Research Study Reveals Key Findings on Brazilian, Chinese and Indian Software Industries Neolink to Present Results to Dignitaries, Media, Educators and IT Professionals

Slicing the Knowledge-Based Economy (KBE) in Brazil, China and India: A Tale of Three Software Industries" is a recent study compiled by leading universities, the Asian Development Bank Institute (ADBI) and the Society for the Promotion of Excellence in Brazilian Software (SOFTEX). The final results of the study and the much awaited comparison between the data obtained in Brazil, China and India will be presented to a select group of executives, educators and media professionals during a reception organized by Neolink Inc. at the Hotel @ MIT, 20 Sidney Street, Cambridge MA, on September 15, 2003, at 6:30 PM.

Cambridge, MA (PRWEB) September 12, 2003 -- September 12, 2003 -- The purpose of the study was to understand the different trajectories of the growth of software industries of Brazil, China and India and to produce aids for the elaboration of public policies for the sector. The project was launched in Brazil in May of 2002 when field studies were initiated. During three months, a group of researchers made an extensive survey of a sampling of 57 Brazilian software companies. Simultaneously, similar surveys were made with Chinese and Indian companies.

The size of the Brazilian software market with sales of US$7.7 billion (2001) rivals the market size of China and India of US$7.4 and US$8.2 billion in 2001, respectively.

The Brazilian software industry has been compared with that of India as well as Israel and China. IT production in Brazil is one of the best kept secrets in the world," remarked Alice Amsden, Professor of Economic Policy at MIT. Even though it is unknown overseas, Brazilian software is being transformed into a treasure," she believes.

The study shows that the Brazilian software industry, despite some conditionings associated to its historical legacy, institutional ambient and market structure, has grown to play a major role in the domestic economy. This distinguishes it from the Indian industry, which is mostly export oriented, and produces a different competitive strategy. The study revealed that a major strength of the Brazilian software industry resides in the flexibility and creativity of its software exploiting market segments like telecommunications, finances, energy sector infrastructure and e-government.. Today, there are technological services and products in Brazil that can compete in any place in the world," says Francisco Veloso of Carnegie Mellon University.

The study of China and India can make many contributions to understanding the role of the state as a promoter of the software industry. Indian firms had an advantage beginning in the 90s when the government changed its protectionist posture to a more efficacious attitude of promoting the software industry by investing in the construction of technological complexes and in the implantation of other means for attracting foreign capital. The leap began at the beginning of the 90s with the exportation of skilled labor to companies all over the world. In a short time, big multinationals like Microsoft, AT&T, Motorola and Cisco began to transfer whole production stages to Indian companies who in turn furnished services and brought money into the country.

Indias software exportations (US$4 billion in 2000) are far superior to those from Brazil (US$100 million) and from China (US$400 million). The elevated number of firms involved in this activity (estimated around 2,800 in 2001) indicate Indias significant growth vector of exportations. The numbers have climbed exponentially. From 1994 to 1999, the information industry in India grew 40.5% a year. This made it possible for the volume of exportations to take off from US$150 million to US$4 billion over the decade. The software sector alone, between 1998 and 1999, registered growth rates of 59% and totalized US$6.2 billion in 2001.

Annual growth of 7.8% of the Chinese economy made the country a heavy weight player in diverse industrial sectors, including software. Its attractive numbers and its joining the World Commerce Organization facilitated the entrance of large multinational groups; this resulted in an increase of competition on the part of local companies. The Chinese industry appears to be similar to Brazilian industry in some aspects. The country has a large mass of small companies emerging from universities and research laboratories and a big domestic consumer market. The Chinese market has the advantage of having an abundant labor force -- above all programmers -- since the country relies on a very big base of universities. System Integration and embedded software remains the great specialty of the Chinese.

About Neolink Incorporated
Neolink is a business development consulting firm with an international practice centering on the US and Brazil. Founded in 1992, the firm is headquartered in both New York and São Paulo. Neolink is committed to helping clients stay competitive by supporting and enhancing their efforts to grow and expand at home and abroad. Neolink provides a variety of business development services tailored to meet individual client needs. Neolink has a proven record of success serving institutions of all sizes, including Global 500 companies. Learn more about Neolink Incorporated at www.neolinkincorporated.com.
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