When most of us think of Argentina, we picture twirling tango, quality wines, juicy steaks, and packed football stadiums. But there is much more to Argentina than the typical clichés and stereotypes. For instance, did you know that Argentina is a prime destination for outsourcing software and web development? The Latin America region is a top IT services outsourcing destination, with Argentina, Mexico, and Brazil being the best nearshore outsourcing countries in LATAM.
Interesting facts about Argentina
Argentina is the second-largest country in South America after Brazil. It covers about 2,780,400 km², nearly a third the size of the US. Here are a few other interesting social-political, geographical, and economic facts about Argentina that point to the country’s potential as an offshore outsourcing destination:
- Population: 45 million
- Capital: Buenos Aires
- Currency: Argentine Peso (ARG)
- Official language: Spanish
- Timezone: UTC-3
- Political Stability Index: 0.04
- Economic Freedom Score: 52.7
- Ease of doing business: 126th out of 190
- GDP per capita: $8,441.92 (2020)
- Global Competitive Index: 83
- Human capital and skills ranking: 31 out of 142 (72.3%)
- Business Climate Assessment: B
Argentina is quickly growing into an offshore IT hub. In 2020, IT spending in Argentina increased by 24.1 percent, despite the COVID-19 pandemic. The country’s software and IT services sectors are growing several times faster than the economy as a whole, making the IT industry a key productivity driver. Also, the Global Skills Index report shows that Argentina is a competitive business region and an up-and-coming IT hub with high skill potential in various technology, data science, and software development domains.
Advantages of Argentina as an offshore software development country
What makes Argentina such an attractive offshore software development destination? A combination of the country’s geographical location, culture, economy, government, and demographic makes it a convenient source of remote IT talent, especially for US companies. Let’s look at the five main reasons why you’d want to outsource web, app, or software development to this rising tech hub in Latin America:
Large pool of Argentine talent
The biggest factor for outsourcing IT and software development to Argentina is the abundance of qualified, highly skilled talent. The US is currently going through an acute labor shortage in the IT industry when the demand for digitization is at an all-time high. Argentina doesn’t seem to have this problem. The country is home to an estimated 134,000 qualified software developers, the second-highest number in South America (after Mexico).
Over recent years, Argentina has invested heavily in educating its citizens, particularly in technology-related fields. Argentina is renown globally for the quality of its education system and the proficiency and excellence of its graduates. The University of Buenos Aires ranks in the top 500 best universities for computer science globally.
The Argentine government has several initiatives to drive more people to IT professions. For instance, the Plan 111 Mil program launched in 2016 helps raise the number of women in IT, increasing the overall number of IT experts in the country, including software developers and engineers.
Competitive software development costs
One of the main reasons for outsourcing any task is to cut costs. And true to this, outsourcing software development to Argentina saves you money. Considering that hiring a US-based software engineer costs nearly $100,000 a year, outsourcing development to Argentina is far more cost-effective. And it’s not like Argentine developers are in any way inferior to US developers. There is no compromise on the end product’s quality, so why pay more?
Admittedly, Argentina is not the cheapest outsourcing option out there. Other countries, particularly in Asia, have even lower price tags. But the cheapest option is not always the best choice; in Argentina, quality is always guaranteed.
Cultural similarities and English proficiency
Argentine culture draws from Western, Native American, and European influences. It’s often said that an Argentine is a Spanish-speaking Italian who thinks they’re French and secretly wants to be British. And it kind of shows. Despite being part of Latin America, Argentina is not that culturally different from the United States. The business culture and social customs in Argentina are remarkably similar to those in the US.
Language is not a barrier either. Argentina ranks as the most proficient in English among all the Latin American countries, and 30th in the world. So, communicating with professional developers in clear English is not a problem.
This cultural and language alignment makes it easier to cooperate, communicate, and interact in a professional capacity, creating a smooth business relationship based on mutual understanding.
Time zone overlap with the US
Argentina is a nearshore outsourcing destination for US companies. Unlike popular outsourcing countries in Asia with a 10-hour+ time zone difference, Argentina is only one hour ahead of Eastern Daylight Time and four hours ahead of Western Daylight Time. A huge time difference can hamper communications and cause inconveniences and delays. Imagine holding a meeting with participants 14 hours apart—the scheduling alone would be a nightmare.
Since most working hours in the US and Argentina overlap, you can hold real-time meetings or make calls to developers during regular business hours.
The Argentine government recognizes the importance of growth in software services and foreign investments in labor due to the impact the IT sector has on the economy. It, therefore, encourages more Argentines to join the IT services workforce and foreign employers to source IT labor in Argentina through several incentive programs. As an offshore employer, you stand to benefit from tax exceptions and lenient labor laws when outsourcing software development to Argentina.
Important considerations when outsourcing software development to Argentina
Outsourcing labor is completely different from traditional hires. And outsourcing to another country introduces some extra complexity and risks. Although Argentina is more than welcoming to foreign employers, there are a few things you should keep in mind when outsourcing your project to avoid misunderstandings, friction, delays, and red tapes.
Describe your project clearly
Make a clear, detailed, and easy-to-understand description of your project. Be sure to state all the requirements, expectations, and deliverables, including specifics about features, functionality, development approach, milestones, and deadlines. If you’re not conversant with tech jargon, have a tech-savvy person help you communicate the project’s requirements to the developers. A clear project statement helps avoid confusion and possible delays.
Vet the developers
Although Argentina has a reputation for credibility, not every developer can be trusted. Some developers are not as skilled or competent as advertised. Ensure that you have done a complete verification of a developer’s qualifications and capabilities before assigning them a job. Check their reviews and past work, and ask to see any supporting documents such as certifications or accolades.
Keep an open line of communication
It’s essential to maintain close contact with the development team throughout the entire project’s lifecycle. You’ll find that Argentine people really enjoy talking. They have a rather emotive, expressive, contextual, and direct communication style, which is a good thing in candid, transparent, or descriptive discussions. Continuous communication ensures that the project stays on track and all the crucial milestones are met on time. Plus, you can catch and resolve errors early on during the development process.
Understand Argentine law on foreign businesses
Freelancing and labor contracting laws in Argentina are not the same as those in the US. For instance, Argentina has various classifications of independent contractors and employees that determine taxation and entitlement. Misclassifying a worker can attract hefty financial penalties and other implications. Also, the government requires any employer hiring an Argentine worker to do so through a recognized, locally based legal entity. So, you can employ developers through either a local presence (branch) or a local organization such as a staffing or outsourcing agency. There is also the new teleworking law that both employers and employees must follow.
Argentine labor and diplomatic bureaucracy is a complex maze to navigate. Understandably, these laws are put in place to protect Argentina citizens from unfair exploitation by foreign and local businesses. But the government is actively trying to cut unnecessary legislation and red tapes impeding foreign trade.
Choose where to outsource
Like any outsourcing destination, Argentina has several options for sourcing developers. You can find developers on various online job boards, labor marketplaces, freelancing platforms, and developers’ forums. But the best way to outsource software development in Argentina is through a local agency.
A local outsourcing agency puts you in direct contact with vetted developers and ensures legal compliance in the process. WeDevelop is such an agency. We have access to a rich talent pool of over 200 vetted, highly skilled developers ready to work on any software or web development project. We make software development outsourcing and teleworking from Argentina hassle-free, fast, low cost, and convenient.
Argentina is truly an amazing country with so much to offer the rest of the world. The country is quickly establishing itself as an international tech hub. Take advantage of its location, large IT talent pool, culture, and governance to outsource software and web development at a reasonable price with solid guarantees on quality and results. Argentina is seamlessly compatible with US-based companies looking for competent developers for quick project turnarounds.
However, it can be a hassle to navigate Argentine labor laws and find the right talent on your own. But all this becomes so much easier with a local agent by your side. WeDevelop is your professional helping hand when outsourcing software and web development to the growing tech hub that is Argentina. Reach us via call or email to discuss your outsourcing requirements.