News: China-based technology company Lenovo plans to invest around US$100mn to set up a research and development (R&D) centre in Brazil, which will be dedicated to software development for Lenovo's Enterprise Product Group. The centre is expected to be established at the University of Campinas Science and Technology Park. The facility will focus on innovation in enterprise software solutions and high-end servers, storage and cloud technologies. The project is supported by the state's investment promotion agency, Investe São Paulo. The centre is likely to begin its operations in January 2014 and estimated to generate 100 new jobs.
BMI View: The Brazilian government is determined to encourage the development of the domestic IT sector, in line with ambitions for Brazil to become one of the world's top outsourcing destinations. However, foreign vendors are investing in setting up new service centres and research and development facilities in Brazil, in recognition of the market's growth prospects.