When speaking of nearshore outsourcing, companies in Latin America have become an increasingly popular alternative to offshoring. Several are the reasons: cost-effective propositions, proximity in time zone and cultural similarities that make it easier for companies to synch up with their business partners. Furthermore, the high volume of skilled and experienced developers is allowing North American and European companies to work with Latin American nearshore development companies.
Within Latin America, one of the leading countries within the IT sector is Argentina. Argentina has the third largest economy in Latin America, with over 500 companies from the US having offices and affiliates in Argentina. Education in Argentina continues to be placed at a competitively high place compared to other countries of the world, and public tech universities together with companies opening in Argentina allow for the IT job market to continue prospering.
This brief article aims to cover why Argentina has been and continues to grow within the IT sector, why it’s becoming increasingly easier to have a productive work relationship with Argentine companies, and how companies outside of South America looking to grow their business can work together with nearshore vendors in Argentina.
Everyone that travels to Argentina, particularly its capital Buenos Aires, is struck by the resemblance to Western culture. Whether it’s the people, mannerisms or architecture, Argentina stands out from other Latin American countries, while the capital is most famously known as the Paris of the South.
Similarly, the work culture is defined by parallel ideals to the American work culture, which plays an immense role in the collaborative work environments outsourcing companies look to create. From Argentineans having a more forthright, outgoing personality to a more passionate and dedicated work ethic, these characteristics make the day-to-day with international companies easier to transition into when first starting out.
Time zone Proximity
Nowadays more and more companies work based on Agile methodologies, and the first pain point that companies think about are the time zone differences. However, Argentina’s geographical location is a strategic one, considering that its timezone is located between Europe and North America. For example, a company based on the East Coast of North America in cities such as Toronto, New York and Miami would only be apart 1-2 hours (based on Daylight Savings) while countries in Western Europe such as Portugal, Spain and Germany would be 4-5 hours apart. This allows for outsourcing companies to easily integrate with the working hours of their clients.
The proximity factor of Argentina allows for constant email and telephone communication with team members. More importantly, it allows for your team to connect via video/audio conference and have productive, direct communications with the Nearshoring company.
Did you know that most universities are free in Argentina? Even the most prestigious schools like the UBA (Universidad de Buenos Aires). Education has always been a priority for the Argentine government, and there is an endless amount of technical schools for careers and courses related to programming and computer science.
Based on information reported from the World Economic Forum as of 2017, Argentina is ranked at 40 out of 138 applicable countries regarding higher forms of education together with formal training. This is considered a high rank from an international standpoint, particularly when ranked with competitive countries in the Latin American market such as Colombia (which is ranked 70), Mexico (ranked 82) and Brazil (ranked 84).
As English is the world’s lingua franca, in many countries it is taught as a secondary language since elementary/primary school, and Argentina is no exception. As of 2018, according to the EF EPI (English Proficiency Index), Argentina is placed at #1 of all Latin America, at #27 out of 88 different countries, and has been ranked at a worldwide average of #17 since 2011.
Furthermore, a significant percentage of developers have experience working with international companies, meaning that outside of their education they’ve had a chance to apply it recently and in a professional environment.
Growing IT industry
The IT sector is growing steadily – its internal revenue of the last 10 years has increased by 300%. Exportations of these services have grown around 15% in the same period. Half of this percentage refers to exports to the United States, and the forecasts are looking more and more promising.
Based on statistics observed by CESSI - Software & IT Services Chamber of Commerce from Argentina - currently the IT market employs more than 120,000 professionals and projects for that number to go over 500,000 by 2030.
Argentina’s IT sector has begun to expand as of over 30 years, and continues to grow at an exponential rate. Argentine software developers have had the opportunity to apply their formal education and training with international companies, and have integrated professionally with Western countries. These are all elements that make Argentina and its IT business ecosystem an attractive booming market in the world.
Want to know more about nearshoring software development and the IT sector in Argentina? Simplex Software now has more than 7 years of experience offering software development to US-based companies. We can provide you with more information regarding nearshoring IT and Argentina, and tell you more about our experience and success stories. Feel free to contact us.