Why does IBM Outsource to Brazil?
IBM has invested more than a 1 billion dollars in Brazil in the past decade, so why is Brazil such an interesting place to outsource IT?
Today, we’re gonna show you some of the benefits of outsourcing to Brazil, and how a business, not just IBM, can start hiring almost immediately in Brazil, with no physical branches in the region. Check it out!
IBM signs 1B Dollars Outsourcing contract in Brazil
In 2012, IBM made a 1 billion dollars deal with EPX Global to take part in its IT operation and technology division.
That wasn’t the first, or last time that IBM made dealings in Brazil. In 2003, IBM entered into a contract with brazilian telecommunications company, Embratel. This contract is said to have saved 30% in costs to IBM related to IT.
So Brazil has always been a great place to outsource IT, but things have evolved even more now, after the pandemic.
Acceleration into Remote Work has made Brazil a haven for companies like IBM that have massive demand for IT.
The exchange rate of Brazilian Reais to US dollars combined with a strong workforce in IT, makes Brazil an interesting place to outsource.
IBM Cloud and Outsourcing Services
Not only does IBM use Brazilian workforce internally, they also offer IT outsourcing as a service on IBM Cloud.
There are different models of outsourcing depending on the demand. One of its most common uses is for infrastructure. Where IBM is responsible for server maintenance.
Web and App development is also common. In such cases, IBM defines its target goals with the customer and then assembles a team of IT engineers to develop the project.
The benefits are clear, the cost of hiring and training a team is far more expensive than just contracting an outsourced team of very experienced IT engineers to get the job done.
How does IBM outsource to Brazil?
IBM outsources its workload to Brazil, usually hiring a local company. Outside of that, all hiring in Brazil is made by IBM’s Brazilian branch.
Internacional hires are rare, usually just executives and other higher ups. That means that, as any multinational, IBM maintains a local presence in Brazil.
In that case, IBM Brasil has to be compliant with Brazilian work and taxes laws.
That doesn’t have to be the case always, there are companies that hire in Brazil without maintaining a local branch.
In such cases, especially for small and medium sized companies, it is possible to run a team in Brazil remotely.
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