Google choose Argentina for good reason!

After the devaluation at the end of 2001 many internationally renowned companies chose Argentina as one of their worldwide offshore centres. Blue chip companies including IBM, Intel, AOL, Motorola, American Express, Marriott Hotels and Resorts, BT and Microsoft installed themselves in places like Cordoba or Buenos Aires. This April it was the turn of Google to set up shop in Argentina. Google could have chosen any city in South America to base his regional hub but it chose Buenos Aires. It is planning to employ some 1000 young professionals with further growth down the road. Argentina is very proud of Google`s choice since it places Argentina amongst other successful offshore locations for outsourcing such as Ireland and Poland. Argentina figures that it must therefore have the appropriate potential for a talent factory like Google. The Google office is planned to serve as a regional centre for South America and furthermore it is expected to handle Spain. Clearly Google is confident that is able to serve a mature market like Spain from Argentina.
Of course, you can expect a company like Google to undertake thorough research before making such an important decision. Unfortunately Connaxis was not given access to this research so we have to make our own assumptions based on what is in the news, the speech given by CEO Eric Smith during the inauguration of the office and what might not be in the news.

The reasons mentioned in the news:-

1. Costs. Buenos Aires is one of the cheapest capitals of the world.
2. The entrepreneurial spirit of the country. Argentina has always prided itself of having a large middle class.
3. Capacity of the country to develop high quality software and technology.
4. Quality of Argentina’s universities where Google hopes to recruit its personnel. Argentina came out best compared to other countries in South America. Google depends on the quality of the universities for its staffing. Argentina leads in the region in terms of human resources and software & IT development.
5. Argentina has most ISP’s, most internet users, most broadband connections and most phone line connections of all countries in South America. Argentina is also the country with the most growth and volume in e-commerce. In short, the best connected country in South America.
6. Google also believes that Argentina is at the forefront of explosive growth in internet e-commerce.
7. Argentina is a Google country in the sense that Argentines use Google in 80% of the cases that they look for information.

When living and working in Argentina; traveling within various countries in South America Connaxis also concludes that Argentina is the right choice:-

1. Costs / Quality ratio. Argentina is far better then the rest of the countries of South America.
2. Argentines are addicted to learning. Many work and study at the same time. Argentines start new courses to enrich their lives at any age.
3. Opening a customer support centre from Buenos Aires can be very efficient. Connaxis learned this when we implemented a call centre in Buenos Aires, Argentina. It started servicing Europe early in the morning. It then followed the sun doing support for the New York area to around 11:00 pm until it completes its path with San Francisco and then open up again with Europe at 4.00 a.m. Clearly Google is looking at the obvious efficiencies of working with Spain and the Americas at the same time. Google might also be thinking of having Argentina target the large Spanish speaking community in the USA.
4. At lot of outsourcing is already done from Argentina to serve Spain. Telesales to Spain is mostly done through Argentina because Argentines have proven to be excellent sales people.

When other renowned companies have been able to deliver world class service from Argentina and Google recently decided that Argentina is the best location in South America, then it might also suit your needs. Maybe you want to think about it? Connaxis is already convinced and ready to help you become more competitive by lowering your costs and increasing your quality. It is possible. Google can do. So can you!

About Connaxis

Connaxis is an independent consultancy agency that helps companies outsource activities. Activities can be established abroad in the client’s name or they can be carried out by the Connaxis Service Delivery Centre. One of the activities of the Service Delivery Centre is its internet solution, offering a complete package with full website maintenance for very reasonable prices. We offer web design, programming and internet marketing. Connaxis helps companies stay competitive and operates as an extension of the client organisation.

For more information on Connaxis

http://www.connaxis.com/outsource-argentina │+54 11 4807 6908

Peter van Grinsven

Peter.van.grinsven@connaxis.com│ Managing Director