Latin America has grown to be a region of great promise for the global sourcing industry. It has the attributes that have made emerging markets attractive to outsourcers, such as low wages, modern and extensive infrastructure, sizeable talent pool etc.

1. An Overview of Latin American Talent
March , 2011
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2. 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
 Business landscape
 Regulations Heredia, Costa Rica
 Government Initiatives Panama City, Panama Bogota, Colombia
 Incentives
 Infrastructure & Connectivity
 English Proficiency
 Geopolitical environment
 Quality of life, Cultural compatibility & Cost of living
 Risks
Eldorado del sur, Brazil
 Talent ecosystem
 Overall talent pool availability (at a country level) Campinas, Brazil
 Talent pool across specific domains including IT
Services, Product development (Hardware & Santiago, Chile Buenos Aires, Argentina
Software), BPO and Tech support
 Talent pool distribution by innovation and support
activities
Support Center
PREVIEW REPORT
 The current document is a preview to the complete study and covers one city, Campinas Support / Innovation Center
(Brazil) on the location and talent pool aspects

3. Agenda
Location Analysis
Buenos Aires (Argentina)
Panama City (Panama)
PREVIEW REPORT
 The current document is a preview to
Campinas – Sao Paulo (Brazil)
the complete study and covers one city,
Campinas (Brazil) on the location and
talent pool aspects
Eldorado – Porto Alegra (Brazil)
Santiago (Chile)
Bogota (Colombia)
Heredia (Costa Rica)

4. Campinas (Brazil) Overview
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
– 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
City Statistics – Campinas has a large number of educational institutes as
well as technical schools. The University of Campinas
City Population1 (2010 Census) 1,080,999 (UniCamp) produces 1,935 graduate and post -graduate
students every year and is also ranked as the institution
Population Growth Rate1 1.8%
producing the highest number of patents in Brazil5
City Area1 795.6 KM2 – The region around Campinas is known as the Brazilian
“Silicon Valley” due to the presence of a large number of
Official Language2 Portuguese research centers, universities (13), high tech industries
GDP (Campinas Metropolitan Area) USD 42 Billion 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

5. 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
• The region hosts more than 10,000 medium and large companies, many of which are among the 1,000
largest and best in Brazil1
Business • 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
Landscape
• 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
Measuring indicates the regulatory environment is more conducive to starting and operation of a local firm)
Business • In terms of starting a business, its world wide rank is 125 while it’s 148 when it comes to paying taxes
Regulations4
• 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:
Government
• Attraction and facilitation for the arrival of new investments to the city
-
Initiatives
• 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
Incentives • 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

6. Campinas (Brazil) Qualitative Analysis
These MNCs were attracted by the excellent infrastructure support from the city and
availability of English speaking talent pool
• 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
Infrastructure • 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
Connectivity 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
English • The official language is Portuguese, though Spanish and French are also commonly spoken languages2
Proficiency • 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
Geopolitical cargo theft. In 2006 the Campinas government partnered with Bosch and put in a security system with
Environment 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

7. Campinas (Brazil) Talent Pool
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 Cultural Compatibility
Catastrophic Risks
• Some parts of the city are prone to • Sao Paulo is home to the
floods, especially in summer 5 largest Asian population in Brazil,
as well to the largest Japanese
community outside of Japan itself
• On February 17th 2003, a storm caused
Key Highlights of Campinas
by a cold front impacted a large area of • 0.9 % of population in Campinas is
Southeastern Brazil and in Campinas Asians 3. 75 percent of the
this event was the second severest in population comprises of whites 3
120 years according to the Ins-t i tuto Ag
ronômi co de Campina s 6
• Languages used in Campinas are
Cost of Living Index2 Portuguese, English and Spanish
• The cost of living in Sao Paulo is one of the lowest
among global cities. It ranks 161 (of the 241 cities) • The city does not have many places
according to the Cost of Living Survey by Mercer. for tourist attraction unlike other
• Consumer Price Index (Exc. Rent): 92.35 Latin American cities 3
• Rent Index: 33.80
• Groceries Index: 53.93
• Restaurants Index: 64.03
• Local Purchasing Power: 56.38
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

8. Campinas (Brazil) Talent Pool
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 Filter 2 Filter 3
Population above the Employed Population in Sector
legal age Organized Sector analysis
Labor force distribution1
Service: 66%
203.4 million 149.9 million 103.6 million
Brazil’s Total Legally Employable Working
Population1 Population Agriculture: 20%
Population Industry: 14%
Demographics Legal Environment Resource Details
Sao Paulo's population is The legally employable age in Unemployment rate is
growing at 1.8 percent Brazil is 14 years around 9.3 percent1
More than 70 percent of  Extensive social security and Over 60 percent of the
Brazil’s total population is legally labor regulations govern working population is employed
employable employer/ employee relations 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

9. Campinas (Brazil) Talent Pool
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
Product Development
IT Services BPO Tech Support Total* Talent
Mapped Domains Software Hardware Total
92400- 18600- 25100- 43700- 150800-
Total Talent Pool* (2010) 57500-60375 344400-361620
97020 19530 26355 45885 158340
City Level Highlights
Sao Paulo Talent Pool Distribution (2010 est. ) – Talent Base:
– Sao Paulo / Campinas has the largest base of BPO
talent that is growing at a fast pace
Tech Support
– Attrition: Sao Paulo has 10-15 % higher attrition when
compared to country average
BPO – People costs:
17% – The total annual cost per FTE for IT centers for Sao
44% 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%
PD ( H & S) 12% higher than the rest of the country
– Business Opportunity
27%
– 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
IT Services – Unlike IT Services, BPO & Tech Support domains
that are clustered in Sao Paulo/Campinas, Product
Development is predominant in Tier II and III cities
Total Talent = 344400 – 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

10. Campinas (Brazil) Talent Pool
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 % 393300 72,900
400,000
344400 64,800
350,000
302000
57,500
300,000
264500
51,000 197,600
Talent Pool
250,000
45,500 172,600
150,800
200,000
132,000
115,000 30,200
150,000
27,500 22,300
25,100 20,300
100,000 23,000 18,600
21,000 17,000
15,500
126,500
50,000 108,100
79,000 92,400
67,500
0
2008 2009 2010 2011 2012
IT Services Software Product Development Hardware Product Development BPO Services 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

11. Campinas (Brazil) Major Companies
The following is a list of key companies mapped for the Campinas/Sao Paulo talent
pool analysis
 Unisys  Adobe
Innovation  TCS  Avaya
Centers
 Softek  Autodesk
 Atos Origin
 Lenovo  Microsoft
 Mahindra Satyam  HP
 IBM  TCS
Support Centers
 Accenture  Gemalto
 CPM Braxis  Atento
 Teleperformance  Telefutura
Note: Innovation and support centers include the functions mentioned in the initial overview
Source: Zinnov Research and Analysis, Company Websites

12. Campinas (Brazil) Case Study
Politec is Brazil’s largest privately owned IT services provider with 6,000 employees
Background and Business Description Scale of Operations
– The company provides a broad range of
– Establishment in Brazil – 1970 applications and infrastructure services,
and has operations in China, Japan,
– Facilities in Brazil – Bahia, Minas Gerais and Rio Grande do Sul, Belem,
Europe, and the US
Sao Paulo
– Politec signed a memorandum of
– 6500 understanding to collaborate with
– FTEs ramp-up (Brazil) Chinese vendor Neusoft, and is
– CEO – Dalton Luz planning a stock market flotation in
order to fund the expansion of its
– Partners – NA offshore business
Key Groups Talent Insights
– Support services offered: Business Process Services, HR, CRM, F&A, Training,
Learning & Recruiting, Supply Chain Management, Support & Maintenance, – Employees provide technical
Call Center expertise and service excellence for
– Innovation Services offered: IT Services, Application Development, customers around the world
Application Management, – The company is certified by the
– Industry Focus: Banking, Finance, Communications highest IT standards such as CMMI
level 5, MPSBr level A and ISO 9001,
and has a strong delivery model and
scale capacity.
Support Services Innovation Services
 
Source: Zinnov Research and Analysis, Politec company website

13. 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)

14. Full report on the Latin America Talent Hotspots can be accessed
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