Readiness for the Networked World - A Guide for Developing Countries
The framework was prepared by the Information Technologies Group Center for International Development at Harvard University with support from the International Business Machines Corporation.
Over the past several years, technology gains have played a key role as sources of well-being and wealth generation. A digital divide exists throughout the world between those that have access to Information and Communications Technologies (ICT) and those that do not. The guide is a tool to evaluate a country's readiness for the Networked World. The guide looks at five major areas:
1) Network Access: An evaluation of the cost and availability of ICT networks, services, and equipment.
2) Networked Learning: An evaluation of the use and availability of ICTs in schools with a special emphasis on the ability of the country to produce a workforce ready to embrace ICTs.
3) Networked Society: An evaluation of the use of ICTs in the everyday life across the society.
4) Networked Economy: An evaluation of how ICTs are used in businesses and as a tool to interact with the consumer.
5) Network Policy: An evaluation of government policy impact on ICTs.
The framework ranks countries on a scale of 1 to 4 in subcategories of each major category.
Through a combination of first hand observations and research, our group used this guide to analyze Brazil's readiness for the networked world. A complete copy of the guide can be found here: http://www.readinessguide.org
In addition to the categories outlined in the guide, we include a section on Outsourcing: An evaluation of Brazil as an outsourcing location for both back office and Information Technology development. The table below includes our rating of Brazil's Readiness for each category of the framework. Brazil is willing and able to embrace the Networked World - we expect Brazil to be at stage four in all categories in the next five years.
Network Access |
|
| Category | Ranking |
| Information Infrastructure | 3.0 |
| Internet Availability | 3.0 |
| Internet Affordability | 3.0 |
| Network Speed and Quality | 3.5 |
| Hardware and Software | 3.5 |
| Service and Support | 3.0 |
Network Learning |
|
| Category | Ranking |
| School Access to ICT | 3.0 |
| Enhancing Education with ICT | 3.0 |
| Developing the ICT Workforce | 3.5 |
Network Society |
|
| Category | Ranking |
| People and Organizations Online | 3.5 |
| Locally Relevant Content | 3.0 |
| ICTs in Everyday Life | 3.5 |
| ICTs in the Workplace | 4.0 |
Network Economy |
|
| Category | Ranking |
| ICT Employment Opportunities | 3.0 |
| B2C Electronic Commerce | 3.0 |
| B2B Electronic Commerce | 3.0 |
| E-Government | 3.0 |
Network Policy |
|
| Category | Ranking |
| Telecommunications Regulations | 3.5 |
| ICT Trade Policy | 4.0 |
Outsourcing and Offshore Readiness
From an outsourcing and offshore readiness perspective, our group ranked Brazil as Ready and Attractive.
Evidence supporting readiness
- Affordable high-speed internet access is accessible in the southern region of Brazil - where most of the business centers are located.- Several multinational corporations are already operating successfully in Brazil - Accenture, Deloitte, IBM, T-Systems, BASF, and Nestle.
- Although there are improvements to be made in terms of access to ICTs at the basic education levels, the use of ICTs at the university levels compare to those of developed countries, providing an ICT-ready workforce at the college level. For lower education levels, when the skills are not present, the private sector offers training.
- Brazil has more than 200,000 IT professionals and 23,000 college graduates enter the workforce every year.
- Brazil has highly developed extensive ICT networks that have excess capacity to support additional business.
- The telecommunications sector in Brazil has been liberalized with a regulatory regime in place to promote open competition. These changes demonstrate the country's readiness from a policy perspective.
- Tariffs on foreign products have decreased in recent years and are closer to the rates of the United States and the European Union. This movement shows Brazil's readiness to embrace the global economy.
Evidence supporting attractiveness
- The exchange rate for the euro and the dollar makes labor costs less expensive.- Brazil is relatively close to the United States and Europe making periodic site visits more practical than India or China.
- From a time zone perspective, Brazil is strategically located between North America and Europe, making it easy to work with both locations.
- IT managers interviewed during the trip to Brazil indicated minimal issues with the quality of workforce at college levels or above. Students are leaving universities ready to enter the job market and contribute.
- Government is lifting protectionist trade policies and embracing policies more favorable to businesses.
- Brazil has the largest population, land mass, and information technology market in Latin America.
- Brazil is aggressively implementing programs to bring telecommunication and data services to the majority of the population; creating larger markets for business expansion.
- The Brazilian government encourages growth of the IT sector and is now extending the benefits of ICTs to a broader base in society. Brazil offers a large market and growth in the IT software sector is steadily growing at an annual rate of about 25%.