Argentina’s Technology Scene: A Thriving Market Championing Great Growth
What’s the first thought that comes to your mind when you think of Argentina? Is it Messi right now? Or Maradona? Perhaps you’re thinking of mate, an asado, or maybe even tango? If Argentina technology is not top of the list of however many word combinations are circling around in your mind right now, let me promise you’ll never think of Argentina the same again after reading this article.
This beautiful wine country has become a true hub for tech talent outsourcing, innovation, and technological development. Official technology reports state the tech industry in this nation has been thriving consistently in the last few years. Here’s all you need to know about Argentina’s tech scene in a nutshell.
Why Look at Argentina’s Tech Market Opportunities?
As the up-and-coming tech hub of the region, Argentina represents the third largest GDP in Latin America after Brazil and Mexico. Education, talent quality, convenient time zones, cost-effectiveness, and government support are some of the key factors that position its tech ecosystem at the center of the international scene. I’ll unlock each one by one in this reading.
Argentina Tech Companies Have Succcessfully Dealt with a Challenging Economy
Located at the southernmost end of South America, Argentina has been known for facing economic challenges for more than a decade now. Its economic situation has been a case study for many economists around the globe who have seen the country struggle with hyperinflation and devaluation for years. However, Argentina’s peculiar and fluctuating economy hasn’t kept Argentinean tech companies and the country’s technological scene from being a source of high-level development and advancement. Quite the opposite!
This country’s government has placed beneficial laws and policies to encourage Argentina tech startup founders and other company owners to set up businesses and keep them running. The Argentinean government furthermore requested support from the World Bank to push its science, technology, and innovation (STI) policy agenda. Such a measure has allowed the country to strengthen and diversify sources of growth and promote industrial development.
The World Bank also encouraged founding of new knowledge-based companies through EMPRETECNO, a program that promotes entrepreneurship. At the same time, CONICET, Argentina’s largest public research institution, has veered toward international commercialization as it began to include firmer and more productivity-focused support.
It’s All about Latin America Tech Scene Enhancement
At this point, we can very well say that the country has focused on expanding its consumer base on an innovative mindset. Argentina has fostered foreign investment, strengthening and enlarging its own scenario but furthermore positively impacting the Latin American tech scene in the process.
The ConectAR plan, for example, is one at the top of the country’s digital agenda for 2020-2023. With an estimated $475million investment, ConectAR as a program aims to expand fiber optic networks, improve the country’s satellite system, enhance television streaming, and develop a national data center. Moreover, in-country companies are planning on investing in information and communications technology and cybersecurity in the upcoming years.
In the upcoming quinquennial, the Argentinian government estimates the IT market will grow by 8% at a Compound Annual Growth Rate, while the banking, financial services and insurance sector acquires the largest market share. Also, as part of a federal program, the country has confirmed its plan to invest up to US$288 million in science, technology, and innovation in the upcoming years. With a generous contribution of US$230 million from the Inter-American Development Bank (IDB), the argentine government will cover this investment’s cost, which has also triggered investments in technology projects from local private holding companies such as Grupo Clarin SA.
Of course, Argentina tech startups have also experienced rapid growth with a 47% increase in e-commerce in recent years. In-country enterprises such as Ulalá and Tiendanube are relentlessly taking over the market with other tech regional startups present, such as Satellogic. Foreign capital and investor groups like Draper Cygnus have already imprinted themselves in the Argentinean tech scenario by investing in deep tech, decentralization, and edtech startups.
Other Factors Contributing to Argentina’s Tech Scenario: A Vouch for Education, Gender Parity, and an Expanding IT Market.
Argentina’s free and high-quality education system contributes significantly to this sector. As the country becomes better and better known as an established international outsourcing hub for tech talent, its local professionals are said to keep contributing to software and app development.
The quality of Argentina’s education system, especially at the university level, prepares professionals and entrepreneurs with the necessary skills to come up with creative and groundbreaking solutions to regional challenges. Laws, legislation, and government support have paved the way for the emergence of Argentina’s talent pool.
With over 130,000 highly trained software developers and engineers based in Argentina, Coursera’s 2019 Global Skills Index, for example, already placed Argentina at the top of its cutting-edge technical skills listings. In an otherwise commonly male dominated industry, Argentinian female tech talent furthermore occupy first and second place among candidates for tech jobs in Latin America.
Argentina is also working on expanding its IT market. In October 2022, the country’s Minister of Economy, Sergio Massa, announced measures aimed at boosting technological exports to $10 billion by 2023. His mind is set on investing in capital goods and infrastructure directly for new or expanding technology projects.
How Remote Nearshore Outsourcing Ties in with Tech Growth in Argentina
As a remote-first nearshore outsourcing company, we at Nearsure believe that remote is a mindset, not a location. Especially as the Argentine peso keeps losing value against the US dollar, many others have joined the benefit side of this remote-first culture for numerous reasons. Remote work has transformed the local labor market in Argentina.
Most IT professionals opt for foreign employment over domestic nowadays. For them, the reasons behind it include being able to profit from more economic gains that can quickly translate into a higher standard of living and more financial stability. In the process, multinational corporations can enjoy lower hiring investments by tying their work with remote tech teams based in Argentina.
In the meantime, Argentina presents so many opportunities for international investments as much as valuable partnerships aside from highly-skilled local entrepreneurs it’s no wonder the Argentina tech scenario is booming.
Even when faced with a dire economic situation, Argentina’s response in technology has meant putting in lots of efforts to bolster erratic growth cycles. It seems to have done so efficiently and to continue achieving so successfully. In-country and out-of-country private and public sectors are aggressively investing in innovation and scientific development in this country. The dividends certainly seem to be paying off. Given all the mentioned benefits in Argentina for tech right now, can anyone really wonder whether to invest in Latin American-based outsourcing opportunities with US-oriented providers such as ourselves? Our business vouches for itself.
How to Make the Best of Argentina’s Tech Talent?
Finding a business partner who knows all about the country and region is crucial in this line of business. It wouldn’t be right for me to ommit saying just how much we specialize in outsourcing and providing nearshore services out of this part of the world. Through present in over 18 countries in Latin America, Nearsure works with the best development tech teams in the region on a remote-first mindset. We’re skilled at bringing top expertise to any business for accelerated digital transformations with a special focus on North American long-term business partners.
As such, we can certainly help growing businesses speed up their time to market and reach their business objectives with the best talent in Argentina and elsewhere in Latin America for seamless, successful experiences.
Are you interested in chatting to see how we can help your organization thrive? Contact us today.