A recent survey presented by Capgemini highlights the top factors listed by 300 senior executives from Fortune
A closer analysis of a survey made by Capgemini reveals how Argentina has an important advantage among its neighbors, at least in the short and mid term.
A recent survey presented by Capgemini highlights the top factors listed by 300 senior executives from Fortune 1000 companies in choosing an outsourcing destination, and it presents the Latin American region as the third most popular outsourcing destination in the globe.
Among these factors, the top 5 are:
- Labor costs (79 percent)
- Technology and infrastructure capabilities (62 percent)
- Skilled labor (61 percent)
- Language proficiency (49 percent)
- Economic stability (44 percent)
A closer analysis of each of the factors reveals how Argentina has an important advantage among its neighbors, at least in the short and mid term.
First, Argentina has a very competitive exchange rate. For example, a software engineer in Brazil is almost twice as expensive as in Argentina. Second, Argentina had a massive upgrade of its telecom infrastructure during the 90’s. For example, Argentinean broadband penetration is about 30 percent, way above the regional average.
Third, Argentina is the country in the region with the highest gross college enrollment rate, according to World Bank stats. The Argentinian enrollment rate is 73 compared to 60 percent in Panama and 28 percent in Mexico. The average for Latin America is 37 percent. Finally, Argentina has experienced an average economic growth of the 7 percent in the last 9 years.
Despite these advantages, the major challenge that Argentina is facing is maintaining and deepening these advantages in a market in which all players are making their moves.
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