• Creimerman Product Team

Argentina: Outsource great quality software for an even better price



High quality for a low cost is a paradox that exists in business and has done so for a long time. This idea rings true in the society we find ourselves a part of in 2021, yet the answer is not as elusive as it once was. However, within this area of demand there is certainly a high level of competition, as each alternative vies against the others to present its own case on the global stage. One such option is outsourcing, which is the notion of your business using external manufacturing or workforce facilities overseas that operate at a lower running cost than you would find in the country of your corporation’s headquarters, saving you money and widening profit margins. Latin America is becoming a hub for outsourcing in the globalising world as tariffs and political ties have begun to inhibit the success of traditional hotspots and are leaving gaps for new opportunities to appear elsewhere.


You may wonder why we are focusing today on Latin America. The answer is actually quite simple, technology. One of the most rapidly developing sectors is software, and innovation is rife within the region. Highly talented individuals and teams operating within developing nations coming to the forefront of the industry creates an environment in which foreign businesses are able to thrive, growing their operations while making use of some of the best workers in the software sector. If we are to look even deeper, we come across Argentina, a nation full of promise for software outsourcing, which should come as no surprise given the advancement seen in the technology industry from e-commerce to blockchain.


Argentina has a population of almost 45 million people, and by 2025 the number of internet users is expected to reach 35.2 million, topping 78%, a 7% increase from 2019 alone, demonstrating the rapidly developing connectivity in the region and making the prospect for digital growth a really intriguing trend to keep an eye on. Couple this idea with the plethora of other advantages and Argentina really becomes a top choice for foreign business, and today we will hopefully find out if it could be the best next move for your own corporation.


Time zone and communication

The first factor that separates Argentina from other countries in the region and the world as a whole is the extremely high level of English proficiency, meaning companies operating in Europe and the United States are able to communicate efficiently and clearly the desired operations and business functions required from the outsourced workforce in Argentina. A specific statistic that may help reinforce this point is that 60% of workers in Argentina who operate within the IT sphere work for US-based companies, demonstrating the extent of the potential existing within Argentina for outsourcing of software.


It is also important to look at the time difference between these regions in conjunction with this, where, for example, New York is only 1 hour ahead of Argentina and either 3 or four hours behind London depending on the time of year. This makes the Latin American country extremely attractive for foreign business as any issues or requests can be made without delay and maintain the level of productivity that would be found if all of the workers were based in the same office space.


Costs

We have mentioned that many businesses are seeking high quality and competitive costs for their software services, and Argentina seems like a perfect solution for this. One of the most interesting things, however, is that Argentina is not cheap. This is to say, the prices on offer are not the lowest in the world, where in Asian countries they may be much lower, the quality in Argentina is so high that the slightly higher prices become worth it. We mentioned the facilitation of easy and quick communications due to time difference and English proficiency, and if this is put alongside the relatively low wages, the list of advantages only increases. We also already mentioned the US tech presence in Argentina, and specifically, Silicon Valley companies, making the question of quality in no doubt and explaining the slightly higher costs than other countries, balancing out in the middle and becoming the perfect choice for your business for software outsourcing.


Education

The quality of the software outsourcing market is not based on US companies being active in Argentina alone. In fact, the IT education presence and subsequent workers coming through the ranks shows the homegrown talent in the Latin American nation is unmatched and therefore a location to consider for outsourcing. Not only this, but many people working in software in Argentina stay in their job for a long time, making the reliability and familiarity to be found with your outsourced workforce an attractive prospect, especially for complex tasks that have the long-term future in mind as you may well have the same developers working with your from commencement to closing of the project in question.


If we dive into the numbers, it becomes clear that the market is large and expanding, with over 115,000 workers in the IT sector and a majority of this number operating at semi-senior level or higher (76%), the outsourcing potential becomes more viable as the higher costs become even more reasonable with more benefits added to the list of reasons as to why Argentina is such a good choice. IT is ever more popular in the nation for higher education study as well, and by 2030 there are aims to double the number of workers in the sector, making the availability of talent and highly educated individuals and teams greater.


So, if your business operates overseas but you feel you could benefit from outsourcing software development and services to Argentina, get in touch with us today. At Creimerman, we assist our clients from across the globe with their professional and personal overseas ventures, helping to make them a success, and we would love for you to be the next.

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