7th largest ICT market in the world and 8th largest IT market 1st ICT and IT markets in Latin America

2. About BRASSCOM
VISION Position Brazil as one of the top five key global IT centers.
Spread the excellence and innovative capabilities of IT to other sectors, increasing
MISSION
Brazilian economy’s productivity and quality.

3. BRASSCOM’s Agenda
INSTITUTIONAL
Sector Strategy Institutional Relations Public Relations Marketing Strategy
HUMAN RESOURCES INFRASTRUCTURE & MARKET
REGULATORY
& EDUCATION DIGITAL CONVERGENCE DEVELOPMENT
Promote a globally Educational programs Infrastructure Promote and develop
competitive, fair, and aligned with the investments to develop the IT-BPO sector
ethical IT-BPO sector IT-BPO sector the IT-BPO sector locally and overseas
BRAZIL IT 2022 STRATEGIC PLAN
Legislation and Taxes, Technical Education, English Broadband, Digital TV, Demand Generation,
International Agreements, Education, Talent Mapping, Mega Events, IBCD, Promotional Events,
IP & Piracy Control Career Promotion Innovation Roadshows, Media & Web

4. Brazilian ICT Market
ICT MARKET 2010 (US$ Billion) IT-BPO 85.1
COMMUNICATIONS 80.6
165.7
IT-BPO MARKET 44% IT-BPO EXPORTS 9%
US$ BILLION
85.1 US$ BILLION
Source: Brasscom, IDC TOTAL IT SPENDING ACCOUNTS FOR 4% OF BRAZIL’S GDP 4

5. Regional Leadership
7th largest ICT market in the world and 8th largest IT market
1st ICT and IT markets in Latin America
Sources: IDC and Gartner – Emerging Market Analysis, IT – Brazil – July 2010 – LATAM includes México

6. Financial Services
403 million cards - debit and credit (2010)
56 billion banking transactions per year (2010)
13 billion online banking transactions (2010)
US$ 13 billion invested in technology by the sector - largest IT buyer in Brazil (2010)
106 million trades – Bovespa (2010)
Sources: Abecs (Brazilian Association of Credit Card Companies and Services), Febraban (Brazilian Federation of Banks)
and Bovespa

7. E-Government
135 million voters
5.500 municipalities
300 thousand votes processed per minute
3 hours for the results
24 million electronic tax declarations (personal)
1.1 million electronic tax declarations (business)
Sources: Superior Electoral Court and Federal Revenue Bureau

8. Energy, Oil & Gas
47% renewable sources
27 billion liters of ethanol produced per year
365 billion cubic meters reserves of natural gas
2.5 million barrels of oil produced per day – technology for offshore fields
(most oil reserves are on the continental shelf, in deep and ultra-deep waters)
Technology to exploit oil in the pre-salt
2.8 million flex cars registered (2010) - software developed in Brazil
Sources: Ministry of Mines and Energy (MME), National Association of Motor Vehicles Manufacturers and
Associated Industries (ANFAVEA) and Petrobras

9. Agribusiness
US$ 76.4 billion in agricultural exports (2010)
160 million tons of grains produced (2010)
25% of world food supply
400 Agribusiness Software (2009)
Technology and IT Innovation – Embrapa
Satellite - environment control and agriculture expansion through technology
Sources: Ministry of Agriculture, Cattle and Supply (MAPA) and Brazilian Agricultural Research Corporation (Embrapa)

10. Manufacturing
3rd largest IT buyer in Brazil (after finance and telecom)
43% of ERP market
66% of ERP market in Brazil is supplied by national
companies - US$ 1.4 B in 2010
250 thousand IT professionals have deep knowledge in Manufacturing and Retail

11. Human Resources and Education
1.2 million IT professionals (2010)
750 thousand new IT professional needed until 2020
2.314 universities (2008)
568 thousand students registered in Technological Education courses (2008)
4.355 undergraduation courses related to IT (2008)
55 thousand scientific articles published in International media (2008)
Sources: Brasscom, IDC, Ministry of Education (MEC) and Ministry of Science and Technology (MCT)

12. Infrastructure
210 million mobile phone lines
41 million broadband connections
4th largest PC market in the world
6th largest market for mobile phones
2nd largest number of airports in the world - 35 international / 33 domestic
880 weekly-international flights
Sources: National Agency for Telecommunications (Anatel), IDC, Brazilian Association of Telecommunications
(Telebrasil) and Teleco

13. Economic Strength and Stability
7th Largest Economy in the World and 1st in Latin America
 2010 GDP: US$ 2.1 T 2011 Expected GDP growth: 4.5%
 FDI 2010: US$ 48.5 B 2011 Expected FDI: US$ 60.0 B
 Top multinationals have been in Brazil for decades – IBM: 1917; J&J: 1933
 World’s top 5 in regulation of securities and exchanges
 34 Brazilian companies in the Global Fortune 2000: Petrobras, Embraer, Vale, CSN,
Gerdau, Aracruz, Suzano, Brazil Foods, Inbev, Itau/Unibanco, Bradesco, among others
 Effective policy to control inflation since 1994
 83% of population in urban centers
Sources: Economist Intelligence Unit, IMF, World Economic Forum

14. Diversified Economy
28 technology parks
3rd largest manufacturer of aircrafts
6th largest manufacturer of automobiles
2nd largest producer of biofuels
9th largest producer of oil
1st producer and exporter of coffee,
sugar, orange juice and ethanol
Sources: UNESCO, IBGE, BNDES, Petrobras Website, The Boston Consulting Group – BCG, SECEX

15. Cultural Landscape
92.7 million 25 million 18 million 15 million
Afro-Brazilians Italian-Brazilians German-Brazilians Hispano-Brazilians
10 million 1.8 million 1.6 million
Arabic-Brazilians Polish-Brazilians Japanese-Brazilians

16. Total Cost Competitiveness
 Optimized On-Shore / Offshore Ratio  High Productivity
 Timezone: Real-time communication  Industry / Business knowledge
 Nearshore: Lower management / travel costs  Cultural compatibility
 Low-turnover rates
 High Quality
 Low levels of rework

17. Brazil 2022: Opportunities and Challenges
Global Economic,
Global Economic,
Demographic, and
Demographic, and Growth of
Growth of Growth of Global IT
Growth of Global IT Technology
Technology
Political Changes
Political Changes BRICs
BRICs Markets
Markets Trends
Trends
Cloud
Mobile
Social Media
Asia Pacific
Big Data
Latin America Cleantech
Innovation Science Without Borders
Human Capital Pronatec
Infrastructure PNBL, 2014 World Cup, 2016 Olympics
Competitive Costs Brasil Maior Plan
2010 2022
Economic Power
Economic Power 7th 5th
IT-BPO Market
IT-BPO Market US$ 85.1 B ~ 2x US$ 150.0 – 200.0 B
Share of GDP
Share of GDP 4.0% 6.0%
~ 8x
IT-BPO Exports
IT-BPO Exports US$ 2.4 B US$ 20.0 B

18. Thank You!