For many ERP consultancies, international expansion starts in familiar markets: their home region, or big markets like the United States, the United Kingdom or Germany. Brazil rarely tops that list.
Yet Brazil is going through a broad digital transformation. Companies in manufacturing, logistics, energy, retail and agribusiness keep investing in automation, Industry 4.0, cloud technologies and data-driven operations. According to recent research, more than 70% of Brazilian SMEs plan to increase their investment in digital transformation over the coming years. As organisations modernise, ERP systems are becoming the digital backbone of the business. That raises a question for any ERP consultancy based outside Brazil: can a foreign firm compete in one of Latin America’s largest and most mature ERP markets?
Mature ERP market
Brazil has the largest ERP software market in Latin America. It generated an estimated US$1.2 billion in revenue in 2025 and is expected to keep growing at double-digit rates, driven by cloud adoption and enterprise modernisation. More importantly, ERP adoption here is far past its infancy.
The enterprise segment is highly mature. SAP and TOTVS each hold roughly 34% of the Brazilian ERP market and Oracle around 10–12%, so these three vendors account for nearly 80% of all deployments. Among Brazil’s largest corporations, SAP is still the dominant platform.
That has big implications for consultancies. Unlike in many emerging markets, Brazil is no longer driven mainly by greenfield implementations. Many organisations already run mature ERP landscapes and are entering a new transformation cycle: S/4HANA migrations, brownfield conversions, cloud migrations and optimisation programmes. Companies are modernising existing environments, not replacing manual processes. For an experienced ERP consultancy, that should sound familiar. The opportunity is less about implementing ERP for the first time and more about helping organisations transform systems they’ve relied on for years. Brazil is no longer a greenfield ERP market. It’s a brownfield transformation market.
Find Your Niche
A mature ERP market also means a mature consulting landscape. Global system integrators such as Accenture, Capgemini, Deloitte, IBM and TCS have been active in Brazil for years. Alongside them sits a strong ecosystem of Brazilian consultancies, from large implementation partners to specialised firms with deep knowledge of local ERP environments.
Technical implementation expertise alone is rarely enough to stand out. Brazilian companies already have access to experienced SAP, Oracle, Microsoft Dynamics and TOTVS consultants, so entering as a general ERP implementation partner is likely to be hard.
For many consultancies, the most realistic way in is to support existing international clients with operations in Brazil. Multinationals often prefer partners who already know their global architecture, implementation methodology and business processes.
Beyond that, the strongest opportunities usually lie in specialisation. That could be niche solutions such as Commodity Trading and Risk Management (CTRM) platforms, or specialist expertise that complements existing SAP landscapes, for example extending global SAP templates with industry-specific functionality or supporting complex S/4HANA transformation programmes. Instead of competing head-on with established local consultancies, the most successful entry strategies complement their capabilities with specialised international expertise.
Local Requirements Are Built Into the System
There’s one thing that sets Brazil apart from most other ERP markets, and it can catch a foreign consultancy off guard: Brazilian regulation is deeply embedded in the ERP itself. A system in Brazil has to support the country’s electronic invoicing (nota fiscal eletrônica), its digital bookkeeping and reporting through SPED, and a tax system with federal, state and municipal layers. A global template that works well in your home market rarely covers this without local adaptation.
The tax reform adds another layer. The current consumption taxes are being replaced step by step, with the transition running through 2033. During that period, systems need to handle both the existing rules and the new model, so ERP landscapes will keep needing updates. For consultancies, that creates steady demand for expertise that combines system knowledge with an understanding of Brazilian tax and compliance requirements. It also means that a consultancy without that local knowledge, or a trusted local partner who has it, will run into problems quickly.
Build Local Before You Scale
Winning a first project is only the first step. Long-term success depends on trust and a credible local presence. Brazilian organisations often prefer implementation partners with local references, an understanding of the regulatory environment and consultants who can handle both the technical and business side of an ERP project.
For most foreign consultancies, the best growth strategy is therefore gradual. Partner with local implementation firms, hire experienced Brazilian consultants and expand your local presence step by step, and you build a solid base for sustainable growth.
Over time, that local presence becomes more than an operational necessity. It becomes a competitive advantage. ERP knowledge is available everywhere, but combining international implementation experience with a deep understanding of the Brazilian market creates a value proposition that’s hard to copy. The companies that invest in both technical excellence and local expertise are usually the ones best placed for the long term.
Setting Up: Entity, Team and Visas
Sooner or later, a consultancy that wants to stay in Brazil has to decide how to organise itself locally. Serving Brazilian clients from abroad can work for a first project, but cross-border invoicing and payments for services can carry Brazilian taxes, and many clients expect a local contracting party. A Brazilian entity, usually a Ltda., lets you contract with clients, invoice locally, hire employees and work with local suppliers. Some consultancies start with a local partner or representative and set up their own entity when the business justifies it.
The same goes for your team. You can hire consultants in Brazil through your own entity, which brings Brazilian employment law with it, or use an Employer of Record while you build up. If you send consultants from abroad to Brazil for a project, they need the right residence authorisation and visa for their assignment, and using the wrong route can bring them under Brazilian labour law. Plan this before the project starts, not when the first consultants are about to travel.
Conclusion
Brazil’s ERP market offers significant opportunities, but not for the reasons many companies expect. It’s a mature enterprise software market entering a new phase of digital transformation.
For foreign ERP consultancies, the opportunity isn’t in competing as a general implementation partner. It lies in combining specialised expertise with a strong local strategy. The firms that invest in both technical excellence and local market knowledge will be best positioned for the long term.
At Ipanema International, we help international ERP consultancies explore opportunities in Brazil and build the local foundation they need for sustainable market entry.
