Outsourcing software development to Argentina: complete market overview

Latin America has garnered significant attention as a highly promising destination for custom software development, particularly for North American businesses. The region is experiencing rapid growth and boasts a vast talent pool of over a million IT experts spread across several major technology hubs. 

Argentina has become one of the best outsourcing destinations in LATAM thanks to its vast talent pool and emphasis on innovation. Argentine software development outsourcing is becoming a hot topic among US-based companies who search for new destinations to fill their talent pools. The country offers a wide range of benefits for foreign businesses, which makes it a good time to take a closer look at the benefits of working with Argentine software developers.

Why Argentine software development outsourcing grows more popular

There has been a notable increase in the export of information and communication technology (ICT) products from Argentina in recent years. The software industry, in particular, has emerged as the fourth-largest contributor to the country's exports. By 2026, it is projected that Argentine software exports will reach $2.5B, reflecting a 2.2% growth compared to the $2.1B recorded in 2021. Over the past two decades, the market has been growing at an average CAGR of 5.3%, which indicates a growing attractiveness of outsourcing software development to Argentina.

At the same time, Argentina is a developing country that is undergoing an economic downturn. This basically means that the standards of living in the country are lower relative to North American economies, which creates favorable conditions for cost-efficient hiring. The very idea of outsourcing is to hire qualified experts overseas at a lower rate, and that is exactly why outsourcing software development to Argentina becomes a major trend in the global IT sector.

Low hiring rates cannot be the only reason to opt for software development in Argentina. There are other notable benefits of software development outsourcing to Argentina you should consider.

A strong technology background

Argentina is one of the most advanced countries in the LATAM region in terms of innovation, ranking 77th on the Global Innovation Index of 2022. The focal points of science and technology in the country revolve around vital areas such as medicine, nuclear physics, biotechnology, nanotechnology, space, and rocket technology, as well as various fields intertwined with the country's primary economic activities. All the while, outsourcing software development to Argentina has become an increasingly important aspect of the country’s innovative potential. 

With software development outsourcing to Argentina becoming a more widespread trend, the country’s innovative potential gains a new boost. Having a favorable climate for startups and technology-centered companies, Argentine software development centers such as Cordoba and Buenos Aires make a solid contribution to the country’s innovative potential.

Competitive and growing IT market

With promising growth potential, Argentina stands as the fifth-largest IT market in the region. As the influx of foreign capital and the presence of IT companies in the country continue to rise, software development outsourcing to Argentina becomes highly advantageous for North American businesses, providing them with substantial value.

Read more: Outsourcing to Latin America: benefits, destinations, market overview

Booming tech hubs

Around 64% of the 456 identified startup companies in Argentina were situated in Buenos Aires. Cordoba, the second most populous city in Argentina, is the home base for 126 startups.

• Buenos Aires: Being the capital and largest city of Argentina, Buenos Aires holds a paramount position as the country's primary technological hub. It harbors a vibrant and flourishing startup ecosystem, with particular emphasis on fintech, e-commerce, and software development. Buenos Aires boasts an impressive count of 228 software development and outsourcing companies housing a rich talent pool.
• Córdoba: Córdoba hosts a multitude of well-established tech companies, alongside a massive community of startups primarily engaged in outsourcing software development to Argentina, biotechnology, and health tech. Córdoba benefits from a robust talent pool nurtured by local universities, which enables local IT companies to hire fast.

Strong talent pool and growing innovative potential

According to Statista's report, Argentina has a talent pool of 115,000 software developers in 2021. And the number of software developers is bound to grow further as the government creates initiatives to increase the number of tech graduates and the country’s overall innovative potential. Such initiatives as Argentina Innovadora 2020, Knowledge economy law, and Argentina Conectada are all meant to boost the country’s potential as the world’s leading innovation hub.

Negative factors to consider

It is always vital to look at both sides of the coin. While Argentina is a lucrative and popular outsourcing destination, there still are some negative factors to consider.

Dubious governmental initiatives for starting a business

In recent years, the government implemented certain measures that made it more challenging to start a business, such as introducing an additional procedure for legalizing employee books for companies employing over 10 individuals. However, simultaneous efforts were made to simplify processes related to dealing with construction permits, enforcing contracts, and engaging in international trade.

Developing region calls for risk diversification

All the while, it is necessary to remember that the LATAM region lags behind developed European and North American countries in terms of innovation. This makes certain businesses hesitant when considering Argentina for IT outsourcing. More so, Argentina is only the 5th biggest IT market in LATAM, surpassed by Brazil, Mexico, Chile, and Colombia respectively.

For that reason, North American businesses often try to look beyond software outsourcing in Argentina and diversify risks by working with multinational technology companies. LATAM has been a popular expansion destination for international technology firms for some years, and there are many European and North American companies working across the region. 

N-iX is one such company providing software development services across Latin America. This includes Argentine software outsourcing as well. Partnering with multinational companies in LATAM, American businesses can mitigate risks related to running their operations in a single location and gain access to much broader talent pools.

Read more: Software development in Colombia: industry overview, hubs, and more

The benefits of software development in Argentina for the US-based business

1. Overlapping workday with the US time zones

Working with software development partners overseas can be challenging because of the time zone differences. This is especially true for the US-based companies outsourcing to Asian countries, where it can literally make a night and day difference. By outsourcing software development to Argentina, US-based businesses can mitigate that problem, as there’s a time-zone overlap between the two countries.

2. Faster and more cost-efficient development

Considering the vast talent pool and the abundance of companies specializing in outsourcing software development to Argentina that also operate across the LATAM region, it is much easier to hire experts in the country. The local software development market is also easily accessible for US-based companies due to lower rates charged by local companies.

3. Reduced dependence on established outsourcing hubs 

For decades now, Asia has been a major outsourcing destination for western businesses, including US-based companies. Favorable pricing and mostly satisfactory quality of service have been the key factors playing to the success of Asian outsourcing hubs. 

Latin America is quickly growing into a preferred outsourcing destination. Countries like Colombia, Argentina, Brazil, Chile, and Mexico are leading the way in making software outsourcing in Latin America a comfortable and lucrative option for US-based companies. 

Find a reliable partner for software development outsourcing to Argentina

A significant growth in the popularity of Argentine software development outsourcing and the increasing inflow of foreign capital into the country put Argentina in a good position for fixing its economic problems and setting up growth trends. The presence of well-known European and American companies in the country will also contribute to further improvement. This concerns the Argentine software development market and the country’s overall economic stability.

With international companies like N-iX entering the Latin American market, alongside industry giants like Microsoft and IBM, it is foreseeable that the region’s weight in the global IT value chain will expand. The accessibility of talent in Argentina has made outsourcing more convenient for US-based companies, and the presence of foreign companies with extensive partnership networks facilitates the connection between US companies and Argentine software development centers.

By leveraging its 20 years of market expertise and the rapidly growing pool of tech talent in Latin America, N-iX can offer software development services to North American clients from a strategic location. Establishing a strong foothold not only in Colombia but across Latin America enables N-iX to tap into the region's robust talent pool of approximately 1M experts. 

Choose N-iX as your reliable partner for software development in Argentina

• N-iX is a trusted global software engineering vendor that brings extensive expertise in software development across a range of industries including manufacturing, logistics, healthcare, agriculture, fintech, telecommunications, and more. 
• In a span of 21, N-iX has established offices across Europe in Poland, Bulgaria, Sweden, and Malta, as well as in Latin America.
• The company's team of specialists possesses advanced skills in various areas, including cloud solutions development, business intelligence, big data and data analytics, IoT, and embedded systems implementation, among others. 
• N-iX has been working with international enterprises such as Fluke, Gogo, Currencycloud, and numerous Fortune 500 companies.
• Committed to maintaining high cybersecurity standards, N-iX adheres to internationally recognized frameworks including PCI DSS, GDPR, ISO 27001:2013, and ISO 9001:2015. This ensures the utmost security and data protection for clients.
• N-iX's excellence has been acknowledged by the CRN Fast Growth 150 List, IAOP Global Outsourcing 100, and other notable accolades as one of the best engineering providers worldwide.