Brazil vs. México: Comparing data to information technology area

1. Brazil vs. México: Comparing datato information technology areaRonan Martins SoaresManager of Information Technologyronanms@gmail.comBelo Horizonte, Brazil

2. Qualification of Country Source: CORPRESEARCH, Jan 2009

3. Comparison between Mexico and Brazil Mexico Brazil VISA Special Programs Very Good Fair Data and Intellectual Property Security and Privacy Very Good Fair Majority of professionals with English Reading Very Good Very Good Majority of professionals with English Spoken Very Good Poor Educational System Good Fair Political Environment Good Good Cultural Compatibility Very Good Very Good Cost of professionals Very Good Very Good Source: Gartner Study -Offshore Services Location 2008

4. Comparison between Mexico and Brazil BRAZIL MEXICO Intellectual Property Security and Privacy Intellectual Property Security and Privacy Security, data transfer and telecommunications under NAFTALaws and legal protection, higher levels of security, information guidelines, levels of international treaties, intellectual property rightssecurity industry, work remains to be done in physical security. and copyright laws. Technology TechnologyEnacted laws and created programs, productive development policy: Tax incentives and investment funding, development of eightLabor tax breaks, multinational technology companies and global IT dedicated technology parks for IT services providers and captiveservice providers in Brazil. centers. English Language English Language •Stimulated by proximity to the U.S., NAFTA and commercial Language with the highest demand, fail to provide, requiring relationship, bilingual call centers, professionals understand written complementary courses, small English-speaking labor pool. and spoken, fluent in spoken, 5% of students travel abroad for English programs. Source: Gartner Study -Offshore Services Location 2008

5. Comparison between Mexico and Brazil BRAZIL MEXICO Educational System Educational System•10% between 18 and 24 years study at the college level, higher- •IT-related programs 11% of the national student enrollment,education enrollments doubled in the past 10 years, still small, 400,000 students are enrolled in IT-related programs , 60,000government programs, shortcomings in education, Inadequate graduates IT university annually, plan to update curricula for IT-government. related programs. Political Environment Political Environment•Rank 80th out of 178 countries, (democracy, 51; press freedom Ranks 72nd out of 178 countries, rated 63rd for democracy, 71st56; corruption 57), 80% of population lives in urban areas, growth is for press freedom and 57th for corruption out of 150 countries, fullyserious social, security and environmental problems, international functioning Western democracy.risk is lowest in history. Cultural Compatibility Cultural Compatibility•Strongly under the economic, as well as cultural, 2nd in exchange Share the most-transited border in the world with U.S., societystudents in the U.S., well-connected to the world, immigration, the exposed to American culture, economy is linked to the U.S.culture and business practices are influenced by the U.S. business cycle, professionals are exposed to U.S. business practices, three time zones align with the U.S. Source: Gartner Study -Offshore Services Location 2008

6. Cost of Travel New York USA – (Sao Paulo Brazil / MexicoCity) Source: American Airlines Source: American Airlines

7. Lower-priced than IT professionals in U.S. 100.00% 90.93% 90.00% 84.55% 75.45% 77.63% 80.00% 69.86% 70.00% 63.67% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Junior Pleno Senior Mexico Brazil MEXICO 29.61 % LOWER-PRICED THAN U.S. BRAZIL 16.36 % LOWER-PRICED THAN U.S. Source: OCC Mexico and apinfo.com

8. Time Zone Source: Gartner Study -Offshore Services Location 2008

9. Brazil and Mexico’s Business AttractivenessGood access to market and best business environment and infrastructureamong the main players Source: Location Cost Index database, Mckinsey Global Institute

10. Quality Infrastructure Source: Economic Forum Worldwide

11. Brazil and Mexico have a competitive energy offer, with a good cost/benefit radio Energy Offer Quality of Electricity Supply2) Energy Price – 2006 USD/MWh Quality Adjusted Energy Price USD/per quality point(QP)1): 1) A.T. Kearney Calculation; the price paid in MWh per each point of energy quality 2) The quality of the electricity supply in your country (lack of interruptions and lack of voltage fluctuations ) (1=min; 7= max) World Economic Forum Indexe: International Energy Agency, Energy Prices & Taxes - Quarterly Statistics, First ; A.T. Kearney Analysis;

12. Workforce and unemploymentEconomically active population UnemploymentMM people 2007 % of people Source: EIU

13. Brazil and Mexico have a good education spending rate Mexico has a good education spending rate and is the 2nd base of people in tertiary education level in LatAmEducation levels enrolmentsEducation Spending - % GDP # Tertiary enrolments (2007) % 2007 Millions % total age group1) 15% 20% 48% 22% 38% 65% 7% 7%Notes: 1) Tertiary age group is from 20-64 years oldSource: EIU – 2008 World in Figures, A.T. Kearney analysis

14. Brazil and Mexico Certified Professionals Besides a good balance of certifications, Brazilian and Mexican IT professionals have a very diversified knowledgeComparison of professionals certification# Certified professionals Considerations(Java, DotNet, SQL, DB2, C++, Linux, etc.)# professionals 2006 • Certification processes are not the same around the world, making hard the comparison of professionals knowledge quality • Most of IT certifications doesn’t need re- certifications, so the base of certified professionals may include non-active professionals (e.g. retirement) or 89,374 professionals without current knowledge or newest language processes Source: Brainbench, A.T. Kearney analysis

15. Thank you! Ronan Martins Soares Manager of Information Technology ronanms@gmail.com Belo Horizonte, Brazil