Your Guide to Nearshoring in Argentina

Developing a strategy to bridge the talent gap has become a pivotal focus of many tech leaders today. Thanks to this pursuit, various outsourcing strategies have emerged, with nearshoring as the key approach to delegating software development activities to countries located in the same time zone. 

Opting for nearshoring in Argentina might not appear to be the immediate choice, especially when compared to established powerhouses like Eastern Europe or Asia. However, nearshore software development in Argentina can unveil a lucrative middle ground, striking a balance between outsourcing at a great distance and maintaining high-quality standards. 

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Let’s explore this country’s potential, focusing on what Argentina brings to the table for U.S. companies, while also addressing the key challenges that might lie ahead.

Nearshoring IT development in Argentina: Key numbers

In this section, to paint you a picture of nearshoring IT development in Argentina, we’ll focus on the general facts about this destination. 

• Populated by 45 million people
• The second-largest economy in Latin America
• Language: Spanish
• Time zone: UTC−03:00
• Number of developers: 115,000
• 11 unicorns
• Level of English proficiency: High

As one of the largest tech hubs in Latin America, Argentina rapidly embraces a great range of technologies. The landscape of nearshoring IT development in Argentina, according to Clutch.co, is represented by 400+ providers, including our team at nCube. 

The Argentinian market for IT services is estimated to grow at a rate of 8.3% between 2022 and 2027. The main contributors to the industry of nearshoring in Argentina are North American investors and tech leaders who are attracted to the country for many reasons, time zone proximity and strong cultural fit being the primary ones. That way, Argentina is steadily transforming into a world-class software development hub: Such giants as Microsoft, Google, IBM, Nokia, and Cisco chose it to build their software development strongholds. Surely, these businesses are attracted to Argentina due to a wide array of advantages. 

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Benefits of nearshoring software development in Argentina

When it comes to the advantages of nearshoring software development in Argentina, it’s essential to spotlight its primary tech hubs: Buenos Aires and Córdoba. These bustling metropolitan centers serve as thriving hubs for a multitude of Argentine nearshore companies, where businesses can build their nearshore branches. Here are some prominent benefits cited by businesses operating in these cities:

A skilled pool of technologists

Argentina boasts a large community of software developers, with an impressive pool of 115,000 professionals, according to Statista. 

The country prioritizes technical education, focusing on Computer Science and Engineering. Thus, graduates from Argentina’s institutions gain a firm footing in various tools, frameworks, and programming languages. 

Furthermore, the country’s government has actively promoted the growth of its software engineering talent pool. Initiatives like Plan 111 Mil (2016-2020) were aimed at increasing the number of software engineers. The effort has been fruitful, ensuring a diverse and numerous workforce apt for nearshoring in Argentina.

In addition to its abundant talent, Argentina’s laws make it easy to work with its skilled workforce when nearshoring IT development in Argentina. 

Case in point: The introduction of the Teleworking Law, which provides the minimum legal requirements for remote work. This legal framework makes it easy for businesses to nearshore in Argentina without legal complications.

Cost efficiency

Cost efficiency and nearshoring in Argentina go hand in hand. Thanks to the country’s economic conditions, hiring developers in this region costs less than building a local team. 

According to Glassdoor, the average income of a software developer in Argentina is $58,392, which is significantly lower than in the U.S. This cost-saving aspect is a compelling reason why many companies opt for nearshoring in Argentina. A great role plays a significant difference in currency values between the U.S. dollar and the Argentine peso. 

Another factor is the abundance of IT specialists, which means less competition for talent. Currently, developers tend to compete for positions, which lets Argentinian nearshore companies source top talent. This helps maintain reasonable hourly development rates, particularly compared to high-cost American tech hubs.

Lastly, nearshoring in Argentina can save your company from U.S.-based expenses like employment taxes, social security payments, and employee benefits expenses. Not only does it trim your software development budget but also simplifies the process of building a new tech branch in your organization. 

Time zone similarity

One of the strategic advantages of nearshoring in Argentina is its favorable time zone alignment with North America. The country is located within the same time zone as the United States and Canada. 

Argentina operates in the UTC-3 time zone. To put this into perspective, New York City experiences shifts between UTC-4 and UTC-5 due to Daylight Savings Time. San Francisco toggles between UTC-7 and UTC-8. Consequently, on January 1st, 12 p.m. in Argentina corresponds to 10 a.m. in New York and 7 a.m. in San Francisco.

This time zone harmony is vital for flawless collaboration between your local unit and the nearshore branch. Essentially, it allows for real-time communication, simplifies aligning deadlines, and ensures a smoother work process. For U.S. businesses, nearshoring in Argentina is as convenient as working with a team located in a neighboring state.

It’s worth mentioning that only a limited number of countries boast such a convenient time zone overlap with the United States. In contrast, outsourcing behemoths, like India, the Philippines, and Indonesia, all have substantial time zone discrepancies with U.S. business hours of up to 12 hours. Therefore, nearshoring in Argentina can help you overcome the challenges posed by the time difference. 

Cultural compatibility 

Cultural compatibility is important, especially in nearshoring. A tech leader should ensure everyone on the team shares the same goals and priorities, which may be challenging in a remote setting. Nearshoring in Argentina offers a compelling advantage of cultural alignment. 

The government strives to make the country a leader in innovation, and so has made its work culture akin to places like Silicon Valley. Both North American businesses and Argentinian nearshore companies put a premium on qualities such as innovation, continuous improvement, problem-solving, and attention to detail.

This cultural alignment makes Argentinian IT professionals a harmonious fit for your team. While individual experts may vary, the overarching work culture is close to that of Western companies. This means that you can more easily add team members from Argentina who will seamlessly integrate with your company’s culture, saving you time and effort compared to other destinations. 

A growing tech ecosystem

Argentina’s tech scene is thriving and growing, creating a fertile breeding ground for innovation. Major cities in the country are studded with tech incubators, accelerators, and dedicated tech parks, which promote idea exchange and the adoption of best practices. Local IT professionals are the driving force of this vibrant ecosystem, spearheading the adoption of cutting-edge technologies. 

Thus, nearshoring in Argentina means keeping up pace with global IT trends, including Blockchain, security, AI/ML technologies, and IoT.

Major Argentine cities like Buenos Aires and Córdoba are up to par with their global counterparts when it comes to tech infrastructure, including high-speed internet and essential tech tools. Working with Argentinian nearshoring companies like nCube gives you access to this thriving tech landscape. 

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Strong English proficiency

Argentina boasts a proficient English-speaking workforce, despite Spanish being the official language. Many Argentinians, especially those with higher education, are multilingual. This high level of English proficiency enables smooth communication and collaboration between US-based teams and nearshore branches. 

It’s true that the ability to get ideas across clearly makes the collaboration process go smoother. This makes nearshoring in Argentina more comfortable, communication-wise. Unlike some other locations where English is less prevalent, Argentina’s strong English skills simplify the process of finding tech talent that can effectively engage with your existing team.

Risks of nearshoring in Argentina

Although the benefits of nearshoring in Argentina prevail over the potential shortcomings, you may want to consider a few risks before you try this approach.

It might not be the cheapest option

Nearshoring can occasionally be costly, particularly when dealing with IoT and hardware projects due to shipping expenses. Besides that, offshoring can offer more cost-effectiveness, especially when choosing destinations in Asia or Eastern Europe. These regions often provide a broader range of developer rates compared to nearshoring in Argentina. After all, having more choices increases the likelihood of finding the option that will help you cut back on software development. 

READ ALSO: Your Guide to Offshore vs. Nearshore Product Development Comparison 

A slow team expansion process 

You might find that the skills you need to add to your team aren’t readily available, especially when it comes to rare tech stacks. Fortunately, partnering with an Argentinian nearshoring company like nCube can help you access more options, as we already have a network of software developers in this region.

Risks of language and cultural misalignment

When you nearshore in Argentina, it’s crucial to hire a provider who can match you with relevant candidates. This should be a company with rigorous internal screening processes aimed at finding suitable developers who align with your culture and have strong English skills. Without this step, you risk running into miscommunications within your remote team during project collaboration. 

nCube: Your reliable partner in nearshoring to Argentina

Whether you prioritize cost-effectiveness, cultural compatibility, or accessing a talented workforce, nearshoring in Argentina offers it all. To augment your local team with the best talent, nCube will be your trusted partner. 

As an established and reputable Argentinian nearshore company, we’ll build a team for you based on your project requirements. Our approach gives you full control over the nearshore branch while we take care of team formation, administration, payroll, employee bonuses, and more. If you’re looking for a solution like that, let’s connect.