Brazil is in the heart of the growth in Latin America outsourcing. Forrester research predicted that the Latin American market for outsourced services will grow 12% in 2010 to $8 billion. According to BRASSCOM (the Brazilian equivalent to NASSCOM), Brazil’s offshore market rose 75% to $1.4 billion in 2008.
As one of the BRIC countries, Brazil is expected to have high growth over the next few years and with a 8.8% growth rate in Q2 2010 it is meeting those expectations. The market is stimulated by providing solutions to Southern European and US customers, together with a burgeoning domestic market.
This week has seen Capgemini acquire a 55% stake in Brazilian IT services provider - CPM Brazil, with a $298 million investment and an option to buy the remaining in three to five years. This emphasizes the position Capgemini have taken in Latin America, and follows the much smaller recent acquisition of a BPO capability in Brazil from Sonda serving F&A client Bunge.
We think this is a wise strategic move, and predict that other leading BPO and ITO providers will be purchasing further Brazilian capability in the near future!
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