Foodies associate it with Malbec wine and juicy steaks. Soccer fans list Maradona and Messi as one of the greatest players of all time. Singer Madonna portrayed Evita Perón in the biographical motion picture for a reason. And every serious dance competition tests contestants on their tango skills. But Argentina has recently become famous for a different reason altogether. It turns out this Latin American country offers great opportunities for IT nearshoring and were here to tell you all about it.
Outsourcing Benefits That Can’t Be Underestimated
Any CIO knows that outsourcing is not a new concept in IT operations. Forward-thinking enterprises have been hiring other companies to carry out services on their behalf for over 40 years now. Hiring software developers abroad was just a natural next step.
It is particularly beneficial in case of staff or expert shortages or when staff augmentation on-site is no longer viable.
Let’s put it this way: if all the cowboys in Texas were not enough to tame all those bulls at the Fort Worth rodeo, you might call on the gauchos Argentinian cowboys for help. But would it be the best solution to bring them all the way from the Pampas region? Probably not. So you’d look for an alternative solution, right?
That’s why it often makes sense to transfer some or all business or IT activities overseas instead of keeping them in-house. Hence, the term “offshoring”.
It is a win-win situation for all parties involved. Firstly, your company’s operations become more cost-effective. And consequently, they benefit the host countries’ economies by creating new workplaces and a talented pool of highly-skilled employees.
Plus, it doesn’t even matter if the outsourcing companies are small start-ups slowly making waves in their respective region or well-developed corporations with a long history in IT the industry.
Take Kyndryl, for instance. Before it was officially founded in November 2021, IBM had been successfully running its spin-off infrastructure services business in the UK and Eastern Europe for years. That’s just one of the many nearshoring success stories – case studies from Europe.
Nearshoring – A New Hot Trend In Software Development
Sometimes, time is of the essence in business operations. But what does that mean in practical terms?
London is five hours ahead of New York. Los Angeles and Warsaw are nine hours apart. It becomes even trickier when you compare the North American opening hours with some Asian countries where the US often has its data centers. The difference grows to more than half a day for many countries, like India or China.
While in the 21st century we’re all used to remote work with teams dispersed through different time zones, many US companies choose other options to outsource software development. Some things simply can’t wait 12 hours to be signed off on.
Enters nearshoring – a form of offshoring in which professional services are moved to a location closer to your company’s HQs, in terms of geography, culture or time zone. This sort of arrangement provides many advantages. Unsurprisingly, five main reasons to start nearshoring have to do with cost-cutting, diversifying the workforce, knowledge exchanges, new approaches to software development, or gaining a competitive edge in your respective field.
Europe – A Successful Outsourcing Trial Ground
Some regions were already discovered as great options for software development outsourcing a while ago. For instance, IT nearshoring in Europe has proven very successful over the years.
Thanks to software development projects commissioned to Europe by international companies, economies in Poland, Czech Republic, or Romania have seen a significant boost in the numbers of high-quality engineers. Hence, those countries can now boast a solid pool of senior IT specialists and software developers with expertise in application development, programming languages, and tech stack, among other things.
Additionally, being a trusted tech partner for many businesses around the world has a snowball effect. Those skilled software engineers attract further investment in cutting-edge technologies, and create a recurring demand for outsourcing services.
The Argentinian government is set to follow Europe’s lead.
Benefits of Software Development Outsourcing To Argentina
Historically speaking, for international tech companies, Latin American countries have not been the first to come to mind in terms of software development, skilled professionals, or business climate in general.
But Argentina has treasures that make it stand out from other Spanish-speaking countries aspiring to be the next ‘go to’ location for nearshoring IT services. And those advantages might soon make it the favorite destination for US companies.
The country’s geographical position might be one of the most important factors. For example, if your company’s HQs are on the Eastern Coast of the US, both territories overlap in time zones. The Argentinian capital is only one hour ahead of New York.
One hour is barely enough to sip on that yerba maté. That’s another of Argentina’s advantages. Foreign companies, and especially many Silicon Valley companies, often look for a friendly and lively work culture when nearshoring their services to other countries.
Let’s not forget that the time zone proximity allows for more flexibility to develop software adapted to your specific business requirements as well.
Competent business communication in English leading to a good working relationship with overseas partners is also essential for foreign businesses considering Argentina as their next IT nearshoring destination.
The Argentinian tech workers are well aware of that Their commitment to this fruitful cooperation is backed by a high score on the English Proficiency Index. As of 2022, the country sits at #30 in the world on that ranking. And it’s the most English-fluent country in Latin America.
Nearshoring to Argentina has another benefit to your operations. Top talent in software development attracts foreign investment by offering highly competitive average hourly rates. According to Glassdoor (1), a software engineer in the Buenos Aires area earns approximately ARS 550k monthly (the current equivalent of USD 2.6k).
The State of the IT Industry In Argentina
The government in Buenos Aires has certainly learned from the best in terms of broadening the qualifications of the country’s workforce in recent years.
That is why the emphasis is, primarily, on the IT sector and its software engineering department, specifically.
First and foremost, the country has been highlighting the need for quality higher education and vocational training. Several of its universities are currently considered among the best globally, offering both computer science courses and R&D programs.
Moreover, with a growing workforce of over 130k software developers (2), and their specialisation in sought-after technologies, like .NET or NodeJS, there’s no doubt Argentina is one of the IT services leaders in its region.
As a result, the country has been frequently praised for its recent technological advancements. BBC pointed out recently that “it has one of the region’s highest rates of internet use”. And the World Bank recognises Argentina’s “innovative services in high-tech industries.”;
Those rave reviews speak to the quality of software development outsourcing to Argentina and the high demand for Argentinian developers. It looks like this beautiful country in South America might have just hit an outsourcing jackpot. And we are definitely getting on that bandwagon.
Outsourcing Software Development To Argentina – Things to Watch Out For
It’s public knowledge that, since the end of the 20th century, Argentina hasn’t had good press regarding its political situation.
The good news is, however, that democracy has prevailed in the country’s most recent history. Modern Argentinian governments do their utmost to create and maintain a foreign investment-friendly business climate.
As in any other country in South America, bureaucracy might be an initial obstacle to doing business. But again, the authorities are genuinely committed to simplifying things on that front as well.
Lastly, before choosing Argentina for your nearshore software development, it is advisable to carefully study the country’s outsourcing guidelines (3). After all, it’s always “better safe than sorry” when it comes to starting business operations in other regions of the world.
None of those above-mentioned aspects are red flags that should prevent you from outsourcing in Argentina, however. They’re all typical characteristics of any developing country opening up its economy to foreign investment.
Hiring Argentinian Software Developers Is Easy
You’re probably wondering whether you should fly down to Buenos Aires to look for software outsourcing options in Argentina ASAP. While it is a booming, vibrant agglomeration with a population of nearly 15 million, where there’s always something to do, we’d suggest postponing that trip for a different, more casual occasion, like holidays.
Several companies specialise in offshore software development nowadays, saving you time, money, and the hustle necessary to get that perfect final product. They also take the burden of the hiring process and possible language barrier off your shoulders.
Future Processing’s delivery center in Argentina is composed of a pool of true experts in their fields who can deliver custom-made products tailored specifically to your needs. Since 2000, we have engineered, tested, and delivered over 700 software development projects – from mission-critical, enterprise-wide systems to applications for clients in the US and beyond. So we can safely say that we are 100 confident in our Argentinian software engineers and their software development skills.
Conclusion
Argentina’s economy is the second largest one in Latin America, after Brazil’s.
It’s rather unlikely that IT nearshoring will become its main exporting product anytime soon, replacing agriculture or tourism, but the country’s growing outsourcing software development reputation in the region makes it an attractive and promising nearshoring option, especially for US companies. So if you’re looking to diversify your IT services and software development process, find out here how our agile team in Argentina can benefit your next nearshoring project.
References:
(1) https://www.glassdoor.com/Salaries/buenos-aires-software-engineer-salary-SRCH_IL.0,12_IM963_KO13,30.htm
(2) https://www.pagina12.com.ar/421165-crecimiento-de-la-industria-del-software
(3) https://uk.practicallaw.thomsonreuters.com/w-011-2165