Uncover the secrets of effective outsourcing in Brazil. Dig deeper into strategies, cultural insights, and best practices for seamless collaboration!
Not long ago, Brazil wasn't among the countries you would think of when considering software outsourcing. Even so, a lot has changed in the South American country in the educational, social and economic fields that have positioned it as a great alternative for companies looking for software engineering teams, especially if these companies are based in the USA.
There are many reasons for this. Brazil has a vast talent pool that includes a considerable number of enterprise and legacy software engineers versed in languages such as COBOL and Java. Your government is encouraging STEM education as well as the development of IT infrastructure. And the US dollar is strong compared to the real, which makes development prices very affordable.
Look for engineers in regions with robust IT infrastructures
Brazil's IT sector has grown steadily over the last decade, to the point where it now boasts more than 90 new technology parks across the country. In these parks (called Scientific and Technological Parks or STPs), research centers, offices of technology companies and, naturally, many engineers are concentrated.
This was made possible thanks to the Brazilian government, which now offers tax incentives to companies that bring technological innovation to its cities, which has resulted in significant infrastructural growth. This context provides a favorable field for the development of engineering talent – which is what is really happening.
Therefore, it is advisable that you look for companies or development teams in these parks or surrounding areas, as you will be assured that the engineers will have the appropriate infrastructure. Some of the most notable parks are located in cities such as São Paulo, Rio de Janeiro, Florianópolis, Recife and Campinas.
Don’t limit your talent search to big cities
As tempting as it may be to look for the talent you need in Brazil's biggest cities and STPs, the reality is that you may face some problems if you just stick to them. Take São Paulo, for example. The country's financial center, this huge cosmopolitan city certainly has a large number of software engineers ready to work on your projects. The problem is that you may end up paying higher rates, given the higher cost of living when compared to other Brazilian cities.
This is why you would be better off looking for talent in smaller cities and STPs. Campinas, Porto Alegre and Curitiba are great locations where you can find many software engineers well-versed in different technologies and a good IT infrastructure that provides them with the perfect environment to collaborate remotely with you.
In fact, some of these cities are already seeing an influx of qualified developers from larger cities (especially São Paulo). As with Silicon Valley and San Francisco, engineers are moving in search of a better quality of life that doesn't seem so expensive. Therefore, you are likely to find some highly qualified IT professionals there.
Pay attention to Brazil's complex tax system
Searching for talent is one thing and hiring it is another – and both have their challenges when you do it in Brazil. As for hiring Brazilian software engineers, one of the most complicated aspects has to do with the country's situation. fee system that is somewhat complicated and can pose numerous obstacles and problems for foreign companies.
The problematic nature of Brazil's tax system stems from the numerous variables it deems taxable, including things like the cost of energy consumed. Navigating all of these variables alone can be nearly impossible, which is why many of the foreign companies that hire the country's engineers often partner with consultants who help them comply with local regulations.
This, naturally, ends up resulting in an additional expense that you must take into account. This, and the fact that the salary system also offers some additional complexity and costs, is an important factor that you need to fully understand and keep under control to avoid potential problems in the future.
Take the time to learn the ins and outs of employer-employee relationships
Hiring engineers in Brazil can be seen as nearshore outsourcing – a practice in which you hire a software development company in a region close to your company's headquarters. As such, you can expect to enjoy all the benefits of nearshoring, including minimal cultural barriers that ensure smooth collaboration. However, Brazil's work culture is a bit peculiar, so you will need to learn the ins and outs to avoid a cultural conflict between your team and the outsourced team.
Brazilians organize their work more hierarchically than Americans, which means that people there tend to keep their professional opinions to themselves, especially if they conflict. To avoid this, you will need to show yourself openly in front of the Brazilian team and ask for honest feedback to establish this relationship from the beginning.
Additionally, Brazilians expect constant check-ins when working in groups, so you'll have to keep everyone informed at all times (something you should do with all teams, regardless of country, but which is especially important for Brazilians). Finally, you will have to give flexibility to the development teams in Brazil, as a bit of delay is culturally acceptable there.
How to Hire the Best Software Engineers in Brazil
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