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Sourcing talent offshore: a look into Brazil’s potential

This article offers insights into how sourcing talent offshore can benefit professionals and businesses alike.

While there is a tendency of portraying C-Level Executives as the sole face of a companies’ triumphs, long-term growth is a team sport. Yet, some businesses aren’t playing well. There is mounting evidence of burnt-out employees frustrated with their workplace and ready to switch jobs at the first offer. Companies are confronted with a tremendous challenge: assure growth while providing better work conditions at a healthier pace.

To illustrate how sourcing talent offshore may be part of the solution businesses longed for,  here we dive into Brazil’s potential as a global IT talent hub and the advantages of hiring from this emerging economy. When done strategically, sourcing internationally can promote diversity and inclusion in the workplace. This boosts productivity and financial growth while broadening the range of perspectives and creativity.


Brazil at a glance

Capital: Brasilia
Population: 215,737,180
Language: Portuguese
Currency: Brazilian Real (BRL)
Timezone: (UTC-5; -4; -3; -2)
4th largest country in geographic terms
12th largest economy in the world; and the 1st in South America,
1st in IT investments in Latin America according to the World Bank
5th most-intensive internet users globally, with an average of 10 hours spent per user daily.


Cultural similarities and timezone

For decades, companies favored Asia, especially China and India, to provide tech talent. However, cultural acclimation to western models and offbeat timezones for remote work stressed the workflow; this context inserted Latin America on the map, especially Brazil, as a nearshore hub. Topping the rank of Latam IT investments, Brazil’s advantage over other sourcing zones is its ability to quickly adjust to new technologies and cultures.

The country’s timezone conveniently overlaps with US office hours, making remote work a no-brainer alternative. It allows easy integration with the existing workforce while promoting real-time team collaboration. The cultural similarities are also an advantage if companies hire on-site staff. A regular workday in the country is similarly structured to US commercial hours, usually from 8-5, with a standard workweek ranging from 40 to 44 hours.

Although roughly 5% of the population is fluent in English, IT professionals are well- exposed to the idiom, for it is the default language of the vast majority of technologies. It is wise to expect that those professionals with a solid English domain are in high demand. Still, there is no reason for discouragement. Brazil is a pool of talent with tremendous international potential, bridging the second language gap.

Also, the country has around 566 Edutechs, and at least 5% of those are operating in the language field. The sector as a whole received a US$ 22,5 million investment in 2021, a 770% increase in contrast with 2020. The bottom line is that what isn’t fully developed is yet to grow, and those wise enough to foresee the opportunity will benefit. Brazil is a new frontier with plenty of potential in its emergent nature.

According to Brasscom (Brazilian Association of Informational and Communication Technology Companies), roughly 53k IT graduates enter the market each year. High-demand technology skills are increasingly integrated into the academic curriculum, and universities encourage students to develop a result-driven mindset to meet the US and global demands.

In addition, top-notch global multinationals like IBM, Microsoft, Infosys, and Unisys outsource operations to Brazil, creating a pool of professionals already adapted to international models. And if that wasn’t enough, IBM recently announced its program to bridge the skill gap in the tech arena.

The company will train 30 million people of all ages for future technology jobs by 2030 through 170 partnerships with universities and other entities. Brazil is one of the 30 countries that will benefit from the initiative. “This will help democratize opportunity, fill the growing skills gap, and give new generations of workers the tools they need to build a better future for themselves and society,” said IBM Chairman and CEO Arvind Krishna.

A win-win transaction

Intelligent businesses always seek ways to improve their operation. Undeniably, saving money and time maintaining quality is a crucial part of that process. Sourcing talent offshore has given companies the ability to hire high-quality professionals while lowering expenses.

Although Brazil may not be the first country that comes to mind when managers think of sourcing IT professionals, it became an excellent alternative compared to global leaders like India, China, and Ukraine, due to the over-saturation of these sectors. Brazil’s market is less competitive as a relatively young sector, which guarantees access to top-notch services at a cost that benefits both parties of the hiring transaction; companies can significantly reduce their payroll while still giving candidates significant margins to negotiate competitive wages.

Hiring in Brazil is advantageous even when you factor in extra expenses like taxes, bonuses, and other charges, especially for businesses based in countries with stronger economies.

Not to mention that up-and-coming talent are eager for new professional challenges and a chance to shine abroad.

Lower turnover rates

Turnover rates became a global issue. People are leaving their jobs at an unprecedented pace. When that happens, managers face a double problem: the loss of experienced, talented employees and the cost that comes with it.

So it doesn’t come as a surprise that leaders worldwide are trying to mitigate or at least reduce their turnover rates. Aside from cost-effectiveness, cultural similarities, and overlapping timezones, Brazil has caught everybody’s eyes regarding its low turnover rates. According to the global database, Brazil’s rates averaged 3.5% (Feb 2003-Apr 2019). Over the past four years, Radford Global Technology Survey shows that the Country’s turnover (12.8% in Q1 2016) was smaller than Argentina (18.3%) and Mexico (15.9%).

As a result of a cultural mentality towards work excellence, Brazilian professionals are less likely to abandon projects in the middle. The sense of commitment to the team is highly regarded as a reason to stay at a job, not to mention that international positions are perceived as an excellent career booster in a country plagued with unemployment (12.1%, as shown in Trading Economics).

High turnover rates have a multitude of reasons to occur, ranging from poor leadership, lack of opportunities to learn and grow, inadequate compensation, and aged benefit packages among them. Although it is counterintuitive to believe, hiring can also be part of the problem.

Often professionals rush into a new position without deeply considering whether the opportunity is the right fit for them. When businesses decide to source talents offshore, especially in Brazil, that issue is minimized through tailored-made hiring processes that assure the perfect match. In addition, sourced professionals are likely to cross-evaluate international positions before getting on board. As a result, managers can foresee a tendency for a long-term commitment.

Broader Ethos

Brazil is a diverse country with an open attitude towards other cultures. Companies can add a fresh perspective to their businesses by sourcing talent offshore with an embedded multicultural mindset. When leaders aim for global expansion, diverse teams have a head start due to their ability to design products and solutions for broader audiences. They feature a highly- adaptable workforce with tremendous problem-solving skills and a solid ability to handle a wide variety of work environments.

Brazilians are tech-savvy. The country leads with the fifth most-intensive internet users globally, with an average of 10 hours spent per user daily. They are quick to create, learn, and adopt new tendencies. As a result of such an innovative culture, Brazil is home to 16 companies with a valuation of over $1 billion, leading the Latin America block. The country figures in 10th position among the ones with more unicorns, passing France, Switzerland, and other well-developed economies.

Brazil is an emerging hot spot for IT talent and shouldn’t be overlooked as a future leader on the international playing field. A good team requires a diverse formation, and Brazil holds a wealth of potential for sourcing players.



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