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U.S. companies are increasingly looking to Argentina as a country for offshoring work. The fact that it’s in the same time zone as the eastern U.S., has a high number of English speakers, and has a focus on IT and tech fields all contribute to this trend. If you’re considering doing business in Argentina, it’s important to understand human capital trends in the country. Here’s everything you need to know.
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Tech Graduates & Workforce
The Argentinian government has put a heavy focus on the tech sector. This has led to many developments in the field and achievements by people.
- Tech Companies. There are roughly 1,000 companies in the IT field based in Argentina. There are also more than 70,000 professionals who work in the field.
- Student Growth. In recent years, there has been 80% growth in the number of students who are pursuing graduate degrees, post-graduate degrees and qualifications in the IT and tech fields.
- No tuition. Argentina makes it easy for students to learn, since tertiary-level institutions and public universities don’t have any tuition and anyone can attend them.
- Incentives for Outsourcing. The government has created incentives for companies to outsource to Argentina, which in turn has led to the need for more workers in the sector.
Key Sectors for Local Activity
Argentina’s economy is diverse, even as the IT and tech sectors grow. Here’s an overview of the country’s main business sectors:
- Agriculture is a main sector in Argentina. The country is one of the world’s major exporters of grapes, maize, soybeans, sunflower seeds, citrus fruits and beef.
- Natural resources. Argentina also has an impressive selection of natural resources. The country has a large mining industry and is one of the bigger producers of petroleum and gas.
- Industry is huge in Argentina. According to a study by the World Bank, Argentina has the 31st most valuable industry in the world, producing steel, vehicles, beer and various oil products.
- Tourism & Service Industry. Argentina has a large services sector that accounts for 60% of its total GDP. This includes real estate, financial, transport, tourism, social and communication services.
- Private banking is also big in Argentina. There are many branches of both local and foreign banks located in the country.
Key Sectors for Outsourcing
Argentina has a large pool of programmers that are well-educated and tech savvy. This makes the country an attractive place for IT and technology companies to outsource to.
The city has a sophisticated feel for many, and that has translated to other parts of the country as well. The educated residents of the country make it a hub for tech outsourcing—from call centers to software development and everything in between.
Buenos Aires, the country’s capital, is often called “The Paris of South America,” and for good reason. It’s a shining example of a modern city that’s ahead of the curve in terms of culture, industry and innovation.
English Speakers
English is taught as a secondary language in Argentina, starting in intermediate education classes in the country. Students in Argentina begin to learn English from an early age and are even required to do so by law starting as young as nine years old. The prevalence of English speakers in Argentina makes it very attractive for U.S. companies wishing to do offshore work there.
Average Wages
The average wages in Argentina are quite low compared to the United States. This is another reason why it’s a popular country for outsourcing. The median worker salary in Argentina is $41,500 ARS per month. This equates to only roughly $439 USD per month, or $5,268 annually.
According to Glassdoor, the average annual salary of a software development engineer in Buenos Aires is ARS $73,423, or $777 USD. A principal software engineer may earn ARS $474,368 per year, or $5,020 USD.
Prominent Cities for Business
Argentina has some large cities and population centers that are forward-thinking and tech focused. Some top cities for business in Argentina include:
- Buenos Aires, the capital city, is a bustling tourist destination and a tech mecca
- Cordoba is the country’s second most populous city, home to industrial facilities (such as Volkswagen) and agriculture
- Rosario is one of the largest shipping centers in the northeastern part of the country
- Mendoza is known for both its agriculture and industry, especially wine, where it is one of the leading wine-producing regions in the world
Turnover Rates
Compared to other major outsourcing countries, Argentina has a very low turnover rate. For example, the Associated Chambers of Commerce and Industry of India found that India’s turnover rate in the BPO and IT sectors is 55%. By comparison, turnover rate in Argentina is only 25%—less than half of India’s rate. Part of the reason for this is the family-oriented culture in the country. People are often less interested in relocating to another part of the country or changing jobs.
Is Argentina Right for Your Business?
SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization. Contact us today to learn more about how you can expand your business in Argentina.
