infoTECH Feature

February 23, 2016

Report: Argentina's BPO/ITO Efforts Now Appear on Track

Argentina plans to create 80,000 tech jobs in the next four years and 200,000 over the next eight years, according to an interview with new President Mauricio Macri by Nearshore Americas.

Business process outsourcing and contact centers are unlikely to be a significant part of that, the report added, given the country is the world’s most expensive major offshore contact center location, according to industry analysts Ovum (News - Alert). However, the country – which boasts the highest English proficiency scores in Latin America and produces many strong engineers from its universities – is a good match for software development, according to Sean Goforth, director of research at Nearshore Americas. Indeed, the site’s research indicates that the country is very competitive in terms of wages for software developers, system administrators, and other sought-after positions when contrasted with other markets in South America.

All of the above is particularly good news for the country given the recent history of Argentina. The past few years there have been marked by what Goforth of Nearshore Americas calls a “clumsy attempt” by former President Cristina Fernandez de Kirchner to force importers to export goods of equal value. That led businesses, such as Buenos Aires Porsche dealerships, to attempt to export everything from chicken feed and peanuts to wine, he said. At the same time businesses had to contend with that, they were struggling with inflation.

Goforth indicated things began changing for the better when President Mauricio Macri took office in December. Macri, he said, has lifted currency controls, offered to settle with bondholders from the country’s 2001 default, and eliminated export taxes put in place during the previous president’s term. The new president also has tapped entrepreneur Carlos Gabriel Pallotti to help promote Argentina’s ITC services efforts and grow its BPO/ITO industry.

 
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