Brazilian Company Look to Outsource in US

Some offshore outsourcers that want more IT work from companies in the U.S. are expanding their operations in the US, with the latest example being Brazilian Vendor Company.

The said company, which has about 7,000 employees and $300 million in annual revenue, currently provides outsourcing services primarily to companies in Latin America. The vendor company has just 50 employees in the U.S. now. But by 2010, it intends to have as many as 800 workers in development centers in Atlanta, New York and the Miami area, said Dalton Luz, company's vice president of corporate affairs.

In April, the company received an $80 million investment commitment from Mitsubishi Corp., and Luz said the financial infusion is increasing its ability to expand internationally. He added that most of the people who staff the planned U.S. offices will be hired locally.

Brazil's total outsourcing market is about $8 billion annually. But the offshore component--meaning services delivered to companies based outside of Brazil--amounts to only about $700 million. By comparison, it added, India's offshore market reached about $40 billion last year. It says in forecast that the offshore business in Brazil will increase to $1.25 billion within two years.

Although Portuguese is Brazil's dominant language, English is also widely spoken there. Other factors that may make the country an attractive offshoring location for U.S. companies include the relatively similar time zones and the low cost of IT labor in Brazil.

Outsourcing vendors based in India are also moving to expand their presence in the U.S. In March, an India company based, said it was opening a development center in Milford, Ohio, that eventually would employ about 1,000 people. And last July, rival company announced plans to set up four development facilities in the U.S., starting with one in Atlanta that likewise could have 1,000 employees over time.

Maybe, this simply means that companies from the said countries having lack of IT skilled workers because they are much more interested having IT workers from the US, and because maybe they know that this IT workers from the US are more well trained IT professionals. But I'm not saying that it's true, I'm just pointing out the instances that possibly can happen in the future, hopefully not.