ITC has been the leading Oracle ERP implementation partner in Brazil for over a decade and the Brazil Desk will help multinational companies expanding in Brazil get end-to-end support on business issues which may fall outside of the ERP space.
IT Convergence Brazil President JB Bassett took time out to speak with us about “Brazil Desk” and IT Convergence Brazil.
First, launch the “Brazil Desk” now?
Well a number of things are aligning. First of all, Oracle OpenWorld is the biggest and most important event of the ERP community, so it’s a great time to get the message out.
But while the PR value is nice, the business drivers are truly critical here. We’ve been a leader ERP space during a decade that has seen the Brazilian economy take off. And that’s made Brazil very attractive to multinational companies.
As the partner of choice for multinationals expanding in Brazil, we’ve had an excellent chance to get to know them, to understand their needs, their fears, and challenges. As partners we’ve provided sort of informal advice on dealing tax, import and reporting issues which are not strictly ERP related.
- Brazil Desk simply represents a formalization of that service that will be available to anyone seeking to set up operations in Brazil.
Brazil has gained a lot of fame as a member of the BRICS movement internationally, but the market is not that well understood by outsiders. Could you share some insights? From both an ERP and more general business perspective “Brazilian Expansion” tends to scare people, but it shouldn’t. And there are number of examples that illustrate why it shouldn’t but I think the most interesting one is a factoid cited by Argentine author Marcos Aguinis.
- Which of the world’s cities host more Germany owned companies than any other in the world? Hint, its not Bonn, Frankfurt or even Berlin but Sao Paulo, Brazil.
That really shows you the potential of the Brazilian market and expanding here is very doable, if you go about it the right way.
Could you talk a little more about what it’s like for a multinational to expand into Brazil?
Certainly. As we mentioned in the Brazil desk launch, the issues a multinational needs to deal with are real, but they are manageable if you have the right expertise.
The first thing companies need to understand is that you should not try to start a business in Brazil without the help and advice of Brazilian professionals. It is a complex market and you need to rely on local experts to guide you through the challenges.
Decision makers should keep in mind that doing business in Brazil is complex and cost structures are very different from North America. So it’s important to have a very good business case in order to fully understand all of the costs and benefits before you move into the market.
A common mistake for new companies entering in Brazil is to think that the accounting and tax environment is not so different from what they have seen in other countries. Believe me, it is very different and much more complex.
Another mistake is thinking that you can simply rollout your international ERP system to Brazil and make some customizations to meet the local tax requirements. It isn’t quite so simple. If you want to run an Oracle ERP solution in Brazil, you must implement the Brazil localizations of your system that are developed by local experts.
And beyond that companies need to take into account that while the level of English is improving in Brazil, the pool of fully bilingual ERP professionals is still finite. So communication can be a challenge if you do not rely on local experts to help you interact with other parties.
Another smart thing to do is to outsource your accounting and tax services to a specialized bookkeeping company. There are several advantages of doing that, but the most important one is that you don’t need to worry about dealing with the complex tax requirements and tax fillings yourself. You can count on tax experts to handle your statutory and tax compliance and usually the big accounting firms have people that speak fluent English, which will help a lot.
These are some of the reasons why we established ITC’s Brazil Desk, so that multinationals have a place to turn to guide them through all those challenges and make your Brazilian expansion a success.
Discover More about Doing Business in Brazil
If you’re at Oracle OpenWorld 2013 and want to learn more about either doing business in Brazil and/or extending your Oracle E-Business Suite solution to Brazil then stop by Booth 1027 for an On Demand Demo.
If you weren’t able to make it to San Francisco and/or you found this page long after OOW13 has ended, you’re still in luck. You can click here to check out our Brazil Desk or click here to learn more about our Oracle ERP solutions for Brazil (and if you’re really adventurous you can read more about our Oracle Brazil services in Portuguese.)
Oracle OpenWorld is the biggest and most important event of the ERP calendar and IT Convergence wants you to take full advantage. Click here to visit our OOW13 resources page and/or follow all of the action from wherever you are in the world by reading all of this blog’s entries on our Oracle OpenWorld .