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The entire IT "value chain" in Brazil (specially in São Paulo) is more expensive than any other location in the US. Honestly I'm surprised they could keep the o
by rarruda 15y ago
The entire IT "value chain" in Brazil (specially in São Paulo) is more expensive than any other location in the US. Honestly I'm surprised they could keep the overall price increase at around 36%. If you take real estate cost + taxes + data transfer costs alone, that would be enough to push operating costs way up. Labor cost could also be a big factor here, since payroll taxes are around 100% (for $1 pay to employee you give another $1 to goverment in taxes), but of course they have all the technology to put high degrees of automation to their benefit.
- seqastian 15y agosame here but we prefer to think of it as 50% ;)
- kawera 15y agoContrary to the popular saying here, brazilian payroll taxes amount to 56% of the salary in an annualized basis, not 100%.
- unwind 15y agoI think that with typical US "glasses" on, 56% is more or less equal to 100% when it comes to taxation. :) Of course, this is me being a bit prejudiced, but I think there's a least a bit of truth in there.
- rarruda 15y agoYes, sure, you can always work out the numbers. If you skip unemployment insurance and some minor previdenciary collections you can get it to around 65%. But that won't make you attractive to the workforce in question. And, of course, you can always balance it with some contractors, at your own risk.