IT outsourcing market in Brazil to reach USD 8.54 B in 2023

The Market Size of the Brazilian IT Outsourcing Market is estimated to be worth USD 7.17 Billion in 2018 and is expected to grow at a CAGR of 3.5% to reach a Market size of USD 8.54 Billion in 2023.

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Drivers
Market Restraints
Industry Challenges
Technology Trends
Regulatory Trends
Other Key Market Trends
Market Size and Forecast
Market Outlook
Technology Roadmap
Distribution Chain Analysis
Competitive Landscape
Competitive Factors
Key Market Players
Strategic Conclusion
References
Appendix

Definition / Scope

Information technology (IT) outsourcing refers to the sub-contracting of certain functions or to seek resources outside an organization for all or part of an IT function that does not require much of technical skills. Short-term assistance or cheaper rates on simple task are the major reasons why companies outsource work. Outsourcing enables staffing flexibility for an organization and allows them to bring in additional resources when required and release them when they are done, thus fulfilling the cyclic or seasonal demand.

The IT outsourcing market is classified under 2 large service groups, segmented by service lines as described below

Renewable Services: These are usually long-term contracts, ranging 3 to 5 years on average, focusing on management activities and infrastructure support.

Application Management: Includes management of application to guarantee availability, but excludes application customization services.
Infrastructure Management: Management and monitoring infrastructure environments. Included within this services modality are on-premises hosting, network management, and server management.
Desktop Support: Support on end-user activities across devices, owned or not, such as desktops, notebooks, smartphones, tablets, and printers; also includes local applications support and installation.

Spot Services: These are characterized by short- and medium-term contracts, usually non-renewable, focusing on consulting activities, application development, and installation of specific hardware or software.

Consulting Services: IT consulting services, focusing on infrastructure and applications. The revenue generated by the implementation of the solutions designed during consulting are not considered in this service line.
Application Development & Integration: Development of new applications or components to integrate applications; major activities are development, testing, implementation, and maintenance of applications.
Deployment Services: Installation of hardware, software, and maintenance of products.

Market Overview

The information technology (IT) outsourcing segment corresponds today at 48.5% of the total IT industry in Brazil; it is expected to attain USD 8.54 billion by 2023, while it reached USD 7.17 billion in 2018.

The IT Outsourcing Market is segmented based on the services includes application/software development, web development, application support and management, technical support/help desk, database development and management and telecommunication. Of which Application Support and Management is the largest revenue generator.

Based on service model, the IT outsourcing market can be classified into Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Of this the Software as a Service (SaaS) is expected to hold the dominant position in the forecast period (2018 to 2023)

In terms of deployment, the market can be categorized into public cloud, private cloud, and hybrid cloud. The Hybrid Deployment model held the major market share in the market.

Based on enterprise size, the market can be categorized into small and medium enterprises and large enterprises. Of this the Large Enterprises hold dominant position in the forecast period (2018 to 2023).

In terms of industry, the global IT outsourcing market can be divided into banking, financial services, and insurance (BFSI); telecom; retail; health care; energy and utilities; and others. Of this the Banking, Financial Services, and Insurance (BFSI) is expected to garner major market revenue.

Market Risks

Highly fragmented local vendors

As there exists lower barrier for entry and as IT Outsourcing is a new and emerging segment in Brazil, New Entrants are entering into the IT Outsourcing Market in a large number, which keeps the market fragmented.

The Fragmentation of the market affects the growth of the larger counterparts and as the Outsourced Enterprise looks for cheaper labor and other arbitrages in the market the fragmentation of the Brazilian IT outsourcing market is here to stay and will continue to prevail affecting the growth of the market.

Commoditization of the Market

The Substitutable and undifferentiable nature of the various segments of IT Outsourcing makes the market commoditized which affects the stakeholders satisfaction about the end-product or service offered. As the flaws that occur during the buyer and seller interaction such as poor requirement specification, poor understanding of the product or service requirement would be difficult to detect in a commodity buying process.

The main reason for the commoditization of the IT Outsourcing market is the resilience on Cheaper pricing and compromising of quality, this affects the quality of the end-product or service offered which acts as a risk for the growth of the IT Outsourcing market in Brazil.

Top Market Opportunities

Rise in the integration of application outsourcing

Application Outsourcing is redefining what enterprises seek from their IT vendor. Conversations have moved past the conventional objective of cost-efficiency to offering an increasingly strategic value that impacts business objectives. The emergence of disruptive technologies and a growing desire for enterprises to drive business transformation has infused the services sector with innovative tools and solutions.

Now, application outsourcing focuses on transformation and how to help businesses thrive more. In the changing IT landscape, speeding up time-to-market and enabling a customer experience that delights at every stage in the lifecycle are twin essentials to remaining competitive.

Next-Gen Application Outsourcing marks a paradigm shift towards a digital business ecosystem— from reducing cost of ownership and increasing operational efficiency to building IT solutions that are business-focused and customer-centric.

Growing digital transformation in organizations

There is a trend of quicker uptake of emerging technologies such as Cloud Computing, Artificial technologies, Internet of Things (IoT) and 5G technologies among both the Large Enterprises and the Small and Medium Enterprises.

The adoption of these technologies drives the business growth and reduces OPEX (operational expense) and CAPEX (Capital Expense). The adoption of the digital technologies improves efficiency and reduces costs associated with the business processes; also it simplifies the transition of business processes. The Growing Digital transformation is paving way for IT Outsourcing as there is a shortage of skilled professionals in the onshore.

Increasing adoption of software-defined infrastructure

Software Defined Infrastructure (SDI) is rapidly becoming an architectural choice within the Enterprise IT organizations that are building next-generation infrastructure to realize higher business agility and reduce costs.

SDI is a blend of compute, storage, network and security technologies where abstractions that provide lower-level functionality are exposed via programmable interfaces to orchestration, automation and management tools to create a highly automated infrastructure that ultimately enables consumption of IT-as-a-service (ITaaS).

Market Drivers

Rise in the adoption of advanced technologies

Accelerated adoption of rapidly developing technologies such as cloud computing, robotic automation, artificial intelligence (AI), machine learning, the internet of things (IoT), and 5G technologies is promising for the IT industry and promotes ongoing growth.

Numerous benefits have been derived due to the adoption of advanced technologies primarily being avoidance and reduction of costs the other benefits being increased business agility and “democratization” of innovation. This also allows Small and Medium Enterprises the access to cutting-edge technologies such as Cloud-Computing, Artificial Intelligence and Internet of Things (IoT) that was once a luxury to the larger Enterprises.

The flexibility offered by technology such as cloud-computing enables the super-quick launch of products with cutting-edge technologies such as Artificial Intelligence.

The rise in the adoption of advanced technologies offers more opportunities for development of software products and which in turn enables re-invention of the cycle of IT outsourcing including all the phases such as web development, application support and management, technical support/help desk, database development and management and telecommunication.

Increase in emphasis on developing an IT-efficient infrastructure

The key IT management drivers now revolve around quality of service and cost control. Improving the business workforce productivity through quality of service and improving IT efficiency by maintaining service quality while reducing costs are the main directions in the IT Outsourcing market.

The emphasis on developing an IT-efficient infrastructure has opened opportunities for the adoption of cloud-based service models such as SaaS (Software-as-a-Service), PaaS (Platform-as-a-Service) and IaaS (Infrastructure-as-a-Service).

This emphasis on developing an IT-efficient infrastructure derives benefits for the IT outsourcing sector in the form of improved Quality of service and cost reduction which brings Efficiency to the Outsourced Enterprise.

Rise in demand for IT services

In the digital age, businesses of all sizes struggle to manage the ever-changing complexities of their IT systems. Small and midsized companies are in an especially difficult position as they cope with limited budgets, shortages of IT expertise and even security concerns. This increase in demand for managed service providers has been visible in the last couple years.

Businesses are realizing the benefit of technology investment in terms of enhanced capability, efficiency and productivity. As their infrastructure ages, software becomes outdated, or new threats are introduced, they are looking for new solutions.

This continues to drive demand. The rise in demand for IT services such as system integration services and consulting services by organizations is boosting the market.

Increase in migration and digitization to the cloud

Migrating Data and Applications to the cloud can become a tedious task and can be tricky, hence the outsourced party is looking for outsourcing agents whom have the required skill-sets and the experience on the technology. It is difficult for most companies to build their own cloud-technology stack and even harder to maintain it.

Partnering with outsourcing agent to build and manage the cloud stack is the more typical approach. the public cloud removes several of the more time-consuming activities involved in managing IT infrastructure and platforms, outsourcing them to a service provider, which allows the business to focus on creating value, innovating, and driving revenue.

Market Restraints

Safety and Privacy Concerns

The risks of confidential data loss and intellectual property violation increase when business activities are delegated to an external provider and/or delocalized in foreign countries characterized by different social, economic and political contexts.

The security risks are thought to be very serious as they can strongly affect the success of the entire outsourcing/offshoring project: data or intellectual property breaches can result in long-lasting consequences with an indirect negative impact on the customers, suppliers, financial markets, and business alliance relationships.

The main requirement for a secure environment in the case of IT outsourcing is that whether the outsourcing Agent follows ample security measures and the Country/Region to which the IT contract has been outsourced has enough privacy and security measures offered as such in the outsourcing region.

In this case, due to the fragmentation of the IT outsourcing sector in Brazil the Small and Medium Enterprises tend to shy away from complying to the quality and security standards which affects the uptake of IT outsourcing to Brazil.

Failure to realize hidden costs of contract

Many organizational decision-makers choose to outsource because they see it as an easy way to cut costs, but its not that straightforward as it comes with hidden costs of contract which primarily includes costs in the form of Changing Orders and Consulting charges. When it comes to outsourced IT services, just about every minor change comes at a price.

Those managing outsourcing agreements must stay aware of what these change orders entail and how much they’re going to cost in the end. Another factor that can send costs spiraling out of control unexpectedly is consulting.

These days, nearly all IT and digital engagements are led by consultants, which can skyrocket expenses far beyond what was originally anticipated. While some areas of IT service have moved to outcome-based pricing models, the consulting piece is still typically assessed on the basis of time and materials,

Inadequate capabilities of service provider

Major service degradation or failures due to inefficient preparedness or control processes of the outsourced service provider. Ineffective outsourcing governance may result in a lack of appropriate skills and capabilities to fully identify, assess, mitigate and monitor the IT risks and can limit institutions’ operational capabilities. Examples include

Poor incident handling procedures, contractual control mechanisms and guarantees built into the service provider agreement that increase key man dependency on third parties and vendors.
Inappropriate change management controls concerning the service provider IT environment can cause major service degradation or failure.

Indecisiveness on which activities to outsource

The companies stay at the top based on their competitive advantage over their competitors and if they plan to outsource their primary activity or activity that holds their competitive advantage they are about to lose their foothold in the sector as the service provider may leak the trade secrets.

The activities that directly impacts customers should not be outsourced. The indecisiveness on which activities to outsource increases the chances of failure of the outsourcing contract.

Industry Challenges

Perceived Loss of Control

Managers often complain about loss of control over their own process technologies and quality standards when specific processes or services are outsourced. The consequences can be severe.

When tasks previously performed by company personnel are given to outsiders, over whom the firm has little or no control, quality may suffer, production schedules may be disrupted, or contractual disagreements may develop.

If outsourcing contracts inappropriately or incorrectly detail work specifications, outsourcers may be tempted to behave opportunistically—for example, by using subcontractors or by charging unforeseen or unwarranted price increases to exploit the company’s dependency.

Control issues can also be exacerbated by geographic distance, particularly when the vendor is offshore. Monitoring performance and productivity can be challenging, and coordination and communication maybe difficult with offshore vendors.

The inability to engage in face-to-face discussions, brainstorm, or explore nuances of obstacles could cripple a project’s flow. Distance, too, can increase the likelihood of outages disabling the communication infrastructure between the vendor and the outsourcing firm.

Depending on where the outsourced work is performed, there can be critical cultural or language-related differences between the outsourcing company and the vendor. Such differences can have important customer implications.

Loss of Innovation

Companies pursuing innovation strategies recognize the need to recruit and hire highly qualified individuals, provide them with a long-term focus and minimal control, and appraise their performance for positive long-run impact. When certain support services—such as IT, software development, or materials management—are outsourced, innovation may be impaired.

Moreover, when external providers are hired for the purposes of cutting costs, gaining labor pool flexibility, or adjusting to market fluctuations, long-standing cooperative work patterns are interrupted, which may adversely affect the company’s corporate culture.

Shortage of skilled IT professionals

There is an acute shortage of Skilled IT professionals in the Brazilian IT sector, this is as a result of Demand outpacing Supply, where there is a lot of Engineers possessing poor IT skills available, there is a shortage of Skilled IT Professionals.

As Brazil is an alternative to the IT outsourcing destinations such as India and China, there is a lack of intent among Engineers showing interest towards pursuing Information Technology as a Profession. Also there are poor policies and standards offered by the Brazilian Government for the uptake of Information Technology.

Technology Trends

Intelligent Automation

According to Gartner, intelligent automation is set to transform business outsourcing completely. Intelligent automation allows businesses to automate laborious tasks, including some IT tasks, in order to streamline their operations and allow their human staff to focus on more high-value work.

According to Software Testing and Big Data Hadoop, approximately 10 to 20 percent of human work hours are spent on repetitive computer tasks. Researchers estimate that IT departments spend around 30 percent of their time on low-level basic tasks that could be automated easily. Intelligent automation will lead to significant changes in outsourcing partnerships.

On one hand, it may lead to a reduction in the number of staff required to complete IT projects. On the other hand, it’s more likely to increase the demand for partners that can provide intelligent automation support in the short term. Businesses are starting to realize AI’s potential to help them achieve their digital transformation goals and outsourcing firms that can provide affordable front- and back-office solutions may be able to leverage this demand for many years to come.

Cloud sourcing

With businesses migrating to cloud, demand for cloud computing will skyrocket. Gartner projects that about $1 trillion in IT spending will be affected by the shift to cloud by 2020. As companies move to cloud outsourcing, there will be an increased need for public cloud platforms for data storage. Service providers will need to provide more online data centers and equipment.

At the same time, security threats will become an even bigger concern for enterprises that operate in cloud environments. Thus, they will outsource their security services to eliminate possible breaches. It will allow them to delegate responsibilities and utilize a vendor’s expert knowledge.

Regulatory Trends

The main Regulation governing the IT Outsourcing policies in Brazil is the Outsourcing Law, the provisions under the law is as described below

The Outsourcing Law

After years of discussion, it is now possible to outsource core activities in Brazil as a result of the enactment of the Outsourcing Law. The Outsourcing Law’s main provisions include:

Core activities of companies can be temporarily outsourced for a maximum of 180 days, but renewable for an additional 90-day period if there is a further demand for this, or if there is a need for the temporary substitution of permanent workers.
Further demands for services must derive from unforeseeable factors or must be intermittent, periodic or seasonal in nature.
Employees who are on strike cannot be substituted by means of outsourcing.
Employees cannot be fired and then indirectly hired again by the same company through an outsourcing within 18 months of the dismissal.
Workers provided by the outsourcer can only file lawsuits against the contracting company if the outsourcer’s assets are insufficient to indemnify them.

Other Key Market Trends

Shift away from a single IT outsourcing provider

In the future, no big company will be able to ensure all the technical skills needed to run business operations. It will be impossible to sufficiently supply all the organization’s needs with the help of the in-house expertise only. Thus, businesses will be likely to outsource their services to multiple vendors.

They will look for partners that have deep expertise in specific areas. Therefore, the world of IT outsourcing will be moving towards narrower specialization. Vendors will concentrate on attracting clients from specific industries.

As the ISG data shows, in 2008, 42% of the Forbes G-2000 largest global businesses outsourced IT to single companies. Today, this figure has declined to just 15%. 34% of companies rate themselves as above average for maintaining multi-vendor environments. As we can see, this trend has already started and will only strengthen in the upcoming years.

Market Size and Forecast

Brazilian IT Outsourcing Market Size

USD 7.17 Billion – The estimated Market size of the Brazilian IT Outsourcing Market in 2018
3.5% – The estimated CAGR growth of the Brazilian IT Outsourcing Market in the forecast period 2018 to 2023.
USD 8.54 Billion – The expected Market size of the Brazilian IT Outsourcing Market in 2023

Market Outlook

USD 1.43 Billion – The estimated Market size of the Brazilian Application Management Market in 2018
5.4% – The estimated CAGR growth of the Brazilian Application Management Market in the forecast period 2018 to 2023.
USD 1.87 Billion – The expected Market size of the Brazilian Application Management Market in 2023
USD 1.07 Billion – The estimated Market size of the Brazilian Infrastructure Management Market in 2018
4.8% – The estimated CAGR growth of the Brazilian Infrastructure Management Market in the forecast period 2018 to 2023.
USD 1.36 Billion – The expected Market size of the Brazilian Infrastructure Management Market in 2023
USD 860.4 Million – The estimated Market size of the Brazilian Desktop Services Market in 2018
3.8% – The estimated CAGR growth of the Brazilian Desktop Services Market in the forecast period 2018 to 2023.
USD 1.04 Billion – The expected Market size of the Brazilian Desktop Services Market in 2023
USD 688.32 Million – The estimated Market size of the Brazilian Consulting Services Market in 2018
2.7% – The estimated CAGR growth of the Brazilian Consulting Services Market in the forecast period 2018 to 2023.
USD 787.69 Million – The expected Market size of the Brazilian Consulting Services Market in 2023
USD 2.15 Billion – The estimated Market size of the Brazilian Application Development & Integration Services Market in 2018
4.2% – The estimated CAGR growth of the Brazilian Application Development & Integration Services Market in the forecast period 2018 to 2023.
USD 2.65 Billion – The expected Market size of the Brazilian Application Development & Integration Services Market in 2023
USD 825.98 Million – The estimated Market size of the Brazilian Deployment Services Market in 2018
4.7% – The estimated CAGR growth of the Brazilian Deployment Services Market in the forecast period 2018 to 2023.
USD 1.04 Billion – The expected Market size of the Brazilian Deployment Services Market in 2023

Technology Roadmap

Brand-new contract models

Both clients and IT service providers alike anticipate making use of new contacting changes. This will help them make IT outsourcing more interpersonal and value-driven. As the GSA report states new contracts will be based on outcomes rather than outputs. Software development providers will be contracted as service integrators sharing risk and responsibility.

Procurement will become an important part of the contracting process. Notice periods will be significantly shorter. Competition between service providers will increase. So outcome-based contacts will help clients select the best IT vendor who can deliver value.

Distribution Chain Analysis

The Key players in the Supply Chain of IT Outsourcing Market include:

Executive Sponsor

This role has the highest interest in the project and its end result. Executive Sponsor has the responsibility to monitor the budget and control the spending. Executive sponsor is the ultimate decision maker for the project, its resources and outcome/deliverables.

Project Sponsor

Project Sponsor role if at all exists, reports into Executive Sponsor role. Executive sponsor may delegate any of his responsibilities to project sponsor. Project Sponsor has the same level of interest and control over project as Executive sponsor.

Project sponsor also looks into project management activities (minimum) and helps project manager in providing information while preparing charter and different plans. This role may even express interest to be involved into project phases. Mostly Project Sponsor will be a part of steering committee.

Project Manager

Person in this role is primary responsible for the completion of the project as planned and agreed. He might be given people management responsibility also. He is one who drives the team in required direction. His responsibilities also include status reporting to people above him, stake holder management, budget management, risk management, schedule management etc

It is difficult to explain this role in short, but this role is the first responsible role for a project and its healthy running. This role bridges the gap between delivery team and business or client.

People Manager

This role is to manage people in a project and see to that they are given with all that is required for them to work smoothly. Delivery is not a responsibility of this role.

Delivery Manager

Primary responsibility of this role is to see that the project is delivered within agreed time lines and with required quality. This role manages delivery team. Performs resource allocations and decides delivery priorities.

This role has authority to change or adjust the schedules and adjust resource assignments. This role also has a major say in scope. This role is primarily responsible for meeting technical and functional expectations of the business.

Process Consultant

This role has the expert knowledge regarding the process that is followed internally. They are responsible for educating the delivery team on the process and see to that they can adhere to internal process. They have the responsibility of suggesting process improvements to increase the productivity and to maximize the business value.

Business team

Usually a team from business side which is dedicated to be as part of the project till the project is completed and benefits are realized. These people are experts in respective business functional area.

Client/Customer

Who has a business need and our delivered product or service will satisfy their business need. They are the one who pays for the services.

Steering Committee

This is a team formed with management representatives, stake holders to oversee and control the project. They approve the deliverables, makes policy based decisions, provide guidance to the project. It is the point of contact for sponsors. It is an escalation point for project managers. Steering committee provides leadership support.

Vendors

They provide additional products and services necessary for the project. Usually they will be contracted for a period.

Project Management Office

PMO is a body with group of people. Its main purpose is to build set of standards and policies for internal project management and to see that they are adhered across all projects. They decide the process and the level of that process to be followed internally. They help creating standard templates for the organization. Collects, analyzes and preserves project related data for future use. PMO extends project management support to project managers.

Team Lead

This role is responsible for teams working and in most of the organizations he is the first level of manager to who team reports into. Person in this role has the responsibility of coaching, coordination, problem solving, information sharing, status reporting, and liaison to higher management or administration etc. depending on the type of organization and industry. His time is shared between management and technical/functional responsibilities.

Project coordinator / Project Facilitator

This role is responsible for smooth running of project operations, without having to face any coordination issues. This role is very important when the project teams are spread across the globe and works in different time zones.

Competitive Landscape

Brazilian IT Outsourcing Market is highly competitive and consists of several major players. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by introducing new ingredients with lesser prices. For instance, in 2017 – Infosys launched Infosys Nia, the next-generation integrated artificial intelligence platform.

Some of the major companies in this market are Accenture PLC (Republic of Ireland), IBM Corporations (U.S.), APC by Schneider Electric (U.S.), Cisco Systems, Inc. (U.S.), CA Technologies (U.S.), Hewlett-Packard Co. (U.S.), BMC Software (U.S.), Dell Inc. (U.S.), NetScouts Systems Inc. (U.S.), Fujitsu Ltd. (Japan), and Tata Consultancy Services Limited (India).

Competitive Factors

Some of the Competitive Factors in the Brazilian IT Outsourcing Market include:

Competitive Pricing

Competitive pricing is the process of selecting strategic price points to best take advantage of a product or service based market relative to competition. This pricing method is used more often by businesses selling similar products since services can vary from business to business, while the attributes of a product remain similar.

This type of pricing strategy is generally used once a price for a product or service has reached a level of equilibrium, which occurs when a product has been on the market for a long time and there are many substitutes for the product.

Customer Service

Customer service is generally considered reactive – a customer reaches out because they need help or have questions. Great customer service has the potential to convince your existing customers to stay and even refer their family and friends, expanding the customer base. The Offering of Value-Added Services such as Consulting would boost the morale of the customer and can increase brand loyalty, customer advocacy, and bring increased revenue.

Key Market Players

The Key Market Players in the Brazilian IT Outsourcing Market includes:

Accenture plc is a multinational professional services company that provides services in strategy, consulting, digital, technology and operations. A Fortune Global 500 company, it has been incorporated in Dublin, Ireland, since 1 September 2009. In 2018, the company reported net revenues of $39.6 billion, with more than 459,000 employees. Accenture’s current clients include 92 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500.

International Business Machines Corporation (IBM) is an American multinational information technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed “International Business Machines” in 1924.

IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most U.S. patents generated by a business (as of 2019) for 26 consecutive years

Cognizant is an American multinational corporation that provides IT services, including digital, technology, consulting, and operations services. It is headquartered in Teaneck, New Jersey, United States. Cognizant is part of the NASDAQ-100 and trades under CTSH. It was founded as an in-house technology unit of Dun & Bradstreet in 1994, and started serving external clients in 1996.

The Hewlett-Packard Company was an American multinational information technology company headquartered in Palo Alto, California. It developed and provided a wide variety of hardware components as well as software and related services to consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors.

DXC Technology is an American multinational corporation that provides B2B IT services. DXC Technology was founded in 2017 as the result of the spin-off of Hewlett Packard Enterprise’s Enterprise Service segment, and its merger with Computer Sciences Corporation (CSC). At the time of its creation, DXC Technology had revenues of $25 billion, 170,000 employees and operated in 70 countries.

HCL Technologies Limited is an Indian multinational information technology (IT) serviceand consulting company headquartered in Noida, Uttar Pradesh. It is a subsidiary of HCL Enterprise. Originally a research and development division of HCL, it emerged as an independent company in 1991 when HCL ventured into the software services business.

Wipro Limited is an Indian multinational corporation that provides information technology, consulting and business process services.

Strategic Conclusion

The Brazilian IT Outsourcing market is forecast to grow at a CAGR of 3.5% from USD 7.17 Billion in 2018 to USD 8.54 Billion in 2023.

The major challenges pricking the growth of the Brazilian IT Outsourcing market includes Perceived Loss of Control, Loss of Innovation and Shortage of skilled IT professionals

The growth of the market is restrained by factors such as Safety and Privacy Concerns, Failure to realize hidden costs of contract, Inadequate capabilities of service provider and Indecisiveness on which activities to outsource

The growth of the Brazilian IT Outsourcing market is augmented by Drivers such as Rise in the adoption of advanced technologies, Increase in emphasis on developing an IT-efficient infrastructure, Rise in demand for IT services and Increase in migration and digitization to the cloud

Appendix

IT – Information Technology
USD – US Dollar
CAGR – Compounded Annual Growth Rate
SaaS – Software-as-a-Service
PaaS – Platform-as-a-Service
IaaS – Infrastructure-as-a-Service
IoT – Internet of Things
OPEX – Operationl Expense
CAPEX – Capital Expense
SDI – Software Defined Infrastructure
ITaaS – IT-as-a-service
PMO – Project Management Office