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Argentina

4100 Developers |7 Certified Partners |High Software Outsourcing Readiness

Overview

One of the largest economies in Latin America and an early adopter of outsourcing software engineering services, Argentina has become a prime location for nearshore partnerships due to ongoing support for research and development, a widespread ability to generate and retain talent, and an openness to new ideas.

Argentina ranks highest in the region for English language proficiency and has strong cultural, political, and economic ties with the United States and Europe. Its highly educated population creates a strong pipeline of cost-effective talent in the IT sector and encourages innovative thinking.

Substantial growth in the country’s IT sector has been driven by government initiatives to promote digitalization, the adoption of cloud-based solutions, increasing investments in cybersecurity, and the need for modernization across various industries. Argentina is also known for its app development industry, with about one-third of its programmers specializing in mobile development. 

Talent Pool & Education

Thanks to the government’s commitment to free higher-education programs, Argentina’s population consistently ranks among the most educated in Latin America, with high rates of literacy and tertiary enrollment. English language skills are the most proficient in the region. Because the country is already established as a major global outsourcing hub for software development, Western companies find it easy to collaborate and communicate with Argentinian teams. With the peso continuing to lose value against the US dollar, IT professionals are also looking for opportunities beyond the domestic market.

The first province to declare software production an industrial activity, Córdoba has positioned itself as a major tech hub in the region, with 47% of the province's companies providing knowledge-based services. In 2023, the city began to offer tax breaks on gross income and properties for the local knowledge economy and technology industry, consisting of nearly 3,100 companies. Córdoba Acelera, an institution that works to combine the strengths of both government and private investment, actively encourages the use of new technologies across multiple industries.

Two Argentinian universities known for the excellence of their computer science programs – the University of Buenos Aires and the National University of La Plata – are ranked in the top 20 global universities in Latin America. And with women comprising more than 45% of applicants for tech jobs in Argentina, the industry supports a diverse workforce.

Language

The primary language in Argentina is Spanish, but the country topped Latin America with a “high” rating in the 2023 EF English Proficiency Index. English is widely spoken at a fairly rudimentary level, but much greater fluency can be expected in professional circles and within the software developer community. 

Economic Outlook

IMF managing director Kristalina Georgieva has expressed confidence that President Javier Milei’s sweeping austerity measures will overhaul the crisis-stricken economy and get Argentina’s troubled $44 billion loan program back on track. After a relatively strong post-pandemic recovery, the impact of a devastating drought saw the economy contract in 2023. Annual inflation accelerated to a three-decade high, ending the year at 211% and severely affecting marginalized segments of the population.

The IMF downgraded its 2024 forecast to a contraction of 2.8%, citing the likely impact of “a significant policy adjustment to restore macroeconomic stability.” Inflation is expected to spike even higher in the short term following a devaluation of the Argentinian peso by 54% and policy reforms that include subsidy cuts and an end to price controls weighing on private consumption.

Weak domestic demand and rising exports due to expanding oil and gas production and stronger mining output should see Argentina posting a current account surplus. The Economist Intelligence Unit expects a robust return to growth in 2025 as a more supportive business environment encourages investment, buoyed by improved climatic conditions, continued high soybean prices, and investments in the energy sector.

With a gross domestic product of approximately $650 billion, Argentina remains one of the largest economies in Latin America. It has fertile lands, gas and lithium reserves and is a leading food producer and supplier of innovative services in high-tech industries. 

Political Conditions

The November 2023 general election saw outsider populist candidate Javier Milei of La Libertad Avanza emerge as president in a surprise political shift that triggered protests across the country against his “shock therapy” agenda to slash spending. In late January, Argentina's largest union, the General Confederation of Labor, led a 12-hour strike that saw tens of thousands of workers demonstrating in the capital, Buenos Aires, against the government's two significant reforms: the omnibus bill with more than 500 articles containing broad political, legal and social reforms and a “mega-decree” deregulating the economy.

Milei, a far-right libertarian, has retained popular support among Argentinians despite the criticism and unrest. A survey in January showed 55% believed his austerity measures and wide-ranging, market-friendly reforms were necessary, although a majority of respondents felt any major policy changes should take place gradually, not all at once.

In his inauguration address, Milei warned the situation would get worse before it got better. One of his earliest measures was to devalue the Argentinian peso by 54%, accelerating the already sky-high inflation rate. However, the EIU expects that his party’s minority status in Congress will weaken governability and some of the more controversial reforms, such as dollarization and the closure of the central bank, are unlikely to materialize. Given the volatile nature of Milei’s policy platform, further social unrest is expected as his term continues.