Brazil power outage reveals strain on country's infrastructure

Brazil has been in the news lately, and not for the reasons it would like.  Brazil recently suffered a failure of its electrical system that impacted large portions of the country, and highlighted the strain of growth that has been placed on the country's infrastructure.

Brazil has been at the forefront of economic development in Latin America.  Cities like Sao Paulo and Rio have been traditional choices for Shared Services but other cities like Campinas and Curitiba are also experiencing growth as more multinationals move into those cities.  The overall effect, along with the demand for electricity from Brazil's population, has put the spotlight on the country's infrastructure. Other sources of blame for the failure include government regulation, forced rate cuts and inadequate investment in transmission capabilities.

An article from Businessweek highlights the problems.  Here's an excerpt:

Power was knocked out in 11 Brazilian states last night, leaving residents in the dark for several hours as the country’s latest blackout raises questions about the reliability of the electricity grid.

Power failures can occur in any country.  Just ask India.  But as multinationals evaluate various locations around the globe for potential shared service center sites, it's good to keep in mind which countries can keep the lights on.

Source: http://www.businessweek.com/news/2012-10-26/brazil-suffers-fifth-power-outage-since-crackdown-on-utilities