Nearshoring in Brazil: What are the benefits?

Developing and training an internal staff can be both expensive and time-consuming, particularly in nations with high labor and operating costs.

For example, an entry-level software developer in the US can expect to receive a salary close to USD$80,000 per year, while a Brazilian software developer doing the same job can expect to make around $60,000 Brazilian Reais per year (roughly USD$11,600). That equals to a potential cost saving of amounting to 85 percent.

In addition, nearshoring in Brazil offers a lower living cost compared to major cities in the United States or Europe.

2. Time-zone alignment

Brazilian workers have similar work hours to their counterparts in the United States, Mexico, and Canada.

Since Brazil shares such a time zone overlap with North America, there is a potential for up to eight hours of synchronous work. This enables seamless team collaboration and eliminates any delays in project completion.

It also makes Brazil the ideal place to set up a regional hub that can facilitate business operations across Latin America and the Caribbean.

3. Skilled IT workforce

Brazil’s IT industry is ranked number one in Latin America and thirteenth globally for outsourcing software development. This makes it an ideal location for nearshoring.

With its extensive connectivity, including direct flights to the US, nearshoring becomes not only convenient but necessary.

Brazil has over 400,000 software developers, indicating that businesses of any size and from any sector can likely find capable assistance to meet their specific requirements.

Beyond the 400,000 developers, the estimated overall number of people working in the IT sector in the country is around 2 million, widening the scope of the workforce and attracting foreign companies to invest in Brazil.

4. Digital infrastructure

Brazil has made great strides in enhancing its digital infrastructure, leading to a significant expansion in its IT outsourcing sector.

The country has more than 35 company accelerators and over 90 manufacturing parks, with Science and Technology Parks (STPs) driving innovation and research while supporting both social and economic development.

These STPs are home to numerous companies offering data generation services and cutting-edge virtual infrastructure, with Campinas near Sao Paulo emerging as a hub like Silicon Valley.

Brazil’s stringent intellectual property laws have resulted in minimal mentions of the country in relation to cybersecurity and IP.

5. Excellent return on investment

Nearshoring in Brazil presents a lucrative return on investment due to significant labor savings, access to a large pool of qualified tech workers, and improved efficiency resulting from the time zone crossover.

This fantastic ROI is why some of the world’s leading tech giants such as Microsoft, SAP, Google, and IBM have offices there.

FAQs on Nearshoring in Brazil

Biz Latin Hub can assist you with nearshoring in Brazil

At Biz Latin Hub, we offer comprehensive market entry and back-office solutions in Brazil, the rest of Latin America, and the Caribbean.

We specialize in a range of services, including nearshoring in Brazil, as well as hiring and PEO, accounting and taxation, company incorporation, and corporate legal advice.

Our offices are located in major cities across the region. In addition, we have established partnerships in numerous other markets, providing our clients with an extensive network of resources.

This extensive coverage makes us well-equipped to support market entry and cross-border operations across multiple countries.

Get in touch with us today to learn more about our services and how we can assist you with your business endeavors in Latin America and the Caribbean.