CDC starts direct operation in Brazil
Valor Econômico
After postponing many times his first trip to Brazil, fearing the long hours of flight he would have ahead, Peter Yip finally visited the country last week. The visit of the Executive symbolizes the effective arrival of CDC - Chinese software supplier - to Brazil. The company is announcing the opening of an office in the country, where it only operated by means of a reseller for its customer relationship management system (CRM). Main product of CDC, the product is responsible for 40% of the overall earnings of the company, which has average annual earnings of US$ 500 million. The company will increase its portfolio in the country offering business management systems and software for the shop floor. The focus will be on the small and medium-size suppliers in sectors like the car industry. "We have clients at large makers, but the chain that caters to the segment is much more accessible and numerous", said Yip.
The Brazilian operation will be the only structure of CDC in Latin America. The company started investing in the region nearly three years ago, through the acquisition of minority interests in the businesses of local software companies in countries like Mexico, Chile, Argentina and Colombia. That business model - which includes the involvement of CDC in the management of the companies - will also be adopted in Brazil. The company started prospecting ten local companies nine months ago and reduced its interest to two names, which it is in the final stages of negotiation with, says the Executive.
According to Yip, the strategy of CDC is to identify partners that can complement its portfolio and facilitate its entrance in the Brazilian market. At the same time, CDC may contribute so that the products of those companies have access to the Asian, European and American markets, where the company already has consolidated operations. Yip recognizes such structure is ideal for the company to grow in the country: "We are Microsoft or IBM. We are little 'guys' and our success depends on the alliance with companies with the same profile and goal. That is an exchange".
Senior Vice President of Operations of CDC for Latin America and Europe, Oscar Pierre reveals the investment allocated, at a first moment, in those agreements in Brazil amount to US$ 6 million. He points out, however, that the value may go up. "We have nearly US$ 210 million to invest worldwide in good deals. We do not separate such figure as per region or country", he explains. Pierre asserts the size and complexity of the Brazilian market were responsible for the choice of CDC in investing first in the rest of Latin America. On the other hand, those factors also explain the decision for Brazil to be the only country to have the direct presence of the company, he says.
Upon such scenario, Pierre points out, however, that the Brazilian office will have a lean structure. With passages by IBM and Oracle, Vanderlei Gaido will head the operation, which will be headquartered in São Paulo and will respond for the CDC brand and the management of the relationship of the company with its partners in the country, whether they are direct partners or resellers. "It would be impossible to control the businesses we have around here without such presence or through a partner", says Pierre, adding they expect Brazil responds for 40% of the earnings of CDC in Latin America within three years.