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Outsourcing: Brazil Blossoms as IT Services Hub

By Stephanie Overby
September 8, 2010 12:13 PM ET

CIO - CapGemini's announcement last week that it would invest $298 million in Brazilian IT service provider CPM Braxis attracted a lot of attention in outsourcing circles. The move will give the Paris-based company a 55 percent stake in CPM Braxis, the option to buy the company outright within three to five years of the close of the deal, and the chance to leapfrog its global competitors already entrenched in the country.

"CapGemini is visionary, getting into the market ahead of its global competitors," says Atul Vashistha, president of offshore outsourcing consultancy Neo Advisory. "This is a very promising strategic move."

Meanwhile, CPM Braxis-a major South American outsourcer with 5,500 employees-is predicting 20 percent growth and $450 million in revenue in 2010.

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This story is reprinted from CIO.com, an online resource for information executives. Story Copyright CXO Media Inc., 2010. All rights reserved.
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