Argentina: First destination for IT companies
It is difficult to talk about nearshore outsourcing almost without Argentina being considered one of the main technological poles.
With highly skilled professionals, opportunities for startups and outsourcing, attractive government subsidies and profitable income, this country is sure to be the best.
Let's see the specific characteristics that make software development outsourcing in Argentina a safe and profitable option.
Progress and investment in software development
Software development services in Argentina have experienced significant growth over the last decade.
- The IT industry is growing even though the rest of the country is struggling to generate revenue. The main source of foreign investment in Argentina, with 33% of the local market, is software development
- Foreign investment in software decreased by 9.4% for 2020, mainly due to the pandemic.
- About 70% of domestic IT companies were invested in research and development in 2018.
- The export in 2019 was approximately 1.8 million dollars, representing 2.4% of the country's GDP. Since the Law for the Promotion of the Software Industry came into force in 2004, more than 1,500 projects have been financed that contribute to the development of the national industry, increasing the demand and opportunities for local talent, and attracting new talent and interna tional investors.
Several software companies in Argentina have had great success over the years: Mercado Libre, OLX, Globant, ASSA, Prominente, Baufest, Neuralsoft, Calipso, Beltratix, and Despegar.com.
The country has successfully attracted multinationals such as SAP, IBM, HP, Motorola, Accenture, Capgemini, McAfee and Oracle.
Although Buenos Aires is the center of technological progress and software development in Argentina, there are also many technological zones, centers and clusters in other provinces. There are some 30 more initiatives between Chaco, Formosa, Corrientes, Jujuy, Salta, Tucumán, Mendoza, San Luis, Neuquén and Río Negro, all in close collaboration with universities, companies and local technical organizations.
These centers carry out a variety of activities, including promoting and participating in government-funded projects, providing business opportunities or financing local businesses, and facilitating exchange and matchmaking events with investors and entrepreneurs.
Coworking Spaces & Accelerators
In recent years, coworking spaces have become very popular in Argentina.
With around 150 companies currently operating in the country, the industry will continue to grow.
WeWork is also building the largest Latin American coworking space in Argentina for 4,000 members. Most people who use home coworking space are entrepreneurs, freelancers, corporate leaders, and game developers.
The MELI Fund, from Mercado Libre, has invested more than 25 companies in the last five years.
Wayra, sponsored by the Spanish multinational telephone company, has worked with more than 57 local entrepreneurs and more than 400 international companies.
Skills & Jobs
From the point of view of development skills, Argentina is one of the best skills in the world, especially when developing computer programmers and mobile devices, according to the Global Courser skills indicator from 2021.
From a data science perspective, Argentina is considered a competitive country and third in Latin America, especially in data analysis and statistical programming. According to the OPSSI report in the period from 2007 to 2016 to 2016, the number of domestic IT companies increased by 37% and more than 5,000 companies operating throughout the country to use more than 100,000 people.
According to CESSI, the number of developers currently working in the country is 115,000, earning around 110,000 Argentine pesos.
Also, around 30% of programmers in Argentina are currently working especially in application development.
Software outsourcing to Argentina means that companies can meet all these talents and future talents.
During the last 20 years, Argentina has invested in upper secondary education and infrastructure, programmers and universities in more detail. The government recently launched the Argentina program, a national program that offers 60,000 scholarships for programming courses, as well as 100,000 Argentine pesos for the purchase of a computer and free internet access.
With increased opportunities for national and international software development, Argentines can now study everything from software development to big data, artificial intelligence, business intelligence, as well as video game design and development.
Mastery of English
According to the Education First English Proficiency Index 2020, Argentina ranks first in Latin America and 25th in the world in English proficiency, two places higher than in 2019.
The capital is the most valued area in the country, followed by Santa Fe, Córdoba and Mendoza.
This is important for companies considering outsourcing to Argentina, as developers need to be able to understand instructions, complex concepts, and communicate effectively with clients and colleagues.
Argentina is one of the Latin American countries with the best Internet speed.
In addition, 12.1% of all Internet connections in the country are positioned with fiber optics, which means that Internet prices drop significantly.
From the point of view of mobile communication, Argentina exceeded 5 million 4g mobile users in December 2015, at the end of 2018 to 29 million.
Currently there are 12,000 mobile lines per 100,000 people, Puerto Rico and Argentina are mainly related to the two countries with the highest rate of population with mobile Internet.
Argentina is a reliable place
Taking into account the profit rate compared to the United States, that the difference in time is minimal and the culture is very similar to the Americans, outsourcing in Argentina is certainly a very good option.