What You Should Know About Argentina Software Development Outsourcing
Latin America has become one of the popular outsourcing destinations in the last decade, especially for US companies. The relative proximity, little time difference, and affordable salary rates are the main reasons why many businesses choose to hire developers in Brazil, Argentina, and Mexico.
Argentina software development outsourcing gives exciting opportunities for investors and contributes greatly to the country’s economy. Only in the years 2006-2016, the export income from the SIS industry grew by 13.7%. And the majority of this revenue belongs to custom development (58%).
In 2019 Argentina software development gathered 64 billion pesos in revenue.
Software development in Argentina is known for innovation, the rapid growth of the industry, and governmental investment in high-quality education. All of his led to many international companies choosing to operate in the country, namely:
- Oracle, etc.
Another significant trend of the industry is the growing amount of technological parks, like Catalinas Norte and Litoral Centro SAPEM. Software development in Buenos Aires gives access to a great talent pool. Local developers are known for their skills in software engineering, mobile app development, and cloud solutions.
Time zone: GMT-3 (UTC-3)
Average Monthly Rate: $632
Biggest Tech Hubs: Buenos Aires, Chaco, Formosa, San Luis
Size of Talent Pool: 134,000
Pros and Cons of Argentina Software Development Outsourcing
Before deciding on outsourcing software development to Argentina, a business needs to consider all advantages and potential risks they will face. Let’s start with the benefits of this destination besides the rates being lower than in the US and the EU countries:
- Strong education. Argentina is known for its good educational system, supported by the government. In 2019 Argentina was 29th on the global list of countries for best education. Outsourcing to Argentina allows hiring well-prepared professionals.
- There is a significant number of developers to choose from – 134,000. Software development outsourcing Argentina helps to find employees that the company’s location may lack.
- Argentineans have a good command of English. They have the highest proficiency among all Latin American countries. And they are in 25th place worldwide.
- It is conveniently located for US partners. Lots of them outsource to Argentina because there is little time difference.
All of that makes Argentina software development outsourcing a valid choice. However, there are several cons a business needs to know about:
- The country’s economy is not stable and there is very high inflation. It means that the salary rates might grow rapidly to match the need and become less lucrative for outsourcing partners. The economical instability can also lead to some companies being unable to sustain their services. Professionals are also endorsed to work on the local market rather than outsourcing labor.
- The time zone is not convenient for clients from Europe. There is also a significant cultural overlap that might lead to misunderstanding and inefficient communication.
- The rates are not as cheap as other destinations in Latin America and the world (for example in India). It has to do with the fact that a lot of Silicon Valley companies work with Argentina and stimulate salary growth.
- The legislation is a bit complicated for foreign investors and bureaucracy makes it time-consuming to set such a partnership.
Alternatives to Software Development Outsourcing Argentina
Although Latin America might be beneficial for some companies looking for remote developer teams, others want to know the alternatives. Eastern Europe and Ukraine in particular are strong competition to software development outsourcing Argentina. Ukraine offers highly-skilled and educated programmers as well as low salary rates, and a convenient destination. Here are the key benefits of Ukraine for outsourcing:
- It is located in Europe, which makes it much more lucrative for EU partners. There is little to no time difference and easy travel.
- Ukraine has more than 200,000 experienced professionals, which is a great talent pool to choose from.
- Ukrainian developers have excellent tech skills that ensure their worldwide reputation. According to HackerRank, they are in 11th place worldwide while Argentina is in 39th. According to the TopCoder rating, Ukraine is in 14th place and Argentina is in 33d.
- Almost every Ukrainian SW engineer has great English proficiency. They know that it is an essential skill for international cooperation and invest in additional language education.
- Ukraine has a great educational system and ensures about 16,000 ICT graduates per year.
- Another benefit of Ukraine is that it is a European country that shares the same business values and ethics. There is a minimal culture difference, which ensures comfortable and productive cooperation. That’s why many international companies operate here, for example, Microsoft, IBM, Samsung, Boeing, etc.
- Ukraine is GDPR compliant.
Argentina vs Ukraine: Comparison Table
|Size of a tech talent pool||134,000||200,000|
|English proficiency||High, 25th worldwide||Good, 44th worldwide|
|Education level||Higher education, BA and MA||Higher education, BA and MA|
|Risks related to natural hazards||High||Low|
|Data safety and insurance||Not GDPR compliant||GDPR compliant|
|Quality to price correspondence||Medium, 39th by HackerRank and 33d by TopCoder||High, 14th according to TopCoder, 11th by HackerRank|
|Ease of doing business||Not always easy due to inflation and complicated legislation||Easy|
Of course, the choice of outsourcing destination depends on the company’s needs, expectations, and budget. The next step is to select a reliable local vendor to help with all peculiarities of a hiring process.
Mobilunity – Top Outstaffing Vendor in Ukraine
If Ukraine is your country of choice to find excellent developers, Mobilunity is ready to help with that. We have been working in this field for more than 10 years and know exactly how to find a perfect dedicated development team for your project.
We have a great portfolio of released products as well as more than 40 international clients to prove our reputation. We always focus on clients’ needs and requirements to find the most suitable high-profile developers.