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Brazil Human Capital Overview

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Brazil Human Capital Overview
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Brazil is hailed as one of the top countries for software development and tech talent. That’s why many U.S. based companies are considering cosmopolitan cities such as Sao Paulo to outsource services. 

If you’re considering doing business in Brazil, it’s important to understand the human capital trends in the country. Here’s everything you need to know. 

SERVIAP can help with your global expansion needs. Contact us today to learn how you can expand your business with PEO in Brazil. 

Tech Graduates & Workforce 

Brazil has done a great job in recent years of increasing the focus on higher education, specifically in the tech sector. Some impressive facts about the country include: 

  • The Universidade Federal do Rio de Janeiro (UFRJ) recently ranked as the fifth-best university in all of Latin America. 
  • The University of São Paolo ranks as one of the top universities in the world. 
  • Brazilian workers are groomed with similar mindsets to American workers. They are tasked with focusing on creativity and innovation. This helps workers develop as individuals, which leads to bright, talented individuals coming out of the country. 
  • Brazil ranked #2 in all of Latin America as an emerging country in the field of technology.  
  • There are 90 tech parks that were built in the last few years across Brazil. These include research centers and offices for tech companies. 

Key Sectors for Local Activity 

Brazil has a very diverse economy to match its diverse population. Here’s an overview of the country’s main business sectors: 

  • Manufacturing: While growth in this sector has slowed in recent years, it is still very strong. It has been especially strong recently in the construction field. 
  • Industry: Brazil has a huge industrial sector. They are one of the world’s leaders in steel and iron production, as well as the assembly of automobiles.  
  • Mining & Refining: Brazil is big on mining and refining petroleum-based products. They are a major exporter of oil and have more than 10 refineries located across the country.  
  • Pharmaceuticals: Sao Paulo is home to a number of foreign-owned pharmaceutical companies. These companies have plants and labs that are based in Brazil. 

Key Sectors for Outsourcing 

Information technology, software and other services in the tech industry are the main sectors for outsourcing in Brazil. The government has worked hard in recent years to attract companies to send their work to the country by promoting various tax incentives to do so. 

One of the main attractions for businesses in Brazil is the country’s state-of-the-art telecom infrastructure. 20 years ago, the industry received billions of investment dollars when it was privatized.  

In addition to tech work, Brazil is also a hotbed for banking services. The banking industry in Brazil is among the most automated in the world, making it a great place for tech services in that sector as well. 

English Speakers 

Brazil is the only country in Latin America whose native language isn’t Spanish. The official language in the country is Portuguese.  

Like other Latin American countries, though, English is the second-most spoken language in Brazil. A big reason for this is that language education is required in Brazilian schools. Kids have to learn a second language from an early age, and English is often the language that they learn. 

English isn’t as common in Brazil as in some other countries, but plenty of workers in the tech field can speak it fluently. 

Average Wages 

Wages for Brazilian workers are much lower than their American counterparts. While the average U.S. salary for a software developer is roughly $86,005 per year, it’s a lot lower in Brazil. The same worker would average about BRL 103,000 per year—the equivalent of about $18,000 USD annually. 

Some other salary comparisons: 

  • New software engineers earn roughly $7,917 per year in Brazil, compared to $84,044 in the U.S. 
  • Mid-level software engineers earn $14,251 in Brazil, compared to $95,302 in the U.S. 
  • Upper-level software engineers average $19,356 in Brazil, compared to $114,238 in the U.S. 

While the salary ranges will of course vary depending on location, they are still much lower than U.S. salaries for the same jobs. 

Prominent Cities for Business 

Sao Paulo is the first place many companies look for IT talent in Brazil. This is the largest city in Brazil and a mecca of cosmopolitan living. You can find lots of IT talent in Sao Paulo, although it will can cost more money than in other regions of the country. 

Some other top cities for business in Brazil include: 

  • Rio De Janeiro: Reuters recently referred to this coastal city as Silicon Beach. The city is home to some of the most successful startups in tech. This makes it home to a large pool of high-quality tech talent. 
  • Recife: Recife is the commercial hub of Brazil’s northeastern region. It’s recognized as an international leader for communications and information technology. 
  • Belo Horizonte: The services sector in this city accounts for 85% of the total GDP. It’s also known for producing successful tech startups. 

Turnover Rates 

Attrition rates are often high in countries that are hotspots for IT outsourcing. The market in Brazil isn’t as competitive as countries such as India, though, which pushes down the turnover rate quite substantially. In fact, the attrition rate in Brazil’s tech sector is extremely low at just 5%. 

Is Brazil Right for Your Business? 

SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization. Contact us today to learn more about how you can expand your business in Brazil. 

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