An Overview of Latin American Talent
March , 2011
This report is solely for the use of Zinnov client and Zinnov personnel. No part of it may be circulated, quoted,
or reproduced for distribution outside the client organization without prior written approval from Zinnov
Objective
Scope
This report is intended to provide location and talent pool
information across key cities in Latin America (highlighted
in the map). More specifically, the report looks at
following key dimensions for analysis
 Location insights
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Business landscape
Regulations
Government Initiatives
Incentives
Infrastructure & Connectivity
English Proficiency
Geopolitical environment
Quality of life, Cultural compatibility & Cost of living
Risks
Heredia, Costa Rica
Panama City, Panama
Bogota, Colombia
Eldorado del sur, Brazil
 Talent ecosystem
 Overall talent pool availability (at a country level)
 Talent pool across specific domains including IT
Services, Product development (Hardware &
Software), BPO and Tech support
 Talent pool distribution by innovation and support
activities
Campinas, Brazil
Santiago, Chile
PREVIEW REPORT

The current document is a preview to the complete study and covers one city, Campinas
(Brazil) on the location and talent pool aspects
Buenos Aires, Argentina
Support Center
Support / Innovation Center
Agenda
Location Analysis
Buenos Aires (Argentina)
Panama City (Panama)
PREVIEW REPORT

The current document is a preview to
the complete study and covers one city,
Campinas (Brazil) on the location and
talent pool aspects
Campinas – Sao Paulo (Brazil)
Eldorado – Porto Alegra (Brazil)
Santiago (Chile)
Bogota (Colombia)
Heredia (Costa Rica)
Overview
Campinas (Brazil)
Campinas, the third largest city in the state of Sao Paulo in Brazil, is a major
economic and commercial hub
City Overview
– Campinas is one of the major cities in the state of Sao
Paulo and the 10th richest city in Brazil
– It represents 0.96 percent of all Brazilian GDP2
– The literacy rate of Campinas city is around 95.01 percent
and Human Development Index is 0.852 which is
considered quite high
– The city concentrates around one-third of industrial
production of Sao Paulo state6
– Campinas' main economic activities are agriculture ,
auto, machinery, telecommunications, e-commerce and
services4
City Statistics
City Population1 (2010 Census)
1,080,999
Population Growth Rate1
1.8%
City Area1
795.6 KM2
Official Language2
Portuguese
GDP (Campinas Metropolitan Area)
USD 42 Billion
– The prominent services sourced from Campinas include
hosting, application support & development and
customization4
– Portuguese is the official national language, and thus the
primary language taught in schools. But English and
Spanish are part of the official high school curriculum
– Campinas has a large number of educational institutes as
well as technical schools. The University of Campinas
(UniCamp) produces 1,935 graduate and post -graduate
students every year and is also ranked as the institution
producing the highest number of patents in Brazil5
– The region around Campinas is known as the Brazilian
“Silicon Valley” due to the presence of a large number of
research centers, universities (13), high tech industries
and MNCs5
Source: Map – www.holidaycity.com/Brazil
1. Brazilian Institute of Geography and Statistics, 2. CIA – World Fact Book / Brazil, 3. Zinnov Research and Analysis 4. KPMG Global Frontier Report, 5. NaiGlobal, Global Market
Report (Campinas), 2008 6. http://wn.com/campinas
Campinas (Brazil)
Qualitative Analysis
The city boasts of having a number of prominent high-tech MNCs such as IBM, Cisco
etc., thanks to recent government initiatives to promote the outsourcing industry
Business
Landscape
Measuring
Business
Regulations4
Government
Initiatives
Incentives
• The region hosts more than 10,000 medium and large companies, many of which are among the 1,000
largest and best in Brazil1
• The Campinas Metropolitan Region is home to many national and international high-tech industries,
including IBM, Motorola, Freescale, Lucent, Nortel, Compaq, Celestica, Samsung, Alcatel, Bosch, TI
• The largest companies have a global turnover of more than USD 80 billion, larger than many Latin American
countries1
• Brazil is ranked 120th worldwide (2011 ranking) for ease of doing business at the country level (high ranking
indicates the regulatory environment is more conducive to starting and operation of a local firm)
• In terms of starting a business, its world wide rank is 125 while it’s 148 when it comes to paying taxes
• Campinas boasts the largest number of high-tech business incubators and industrial parks (a total of eight)
• The Secretariat of International Cooperation (SMCI) was created with main goals as the following:
• Attraction
- and facilitation for the arrival of new investments to the city
• Expansion of activities of companies that are already established in the city
• Perpetuation of the relations between the city, its international community and partners
• Sao Paulo / Campinas offers local tax incentives for IT firms to set up offices . The following are some of
the benefits offered:
• Reduction in social security contributions up to 50 percent1
• PIS/Cofins tax exemption for products purchased for export
• Reduction in tax rates on services to two percent3
• Reduction in amount of Annual Real Estate tax from 30 to 50 percent3
• Exemptions from fees and emoluments3
Note: Ease of Doing Business Ratings are done at country level
Source: 1. Wiki Encyclopedia / Campinas 2. ww.campinas.sp.gov.br 3. KPMG Global Frontier Reports 4. Ease of Doing Business – World Bank 5. Zinnov Research and Analysis
Campinas (Brazil)
Qualitative Analysis
These MNCs were attracted by the excellent infrastructure support from the city and
availability of English speaking talent pool
Infrastructure
Connectivity
English
Proficiency
Geopolitical
Environment
• Campinas is a major transportation and telecommunications hub for the State of Sao Paulo, as it is located
on the major highways that connect the capital to the Northwest and Northern parts of the State
• Campinas has 1 five-star hotel and several other four-star hotels in the city, with a total of about 3,900
rooms3
• A scientific and technological park has been planned in Campinas, and is intended to be a hub for R&D
activities and also offer incubation facilities for technology companies4
•The highway road system in Sao Paulo is one of the best in Latin American cities with a length of around
34,650 km
•More than 90 percent of population dwells within 5km of a paved road
•Traffic congestion is common during peak hours in some parts of the city3
•Viracopos International Airport is located 14 kilometers (8.7 mi) from downtown Campinas and
99 kilometers (62 mi) from the city of São Paulo, and can be reached by the highways2
• English language skills are limited but education in English is being encouraged3
• The official language is Portuguese, though Spanish and French are also commonly spoken languages2
• English is often studied in schools and increasingly in private courses. It has replaced French as the
principal second language among educated people1
• The violence and crime rates are particularly high in the Campinas City including robbery ,kidnapping and
cargo theft. In 2006 the Campinas government partnered with Bosch and put in a security system with
around 270 CCTVs to keep the crime rate under check3
• The state of Sao Paulo witnessed criminal attacks against the police and some civilians in May 2006,which
led to several casualties3
Source: 1. Wiki Encyclopedia / Campinas 2. www.campinas.sp.gov.br 3. KPMG Global Frontier Reports 4. University of Campinas, website 5. Zinnov Research and Analysis
Talent Pool
Campinas (Brazil)
In addition, low cost of living & a truly cosmopolitan culture has helped attract
professionals from other locations turning the region into a breeding ground for
quality talent
Quality of Life
• Sao Paulo has a quality of life ranking as
119th 1, 11th in Latin America according to
the Quality of Living survey by Mercer
• According to a study from Getúlio Vargas
Foundation, this is the best city to work in
the country 3
Catastrophic Risks
• Sao Paulo is home to the
largest Asian population in Brazil,
as well to the largest Japanese
community outside of Japan itself
• Some parts of the city are prone to
floods, especially in summer 5
• On February 17th 2003, a storm caused
by a cold front impacted a large area of
Southeastern Brazil and in Campinas
this event was the second severest in
120 years according to the Ins-t i tuto Ag
ronômi co de Campina s 6
Cultural Compatibility
Key Highlights of Campinas
Cost of Living Index2
• The cost of living in Sao Paulo is one of the lowest
among global cities. It ranks 161 (of the 241 cities)
according to the Cost of Living Survey by Mercer.
• Consumer Price Index (Exc. Rent): 92.35
• Rent Index: 33.80
• Groceries Index: 53.93
• Restaurants Index: 64.03
• Local Purchasing Power: 56.38
• 0.9 % of population in Campinas is
Asians 3. 75 percent of the
population comprises of whites 3
• Languages used in Campinas are
Portuguese, English and Spanish
• The city does not have many places
for tourist attraction unlike other
Latin American cities 3
Note: Cost of living index provided is relative to New Yorl City (NYC), which means that for New York City, each index is 100(%)
Source: 1. Mercer Quality of Living Survey 2. Numbeo Database for Cost of living worldwide 3. www.campinas.sp.gov.br 4. Zinnov Research and Analysis 5. KPMG Global
Frontier Reports, 6. http://www.ige.unicamp.br
Talent Pool
Campinas (Brazil)
Hi-tech companies can tap talent from the sizeable working population (country
level) of whom nearly two-thirds are employed in the services sector
Filter 1
Population above the
legal age
Filter 2
Employed Population in
Organized Sector
Filter 3
Sector
analysis
Labor force distribution1
Service: 66%
203.4 million
149.9 million
103.6 million
Legally Employable
Population1
Brazil’s Total
Population
Demographics
Working
Population
Legal Environment
Industry: 14%
Agriculture: 20%
Resource Details
Sao Paulo's population is
growing at 1.8 percent
The legally employable age in
Brazil is 14 years
Unemployment rate is
around 9.3 percent1
More than 70 percent of
Brazil’s total population is legally
employable
 Extensive social security and
labor regulations govern
employer/ employee relations
Over 60 percent of the
working population is employed
in services industry1
Note: The above data is country specific. City specific research is in progress, 1. Legally employable population constitutes of the total population >14 yrs of age 2. Working
population constitutes of the total labor force in urban areas of Brazil (2010est.)
Source: 1. *CIA World Fact Book / Brazil 2. **http://www.taxrates.cc/html/argentina-tax-rates.html 3. Zinnov Research and Analysis
Talent Pool
Campinas (Brazil)
The talent pool in Sao Paulo has a large concentration of BPO and IT services professionals due
to the opportunity presented in the domestic market in addition to other geographies
IT Services
Mapped Domains
9240097020
Total Talent Pool* (2010)
Product Development
Software
Hardware
Total
1860019530
2510026355
4370045885
Sao Paulo Talent Pool Distribution (2010 est. )
Tech Support
BPO
17%
44%
PD ( H & S)
12%
27%
IT Services
Total Talent = 344400
BPO
Tech Support
Total* Talent
150800158340
57500-60375
344400-361620
City Level Highlights
– Talent Base:
– Sao Paulo / Campinas has the largest base of BPO
talent that is growing at a fast pace
– Attrition: Sao Paulo has 10-15 % higher attrition when
compared to country average
– People costs:
– The total annual cost per FTE for IT centers for Sao
Paulo is USD 51,000 to 53,000 which is higher than
for Curitiba in the range of 43,000 to 45,000
– Salary levels in Sao Paulo are on an average 10-15%
higher than the rest of the country
– Business Opportunity
– A number of IT-BPO companies setting up centres in
Campinas are looking to exploit opportunities in the
large domestic market for IT services in Brazil
– Unlike IT Services, BPO & Tech Support domains
that are clustered in Sao Paulo/Campinas, Product
Development is predominant in Tier II and III cities
– Technical Support in Sao Paulo is mainly dominated
by the MNCs
Note: 1. Total talent refers to the average total value taken across the mapped domains 2. . Total Talent as in the entire city of Sao Paulo / Campinas,Makati City and Ortigas
Source: 1. www.campinas.sp.gov.br 2. KPMG Global Frontier Reports 3. Zinnov Research and Analysis, Primary Interviews
Talent Pool
Campinas (Brazil)
The number of BPO and IT professionals in Sao Paulo has been rising steadily and is
only expected to gain further momentum in the coming years
Sao Paulo Talent Pool Distribution
500,000
449500
450,000
CAGR: 14.2 %
400,000
344400
350,000
302000
Talent Pool
300,000
393300
64,800
57,500
264500
197,600
51,000
250,000
72,900
172,600
45,500
150,800
200,000
132,000
150,000
115,000
30,200
27,500
25,100
100,000
20,300
23,000
17,000
18,600
67,500
79,000
92,400
2008
2009
2010
2011
Hardware Product Development
BPO Services
21,000
15,500
50,000
22,300
108,100
126,500
0
IT Services
Software Product Development
2012
Tech Support Services
Note: Above numbers are determined by estimations and hence must be seen with a tolerance of -10% to +10%, Sao Paulo‘s population is close to 11 million
Source: Zinnov knowledge base, Primary Interviews
Major Companies
Campinas (Brazil)
The following is a list of key companies mapped for the Campinas/Sao Paulo talent
pool analysis
Innovation
Centers
Support Centers
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Unisys
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Adobe
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TCS
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Avaya
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Softek
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Autodesk
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Atos Origin
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Lenovo
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Microsoft
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Mahindra Satyam
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HP
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IBM
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TCS
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Accenture
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Gemalto
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CPM Braxis
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Atento
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Teleperformance
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Telefutura
Note: Innovation and support centers include the functions mentioned in the initial overview
Source: Zinnov Research and Analysis, Company Websites
Case Study
Campinas (Brazil)
Politec is Brazil’s largest privately owned IT services provider with 6,000 employees
Scale of Operations
Background and Business Description
– Establishment in Brazil
– 1970
– Facilities in Brazil
– Bahia, Minas Gerais and Rio Grande do Sul, Belem,
Sao Paulo
– FTEs ramp-up (Brazil)
– 6500
– CEO
– Dalton Luz
– Partners
– NA
– Politec signed a memorandum of
understanding to collaborate with
Chinese vendor Neusoft, and is
planning a stock market flotation in
order to fund the expansion of its
offshore business
Key Groups
Talent Insights
– Support services offered: Business Process Services, HR, CRM, F&A, Training,
Learning & Recruiting, Supply Chain Management, Support & Maintenance,
Call Center
– Innovation Services offered: IT Services, Application Development,
Application Management,
– Industry Focus: Banking, Finance, Communications
Support Services

Source: Zinnov Research and Analysis, Politec company website
– The company provides a broad range of
applications and infrastructure services,
and has operations in China, Japan,
Europe, and the US
Innovation Services

– Employees provide technical
expertise and service excellence for
customers around the world
– The company is certified by the
highest IT standards such as CMMI
level 5, MPSBr level A and ISO 9001,
and has a strong delivery model and
scale capacity.
Additional Information
 The full report provides location and talent pool information
across the following other key cities in Latin America
 Buenos Aires (Argentina)
 Panama City (Panama)
 Eldorado del sur (Brazil )
 Santiago (Chile)
 Bogota (Colombia )
 Heredia (Costa Rica)
Full report on the Latin America Talent Hotspots can be accessed
through the Zinnov Talent & Location Portal
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