world bank / ifc brasscom seminar antonio gil, president may 20 th - washington dc
TRANSCRIPT
World Bank / IFCBRASSCOM SeminarAntonio Gil, PresidentMay 20th - Washington DC
BRASSCOM
BRASSCOM
THE NEW DISCOVERYTHE NEW DISCOVERYOF BRAZIL*OF BRAZIL*
* In pursuit of the way to India
BRASSCOM
Congress with Senate & House, 81 / 513 Elected Governors & HousesElected Mayors & Councils
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Labor laws dating 1939Ministry of Labor / Special Labor Courts
Federative Republic with 26 states and Federal District
Independent Judiciary with three levelsSupreme Court appointed by President, need Senate approval
Tough legislation on Environment and sweat-labor
Political Organization
BRASSCOMBrazil Numbers in a nutshell
Currency reserves are over US$180 Billion, external debt 50% of reserves
GNP: US$ 1,5 Tri GNP Growth in 2007: 5,4 % - 2008 (est.): 5%
Population : 186 Mi (Urban: 80%)
Inflation under control – 2007: 4,8%
DFI 2006: US$ 16 Bi 2007: US$ 31 Bi
Exports 2007: US$ 160 Bi
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Investment Grade
BRASSCOMInfrastructure
Efficient Post Office internal system, most major fast delivery operators present (UPS, Fedex, etc)
Comprehensive Telecom network offers country-wide access
125 million mobile phones in operation in the end of 2007
Brazil has world’s second largest private aviation fleet
Fast air access to Europe and North America (9-12 hours flights)
Federal & State highway system covers the whole country – growth assured through private concessions
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4,6 million wideband access (2006)
BRASSCOMEducational System
There are 2,270 Universities among Federal, State and Private and 5,8 Mi students (Source: MEC, 2006)
Technical Schools and Universities turned out 246,000 IT-related professionals (Source: MEC, 2005)
9-year Elementary school today reaches 100% of population
High-school 3 yearsTechnical Schools with 1 more year, ready to enter in the IT job market
111 post-graduate IT-related courses
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More than 250 new public technical schools will be created by the end of 2010
BRASSCOMPosicionamento
FOOD POWER
BRASSCOM
Agriculture GDP (2007): US$ 318,6 biTotal Exports in Agribusiness (2006): US$ 49,4 bi
Key facts about Agribusiness in Brazil
Total Cultivated Area:2007: 57,8 Mi ha2008: 59,7 Mi ha(Var.: 3,4%)
Source: Ministry of Agriculture / IPEA / WFP / US Grains Council
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Brazil’s position in agricultural exports (2007 - % of the world exports)
The No. 1 exporter:• Coffee: 28,9%;• Beef: 30,0%;• Poultry: 37,8%;• Sugar: 41,5%;• Orange Juice: 83,5%;
The No. 2 exporter:• Soybean: 34,2%;
The No. 3 exporter:• Corn: 8,6%.
BRASSCOMPosicionamento
ENERGY POWER
BRASSCOM
Oil Production: 2,15 million barrels/day (AIEA 2008 est.)
Key facts about Energy in Brazil
Tupi oil discovery in Brazil:
33 billion barrels (Petrobras Apr. 2008 est.);
New discoveries can make Brazil a major oil exporter by 2012
Petrobras
• A Brazilian oil and gas company, dedicated to oil exploration and distribution, created in 1953;
• Active in 27 countries;
• 109 production platforms and 15 refineries (2007);
• Leading corporation in innovation and research in deep and ultra deep water exploration and production;
• 4th largest oil company in the world; • Market value: US$ 242,76 billion (2007).
BRASSCOM
Hydropower• Clean Hydroelectric Power continues to be main energy source;• World’s 3rd largest producer of hydroelectricity;• It corresponds to 83% of Brazilian electricity production.
Key facts about Energy in Brazil
BRASSCOM
Biofuels - Brazil is the world’s leader in renewable-energy sources
Biodiesel: • 2004: announced the “National Program for Production and Use of Biodiesel” – mandatory 2% of biodiesel (2008), and 5% (2013). Ethanol:• National Program of Alcohol (Pró-álcool)• Revenues from Ethanol Exports (2006): US$ 1,6 billion (UNICA)• 71,2% of Brazilian vehicles are flex fuel (2007)• Productivity (gallons of ethanol per acre): 727 in Brazil (321 in the USA) (WW Int. Center est. 2006/7 for Brazil and 2004/5 for the USA)
% of global production of ethanol in 2006. (World Bank)
Key facts about Energy in Brazil
BRASSCOMCase of Success
Embrapa
• Brazilian Agricultural Research Corporation; focused on solutions for
sustainable development in agriculture;
• Driving technological force for the progress of Brazilian Agribusiness;
• Budget in 2007: more than US$ 602 Mi;
• Coordinates the National System for Agricultural Research;
• Global laboratories for cutting-edge technology development;
• 68 bilateral agreements with 37 countries; 20 multilateral agreements;
• 38 research centers (biogas, biodiesel, ethanol, genetic engineering, nanotechnology, biologic security).
BRASSCOMCases of Success
Embraer
• 4th largest aircraft manufacturer in the world, active in 6 countries; • Privatized in 1994;• Produces commercial and executive Jets and also Defense systems; • Market Value: US$ 20,3 bi (April 2008).
Vale
• Second diversified-mining company in the world and biggest private company in Latin America;• Largest producer of iron ore, pellets and nickel; • Active in all continents and 33 countries;• Market value: US$ 150 bi (2007).
Steel
Paper
BRASSCOMPosicionamento
IT POWER
BRASSCOMIT Market
IT-GNP of over US$ 20,6 Bi (IDC, 2007)
US$ 9,0 Bi in services
15% growth in 2004-2005, 25% in 2006-2007 (IDC)
Competitive services market, ACCENTURE, BRQ, BT, CAST, CPM
BRAXIS, DATASUL, DTS, EDS, G&P, GFT, HSBC, HUGHES, IBM,
INTEL, ITAUTEC, MICROSOFT, POLITEC, PROMON, SATYAM,
SIEMENS, STEFANINI, SUN, TATA, TIVIT, TOTVS, UBIK, UNISYS
Local PC makers have outperformed traditional manufactures like
HP, Dell, Acer, with strong sales & support organization and
competitive prices
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BRASSCOMIT Market
Highly experienced IT Professionals - Starting 45 years ago.
IT professionals now number more than 1,7 Million
Intensive use of diverse platforms, Mainframe, Unix, Linux, .Net,
Java, Oracle, SAP, Natural Adabas, …
Brazil ranks second (after USA) in world’s mainframe population,
with an experienced pool of COBOL professionals
Brazil is leader in Java programmers, with several JUGs and has the
largest JUG in the world (18,000 members, IDC)
Labor pool developed from a business-technology approach, with
deep industry knowledge
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BRASSCOM
1.233
70
1.106 1.1421.081
1.186
755
607 636711671
5018 26 36
20082004 2005 2006
IT Services Expenses
(in-house and outsourced)
IT Services Expenses
(outsourced and off-shore)
IT Services Expenses
(outsourced)
IT off-shore demand will grow hardly in the services market share. IT off-shore demand will grow hardly in the services market share.
2007
Global IT Services Market Evolution(US$ Bi)
CAGR1
3%
6%
40%
1) Compounded annual growth rateSource: Gartner Group
Global Sourcing opportunity
BRASSCOMBrazil’s Advantages
Industry knowledge
Cultural compatibility
Strong and diversified internal IT market
Favorable time-zone
Absence of natural disasters
No ethnical or terrorism problems
Western and democratic legal system
Political and economical stability
45 years of IT investments
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BRASSCOM
More than 85.000 professionals with 65% of Brazilian IT-GDP
Today 35 members
Founded in 2004 by major Brazilian IT companies
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The Brazilian Association of Information Technology & Communication Companies
BRASSCOMBRASSCOM Goals
TECHNICAL AND LANGUAGE EDUCATION
EXPORTS PROMOTION & BRANDING
MARKET STRENGTHENING
INFORMATION & INTELLIGENCE
REGULATORY
DIGITAL CONVERGENCE
Work actively with Governments, Universities, other Public Institutions and Enterprises to provide world-class training and education programs
Position, promote and disseminate Brazilian IT capabilities internationally and domestically. Increase volume of Brazilian IT exports
Facilitate potential partnerships, joint-ventures, alliances and other joint-efforts among local and international companies
Guide IT industry to the Digital Convergence challenges.Foster innovation
Create, maintain and disseminate an information database for the Brazilian IT Industry
Take effective steps to generate a competitive, fair and ethical environment for the IT industry
BRASSCOM3-years national program in IT
US$ 5 billions in exports
100,000 new professionals
Federal Incentives
10% reduction on labor charges
3,5% reduction on “S System”
Income tax reduction for Education and Innovation in R&D
Local Incentives
Facilities and infrastructure
Local tax incentives
BRASSCOM
The 21st century is the century of knowledge. The 21st century
is the century of Brazil.
BrazilOne of the 3 key global players in
Information Technology
World Bank / IFCBRASSCOM SeminarAntonio Gil, PresidentMay 20th - Washington DC