Outsourcing software development to Brazil: 5 benefits you should know
What are the advantages of outsourcing IT services to Brazil?
Even though Brazil may not be the first place that pops into mind when it comes to outsourcing software development, the country has become a center of tech talent in South America. Over the years, the Brazilian government’s investment in the national IT sector has resulted in an exponential growth of skilled and reliable developers in the region. While India or China may not be the best outsourcing option for North American or Western European companies due to time zone differences, there are significant advantages to considering Brazil as a great outsourcing software development alternative. These include time zone overlap, skilled and reliable developers, a growing IT market, cultural similarities, and competitive costs.
1 - Time Zone Overlap with North America and Western Europe
Although remote working has dissolved most geographical barriers, differences in time zones are something that companies still have to deal with when considering outsourcing services. While countries like India or China might be the intuitive answer for IT outsourcing due to the abundance of the workforce, having a 12-hour difference can make working together impracticable. That problem is practically non-existent in Brazil since the country and the US East Coast have a time difference of only one hour, and with the West Coast, a time difference is only four hours. If you are located in Europe, the difference between Brazil and Western Europe is four hours. That means that Brazil has up to a 4-hour difference in time zones with most financial centers.
What to consider about time zone differences when outsourcing to Brazil
Hiring a Brazilian company lets you incorporate workers into your own team’s schedule, allowing for real-time meetings and conversations. It also means that if you have an emergency during the workday, you’ll be able to get a quick answer from your Brazilian team. And if travel is needed, flying to Brazil can be inexpensive and fast in comparison to crossing the ocean, while still not experiencing the infamous jet lag.
2- Skilled Brazilian developers
A big difference between Brazil and other countries that are more known for outsourcing software development is that you don’t have to worry about getting inferior quality work. Even though costs can be significantly lower for outsourcing in Brazil compared to North America and Europe, Brazilian developers are as skilled as their American and European counterparts.
Brazilian developers in numbers
The country is a hotspot to hire experienced developers, ranking 38th by HackerRank and 16th by TopCoder. According to the GitHub Octoverse Report, Brazil was third in developer growth on the website with more than 3 million new users.
Investment in technology education technology in Brazil
Over the last decade or so, there have been massive investments in technology education both nationally and internationally. Brazilian universities are ranked among the top in the world. Brazilian developers have a reputation for being reliable and highly skilled. They are known for meeting deadlines and producing deliverables as promised.
3- Cultural similarities and communication with Brazil
While Brazil as a whole isn't an English-speaking country, most software developers are fluent in English. The strong presence of multinational companies has led to improvement in the English level among Brazilian employees. Despite a few differences, Brazil’s overall culture is much influenced by American culture, which tends to be much less shocking than that of oriental countries.
Work culture of Brazilian developers
As far as The Brazilian work culture goes, software developers are accustomed to ways that are very similar to what’s common in the US, so you can rest easy in finding too many culture shocks if you choose to outsource to Brazil. The hierarchical work culture in Brazil is similar to that of America, where the final decision will be made by the highest-ranking person involved. Software developers are accustomed to deferring to the judgment of higher-ups. The business workday in Brazil is structured similarly to that of the US. Business hours are generally from 8:30 to 5:00, with an hour or two for lunch.
5 - Brazilian IT market
Brazil has an effervescent technology market, drawing attention and investments internationally. According to Coursera Global Skill Index, Brazil scored second place in Latin America as an emergent country in technology and 42nd worldwide.
The Brazilian Information and Communication Technology market (ICT) ranked 9th in the world in 2020 and was valued at US$ 49.5 billion. According to a report prepared by the Brazilian Software Association (ABES), the brazilian ICT market has grown 17.4% in 2021, reaching an investment of R$ 238.2 billion (USD 46.2 billion). During the same year, software exports grew by around 10.5%.
Not only Brazil has a growing technology market, but it has great infrastructure. The country is home to over 90 tech parks and 35 accelerators, which are now renowned globally for the high density of research centers, and a massive population of developers, tech companies, and institutes. In addition to encouraging STEM education, the Brazilian government offers tax breaks to companies that work on technology innovation. This favorable environment has helped further the development of Brazil's technology infrastructure and ensured a plentiful supply of highly trained software developers.
5 - Competitive Costs of Brazilian developers
While the country may not offer cheap labor like India or China, Brazil can be an interesting alternative to those organizations that wish to save costs and time.
Currency conversion between the US dollar and the Brazilian real
First off, the conversion rate for the US dollar with the Brazilian real is very favorable to foreign investment. In 2022, the US dollar oscillated between 5 to 5,5 times worth as much as the Brazilian real. This difference also translates into the hourly costs of developers. While the hour of an experienced developer in Brazil costs an average of USD 55, an American or Western European developer can cost as much as USD 110 per hour.
Cost reduction by outsourcing
Not only is outsourcing cheaper, but it also cuts out some of the complexities and costs of employment. The hiding cost of the hiring search or in-house training and payroll management or administration is usually underestimated especially in countries with high labor costs. Outsourcing an activity that is not your core business leads to a significant reduction in costs and time. As a result, North American and European firms can reduce their costs, save time and ultimately maximize their profit margin by outsourcing software development services to Brazil.
Should I outsource software development to Brazil?
While there are plenty of countries to choose from for outsourcing software development services, some of which may even be more well-known than others, Brazil still comes out as a very attractive, reliable, and cost-effective option for European and North American companies considering hiring outsourced software development companies. Some of the main advantages include lower costs in comparison to hiring companies or workers at home, an abundance of highly skilled and reliable developers and timezone overlaps that makes it faster and easier for work collaboration in real-time. These should be all taken into consideration by companies who wish to develop software in a cost-effective and high-quality manner.
Do you intend to outsource software development services to Brazil?
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Vitor Ferraz is a content producer from Curitiba who graduated in Advertising from the Federal University of Parana. He has lived in the USA and Canada and is now App Masters' Head of Marketing. Loves technology and new ideas. Photographer as a hobby. Enjoys good music and good food. He aspires to be a filmmaker one day.