivity in 10 years, recognizing the need to invest in more efficient mechanisms for sustainable agriculture. In this context, the efficient use of water - an essential resource for agriculture - is fundamental and involves improvements to the irrigation process in order to avoid waste. According to the United Nations Food and Agriculture Organization (FAO), irrigated agriculture uses about 70% of all drinking water consumed in the world. In Brazil, the figure is 61%. This means agriculture has the greatest potential in solving the problem of scarce resources - by improving the efficiency of irrigation.

One of the growing irrigation mechanisms in Brazil is centerpivot, which uses a lot of water. On average, they can irrigate 50 hectares a day, which is equal to supplying 10,000 people in a city. Manufacturers of this equipment estimate that there are around 12,000 units in use in Brazil, growing around 8% a year. The big problem posed by center pivots in Brazil, however, is poor management and a lack of reliable information, as the whole process is manual and highly susceptible to breakdowns. Currently, an employee travels great distances on a motorcycle between pivots to check on operation and to set them. If each of the 12,000 pivots installed in Brazil works for 10 more minutes than planned, it wastes enough water to supply a population of 800,000 people for one day. Farm workers, then, are responsible for the efficient use of water by center pivots. The Center for Advanced Studies and Systems in Recife (CESAR) has developed a solution that considerably reduces wastage. It is a Center Pivot Monitoring and Control device which allows producers to monitor, in real time and accurately, the operation of their pivots. It allows corrective action to be taken automatically and immediately, without the need to move the equipment. A 100% Brazilian electronic device, made by CESAR, is installed on the fixed base for each pivot, continuously collecting information on the operation of the unit in relation to variables such as speed, position, direction of travel, and pressurization. This information is transmitted via wireless technology (GSM and radio) to a data center, which provides complete data on the functioning of the tools both online and via mobile telephone. The equipment can also be remotely activated. The system also offers alerts that are sent immediately via SMS and / or e-mail in case of malfunction of the pivot. And for even more control, a detailed log of irrigation activity is kept.

Center pivot. Photo: C.E.S.A.R

The solution breaks new ground in the orchestrated use of various state-of-the-art technologies. It comprises hardware with built-in software, wireless transmission platforms, georeferenced web applications, and Java ME applications for mobile devices. The irrigation monitor can be implemented in other agricultural regions around the world, especially in developing economies wishing to invest in sustainable technology solutions for the rational use of water resources.

The main benefits provided by the solution are: Efficiency The solution provides security for producers, keeping them informed at all times on whether the pivots are operating as planned and allowing them to act immediately to correct deviations, avoiding waste of water and energy. Information The device provides reliable records. Convenience Checking and programming pivots is automatic, continuous and remote. All the operational information can be accessed at any time and from anywhere online or via mobile phone.

Sugarcane plantation. Photo: UNICA

31 32 CASE STUDIES

SCIENCE AS BUSINESS
Economic growth and stability have made Brazil a safe place for investments, offering a lot of opportunities for great returns. Aware of these benefits, in June 2010 IBM announced the opening of IBM Research - Brazil, a new research laboratory devoted to the development of technology for a smarter planet.

The abundance of natural resources and technical talent in Brazil creates a unique opportunity for the company to investigate and solve increasingly critical issues. Brazil is ready for big challenges and has the intellectual capital to execute world-class projects. The cost of skilled labor with academic credentials in Brazil is more attractive than in other developing nations, which also contributes to a profitable investment. The company plans for the laboratory include having more than

This is IBMs ninth institution worldwide and the first in South America. The selection of Brazil as a high-end research destination shows that IBM - which has been in the country for 93 years - not only recognizes the high quality of production in Brazils science and technology arena, but also has high expectations for the country in the medium and long term to justify the investment.

100 researchers in the next five years, joining a team of more than three thousand specialists in eight other laboratories in five countries. The new laboratory will be integrated with the intellectual capital and experience at these institutions in the pursuit of new scientific and technological discoveries. The results may be used in collaboration with universities, companies and organizations, in Brazil and throughout Latin America.

Project development
The plan to establish a research laboratory in Brazil was initiated by professionals at the Brazilian subsidiary. After internal discussions, in which the idea matured, the plan was taken to the IBM headquarters in the United States. Brazils positioning in political, economic and social terms played a key role in the presentation of the project to the corporations executives. It took six years from the initial idea to final approval, during which the planning team got unconditional support from the most senior executives at all levels. These levels refer to the market segmentation model now adopted by IBM Corporation and include the executive group in Brazil, the regional group for Latin America, and the macro-economic group for developing
IBM Command Center in Hortolndia, SP. Photo: Provided by IBM

nations, based in Shanghai, China.

IBM IT Center in Hortolndia, SP. Photo: Provided by IBM

IBM works on the concept of science as business, whose main focus is the pursuit of results that will impact their sponsors, mostly the shareholders. The model has a direct impact on developing countries, which justifies public investment in the area. During the projects implementation, the company approached the Brazilian government, which offered full support and advised on financing and legal measures that foster innovation.

research projects focused on discovery, exploration and logistics for natural resources. At first, the focus will be on oil and gas, addressing sustainability and security for related industries. Microelectronics, with an emphasis on smart devices: focused on the construction of devices using advances in semiconductors. This part of the laboratory will be a center for collaboration and innovation for Brazilian and global companies in the use and development

In the medium and long term, IBM is considering other possible areas of research, which may include: transportation, healthcare, and agriculture, as well as the information technology required to support these industries, including high performance computing.

The laboratorys operational areas

The Brazilian IBM Research Division laboratory will focus primarily on three fields: Natural resources, with an emphasis on Oil & Gas: the area will develop

of solutions. Human Systems, with an emphasis on large-scale events: the aim is to carry out research into the major sporting events to be held in Brazil, such as the World Cup in 2014 and the Olympics in 2016.
33 34 CASE STUDIES

Itaipu hydroelectric dam, Foz do Iguau. Photo: Provided by Itaipu Binacional

Paran

CLOUD COMPUTING
A feature set that spans servers, storage, processes, data, and networks, cloud computing is one of fastest-growing IT models in the world, and it will become dominant in the coming decades. Data from Gartner shows that organizations worldwide spending on cloud computing accounts for 10.2% of the IT outsourcing budget. Investment in this technology will be priority for 44% of companies in 2011, according to Unisys Corporation. According to Gartner, by 2010 cloud computing turned over will be around US$ 68 billion worldwide, and by 2014 it is expected that US$ 80.5 billion a year will be invested in the private cloud and US$ 68.3 billion in the public cloud, total of US$ 148.8 billion, with an annual average growth rate of 20.5%. Through cloud computing, data and applications used by institutions, organizations and individuals are no longer stored on machines but across a network, which enables online administration and monitoring. As a result, IT costs are reduced significantly, and investment that would have gone into infrastructure is put into services. Cloud computing has other advantages that justify the growing use of this resource around the world. A key benefit is the considerable reduction in tasks performed. Local computers, which previously supported all the work to generate applications and store data, give way to remote systems with a large capacity to distribute, process and store data, as well as images and information. Since the internet serves as a connection between the remote operating system and the user, hardware and software needs for those who demand the services are reduced, and only the ability to operate the software interface is required. So file sharing and corporate work are simpler, as all the information is in the same place. Forecasting spending on applications is also easier, since most cloud computing systems provide programs free of charge, or only charge for the time resources are used. A study by Novell shows that 77% of large companies already use some form of cloud computing. Concern for sustainability is also part of cloud computing. As the infrastructure for such a system is much smaller than that required by traditional solutions, it consumes less energy and space in performing the same tasks. With cloud computing and virtualization, there is a decrease in the use of servers. Each server removed represents a saving of approximately 12.5 tons per year in carbon dioxide emissions. There is also a potential reduction of about 50% in the cost of operating a data center, with a reduction in space, electricity, air conditioning, and so on.

The five types of cloud computing IaaS (Infrastructure as a Service) uses a percentage of a server, usually with a configuration suited to the need in question. PaaS (Platform as a Service) - uses only one platform, such as a database or a web-service. DaaS (Development as a Service) systems take form in the cloud as shared resources, web-based and mashup development tools. SaaS (Software as a Service) - use of software deployed over the internet. CaaS (Communication as a Service) Use of a Unified Communications solution hosted at the provider or manufacturers Data Center.

Faster and more efficient communications

For many companies, conventional methods of controlling versions and document approval flow are no longer capable of meeting their daily demands. Such was the case for a large communications agency in Brazil. It was losing productivity in relatively simple tasks, such as monitoring approval of communications work - an activity handled by e-mail - or the consolidation of changes to a final document. Initially, the solution was to use an open source platform, but the costbenefits of development and maintenance proved insufficient. The solution found was based on Microsofts Business Productivity Online Services (BPOS), a collaboration and messaging suite hosted by Microsoft, comprising Microsoft Exchange Online, Microsoft SharePoint Online, Microsoft Office Live Meeting and Microsoft Office Communications Online. A portal was set up where the professionals involved in a project could share documents and participate in the approval workflow using Microsoft SharePoint Online. In addition to the tools offered by BPOS to create versions and control the document approval flow, the agency can now hold video conferencing using Microsoft Office Live Meeting.

Out of these options, SaaS will lead cloud computing in the years to come, accounting for 63% of services, according to Merrill Lynch. The software as a service market will grow by an average of 25% a year up to 2014, with revenue of US$ 40.5 billion, according to IDC. The consultancy adds that 34% of all new business in the software area will be related to cloud computing, which will account for 14% of global spending in the sector over the next four years. Today, 75% of the business done in SaaS comes from the provision of cloud services, but this percentage will reach 90% by 2014. Productivity gains were clear. According to one of the executive directors at the agency, they can now save at least 20% in the time it takes to prepare documents and 40% in approval, thanks to a better organized workflow. Another benefit has been cost reduction: adoption of the BPOS system cost a fifth of what the agency used to put into the development and maintenance of the free software system initially used. Other savings stem from the ability to hold meetings via Live Meeting without the need to travel.

37 38 CASE STUDIES

Virtualization
A large supermarket chain with stores in different regions of Brazil was in need of a technology park to house application servers, databases, messages and antivirus systems. In order to reduce maintenance throughout its stores, Algar Technologia provided virtualization solutions for the IT infrastructure of the retail firm. With Infrastructure as a Service, on the Flex Cloud Platform, all the IT services at the supermarket chain and its headquarters were consolidated and centralized into a single environment. The project scope included the hosting of three physical servers to provide a Database Management System (DBMS), the hosting of six physical servers for Virtual Desktop Infrastructure (VDI), and six virtual servers to provide application services, which are defined

in packages called VMs (Virtual Machines). The Infrastructure as a Service product comprised all the data center infrastructure features, such as data storage, data backup / restore, IP bandwidth, monitoring of the VPN IP, professional services and physical and logical security. The self-management of the Flex Cloud, with failover and automatic reallocation of the server among cloud components, provides up to 99.9% availability of the infrastructure. Today, the information technology infrastructure is easily replicated in new stores, and all the servers and systems required to run the retail outlets are deployed in a few days. Access via the internet through the VPN ensures the security needed to conduct online transactions, to implement electronic supply chain processes with suppliers from all over Brazil, and allows access to information which is always up to date on inventory, sales and commercial retail opportunities for the entire sales force.

Stores

Supermarket -CD01

10Mb link

Supermarket -CD02

Data Center

Cenpes (Leopoldo Amrico Miguez de Mello Research & Development Center), Rio de Janeiro. Photo: Jos Luiz dos Anjos/Agncia Petrobras

ENERGY, OIL AND GAS BRAZIL AS A SUSTAINABLE REFERENCE

The Brazilian energy matrix is among the greenest in the world. According to the Ministry of Mines and Energy (MME), 47% of Brazils energy is supplied by renewable sources. Ethanol, biodiesel and other alternative energy sources are among the priorities for the Brazilian government, which is investing heavily in research and new technology for energy generation and distribution. Examples of such investment are the tender offers for

the Santo Antonio and Jirau Hydroelectric Power Plant concessions, on the Madeira River - in the north of Brazil. In 2013, when operations are expected to begin, these plants will have the capacity to generate up to 6,450 MW of electricity. There are also 25,657 MW in potential production by hydroelectric power plants under technical, economic and environmental feasibility studies, and 32,950 MW under inventory study. Although it has the largest hydropower potential in the world, Brazil is also developing, often in partnership with other nations, other renewable energy sources, such as solar, wind and biomass. Today, Brazils bio-energy supply comes from sugarcane (57%), timber and charcoal (31%), and other primary sources (12%), such as lye, biodiesel and other waste.
39 40 CASE STUDIES

Ethanol is a well-known success case in the development of alternatives to fossil fuels. Used in large scale in urban transportation systems, especially in automobiles, ethanol is cleaner and more economical than gasoline and diesel. Brazil produces 27 billion liters of ethanol a year and is one of the largest exporters of the product. Brazil uses more ethanol than gasoline in its fleet of vehicles (53%), helping put the country at the forefront of clean energy solutions in the world. MME data also shows that Brazils ethanol production will reach 64 billion liters a year by 2019, nearly triple current production levels. Other circumstances have also contributed to the prominent position held by Brazil in relation to energy sources. The country is not only the worlds 2nd largest producer of biofuel, but also very relevant in oil production. Producing over 2.5 million

barrels of oil a day, according to MME, it is the worlds 9th largest oil producer, with proved reserves of 12.62 billion barrels, according to the Central Intelligence Agency (CIA). The discovery of oil and gas reserves in the pre-salt area of the Espirito Santo, Campos and Santos basins in 2007 have given Brazil export potential. In March 2010, Petrobras - the Brazilian oil industry leader - exported 773,000 barrels a day, in a total of 22.73 million barrels per month. The largest importer was the United States, buying 32% of production, followed by India (22%), China (20%), Europe (18%), and Japan and Canada (4%).

According to the 2009 Report published by the International Energy Agency (IEA), Brazil will become the worlds 6th largest producer of oil in 2030, at 3.4 million barrels a day, behind only Saudi Arabia, Russia, Iraq, Iran and Canada. The country also occupies an important position in the production of natural gas, with proven reserves of 365 billion cubic meters and annual production of 10.28 billion cubic meters. Brazil also presents healthy results in Domestic Energy Supply (DES). According to the report released by the MME in mid-2010, the energy required to drive Brazils economy or DES - had risen by 11.6% compared

to the same period in 2009. Hydroelectric power generation had also grown rapidly, at about 10% a year. The biodiesel industry had grown by 65.6%, to 6.4 billion liters a day in 2010, up from 3.8 billion liters a day in the same period of 2009. MME data also shows that some exports had recovered compared with their mid2009 levels. Steel production was up by 44.1%, and exports of iron ore pellets and iron ore increased by 114% and 25% respectively.

Domestic energy supply - BR - 2009

1.4%
Renewable Petroleum and Derivatives Natural Gas Coal and Derivatives Uranium (uses) and Derivatives

Wind Energy 0.04%

4.8% 8.8%
Bio-Energy 31.9%

47.2% 37.9%
Hydropower and Electricity 15.2%

Million Tons Petroleum Equivalente (Tep)

243.7

115.0

Source: Ministry of Mines and Energy

 Brazilian oil production to double by 2020. (Source: Fitch Ratings) Leader in clean renewable energyhydropower and biofuels. Worlds 2nd largest producer of ethanol, and 1st largest from sugarcane.

Sugarcane. Photo: Provided by UNICA

Network optimization
Energy companies in Brazil needed to improve IT infrastructure to add value for end users and to protect themselves against possible deviations in the system. Such was the case with a large bi-national hydroelectric plant whose main interconnection points were in the cities of Foz do Iguacu (PR), Sao Paulo (SP), Brasilia (DF), Rio de Janeiro (RJ), Belo Horizonte (MG) Porto Alegre (RS) and Salvador (BA). The solution developed by CPM Braxis Capgemini comprised several measures, including preventive and corrective maintenance of infrastructure environment, environmental analysis, technical support, engineering projects and technological updates. The IP telephony network the plant already used was restructured and expanded by about six thousand devices. The following technology was deployed: Unified Communications; Routing and Switching (LAN and WAN); Convergence and QoS (Quality of Service Network) for VoIP traffic, video conferencing and video (IP / TV); Network Security, with remote VPN access; Wireless and Network Management.
41 42 CASE STUDIES

The construction of a more robust technical and procedural network environment made the company better able to reestablish itself in the event of any incident. Today, within 15 minutes it is possible to get a response to a request, and problems are fixed within an hour. This speed is possible because of a service model based on a pre-determined solution for every type of equipment. With this initiative, it was possible to unify and standardize the use of the telephony infrastructure supported by the IP platform, improving the use of its resources. Altogether, the project used specialized resources for inventory, control, optimization and planning of the environments development. In such a way, the whole network involves support services, maintenance and configuration, and according to customer need new updates can be offered that keep pace with the demand for new technological developments.

Managing results and process efficiency

A large multinational in the energy, oil and gas sector, with US operations based in Houston, Texas, was looking for a strategic partner to help integrate its US and Latin American operations. The main difficulties for the company in question were related to outsourcing in general, real-time services, high levels of availability for staff and customers, and solid knowledge of the specific requirements in Brazil, related to the global SAP ERP solution adopted. Selected to become a partner of the multinational, Politec carried out coordinated action using its teams in Brazil and the United States (the Brazilian team spoke Portuguese and English) to implement a support model for the entire life cycle of the application, designed to serve its customers operations in Brazil. From then on, the SAP systems were maintained by the Politec team, including GRC solutions - Electronic Invoice - a document issued and stored electronically in order to document, for tax As a result, in three years, production problems were reduced to their lowest levels, which allowed the multinational to focus its efforts on priority activities and to achieve expected growth arising from opportunities for deep-water oil and gas exploration in Brazil. Chief among the main services provided are the provision of incident reports in real time, billing and support for all SAP production functions and features, support for business processes and the introduction of user management. To improve the business environment, the company also listed some recommendations for the clients global system, besides support for the solution of interface problems in legacy systems. purposes, the movement of goods or services. Support from the Brazilian company also reached into other areas, such as finance, sales and distribution, production planning, inventory management and contract management.

Bioelectricity plant. Photo: Provided by UNICA

So Paulo
Imigrantes highway, So Paulo. Photo: Luis Prado

BRAZILIAN FOOD AND BEVERAGE INDUSTRY: A MODEL OF IT SOLUTIONS

Brazil is the worlds 3rd largest producer of chocolate and 4th largest manufacturer of candy and confectionery, according to the International Confectionery Association. According to estimated figures from the Brazilian Chocolate, Cocoa, Peanut, Candy and Derivative Industry Association (ABICAB), production in the sector grew by an average of 7% on domestic and international markets in 2010. This consolidated the Brazilian industrys position as the third largest producer of candy and chocolate in the world, after the USA and Germany. The sector announced investments of US$ 348 million, in an attempt to stay in line with the market expansion that resulted from the rise in purchasing power among Brazilians. At the 13th Sweet Brazil International fair, in August 2010, 150 new products were launched, which shows that the expansion of factories and the modernization of production lines in Brazil are already producing results. Brazil is now exporting to 146 countries. One of the biggest importers is the United States which, in 2009, bought around US$ 40.6 million worth of products. Another is Argentina, which in the same year imported products worth US$ 34 million. Altogether, according to ABICAB, the sectors exports grew by 128% between 1998 and 2009.

The Brazilian beverage industry has also experienced significant growth. In 2010 non-alcoholic beverage sales grew by 10.8% on 2009, according to the Brazilian Supermarket Association (ABRASS). Cold drinks lead the sector, supported by the prolonged hot summer. In 2010 the bottle mineral water segment - the second - largest market in beverages - produced 5.4 billion liters, 5.8% up on 2009, according to a survey by the Brazilian Soft Drink Industry Association (ABIR). The more established segments of the beverage industry are looking to expand in the Central-West and Northeast of Brazil, which have the highest rates of population and consumption growth. According to a study carried out by the Federal University of Sao Paulo (UNIFESP) and the National Department for Policy on Drugs (SENAD), beer is the preferred alcoholic beverage among Brazilians. Of all the alcoholic beverages consumed in Brazil, beer accounts for 61%, way ahead of wines 25%, spirits 12% and ice beverages 2% shares. The quality and quantity of beer produced in Brazil have also positioned the country prominently in the international arena. At almost 11 billion liters a year, according to the National Beer Industry Association (Sindicerv), the sector grew by 5.2% in 2009 and overtook Germany to become the worlds 4th largest producer of the beverage. After this spectacular performance in 2009, in 2010 Brazil is expected to move from 4th to 3rd in the ranking of the worlds largest beer producers, according to AmBev (part of the largest beer manufacturing and marketing platform in the world - AB InBev).

Brazil in the world: 3rd largest producer of chocolates. 3rd largest producer of beer. 4th largest manufacturer of candies and confectionery.

47 48 CASE STUDIES

The use of IT to support growth and reduce costs

The cooperative Frimesa has been on the food market for more than three decades, supplying meat and dairy products. With processing plants and milk storage centers in Parana, Santa Catarina and Mato Grosso do Sul states, the company planned to increase its sales by 12% in volume and 17% in turnover. Oracle was chosen by Frimesa to reduce propriety and technology maintenance costs and to update the server platform, guaranteeing a high-level of availability for its systems and making expansion possible in new markets in Sao Paulo state and the north of Brazil. In order to create a robust data bank that could support sales and revenue growth, Oracle Database Enterprise Edition was chosen. The consolidation of 20 old machines into two new Oracle Sun SPARC Enterprise T5120 servers running Oracle

Solaris also reduced energy costs by 70%. The solution led to a 100% improvement in performance of the IT environment and allowed the logistics area to be outsourced, in addition to the launching of a new commercial strategy that guarantees that every order made by 5:00 PM is sent out the next day.

Restructuring and integration in operations

A large Latin American brewery planned to change its operations support model, using high service-level outsourcing. It was also necessary to centralize services for internal users, with the formation of a single point of contact with the Information Technology area. As the subsidiaries of each unit had their own control, the brewery had little knowledge of resources available in its business units. There was also a low level of standardization in the companys equipment, hindering control of the technological complex. The work project provided by CPM Braxis Capgemini set out five action steps as a solution: planning, preparation, execution, transition and operation and support. Among the measures to be implemented by 2015 are centralized services for resolution and registration of first-level calls, the creation of a knowledge base to analyze causes and solve problems; a log book to aid and manage field activities; and - chiefly - the creation of a competence center for field support in more complex situations. The actions have provided more speed and quality in services. In concentrating the services, the brewery was able to follow and ensure the resolution of problems and to analyze occurrences with strategic planning for future investments in field support systems. So far, the project has benefited more than 26,000 end users, distribution centers, plants, and other locations. The successful operation won CPM Braxis Capgemini two internal awards from the client in March 2010.

Outsourcing Leader for Applications in Financial Industry

- Consulting - Solutions - Applications - Outsourcing - Infrastructure - Software and Hardware

BRQ is the company of choice for IT Services in Brazil and the US. BRQ's solid knowledge and vast technical experience in multiple technology platforms translate into high quality, value-added services to our clients. With a highly talented and certified team, BRQ offers competitive total cost of ownership solutions for Applications Management, Outsourcing and Global Delivery. Known as a true leader throughout Brazil and the US for more than seventeen years.

www.brq.com/en

FINANCIAL SERVICES IN BRAZIL: THE LEADING EDGE OF IT

According to the Brazilian Federation of Banks (Febraban), the number of current accounts in Brazil increased by 6% from 134 million to 141 million between 2009 and 2010. In the same period, 17 million new credit cards hit the market, totaling 153 million units across the country. Febraban data also show that accounts using Internet banking services also increased significantly: from 30 million in 2007, to 38 million in 2010, a 26.7% growth in the period. Consequently, online banking transactions became more frequent, reaching 12.8 billion, accounting for 23% of the transactions performed in 2010. Investments by the financial sector in technology grew by 15% between 2009 and 2010, to US$ 12.2 million. According to a survey by CIO Magazine, over 50% of Brazilian financial institutions put 2% or more of their budget into IT. The main motivation is to The goal is to predict what customers might want at any given time and to work so that the service in question is offered by the largest possible variety of channels. Most companies, for example, now offer chat assistance, mobile telephone information services, and portals for self-service options in their portfolio of tools. To ensure the availability and effectiveness of systems, large financial institutions have infrastructures that combine robust mainframes, competent IT teams and suppliers who have to meet demanding standards. Other attributions of Information Technology related to customer service include analytical treatment of information, which results in the integration of databases and the strengthening of cross-selling. satisfy clients, who require innovative, high quality and, mainly, constantly available services.

Banking sector - IT spending

(R$ million)
+15% +4% 18.355 16.549
612 1,777 2,274 3,947 3,253 4,686 735 1,840 2,328 5.136 3,118 5,197

+11%

22.016 19.142
988 2,753 2,178 3,990 3,901 4,752 4,136 6,354 986 3,043 2,892

5,187

2007
Others IT Infrastructure

2008
Software In House

2009
Third-party software

2010
Telecom Hardware

Source: FEBRABAN -The Banking Industry in Numbers (2011 edition)

Banking transactions by origin

(in billions of transactions) Share (2010)
55,7 48,7
4,7 2,8 4,7 10,1 17,8 2,2 8,5 2,9 8,5 5,0 3,1 5,2 12,8

+14% +12%

41,1 35,1 26,3

4,1 4,5 2,6 7,6 6,8 0,6 0,1

43,4
4,3 1,8 4,4 7,9 14,4 1,7 1,8 8,3 2,3

16% 5%

9% 6% 9%

36,7
4,4 0,3 3,8 6,2 11,9 1,4 1,5 7,5 1,4

30,0
4,3 3,6 3,9 9,9 7,5 0,7 0,2

4,6 4,3 6,9 13,7

4,4 3,7 5,8 10,8 8,6

15,8

32%

23%

8,0

2003

2004

2005

2006

2007

2008

2009

2010

Others Self-service

Non-banking correspondents

Teller transactions

Internet Banking

Automated transactions - external

Automated transactions - internal

Source: FEBRABAN - The Banking Industry in Numbers (2011 edition).

Integration of systems in mergers and acquisitions

The volume of mergers, acquisitions and corporate restructuring in Brazil grew by 55% in 2010, in deals worth R$ 184.8 billion, according to the Brazilian Association of Financial and Capital Market Entities (ANBIMA). In total, 143 deals were involved, 51% more than in 2009. The main questions that are raised by mergers and acquisitions involve data convergence, the integration of systems, and the administration of infrastructure and IT costs. These challenges were identified by Banco Santander (Brasil)

S.A., a global financial services division of Santander, based in Spain, after the acquisition of Banco Real. Oracle was chosen by the bank to transform its datacenter with the Oracle Exadata Database Machine. The challenges ranged from the growth in the volume of data and the increased processing demands, to the lack of space for expansion of the datacenter and delayed processes in lots that had a negative impact on such aspects as risks, costs, and analytical functions for clients and revenue. With the Oracle Exadata Database Machine platform, Banco Santander
51 52 CASE STUDIES

achieved the objectives expected, such as: the consolidation of servers; infrastructure and IT cost reduction; eight-fold improvement in the performance of dozens of transactions; the compacting of a ten-fold larger volume of data; a ten-fold improvement in the time taken to carry out backups; improved systems maintenance, and faster essential processes in the data warehouse for client accounts, accounts receivable, corporate accounts, comptrollers office, and other areas. Given the results achieved, Santander has standardized its products globally, using the Oracle Exadata Database Machine platform for data processing.

Agility and operational efficiency

Streamlining operations, making them more efficient and simplifying business processes are some of the most common needs at large financial service and fund management companies. These were also some of the demands being made by a company that managed billions of dollars of investments, headquartered in New York and with operations in Europe and Asia.

identification of limitations for the project to be undertaken. All the available platforms on the market capable of meeting the projects technical demands, such as the expected volume of transactions, data integrity and waiting times, were looked into. The processes and practices adopted were based on fast software development methodology and the SCRUM standard. To meet the demand, BRQ devised and

Several views were created to facilitate the implementation of critical processes in order to allow users access to all the information necessary to complete a transaction on a single screen. Using Web 2.0 technologies, the number of clicks and page updates was drastically reduced. Today, business users have access to an extremely effective tool with high levels of availability and performance, which is also flexible and has the capacity to support new deployments. The hybrid model applied by BRQ in this project uses the business knowledge of a local team that works closely with the client in conjunction with an offshore platform in Brazil, which has a team that is highly technologically skilled. This model facilitates communication among professionals, while also providing cost savings for the client.

The work done by BRQ to accommodate the requests made by the company in question began with the collection of all the high-level requirements, understanding of the critical points in operations and of the problems faced, the mapping of the professionals involved in each task and the

implemented a portal that has become the single point of access to some of the business users critical applications. In this way the time needed to navigate between different systems in order to obtain information or complete a process was reduced.

IT architecture for bankline services

Information from the 5th edition of the study by Acision and Teleco on Value Added Services (VAS) shows that the use of mobile banking in Brazil has grown significantly over the last year and in 2009 more than 100 million banking transactions via mobile phones were carried out in Brazil. Mobile banking is common in many banks operating in Brazil. At Banco do Brasil, one of the largest public banks in the country, for example, 1.5 million current account holders use it and perform two million transactions a month, in a universe of 35 million accounts. The two largest private banks also have significant usage numbers. At Bradesco,
Data Center. Photo: Provided by TIVIT

10% of account holders, or two million users, use mobile telephones to perform over 5.5 million transactions a month. Itau Unibanco, in turn, has recently launched an iPhone application which enables the payment of taxes, bills and salaries, among other services. Today, 57% of Itau Unibancos Internet banking services are accessed by iPhone users. Mobile telephones offer banks important benefits, such as customer loyalty, brand building, and a relationship channel with the most sophisticated users. Recognizing the importance of this type of service, one of the largest banks in Europe has decided to completely remodel its bankline platform for several branches. It fell to GFT to develop and implement a new IT architecture for bankline services at a subsidiary that was recently integrated by a large German financial institution. The existing systems - which were outdated and required increased spending on maintenance of the infrastructure - served one million users and supported two billion transactions annually. The project, which was supported by the experience of the subsidiaries in Brazil, Germany and Spain, was based on solutions conceived from the process standpoint. Proven, flexible and reusable technologies were focused on. The task was to create a multi-bank and multichannel electronic bank application, based on a single corporate method and the same features and interfaces. This would mean it could be used in all the channels and by all the branches or brands. The model applied was a modular, service-oriented architecture, to which new features and technologies can be added in a flexible manner and with minimal complications, in addition to integrating one banking interface with another. The customer experience will continue to progress in the future as the bank reacts to technological trends and offers services like mobile banking through smartphones and Web 2.0 collaborative or interactive functions. Among some examples that have been integrated is the TAN mobile service, a system of additional It had to be possible to adopt the solution via bankline, mobile banking, call centers, self-service devices, physical branches or internal administrative services. Users can perform procedures more quickly, easily and safely. Another benefit achieved was the configuration of a transaction platform which can become an integrated banking system with a focus on sales. This means the bank can create more business opportunities among the 200 million customers operating on its online channel each year. authentication and dynamic fields that makes easier to use the tool.

53 54 CASE STUDIES

Payment solutions
Credit card use has been growing every year in Brazil. Data from the Brazilian Association of Credit Card and Service Companies (ABECS) confirms this trend: in March 2011, there were over 158 million credit cards circulating in Brazil. In March 2010 there were 140 million meaning a 13% growth in 12 months. An increase has also been seen in billing, which until March 2010 totaled US$ 10.4 billion, rising to over US$ 13.9 billion in March 2011. CSU Card System forecasts show that this scenario is set to become even more optimistic. According to the organization, the opening up of the credit card market in Brazil will add 20 new companies in the next five years currently, two have a market share of over 90%. Commercial transactions by credit card will turn over US$ 430 billion in the next few years, up by 152%, and in the same period, net revenues in the sector will double, reaching US$ 8.8 billion. Net profit will also rise significantly, from the current US$ 2.1 billion to US$ 4.2 billion by 2013. In this context, gaining productivity, outsourcing tasks that are not part of the companys core business, and reducing costs while increasing quality in the delivery of systems to business areas are the needs faced by many companies in the payment card industry in the Brazilian market. Such demands were presented to Resource by one of the industry leaders in Brazil, responsible for the capture and transmission of credit card transactions for 16 brands, with net income of US$ 750 million in 2009. The solution offered was based on the outsourcing of development and support systems. The company also hired an independent consulting firm to assist in drafting the RFP, since choosing the right partners and right metrics were crucial to the success of the project. The writing of code and most of the stages in the development of the software were outsourced, without losing control of business intelligence. After the partners were chosen, the

company invested in knowledge management. In addition, the governance area established guidelines based on Cobit, CMM and ITIL, and mapped points that the team should prioritize in the restructuring of processes and controls. Resource became the companys development arm in support for the entire environment of capturing, processing and settling transactions, working on high and low platforms and in COBOL, Java, .Net, BPEL (SOA), C ++, Assembler, and PL1 languages. Currently, the company has an outsourcing model in line with IT governance. Quality services are performed quickly, and costs have been reduced.

55 56 CASE STUDIES

Annual number of credit cards and customers with Internet banking

(million)
180 153 150 124 120 90 60 30 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 29 8 9 9 12 18 53 26 27 30 33 35 38 82 68 38 42 45 104 136

Number of credit cards

Source: FEBRABAN - The Banking Industry in Numbers (2010 edition)

Customers with Internet banking

Innovative banking solutions

One of the biggest steps for the financial market in Brazil, the implementation of the Authorized Direct Debit (ADD), was more than just added sophistication of the banking system in the country - it made customers lives more comfortable and secure, reduced costs and streamlined billing for banks. Through ADD, payment slip scan be accessed electronically, eliminating the receipt of printed documents. The project began in mid-2008, when the Interbank Payment Chamber (IPC) - a non-profit body responsible for processing, clearing and settling interbank transfers - opened an RFP process to supply all the necessary technology to put the new system into practice. Given the platforms critical mission and to meet the requirements of the IPC in relation to aspects such as performance, security and availability, TIVIT offered a solution based on a bold software development technique: Test Driven Development (TDD), which focuses on performance testing and quality assurance during the process of coding and software construction.

Based on JAVA language and the Intel / RISC platform, the operation of the ADD includes 40 servers in a Linux environment to serve the varying stages of processing, and an IBM/DB2 database with an initial storage capacity of nine terabytes. As the financial market database has information that is highly confidential, data security is also a major concern in the initiative. User support solutions were developed to control and maintain access, in addition to specific cryptography features. In this way, only authorized persons can access to the provision of certain support activities in the environment. Today, the new service offers a range of advantages to private individuals or companies, both for people who are paying and for people who issue the bills. For the payee, the benefits include easier control of pay slips, confidentiality, security, fewer documents handled - especially for companies - easy access, faster payments, availability of slips and the certainty of getting documents

Command center of TIVIT, So Paulo. Photo: Provided by TIVIT

in a timely manner. For the vendor, it offers more control over the flow of charges issued, guaranteed delivery of slips, speed, data integrity, cost reduction and ease of issue. The ADD also helps make banking more sustainable, because the electronic docket avoids the annual use of one billion liters of water and the emission of tons of carbon dioxide in the printing of bills. Currently, the ADD is available for various types of payment, such as school fees, health insurance, residents charges, mortgages and vehicle loans. The ADD figures are staggering. Adherence to the system is growing exponentially, rising from just over 1.4 million electronic withdrawals in October 2009 to more than 4.8 million in less than a year of operation, five times greater usage. The volume of bills processed by the system for Brazils banking market leaped from three million in 2009 to over 180 million in 2010.

Authorized Direct Debit (ADD): Saving a billion liters of water. Savings of 46 million kilowatts per hour. Reduced carbon dioxide (CO2) emissions.

57 58 CASE STUDIES

Development of collection orders

Accumulated quantity (in millions) - 10/19/2009 to 10/14/2010
200 180 160 140 120 100 80 60 40 20

Oct. 2009 Nov. 2009 Dec. 2009 Jan. 2010 Feb. 2010 Mar. 2010 Apr. 2010 May. 2010 Jun. 2010 Jul. 2010 Aug. 2010 Sept. 2010 Oct. 2010 Insertions Baseline

3.1 2.0

14.1 6.8

28.6 12.4

41.1 18.9

54.6 26.3

72.8 34.4

88.2 43.4

104.0 53.2

120.4 63.9

138.0 75.4

155.2 87.7

172.5 100.9

180.3 114.9

Source: FEBRABAN

Drawee Take-up
Accumulated quantity (in millions) - 10/19/2009 a 10/14/2010
6 5 4 3

3.9 2.9 3.2 3.4

4.2

4.3

4.5

4.7

4.8

2.5 2.1

2.7

1.4
1 0
Oct. 2009 Nov. 2009 Dec. 2009 Jan. 2010 Feb. 2010 Mar. 2010 Apr. 2010 May. 2010 Jun. 2010 Jul. 2010 Aug. 2010 Sept. 2010 Oct. 2010*

Quantity

Baseline

Source: FEBRABAN

SOCIAL MEDIA NEW BUSINESS AND GREAT OPPORTUNITIES

Supported by the growing access to the Internet across the country, social media has quickly gained millions of Brazilian members. According to a survey by Ibope NetRatings - Nielsen, 86% of Brazilians Internet users have profiles on sites like Twitter, Facebook and Orkut. Social media consumes 22% of the time Brazilian Internet users spend online. The popularity of social media websites has changed the way millions of Brazilians consume, behave and interact - not only on the Internet, but also in the real world. Used for communication and

entertainment, Twitter, Facebook and Orkut are gaining more and more users every day. Of the three, the most popular among Brazilians is Orkut, which in August 2010 reached 29.4 million visitors, according to a study by the consulting firm comScore. But the fastest growing social media in Brazil, however, is Twitter. With 8.6 million users and 23% penetration of the domestic Internet, according to comScore, Twitter allows people to say what they are thinking, feeling or doing at any given moment. The number of Brazilian users of the microblog quadrupled in the period between June 2009 and January 2010 - making Brazil one of the worlds largest users of the service. Social medias power to spread information and the low investment required to do so have grabbed the attention of companies from every industry sector. Given the speed with which information spreads, the websites
59 60 CASE STUDIES

have also become strategic: they serve as sources of information for the traditional press, and are already an important advertising channel used by marketers who see these tools as important alternatives to the traditional means of communication.

86% of Brazilians who use the Internet have profiles on websites like Twitter, Facebook and Orkut. Social media takes up 22% of the time Internet users are online in Brazil.

Business channel
Brazilian companies such as Ci&T have seen a source of business opportunities in social media. Combining expertise in software development and digital marketing, the company provides Lean IT and Agile Methodology concepts not only for development teams, but for digital marketing and creative staffs. For one of their clients, a Fortune 100 company in healthcare and consumer goods, Ci&T designs, builds and maintains hundreds of digital properties, such as portals, micro-sites, banners, newsletters, websites, and iPhone and iPad applications. Throughout the partnership, which has lasted seven years, the volume of services has grown significantly and the results have created a great impact on the businesses across three continents. The Facebook application sponsored by Coca-Cola Zero was Another successful partnership has been with a Fortune 500 media company, for which CI&T has a dedicated team specialized in open-source technologies focused on digital content distribution, as well as a financial services portal. designed to help people organize parties, events and meetings between friends, with the Coca-Cola Zero brand permeating all the interaction. Developed for Orkut, Soccer Social Club allows users to customize their profiles by adding a new communications tool through which they can interact and chat with other fans, get news about soccer and get direct access to sports content from the Brazilian portal Globo Online. Among the services provided, the award-winning Soccer Social Club and a Facebook application sponsored by Coca-Cola Zero can be highlighted. Both are cases in which information technology plays a fundamental and strategic role in marketing. The main results are the strengthening of the brands and the emergence of unique opportunities to interact with consumers.

Interactivity
Given the growth of microblogs in Brazil and the most popular sport in the country, the Centre for Advanced Studies and Systems in Recife (C.E.S.A.R) created a globally unprecedented web application, called Futweet. Bringing together users from various social media and generating interactivity between them, the tool allows users to play in a large virtual sweepstake - completely free of charge, with monthly prizes - based on soccer events in Brazil. Futweet was launched in 2009, for the fourth round of the 2nd Stage of the Brazilian Soccer Championship, and was tested in a pioneering way by over a thousand players on Twitter. The entire infrastructure was developed in Java. The tools and other artifacts used in the project are free, or open source. Some highlights include MySQL as the database, and Eclipse as a code-editing tool. Futweet uses the Amazon AWS cloud to host the web application and its data, infrastructure that is also used by major internet services such as Twitter itself now.

In 2010, Futweet expanded operations into the mobile environment. In partnership with Meantime Mobile Creations and the news portal JC Online, it launched a virtual sweepstakes for the Pernambuco State Soccer Championship, which integrates users of Twitter and mobile devices. Along with the service, the 2010 State Championship Table was made available, which allowed the main games played to be followed in real-time, showing the ranking of teams according to the scores of the matches in progress. The launches of the 2009 Brazilian Championship and 2010 Pernambucano Championship were just a warm-up for what would be the biggest challenge faced by Futweet: the World Cup. In June 2010, the Nagem JC Sweepstake was launched, a Futweet version which became popular and expanded the boundaries of the game beyond Twitter. The project was the result of a partnership between C.E.S.A.R. and JC Online, and the companies Meantime Mobile Creations and Nagem.
Home of the website Futweet. Photo: Provided by C.E.S.A.R

This version of Futweet represents the first social soccer game in Brazil to be simultaneously on the countrys three most popular social media: Twitter, Facebook and Orkut. During the game, about 10,000 players tested their soccer knowledge through a daily quiz, and predicted the outcome of the matches. At that time, the project got an English version. More than a cultural and technological phenomenon, The game has expanded to become a social soccer media where you can meet friends, create private sweepstakes and exchange messages during the games. In little over a year, the Futweet developed from an exclusively Twitterbased game into a platform to chat about soccer, spanning multiple social websites, and becoming a social media itself. New opportunities are emerging for 2011. The possibility of multiple championships being managed by the platform and opening up for users to create their own tournaments are new challenges ahead. The international spread of the game, with versions in English and Spanish and European tournaments is another big step to be taken. It is expected that in 2011 the game will be ready to cover all the major the growing adhesion of Brazilians to social media represents a fertile source of business opportunities. The fact that 28% of new users of Twitter and Orkut are aged between 15 and 24, according to comScores research, shows the take up of these media among new generations, who will consume more services and products available in these tools. IT companies are alert to these changes and are preparing to keep up with the rapid pace at which the phenomena are expanding. With one of the largest communities of social media users in the world, Brazil offers great business opportunities and has proven that it is ready to meet the demands ahead on the market. Brazilian championships, launching new applications for Orkut, Facebook and Twitter.

61 62 CASE STUDIES

SUSTAINABILITY ALLIED TO IT
Sustainable buildings and large IT investments show that Brazil has reached a unique level of maturity. In order to work more closely with its partners, customers and universities, hiring the most talented professionals and creating the best products, SAP deployed its development operations in Brazil in 2006. At the same time, it began the construction of its first 100% sustainable development center in Latin America - called SAP Labs - where operations started in 2009. Before the opening, Latin America used to get support from more than five locations around the world - Germany, India, Spain, Ireland and the United States. However, due to the regions growth, SAP chose to create a dedicated center. There was a long and intense selection process to choose the host country. Since the center would provide services to Latin America, every country in the region was a candidate.

Photo: Provided by SAP

63 64 CASE STUDIES

To select the country for SAP Lab, the following were the key criteria used:

Known as the broadest and largest potential market in the region, during the selection process, Brazil was best-rated in many of the aspects considered. According to SAP, the fact that the country enjoys political and economic stability and, above all, has the talent available for present and future needs, made the difference in making the decision. In view of the range of options, Unisinos University campus a major technology center in the south of Brazil was selected for SAP Lab. Besides having the lowest costs, the State of Rio Grande do Sul, where the Lab is located, stood out for the quality of its universities and the excellent level of education of its professionals.

Talent
IT expertise and fluency in English and Portuguese or Spanish were the requirements. The team would be part of a global organization, supporting customers in the Americas and also working on projects with colleagues in Europe, India, the USA, China and so on. Indicators used were: Availability of talent. Growth in the amount of talent. A number of universities with relevant courses, especially in Technology and Science.

Certification
SAP Lab meets LEED specifications in the Gold category. When it was built, this type of certification was new in Brazil, and there was only one building in the country with LEED certification, in the Silver category.

Country situation
Future investments, costs and benefits were taken into consideration, as well as: Economic stability. Political stability. Security. Infrastructure.

Growth Potential
For the development center and market, the following were considered: Potential for growth. Existing and future client base.

Cost-efficiency
Measures the ratio between added value and expenses incurred. Expenses include not only financial figures, but also cultural alignment, ease of integration with global teams, quality of work and innovation. For these requirements the following were considered: Expected operation costs. Expenses on labor. Possible benefits.
Photo: Provided by SAP

LEED certification program

Organized by the United States Green Building Council (USGBC), the LEED certification program encourages the global adoption of planning, construction and operation practices in sustainable buildings. The buildings that meet the certification program guidelines are planned to use recycled or reused materials in their construction. They must also cause the least possible impact on the environment, through the rational use of water and energy. LEED considers the six principles below: The sustainability of the location. Efficient use of water. Energy and atmosphere. Innovation and design process. Materials and resources. Quality of the internal environment.

Requirements, work methodology, and deliverables were set to LEED for all parties Involved. During the construction, for example, waste was selected and disposed off separately. The tires of the trucks that departed from the site were washed in order to avoid scattering dirt from the construction. In drier periods, preventive measures were taken so that dust was not blown around by the wind. It is estimated that over 40% of the buildings structure comprises recycled material. In addition to following LEED principles, the building was designed to make the most of natural light, to preserve local vegetation, enable cooperation between employees and promote innovation, so as to create a positive environment to attract, motivate and retain talent. The architects focused on employees. The most common materials used are glass, wood, concrete and basalt. The new SAP campus was opened in June 2009. It is the first and only SAP Lab with the LEED Gold certification. At the time, there were only eight buildings with this certification (and only one gold) in Latin America.
65 66 CASE STUDIES

Sustainability principles:

01. Flex car parking 02. Bicycle parking 03. ETE 100% water recycling 04. Briese Soleil 05. Light Sensors 06. Automation 07. Natural cooling 08. 40% recycled content 09. Certified wood 10. Ideation 11. Native Landscaping 12. Non-Toxic 13. Energy & Water Saving 14. Reduce Light Pollution

Energy Saving
The building had to save at least 14% of energy compared with regular buildings. The SAP campus achieved that goal by the intensive use of automation. There are no light switches in the workplace, but sensors or central block control systems. There are also ways to adjust the artificial lighting so that natural light is leveraged and, where possible, LED-type bulbs are used. To reduce energy consumption by the air conditioning system, SAP chose to keep the windows open to allow for natural air ventilation. There are also temperature sensors installed throughout the building to adjust the use of air conditioning.

Employee well being

The professionals themselves chose the tables and chairs they would use to work at. They also participated in workshops to discuss what is important in the workplace, and discussed issues such as privacy, the use of telephones, interaction with peers, motivation and innovation. The results were used to guide the manufacture of furniture. The vendors were even chosen by the employees themselves, by a vote.

Efficient use of water

Today, 100% of the water consumed is reused to water gardens and flush toilets. All the bathroom faucets are equipped with sensors to control water consumption and the toilets have a dual flush system.

Expanded business opportunities by mobilising your banking processes

GFT leverages innovative mobile banking applications based on a variety of platforms and configurations, using state-of-the-art functionalities to improve user experience. Bespoke solution with a short time-to-market guaranteed by 20 years of experience in the development of IT solutions for financial institutes.

www.gft.com

THE AUTOMOTIVE SECTOR: SOPHISTICATED, WORLD-CLASS TECHNOLOGY

With over 50 years of tradition and a broad variety of offered models, Brazil is the 6th largest vehicle producer in the world. Of singular importance to the countrys economy, the Brazilian automobile industry employs over 134,000 people and accounts for about 5% of the countrys Gross Domestic Product. Between January and September 2010, According to the National Association of Automobile Manufacturers (Anfavea), total sales of US$ 68.1 billion for the sector in 2009 - US$ 62.2 billion from road vehicles and US$ 5.9 billion from agricultural machinery represented nearly 3 million vehicles were produced and over 2.5 million units were licensed, representing an increase of 17% and 8.7% respectively over the same period in the 2009. Cumulative farm machinery sales in the period totaled 54,000 units, According to the National Automotive Vehicle Component Industry Association (Sindipeas), Brazils fleet of vehicles grew by 8.4% in 2010, to 32.5 million, including automobiles, truck, light commercial vehicles and buses. With average growth estimated at 7.4% a year, from 2011 to 2015, it is calculated that the vehicle fleet grow to over 46.5 million units. According to data from the National Traffic Department (Denatran) and the Brazilian Institute of Geography and Statistics (IBGE), in 15 major Brazilian cities the number of vehicles is equal to at least half the populations size, meaning one car for every two inhabitants. 19.8% of Industrial Gross Domestic Product. Data from Jato Dynamics do Brasil, a consultancy specialized in the automotive sector, shows that in 2010 Brazil became the worlds 4th largest car market, overtaking Germany and trailing only the US, China and Japan. Brazils automotive exports totaled US$ 12.8 billion in 2010, with over 521,000 units sold. Cars represented the largest share (374,600), followed by light commercial vehicles (97,000), trucks (21,000) and buses (9,000). an increase of 40.8% over the 38,400 sold in the same period in the previous year.

4th largest car market. US$ 68.1 billion in total sales in 2009.
Pedroso de Morais avenue, So Paulo.

Net sales and share in industrial GDP - 1966/2009

US$ billion

18.5% 15.0% 12.8% 13.1% 11.7% 11.9% 9.6% 9.7% 13.1% 13.9% 15.6% 15.7% 14.7% 13.8% 13.3% 14.3% 13.6% 13.2% 15.4% 16.0% 15.5%

18.5%

19%

19.8%

12.4%

Vehicles

Agricultural machinery

Share in the industrial GDP (%)

Source: Brazilian auto industry Yearbook 2010 - ANFAVEA

Training to drive the industry forward

In order to maintain production excellence and keep industry professionals up to date, companies invest heavily in training. The goal is to provide quality training programs to as many employees as possible, at competitive costs and without sacrificing productivity. To meet these demands, e-learning solutions have been growing significantly in companies with operations in Brazil. The biggest benefits of e-learning include low levels of investment, fast and practical knowledge acquisition, accelerated collective learning, flexibility in terms of time and space, and its easy adoption by Generation Y. E-learning is being integrated with knowledge

management models and other information platforms such as CRM, BI and Contact Centers. It is being offered on different platforms, organized as a service (SaaS) and through cloud computing. A survey conducted by E-Consulting Corporation explains the interest in the tool. According to the study, 79% of employees at managerial level or above have taken part in some form of e-learning, and 88% of companies intend to step up their investments in it in 2010. Among the areas that make most use of the solution are Human Resources, Information Technology, Marketing and client-related areas. In 2010 the e-learning market turned over about US$ 1.3 billion, according to the Brazilian Distance Learning Association (ABED). The sector forecasts growth of 8% for 2011.

69 70 CASE STUDIES

Is your company ready to change potential into real?

Is your company ready for a world of unlimited opportunities? In the shared world, there are no barriers. Winning companies think, plan and act globally while looking at the market place. Companies share information to multiply wealth. They use trends as a lever for growth. TOTVS through its software solutions provides access to this new world without boundaries or limitations and with it, the key to turn this potential into reality. Lets share.

Technology | Software (SaaS) | Social Network | Consulting

/totvs #letsshare w w w. t o t v s . c o m

Share the new world.

Union that delivers results

Volkswagen, the largest vehicle manufacturer in Brazil, needed to provide effective training to employees working in more than 500 dealerships across the country. The operation faced several obstacles, including broad territorial reach, slow content dissemination, and different levels of knowledge among participants on the courses. The search for a solution led in 2008 to a commercial partnership between the automaker and TOTVS. The solution found was staff training through e-learning. It was necessary to implement a system to meet the automakers demands. The project was put into practice in early 2009, through the Employee Performance Management (EPM) solution, designed to produce six types of courses in six months. The success of the tool was such that 204,000 training sessions were performed in the year, at an average of 12.5 sessions per employee requiring training in the Volkswagen network.

The classes were designed so that employees could schedule when to attend, without interfering with their daily work schedules. The average course duration is one hour, divided into modules of 15 minutes. Professionals from all levels, from apprentices to managers, took part in the training, totaling 25,000 users. To provide excellent service to professionals with different profiles, courses were divided into three levels: subject, area, and target audience. One of the main benefits of the system deployed was the replacement of a bureaucratic system that did not meet the companys needs with a tool with flexible features and a layout that was suitable to the demands. The EPM solution also made network capacity management possible, offered greater scope and speed in the dissemination of the courses, and allowed more content to be offered in training. The tool remains in operation and in July 2010 the Volkswagen Academy was offering 32 courses to its users.

71 72 CASE STUDIES

Rio de Janeiro

Petrobras Oil Platform P-51, Marlin Sul field in the Campos Basin, Rio de Janeiro. Photo: Agncia Petrobras

BRASSCOMS AGENDA

Centro de So Paulo

Main Programs The Board Members Supporters

BRASSCOM
The Brazilian Association of Information Technology and Communication Companies (Brasscom) was established in 2004, to position Brazil as a strategic player in the global Information Technology and Communication (ICT) market. Brasscom represents some of the most important and influential companies in the Brazilian ICT industry, and has over the past few years served as a link between the private and public sectors at federal, state and municipal levels. It has played a leading role in the discussion of issues that are strategic to the Brazilian government, such as the promotion of the ICT sector internationally to help increase exports, the expansion of broadband nationwide, job creation, social inclusion and digital convergence. With operations in five priority areas - Institutional, Market Development, Education and Human Resources, Infrastructure and Digital Convergence, and Regulatory - Brasscom works to promote the excellence and innovative capacity of the Brazilian IT industry, which is key to increased efficiency and productivity in every sector of the economy.

INSTITUCIONAL
National Councils Market Strengthening Strategic Initiatives Public Relations

REGULATORY

HUMAN RESOURCES & EDUCATION

Educational programs aligned with the IT-BPO sector Long-Term: Curriculum Short-Term: Training Programs Technical Education, English Education, Talent Mapping, Career Promotion

INFRASTRUCTURE & DIGITAL CONVERGENCE

Infrastructure investments to support the IT-BPO sector Foster innovation

MARKET DEVELOPMENT

Competitive, fair and ethicalIT-BPO sector environment Reduce the cost of doing business in Brazil Legislation and Taxes, International Agreements, IP & Piracy Control

Promoting Brazils potential in the IT-BPO sector Branding Market Research Publications Demand Generation, Promotional Events, Roadshows, Media & Web

Broadband, Digital TV, Mega Events, IBCD, Innovation

75 76 BRASSCOMS AGENDA

Institutional
Brasscom has a seat on the National Council for Economic and Social Development, linked to the Presidency of the Republic, where it debates proposals for the promotion of economic and social development, and the improvement of foreign trade policies. The association works to strengthenthe ICT internal market, with the goal of spreading, to other sectors of the economy, contributions to productivity and increase the competitiveness of the country. It also acts as an agent that binds the Brazilian IT market to strategic markets and its competitive advantages. Its activities seek to facilitate partnerships, mergers, acquisitions, joint ventures, alliances and other joint efforts between local and foreign companies. Brasscom works to promote the internationalization of Brazilian companies and attract investment to Brazil.

Brasscom plans to produce the study Brazil 2022 - Information and Communication Technologies as the Main Driver of Development in Brazil. It is an audacious project, whose goal is to develop a strategic vision that will contribute to making the ICT sector prominent on the national agenda, leveraging the Brazilian competitiveness on the international stage and contributing to the economic and social development of Brazil.

Market Development
Promotes the Brazilian potential in the IT-BPO sector, with the goal of boosting the business volume in both domestic and international target markets, fostering Brazilian exports, attracting investments to the country and positioning it as a strategic IT center. Influential members of the industry, opinion makers, businesspeople, entrepreneurs and investors are part of this process, where the objective is to position the sector on local and global markets, to map opportunities and to encourage business development Since signing an agreement with the Brazilian Trade and Investment Promotion Agency (Apex-Brasil) in 2009, Brasscom has been proactive in Brazil and abroad, aiming at boosting Brazilian exports of software and IT services. Close relationships with and support from Ministries, funding bodies, industry associations, chambers of commerce and international agencies have also helped in the implementation of various activities. The results include greater international visibility for the Brazilian IT industry, a significant increase in global business and exports, and the strategic positioning of Brazil as a global IT center. Every year Brasscom runs workshops in the USA - to identify potential customers, generate business for members, and approach influencers and opinion formers. In 2010 alone over 5,000 contacts of potential buyers were mapped around the world. In the USA over 150 meetings were held and more than 10 cities were visited.

Brazilian Trade and Investment Promotion Agency (Apex-Brasil) headquarters, Braslia. Photo: Provided by ApexBrasil

The highlight of 2010, however, was the Brasscom Global IT Forum. Over three days the event brought together 110 people

in the cities of Sao Paulo and Rio de Janeiro, more than half of them senior international executives (and potential customers or investors: CEOs, CIOs, VPs). The aim was to promote the Brazilian Information Technology industry, accelerate the development of Brazils agenda for the sector, and implement its programs through the discussion of relevant topics. In 2011, Brasscom continue its international promotion of the Brazilian IT industry, generating business for Brazilian companies, attracting investment and boosting exports for the sector, as well as further positioning Brazil as a strategic global center in this market. Among the main actions are the establishment of a comprehensive study of the Brazilian ICT market and the holding of the second international IT event in Brazil, the Brasscom Global IT Forum 2011. The event will bring together international executives for a private agenda that will showcase Brazils capacity to be a global provider of software and IT services, highlighting the countrys expertise in niche markets.

Education and Human Resources

Works together with governments, universities, training centers and companies to influence, create, manage and participate in professional qualification programs involving technical and language training, aligned to business demands. Brasscom actively participates in a national project known as system S (SENAI and SENAC). The initiative provides 540,000 vacancies on free-of-charge professional IT training courses to young people in low-income groups throughout Brazil. A partnership between Brasscom and the Ministry of Education (MEC) has enabled the creation of two types of course in the Federal Education Network, to be held in various Federal Institutes of Technical Education: extension courses, in which a student enrolled on an IT course can specialize in determined technologies in parallel with their graduation course; and open courses, in which anyone, even without prior knowledge, can enroll. The goal is to familiarize students undergoing training with current technology being applied in business.

US-Brazil IT-BPO Summit. Photo: Brasscom

77 78 BRASSCOMS AGENDA

Brasscom is also in a partnership with the Pontifical Catholic University in Sao Paulo (PUC-SP), where there is a Division for Education and Rehabilitation of Communication Disorders (Derdic). The institution provides care and education for people with hearing impairments from the age of two through high school, and students who become interested in Information Technology can qualify as IT apprentices. Students participating in classes tailored to their needs can be employed by companies sponsoring the project.

companies use the Ginga middleware platform to disseminate the Brazilian standard for interactive TV, using Java and NCL languages. In 2011, Brasscom published the fifth edition of the Brasscom Digital Convergence Index (IBCD), drawn up to international standards methodology. The latest edition reveals dynamic growth in the indicators associated with the technological platform (hardware, software and IT-BPO services) and the convergence environment (connectivity, communications, media, and digital access to services and products). Brasscom coordinated, in 2010, a study that mapped the opportunities in IT for the World Cup in 2014 and the 2016 Olympic Games. The result shows that, in four years, television in high definition will be popularized and interactivity will be the watchword. Websites will feature online sweepstakes, social communities and games, among other features, specially designed for these events. It will be possible to watch soccer matches and comment on them via cell phones, laptops, tablets and netbooks. The cities will be adapted for the games, with expansion of Wi-Fi in public places. Data from the study reveal that major sporting events will generate investment of about $ 57 billion, of which 10% will be devoted to IT, either directly in data and image transmission systems, and indirectly, in areas such as security, healthcare, transportation and infrastructure. In 2011, Brasscom continues to offer suggestions to municipal, state and federal government, so that Brazil becomes prominent in the use of IT at the major sport events. In order to achieve this, Brasscom is promoting regional workshops that will discuss the infrastructure and telecommunication necessary for the World Cup and Olympics in Brazil, and also the positive legacy that can be left in other sectors, such as, transportation, healthcare, education, hotel and airport. Another important goal for 2011 is to discuss the issues involved in the advent of Cloud Computing, which will revolutionize Information Technology. Therefore, it is necessary to discuss several aspects related to infrastructure and regulatory framework, such as sovereignty of data, security and privacy. Brasscom will

Infrastructure and Digital Convergence

The goal is to help the Brazilian IT sector to foster infrastructure development, digital convergence and innovation. In 2009 Brasscom developed an extensive range of recommendations for the Brazilian government, designed to strengthen the Brazilian IT industry, and in turn to stimulate the national economy. The program promotes the expansion and improvement of broadband services, and IT and telecommunications infrastructure in the country, and is based on the balance between the pillars cost, coverage, awareness, training and regulation. Based on analysis of the recommendations, the Brazilian government launched the National Broadband Plan (PNBL), whose goal is to create opportunities, accelerate economic and social development, boost digital inclusion, enhance Brazils competitiveness and technological capabilities. This same study identified the importance of telecenters and LAN houses for digital inclusion in Brazil. The project, called A Sustainable and Qualified Model for the democratization of access to ICT, aims to popularize information technology in Brazil, creating a sustainable, social business standard in public centers. This was achieved by Brasscom in partnership with the Federal Government and the Brazilian Service to Support Micro and Small Enterprises (Sebrae). Brasscom has also been working to encourage software companies to engage in Digital TV. The intention is that

promote forums between government, academia and companies to create discussions and understanding about Cloud Computing, its demands and challenges.

Regulatory
The main activities concern the relationship between the private and public sectors, the Federal Executive, the National Congress and the Judiciary, and state and municipal governments. The objective is to create a favorable environment for doing business in Brazil. Brasscom, in conjunction with other entities that represent the Brazilian IT industry, has submitted a proposal to the Federal Government to change payroll taxes. The intention is to reduce the tax burden to companies by changing the tax basis. The plan is to replace the 20% tax levied on payroll with a rate of about 2.5% levied on revenue for IT companies. The change would help reduce the tax burden on companies without reducing government tax revenues, primarily through the continuous development of a formal labor pool in Brazil, which in turn would help rebuild the impacted government revenues over time. The measure would also reduce the labor liabilities, and would make the country more competitive in the international market, leading to increased investments in the sector and the formation of larger companies. This initiative is a priority agenda item in the Regulatory area. It is the continuation of a great achievement for the sector in 2008 when a law was passed reducing exporters Social Security contributions on payroll by half, from 20% to 10%.
The National Congress welcomes the new president Dilma Rousseff, Braslia. Photo: Jos Cruz / Agncia Brasil

79 80 BRASSCOMS AGENDA

BOARD

Rogrio Marcos Martins de Oliveira

Chairman of the Board Chairman of IBM Latin America

Hlio Santos Oliveira

Member of the board President of Politec

Jos Luiz Rossi

Board Vice-Presidente CEO of CPMBraxis Capgemini

Luiz Roberto Novaes Mattar

Member of the board President of TIVIT

Larcio Jos Lucena Cosentino

Vice Chairman of the board CEO of TOTVS and Chairman of the Board of Directors

Oscar Vaz Clarke

Member of the board Country Managing Director of Hewlett Packard Brasil

Fbio Pereira Marco Antonio Silva Stefanini

Vice Chairman of the board Chairman of Stefanini Member of the board Vice President of the board of DEDIC-GPTI

Benjamin Quadros
Member of the board CEO of BRQ IT Services

Gilmar Batistela
Member of the board President of Resource

Cludio Vita Filho

Member of the board VP Strategy & New Business of Itautec

Jos Carlos Villela

Member of the board Director of Accenture

DIRECTORS

Antonio Gil
President

Edmundo Oliveira
Director of Regulatory Framework and Institutional Relations

Nelson Wortsman
Director of Infrastructure and Digital Convergence

Sergio Pessoa
Director of Marketing and International Markets - USA

Sergio Sgobbi
Director of Education and Human Resources

81 82 BRASSCOMS AGENDA

SUPPORTERS OF BRASSCOM APEX-BRASIL

The Brazilian Trade and Investment Promotion Agency (ApexBrasil) promotes exports of Brazilian products and services, and contributes to the international expansion of Brazilian companies and the attraction of foreign investment. Apex-Brasil serves more than 80 sectors of the Brazilian economy, including agribusiness, fashion, technology, homes and construction, entertainment and services, machinery and equipment. They are companies of all sizes wishing to export their products, or even expand internationally. Apex-Brasil, then, is not only about increasing the number of companies that export, but also about adding value to the products exported, consolidating Brazils presence in traditional markets and opening up new markets abroad for the countrys products and services.

and business plans, marketing products on the domestic market, and exports. By June 2010 the BNDES Prosoft portfolio had 293 transactions, involving total funding of around US$ 1.4 billion.

MINISTRY OF SCIENCE AND TECHNOLOGY

The mission of the Department of Information Technology Policy (SEPIN) at the Ministry of Science and Technology (MCT) is to propose and implement public policies, and domestic and international projects, for the Information and Communication Technology (ICT) sector. The actions coordinated by SEPIN contribute to creating jobs and generating income, balancing trade in the sector, creating opportunities for technological advancement for local industry, and increasing research and development in Information Technology and Communication.

BNDES
The Brazilian Development Bank (BNDES), a state-owned company, is the main provider of long-term financing of investments in all segments of the economy, including social, regional and environmental policies.

SEPINs programs and actions are backed by the Science, Technology and Innovation Action Plan for Industrial Development. In this context, SEPIN operates in three major areas:

It substantially increases exports from the sector to domestic Since its founding in 1952, BNDES has excelled in supporting agriculture, industry, infrastructure, commerce and services, providing special conditions for micro, small and medium businesses. The bank has been implementing social investment, primarily targeting education and healthcare, family agriculture, basic sanitation and urban transportation. In its Corporate Plan 2009/2014, BNDES identified innovation, local and regional development, and social and environmental development as the most important aspects of economic development in the current context, and those which must be promoted and emphasized in all the projects supported by the bank. Chief among the innovation support programs are BNDES Prosoft - the BNDES Program for the Development of National Information Technology Software and Services the banks main instrument for funding the IT industry. BNDES Prosoft provides software and IT services companies based in Brazil with support for investments and transnational companies established in Brazil; It increases market share for companies developing software domestically and stimulates the expansion of their economic capacity; It promotes the development and production of software in emerging segments. Implementing action Training and Qualification of Human Resources; Stimulation of product and solution development in emerging segments such as Visualization and Grid Computing; Dissemination of and support for the implementation of best practices in software engineering; Support for efforts by Brazilian companies exporting software and IT services;

 Support for the increased use of IT systems in various production chains; Implementation of an information system on the Brazilian software and services industry; Development of studies and support for events of interest to the sector.

Foreign trade policies; Regulation and implementation of programs and activities related to foreign trade; Application of trade defense mechanisms, participation in international negotiations related to foreign trade; Formulation of policy to support micro-businesses, small businesses and handicrafts; Registering trade; nnovation policies. The following entities are linked to the Ministry of Development, Industry and Foreign Trade: The Manaus Free Trade Zone Head Office (SUFRAMA);

MINISTRY OF DEVELOPMENT, INDUSTRY AND FOREIGN TRADE

The mission of the Ministry of Development, Industry and Foreign Trade (MDIC) is to make Brazil competitive, fair and rich in opportunity, in partnership with the production sectors, through action that improves peoples quality of life. The MDICs areas of competence are in the following subjects: Policy for the development of industry, commerce and services; Intellectual property and technology transfer; Metrology, standardization and industrial quality;

The National Institute of Industrial Property (INPI); The National Institute of Metrology, Standardization and Industrial Quality - Inmetro Brazilian Development Bank (BNDES).

The Brazilian software and information technology (IT) services industry use the brand Brasil IT+ to represent its communications actions abroad in a unified manner. Aiming to create a single visual language based on a common positioning strategy, the brand gives Brazilian IT companies and associations a recognizable identity around the world, that drive the sectors exports and its international expansion. Brasscom is part of the group of institutions and companies that believe in the Brazilian IT sectors capacity to do business inside and outside of Brazil, contributing to the development of the country and the consolidation of the industry. The brand Brasil IT+ certifies the competency and quality found in Brazilian IT and guarantees the delivery of practical, efficient, and innovative solutions through a unique combination of attributes Brazil has to offer: business expertise, creativity, flexibility, diversity, infrastructure and excellent conditions to create solid partnerships.

83 84 BRASSCOMS AGENDA

APPENDIX

Sources Members Institutional members

SOURCES

AMBEV - American Beverage Company Anatel - National Telecommunications Agency ANFAVEA - National Association of Motor Vehicles Manufacturers AT Kearney ABECS - Brazilian Association of Credit Card Companies and Services ABES - Brazilian Association of the Software Companies ANBIMA - Brazilian Financial and Capital Markets Association ABICAB - Brazilian Association of Cacao, Chocolates, Candies and Byproducts Industry BM&F Bovespa Brazilian Mercantile & Future Exchange Booz&Co. Canadean Central Bank of Brazil CETIC.br - Center of Studies on Information and Communication Technologies CIA World Factbook

CIO Magazine comScore CSU CardSystem Denatran - National Traffic Department e-Learning Brasil Economist Intelligence Unit FEBRABAN - Brazilian Federation of Banks FGV - Getulio Vargas Foundation Forum Brasil Conectado National Broadband Plan Gartner IBGE - Brazilian Institute of Geography and Statistics Ibope/Nielsen IDC IMF - International Monetary Fund INEP - National Institute of Educational Studies and Research International Confectionery Association

Jato Dynamics do Brasil Merril Lynch Ministry of Agriculture, Livestock and Food Supply Ministry of Development, Industry and Foreign Trade - MDIC Ministry of Education - MEC Ministry of Mines and Energy - MME Ministry of Science and Technology - MCT Novell Petrobras Sindicerv - National Syndicate of the Beer Industry Teleco Superior Electoral Court - TSE UNCTAD - United Nations Conference on Trade and Development UNIFESP - Federal University of So Paulo

85 86 APPENDIX

Members
Accenture British Telecom

www.accenture.com.br
+55 21 4501.9377
We work with clients from all industries to help them become high-performance businesses. Management Consulting, Systems Integration & Technology Services, and Outsourcing

www.bt.com/globalservices
+55 11 2101.9800
BT is the global leader networked IT services provider offering an innovate portfolio that comprehends voice and IP networking, security, unified communications and collaboration, mobility, data centers and contact centers across 170 countries.

Algar Tecnologia
0800 342525

www.algartecnologia.com.br
With focus on business process technology solutions, we offer our expertise seeking to deeply understand the daily life of each business and develop personalized projects for each client.

Cast Informtica SA www.cast.com.br

+55 11 3041.8001 | +55 61 3429.7300

Systems development; software factory; testing and maintenance; legacy conversion; ECM; BI; outsourcing and BPM. CMMI level 3, MPS.BR level C and ISO 9001:2008 certified. Cast provides IT solutions for government, finance, services & industry.

Atos Origin

www.atosorigin.com.br
+55 11 2183.2344
Consulting and Information Technology Services. Consulting, systems integration and management services. C&SI Consulting and Systems Integration; MO - Managed Operations; Software Factory/ Offshore.

Ci&T

www.ciandt.com
+1 610 482.4810
Symbol of innovation in outsourcing by IAOP/Fortune Magazine, Ci&T applies the concepts of Lean IT to generate value for its clients. It offers consulting and outsourcing of applications, BPM, SAP, BI, digital marketing and mobile applications.

BRQ IT Services www.brq.com/en

+1 516 541.3100
Founded in 1993, BRQ is a leading IT services and solutions provider in Brazil with a comprehensive offering, from consulting to infrastructure services, including outsourcing, custom application development, CRM, BI, ERP solutions, and distribution of third party software.

Cisco do Brasil Ltda

0800 702.4726

www.cisco.com.br

Leading supplier of networking equipment and network management for the internet.

BSI Tecnologia Ltda

+55 11 4613.7700

CPM Braxis Capgemini

www.cpmbraxis.com
+55 11 3708.9100
CPM Braxis Capgemini is the largest IT services provider of Brazilian origin and offers Application Services, Infrastructure Technology Services e Business Process Outsourcing (BPO) for companies installed in Brazil and the world.

www.bsitecnologia.com.br

IT Outsourcing, Development and Integration of Systems, IT Management, Infrastructure Management, Automation and Human Capital Management.

DEDIC GPTI

www.dedicgpti.com.br
+55 11 3218.4700
One of the most important Information Technology Service, Contact Center/BPO (Business Process Outsoursing) and customer relationship providers in Brazil. In this context, the company has in your base customers that belong to the following segments: Telephony, Finances, Government, Logistic, Manufacturing, Construction, Consume and Services.

Google

www.google.com.br

+55 11 3797.1000 | +55 11 3797.1001

Developer of the biggest research system in the world, Google offers the fastest way to find information on the internet, besides a huge variety of products and online services. The company is based in Brazil since 2005 and contributes to facilitate the life of the Brazilian internet users.

Dimension Data Brazil

www.dimensiondata.com.br
+55 11 3878.6500
Founded in 1983, Dimension Data plc is an ICT services and solutions provider that uses its technology expertise, global service delivery capability, and entrepreneurial spirit to accelerate the business ambitions of its clients. Dimension Data is a member of the NTT Group.

HP

www.hp.com

0800 770.0130
HP creates new possibilities for technology to have a meaningful impact on people, businesses and governments. The worlds largest technology company, HP brings together a portfolio that spans printing, computing, software, services and IT infrastructure to solve customer problems.

Hughes EMC
www.emc.com
+55 11 5185.8800
EMC Corporation is a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyze their most valuable asset - information - in a more agile, trusted and cost-efficient way.

www.hughes.com.br
+55 11 3818.7500
Global leader in satellite telecommunication equipment and services.

IBM - Brazil www.ibm.com/br

0800 707.1426
Information Technology. Strategic consulting and solutions involving Services, Hardware, Software and Financing.

Intel - Semicondutores Brasil

www.gft.com

GFT Brasil Consultoria Informtica Ltda

+55 11 2176.3253
One of the leading international IT service providers for the financial services sector.GFT offers IT based services covering consultancy, application development and management.

+55 11 3365.5500
Leading manufacturer of computer, networking and communications semiconductors. Develops technology, products and initiatives to continually advance the way people work and live.

www.intel.com

87 88 APPENDIX

Itautec

www.itautec.com.br
+55 11 3543.3000
Hardware manufacturing (PCs, commercial and banking automation) and services. Helpdesk and service desk; IT training, outsourcing and customized projects.

Resource IT Solutions
www.resource.com.br
+55 11 3748.6000
Outsourcing, Software Factory and Allocation of Professionals. Specializing in: Cards Solutions, SAP Solutions and Services, SOA/BPM, IT Infrastructure, Quality Assurance, Business Intelligence, Studio MKT Digital, Oracle Service Line, EMC2, Contact Center and Site Seeing - Monitoring of Applications.

Lenovo
www.lenovo.com +55 11 3336-5100
Formed from the purchase of the division of IBM PCs, Lenovo is among the five largest manufacturers of computers in the world. Lenovo develops products with high technology, security and portability for corporate customers or home users.

SAP

www.sap.com.br
0800 888.9988
SAP solutions, along with services and a wealth of extended value from the SAP customer-focused ecosystem, help customers become clear enterprises by providing insight for improved performance and flexibility to quickly adapt to changing scenarios.

Microsoft
www.microsoft.com.br +55 61 2107 7243
Software and Services in IT.

Spread

www.spread.com.br

+55 11 3874.6000 / 3874.6057

IT solutions to the Financial Market / Carriers / Services / Public Agencies / Industry / Commerce. Consulting Outsourcing, BPO/BPM, Process, Service Desk, SW Development, Testing and Certification, Migration Critical Systems, Telecom & Network, Platform Migration, IVR/CRM, Solutions Google.

Oracle
www.oracle.com
+55 11 5189.4000
Oracle supplies the most complete software and hardware systems of the world. Its leadership in the market is the result of a historic of technological innovations. Portfolio: data base, servers of application, applicatory enterprise, solutions of contribution, tools for development of applications, consulting, training and support.

Stefanini IT Solutions
www.stefanini.com
+55 11 3039-2000 | +1 954 229-9150
The largest Brazilian Multinatinal IT services organization that has been in business for 23 years. With presence in 19 countries, 22% of its revenues are originated from the companys operation outside of Brazil. Stefaninis main line of services includes IT Consulting, Systems Integration and Outsourcing (ITO & BPO).

Politec

www.politec.com
+1 770 771.6500
Nearshore IT Outsourcing, Application Development, Maintenance, Testing, Strategy/Transformation, Consulting, IT Infrastructure Management, plus a standalone SAP SI practice. Focus on Financial, Public Sector, Manufacturing, Utilities, Telecom, Gas and Natural Resources.

TCS - Tata Consultancy Services www.tcs.com

+55 11 3306.7000
Experience Certainty - IT Services, Business Solutions, Outsourcing.

Tivit - Terceirizao de Processos,

+55 11 3757.2222

Servios e Tecnologia SA www.tivit.com.br

Large-scale critical-mission operations, process reengineering and business knowledge for various industries. IT Infrastructure, Application Systems and BPO integrated services.

Institutional members
B2B Magazine
www.b2bmagazine.com.br

Totvs SA

www.totvs.com
0800 7098.100
TOTVS is a company of software, technology, consulting and value added services.

C.E.S.A.R.
www.cesar.org.br

Unisys

www.unisys.com.br
+55 11 3305.7100
Services and IT solutions. Consulting, systems integration, outsourcing and infrastructure services, combined with enterprise servers.

CTI
www.cti.gov.br

Inpe
www.inpe.br

UFPE
www.ufpe.br

UNESP
www.unesp.br

UNICAMP
www.unicamp.br

89 90 APPENDIX