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Software Outsourcing: Why Argentina?


According to Tholons, both the cities of Buenos Aires and Córdoba rank among the best outsourcing destinations in the world.  Unquestionably, Argentina’s software industry is smaller than the other IT industries around the globe like India’s, Ireland’s or the Philippines,’ however, many Argentinean and South American cities are regarded as world class service centers.
In fact, the region as a whole is immersed in a kind of outsourcing virtuous cycle. South America will be continuing its aggressive growth pace in the near term. Much of the traction reflected is the result of past developmental efforts. The combination of human capital, aggressive marketing, and infrastructure development has led to the creation of a favorable outsourcing scenario attracting companies all over the world.

Argentina’s IT industry facts

  • Growth ratios ranging from 15% to 20%
  • Cultural affinity: Regardless of where your outsourcing team is located, it’s important to make sure that their workforce culture and company values mesh well with your team’s goals and priorities
  • The IT industry went from 15,000 employees in 2001-2002, to 60,000 in 2009, reaching 65,000 in 2011. Today it is estimated in around 110,000 professionals.
  • Time zone compatibility with Europe and the United States. It has proved to be incredibly significant when using Agile methodologies since frequent interaction is needed between development teams and the stakeholder.
  • A talented pool of technically savvy and well educated people with great command of the English language. Unlike other outsourcing destinations, Argentina has a long lasting engineering culture.
  • Active policies from the government over the last decade: Argentina’s Software Law (25.922) provides tax incentives, tax stability, and other benefits to software companies.

Argentina’s Internet culture in Latin America​

  • With almost 95% of Internet Penetration, Argentina ranks 3rd in America, only behind Canada and the US.
  • Facebook penetration in Argentina ranks 3rd worldwide
  • Highest Digital Buyer Penetration in Latin America
  • Highest Smartphone Penetration in Latin America
  • Percentage that Internet contributes to Argentina’s Gross National Product (2.2%) ranks 10th in the world

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