Microsoft Dynamics Pursues Opportunity in Brazil

To my readers: I know that most of you are looking for SAP-specific information on this blog. However, SAP is not the only ERP system in the world. That is why I think it will benefit all of us to occasionally read articles about non-SAP systems on this blog.

Brazil’s economy on the rise

Ask your average Brazilian on the street what the most important thing on the agenda is, and the answer would be winning the 2014 Soccer World Cup. But, ask a Brazilian company executive the same question and… well, you’d probably get the same answer.

Ask what the second most important thing is, though, and it would be figuring out how to take advantage of the burgeoning financial opportunities in the country. In 2011, Brazil cemented its place as an economic power when its economy surpassed that of the UK to become the sixth largest in the world.

The potential has always been there thanks to its wealth of natural resources, but the impact of ‘Plano Real’, introduced by the Cardoso government during the 90s, has been evident during the past decade. The country has now become an inspiring example of a developing nation gradually transforming into a developed one. Once riddled by poverty and corruption, it has come a long way in battling these issues and reducing the gap in economic prosperity.

Investing in Information Technology

Naturally, Brazilian businesses are eager to find out how technology can help them increase their profitability in this economic climate. China and India have already seen the benefit of transitioning into a technology-based economy, but, according to Forbes, IT spending as a percentage of GDP in Brazil is growing at a faster rate than both these countries, and it’s predicted that IT investment will increase by $13.6 billion over the next few years as it gears up to host the football world cup.

Big IT firms may not yet have established as large of a presence in Brazil as in other countries, but they are recognizing the budding opportunities available. In 2010, Microsoft announced its collaboration with business technology services provider Avanade to distribute Microsoft Dynamics in Brazil, which would meet the rising demand for enterprise software technologies amongst Brazilian companies. These companies see ERP software as necessary to achieve further growth and bring their IT to a global standard.

Microsoft has repeatedly stated its intention to prioritize the South American market, with revenue for Microsoft Dynamics having risen 30% in the region in 2010, and there are a number of reasons why Brazil presents a particularly appealing target for ERP software providers. According to Cloud Computing, these reasons include:

  • Projects being undertaken in the build-up to the 2014 football world cup.
  • A desire on the part of Brazilian businesses to increase their presence globally.
  • A need for new solutions that cater to the spending power of Brazil’s growing middle class.
  • Independent software vendors in Brazil will welcome the opportunity to partner with global organizations like Microsoft.
  • The Dynamics family consists of a range of products catering to businesses of many different sizes and industries, which is well-suited to Brazil’s diverse economy.

Technological innovation

There’s no dearth of talent in Brazil’s Information Technology sector, as evidenced by IT firm Predicta, which secured a place amongst  the top ten most innovative Brazilian companies for the development of website optimization app SiteApps. What’s more, the Brazilian government recently announced tax incentives to encourage innovation in IT.

So, ERP software organizations looking to pursue opportunity in Brazil will find a warm welcome, for reasons that go beyond the naturally welcoming nature Brazilian culture is so famous for.

Image licensed under Creative Commons. image source

Written by Matthew Flax on behalf of Dynamics Careers, which advertises a range of MS Dynamics jobs for developers and software engineers throughout the world.

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