"We understand it's time for Totvs to become a global reference"

Founded in 1983 in São Paulo, Brazil’s largest software firm Totvs is going through the fifth phase of its existence: going global.

The company already trades with several countries, in particular across Latin America, but wants more. The goal now is to go beyond taking solutions tailored to the needs and characteristics of each local market and develop services with a one-size-fits-all mentality.

To understand more about this strategy shift and how the company plans to go global, BNamericas spoke to CEO Láercio Cosentino.

BNamericas: Totvs already is the country’s largest software company, and its operations and growth are solid. In which direction do you want to take the company now?

Cosentino: We’re living now Totvs’ fifth phase. The first phase was the foundation; the second was the understanding of what meant being global software houses, and we prepared ourselves for this. The third phase was the definition of our DNA, vision, mission, values; and the fourth phase was related to seeking leadership, market consolidation, making an IPO, which was concluded last year. The fifth phase - which we are going through now - means making this company a global reference.

BNamericas: How is that process unfolding?

Cosentino: When you look at how Brazil is doing and how much it has changed in the last five, six years, we see that a lot has been achieved in terms of valuing Brazilian assets, respecting contracts, stabilizing the country, a series of things. Others, of course, didn’t go so well, like some structural reforms.

Anyway, despite all of that, one thing is common to almost all of us: we don’t have many strong Brazilian brands abroad. If people travel and spend 20 days out of the country, they’ll probably come across an Embraer aircraft used by a US airline, a pair of Havaianas flip-flops on a beach, in addition to something from Vale or Petrobras - but not much other than that.

We understand it's a challenge for companies that thrived here and we understand it's time for Totvs to become a global reference, and that means going global. It means serving all companies, our customers, which want to work elsewhere. They should come out with Totvs to explore other markets. We want not only to serve local companies abroad, but to serve those who want to expand from here to there.

Besides, we see a lot of companies willing to come to Brazil and surf on the growth and the country’s momentum. And the company that best understands Brazil, how to do business in Brazil, is Totvs.

BNamericas: And you chose Latin America to start this process?

Cosentino: Yes, we chose the Latin American region to begin this journey. Today we have our software present basically throughout the entire region.

Now, what we want is to start developing software that doesn’t require a specific location.

When we talk about taking an ERP solution to several countries, the first thing is to go there, understanding the market, the culture, the legal framework, making the changes and adaptations in the product, train people, winning the first client and then say: “OK, I arrived, I’m here.”

It’s a move we’ve already done, but we understand we need to further strengthen our position in the region and abroad.

BNamericas: A recent ranking placed [Brazilian onshore and nearshore IT consulting, integration and development, and outsourcing services company] Stefanini as the third most globalized company in the country.

Cosentino: Yes, but they are two different things. One thing is to develop systems and the other is do proper allocation of the local workforce. The latter is what Stefanini does very well and in fact they’re already in many countries, but that’s quite different from what we do. Our focus is to develop technologies, implement systems and sell solutions to our customers. Stefanini works in service delivery, allocation of skilled manpower and software implementation.

BNamericas: How does Totvs evaluate the stimulus plan TI Maior [Greater IT], recently launched and highly publicized by the government to boost the sector and the local software industry?

Cosentino: We’re analyzing it not only through Totvs, but also through [Brazilian ICT companies association] Brasscom, of which I’m president. We want to better understand the certification of national software, what it means and what the impacts of the plan as a whole are.

In principle, I think it’s highly positive. Every policy conceived to strengthen the software industry in the country and create jobs with high added-value as well as positioning Brazil as a provider of high-end technology is certainly very positive.

The issue about creating a certificate for domestic software is under public consultation and we are evaluating it.

We see that every country that prospered in IT had a strategic plan for the industry and a very strong proximity between academia, education institutions, and companies, and there was a focus on higher education.

BNamericas: [Software companies association] ABES president Gerson Schmitt told BNamericas that the plan itself is good, but that the focus on national software cannot mean a "phobia" toward imports, especially when the foreign products are better.

Cosentino: Yes, I agree. Furthermore, I believe we have to incentivize companies to come to Brazil and invest in R&D here, set up centers of excellence, work together with the universities and, that way, create and feed a cyclical movement that bolsters the development of new companies and new business.