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Article| McKinsey Quarterly

Assessing Brazil's Offshoring Prospects

March 2007 | byDiana Farrell, Martha Laboissière, and Bruno Pietracci

Brazil is well placed to supply labor to the global offshoring market, given the country’s strong telecommunications infrastructure, attractive market for IT vendors, and relatively low costs. However, the McKinsey Global Institute (MGI) finds that weak English-language skills and a lack of international experience among Brazilian workers make many of them unsuitable for employment in the eyes of multinational companies. Brazil must address these labor shortcomings and other issues if it hopes to capitalize on its considerable potential as an offshoring destination.

An MGI study examined offshore talent in 28 low-wage countries and 8 moderate- to high-wage ones. This article assesses Brazil’s position relative to 10 other low-wage countries included in the broader analysis.

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About this research

This article draws on applied research carried out by McKinsey consultants. To learn more about our expertise please visit Mckinsey Global Institute, Business Technology Practice, Sao Paulo. Mckinsey Global Institute,