Information Technology is currently one of the most rapidly growing industries in the world. It simplifies complex business problems into easy-to-use, electronic systems. Large business transactions, messaging family and friends, and organizing finances can be transformed into just a few clicks with IT. Although there is much benefit in IT, there are many organizational factors that must be assessed in order for it to go live: Access, Learning, Society, Economy, Policy, and Outsourcing. In this paper, I will assess the Policy factor affecting the IT readiness of Brazil using the framework, as well as information gathered from various on-site, company visits.
Brazil’s policies must be supportive of telecommunications, employee rights, trade, and commerce in order for Information Technology to successfully take off. “The favorable climate that public policy can create for Internet use and e-commerce encourages communities, organizations and individuals to invest in and use information and communication technologies.”(1) This framework emphasizes the importance of tweaking an organization’s legislation to promote economic growth, communications, and trade. Using the telecommunications regulation assessment, Brazil appeared to only be in the first stage. The first stage means Brazil has no set plans to open the telecommunications, no plans to promote universal relationships, and voice and data services are locally owned and limited. After visiting Santa Catarina’s Chamber of Commerce in Florianopolis, it was mentioned that 90% of southern Brazil is wired with fiber optics, but local legislation gives 30% access. Not only is most of northern Brazil in poverty and lacking in cabling, but southern Brazil’s wiring efforts are incomplete – despite their wealth. On top of that, laws only allocate 30% of southern Brazil with internet access. Also, Brazil does not have a large international trade industry. Generally, Brazil produces its own domestic products and maintains an indifference to international competition. I took notice to this underlying attitude and believe it accounts to their lack of universal relations. Under the ICT Trade Policy regulation of the Policy framework, Brazil placed to be in the first stage meaning IT equipment is heavily taxed, some sectors are closed off from trading, and there is little or no foreign investment. From our visit in the Chamber of Commerce, it was mentioned that Information Technology, along with public businesses, end up paying most of the Brazil’s taxes. With virtually every city in Brazil containing shanty towns that lack proper wiring, telecommunications in Brazil are sparsely connected and are not adequate. We visited a software company called Audaces, and I asked how their product compares to similar competitor’s products globally; the representative responded that their company does not observe other company’s products. I think this disadvantages their company’s production because there is no drive to improve their business if there’s no competitor’s edge. This also accounts for Brazil’s small amount of foreign investment. We also visited a newspaper in Florianopolis called Diário Catarinense, and it was mentioned that IT hardware more expensive in Brazil. Based on the framework, Brazil is in the early, beginner stage in adjusted their policies. It was also mentioned in the Chamber of Commerce that the federal government and some state affiliates are attempted to make IT a priority by distributing more money to the IT industry. In exchange for the money, the IT companies must prove the money is being used accordingly. After assessing Brazil under the policy framework, one of the problems that were surfaced was a lack of telecommunications. The Brazilian government must distribute this money to wiring and cabling companies as a start to launch IT.
Despite the framework, there are other policies and laws that are affecting the national implementation of IT in Brazil. From the visit in the Chamber of Commerce, it was stated that the Brazilian legal system is constantly changing, which makes it difficult to do business and implement IT. Brazil still has a long list of countless taxes on sales and businesses; roughly 58 different taxes accumulate and modern businesses pay most of it – like IT business. For example, 40% of Brazil’s entire gross domestic product is due to taxes. Also, 58% of the Brazilian gas price is composed of taxes. Most of the tax money is being distributed to other industries and not IT. Aside from the senseless amount of taxes, there are also a series of outdated labor laws that counteract Brazil from developing a strong IT industry. Dating almost 60 years old, Brazil’s labor laws still serve and are in favor of blue-collar workers. Although there is still a large existence of traditional, blue-collar industries in Brazil, it is difficult for modern industries – like IT – to develop because the laws act as a large barrier. Information Technology salaries are generally high and the labor laws affect IT to their disadvantage. The higher the salary, the higher the labor law tax is charged. Also old labor laws that regulate employee hours are still in affect and severely limit Brazilian IT professionals from working.
Overall, Brazil must make more strategic efforts with their legislative policies in order to launch a strong IT industry. Information Technology is the future, and Brazil will face difficulty on international relations if they do not mend their policies. Practicing obsolete ways of business seems to only function if all other domestic organizations are doing the same, but the moment an organization begins using IT, other businesses will fall behind. With respect to the framework, Brazil is in the beginning stages of restoring their policies to emerge an IT industry.
(1) http://cyber.law.harvard.edu/readinessguide/policy.html