The Audacity of Hope

I just read the book 'The Audacity of Hope' from elected president Barack Obama. I must say I could not agree more. The greatness of America lays in the fact that Americans have the audacity to hope for a better future. Europeans could learn a lesson from the Americans. Since I left The Netherlands 4,5 years ago my thoughts towards the USA changed drastically. As the rest of Europe I was jealous of the success of the USA and nationalistic towards my own country, The Netherlands. Being 12000 kilometers away for several years gave me a new perspective. The difference between the Europeans and the Americas is that we mostly complain whereby Americans focus on positivism and hope towards a better future. Like Obama mentions in his book. Americans have the audacity of hope to believe in a better future and work toward achieving their goal. It is amazing that America just choose the first black president in the history of the United States. People were not lead by color but by choosing the best man for the job. In my own life I can relate to Obama. For me also it has been an uphill battle. I have gotten nothing for free in my life. Positive side effect is that it has hardened me. I had to do it myself, believe in my own capabilities and make things happen. I was challenged many times in life but finally I made it successfully through business school; university, was hired by one of the mayor consultancy agencies, started a DOTCOM and now living in Argentina, started a company that has the audacity to believe that Argentina can be best at producing creative services worldwide. As of yet the concept is unknown. People even do not think creative services should be outsourced. They do not know Argentina. The combination of words 'creative outsourcing is an invention, it is not used regularly. But still, after carefully analyzing, the local situation I think I am right. I have the audacity to believe that I am right and the rest of the world is lagging behind in knowledge. It is just because my life has been a constant struggle that I am not put down immediately by what other people say or think. The struggle has thought me to believe in myself and to have hope. I hope that bit by bit little lights will pop up around the world of people believing that Argentina is right place for creative services. With Connaxis we not only hope but we also prove it in our every day work. We show customers that you can achieve the best price / quality relationship outsourcing creative work to Argentina. Our showcase portfolio site (http://www.connaxis.com/portfolio/overview) is hallmark of what has been achieved in less than half a year. Imagine what we can do over the course of several years. Imagine what we can do with the bigger budgets of larger clients. No, I do not believe anymore, I know we are right. I have the audacity now to tell each of you that we are right and that you should investigate it for yourself. Have the audacity to inquire to question our proposition. Drop us a mail. We will be happy to send you all the work we did up to now. We will be happy to present you with a list of competing companies in Argentina. Have a look at their work. Convince yourself. Discuss your findings on our websites blog.

Find the audacity of hope for yourself. Work toward fulfilling your dreams. Go out there in make it happen. You just have to believe and the magic starts.

We wish you a Merry Christmas and a Happy New Year.

Peter van Grinsven
Managing Director
Connaxis S.A.

Outsourcing of Creative Work is to Argentina what Outsourcing of Programming is to India and Outsourcing of Production is to China.

The abundance of creative talent, highly educated specialists, Western culture and low cost make Argentina ideal for the outsourcing of Web Design, Graphic Design, Flash, 3D Animation and development of Games and Video.

Creative Outsourcing is starting to become more and more common place for companies and clients in the developed world. The Internet, email, and lately collaborative applications like Skype, ClockingIT, Basecamp, WebEx have made it easier to outsource creative work as long as it can be send digitally. Creative Work has long been considered difficult to outsource since it needed close contact between client & provider and is often culture specific. Creative work is now the new outsourcing threshold. Where can you best outsource Creative Work? To India where the majority of programming is going or to China, the manufacturing giant? What about Eastern Europe or Mexico? Finally all water flows to the lowest point. The lowest point is defined as the point where we find the best price & quality relationship. We have reason to believe that Argentina will become the global center for Creative Outsourcing. The abundance of creative talent, highly educated specialists, Western culture and low cost make Argentina ideal for the outsourcing of Web Design, Graphic Design, Flash, 3D, Games and Video.

What makes Argentina so well suited for Creative Outsourcing?

1. Economic setting

Companies in Argentina only started to export services after the big depreciation of its currency at the end of 2001. Let me explain why. Up until the late 1980s telecoms companies were monopolies or state owned and famous for their inefficiency. It took an average citizen in Argentina up to 15 years to get a telephone land line connection. Then, in 1989 President Menem came to power. He did two things that eventually turned Argentina into an export country for services. First, he freed up the telecoms market. The state owned companies were sold to European buyers. Companies like Telecom from Italy and Telefonica from Spain invested heavily in a modern telecoms infrastructure. They placed fiber optic lines throughout Buenos Aires and connected the major urban centers. Within a few years people had easy access to modern telephone systems. This alone however did not turn Argentina into an outsourcing power house. Menem's second priority was to curb the country’s endemic inflation. The Argentine government attached the value of the Argentine Peso to the US Dollar in equity of 1 Peso for 1 Dollar. This meant that, by law, the Peso could not decrease in value more than the Dollar. Hyperinflation came to an immediate standstill but prices kept rising, although it was at a slower pace. Soon a Coca Cola cost more in Buenos Aires than in New York. Argentina started to import more and more and its local industry started to perish. Argentina could not compete with the modern and highly capital intensive industries of Western Europe and the United States. To matters worse, Menem was unable to balance the books. The government spent more money than it received. The holes were filled with loans which resulted in an ever growing debt burden. Finally in the end of 2001 the system collapsed. The country defaulted on its loans and depreciated 3 to 1 to the dollar. This left Argentina with a modern telecom infrastructure, a competitive telecom market, highly skilled labor and wages that could be compared to those in India. The first market players to jump to the opportunity were international call center companies like Teleperfomance and Teletec. Soon to join these companies were companies that offered services with a higher added value like programming and web development. Everything that could be sold digitally prospered. You might wonder where this new situation will lead to. What is the comparative advantage of Argentina over the rest of the world? While browsing local web pages and observing the quality of local television ads you will find that Argentina has an excellent price & quality for creative services. Creativity or Western culture cannot be taught in a university. It is something deeply ingrained into a country’s genes. Where India and China can beat the world in programming and manufacturing; Argentina can be best at providing high quality creative services with a Western style. Let's look a bit more into the elements that make Argentina so suited to deliver creative services.

2. Abundance of Creative talent

When hiring creative talent in Argentina you will be surprised about the number and quality of people that apply for a creative position. The abundance and high quality of people that look for work as a web designer; graphic designer; 3D specialist; animator and video developer is just stunning. While taking a closer look at the existing creative outsourcing industry you will find a plethora of very professional companies that have great design capacity you will not see in other countries such as The United States or Europe. Looking further you will find that Argentina has always had the highest cultural standing in South America. It is the country of tango and theater shows. Buenos Aires is the center of South America for cabaret, cinema and TV productions. Recently MTV decided to move their regional head quarters to Buenos Aires. MTV Networks’ CEO Robert Bakish commented that “Exporting Argentine creativity will enforce our commitment to create the best content for our audience”. MTV is one of the most creative companies world wide.

3. Highly Educated Population

Historically, Argentina has the best educational level of South America. In Argentina there is great availability of highly skilled professionals. Argentinians have always been very successful abroad and are well-known for their professionalism. The IT sector is well developed.

4. Western Style favors Argentina

98 % of Argentinians are of European descent with the majority being a mix between Italians and Spanish immigrants. Argentina has always looked at Europe as their point of reference. Buenos Aires is known as the Paris of South America. Visitors are unanimously enthusiastic about this cosmopolitan city with its architecture, night life, cultural activity & fashion industry with its creative flair an international style.

5. Wage prices can be compared to India

Since the end of 2001 the country has recovered most of the jobs that were lost after the collapse of 2001 and some of its purchasing power. Salaries for highly qualified creative people still run at around USD 700 gross per month. Due to the abundance of people aspiring to work in the creative sector the wages remain stable. Exceptional people accept relatively low wages just to be able to work and gain experience in the industry. Furthermore, Buenos Aires is one of the cheapest capitals in the world. Salary costs in Argentina are 60% lower than the average salary costs in Eastern Europe, whereas these are 15% higher than the average wages in India.

6. Creative Outsourcing Market booming

Argentina has seen an enormous boom in its outsourcing industry since 2001. Companies like Connaxis (www.creative-outsourcing.com); Latin3 (www.latin3.com), WebAr (www.webar.com), WUNDERMAN (www.wundermandigital.com.ar), crossmedia (www.crossmedia.com), Bougie Man Media (www.boogiemanmedia.com), XAGA (www.XAGA.com), 451 (www.451.com), Bridger Conway (www.bridgerconwayinteractive.com), Group94 (www.group94.com), Gameloft (www.gameloft.com) have experienced exponential growth over the past 6 years. Lately companies like MTV made Buenos Aires its local Latin American hub to produce all creative work for the Latin American Market. Connaxis is the first company to recognize Creative Outsourcing as one of the countries greatest strategic long term opportunities. Connaxis CEO, Peter van Grinsven, commented that "The strength of Argentina lies in its abundance of creative talent, highly educated specialists, Western culture and low cost". Latin3 is the premier provider of "Exponential Marketing" services in Latin America and the U.S. Hispanic markets. Latin3 is a creative outsourcing giant, with 120 professionals, developing creative work for companies like Cisco Latin Ameria, Dell Latin America, Lexicon, Microsoft Latin America, Nextel International, Pepsi Latin America and many more. Gameloft has been developing mobile games in Argentina since 2001 and grew its staff to over 400 professionals in 2008. MTV is planning to create 200 new full time work positions. MTV Buenos Aires will become the creative center of Latin America for MTV, Vh1 and Nickelodeon, with the responsibility of creating a portion of all the creative work done for cinema.

The success of these companies are only the beginning of the story. It is a story in the making. Argentina is converting itself in the creative outsourcing center of the world and it is already a success story for first mover companies described in this article. Companies mentioned in this article experience exponential growth numbers and worldwide recognition for creative skills delivered to their international clients. It is not a story of selling web design but one of 'creativity', which is something more abstract which originates from deep within a country's culture and history. The mix between Spanish and Italian descent in a new and vast country like Argentina, its particular history and the recent possibilities of email and the Internet are creating a new industry of Creative Outsourcing. Argentina is about to become the Creative Outsourcing Workshop of the world.

Peter van Grinsven

Managing Director

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United States: +16468108783 Extension number: 101

Argentina: +541152465987 E-mail: peter.van.grinsven@connaxis.com

The Netherlands: +31208080017 Skype: petervangrinsven

¡NEW! Please check out our new Portfolio Website:

Connaxis Creative Outsourcing Specialist www.creative-outsourcing.com

First page position Google.com: Creative Outsourcing

MTV will start production in Argentina

Argentina will function as the regional hub for creative outsourcing services.

May 22 2008. Yesterday, MTV Networks, part of Viacom International, announced a 76 million dollar investment in its new production facility in Argentina over the coming 5 years. MTV Networks is a content production company and the investment is part of the regional roll out plan, according to official sources.

The investment will create up to 200 new full time work positions and the company plans to open a new corporate headquarter with its own creative studio. The news was transmitted in person by the MTV Networks’ CEO Robert Bakish during a meeting at the ‘Casa Rosada’ with the president Cristina Fernández de Kirchner.

Also present were the Minister of Economy, Carlos Fernández and the responsible for the National Investment Agency, ProsperAr, Beatriz Nofal.

The roll out plan consists in providing support to the whole Latin American operation from Argentina.

In this way MTV Networks will do local production while, at the same time, it´ll outsource other services, like administration, publicity and production of events, to Argentina. “Exporting Argentine creativity will enforce our commitment to create the best content for our audience” commented Bakish.”We trust that the increased presence of MTV Networks Argentina and Design Studio Buenos Aires will have a significant impact and will positively enhance the growth of the whole entertainment industry in Argentina”

In this way MTV Buenos Aires will become the creative center of Latin America for MTV, Vh1 and Nickelodeon, with the responsibility of creating a portion of all the creative work done for cinema and all the subtitle and dubbing services of the whole Spanish speaking region. The digital transmission business will also be administered through the Argentine center.

About Connaxis

Connaxis helps companies in outsourcing their activities. If the client chooses for outsourcing, Connaxis offers two services. A local company under its own flag or outsourcing an activity to the Connaxis’ Managed Service Delivery Center. One of the activities of the Service Delivery Center is the internet solution. This internet solution includes web design, programming work, internet marketing, translation and multilingual support. Connaxis helps companies to stay competitive and serves as an extension of the customer’s organization.

For more information on Connaxis: www.connaxis.com – US: +16468108783 ARG: +541152465987 NL: +31208080017

Peter van Grinsven Peter.van.grinsven@connaxis.com | Managing Director

Labels: Creative Outsourcing; Outsource Argentina; Outsourcing Consultants; Dedicated Resources; Web Development; Internet Marketing; Multilingual Support

Ten reasons for outsourcing in Argentina

14 January 2008, The Internet and the emergence of low-salary countries have resulted in the increased outsourcing of activities. Although this country is quite unknown for this matter yet, Argentina offers excellent outsourcing opportunities. Since 2002, important customer contact companies have established in Argentina, such as Regional Support Centers and Shared Service Centers. Exxon Mobile has moved its accounting activities to Buenos Aires; MCI turns Buenos Aires into a regional hub and also Google has announced establishment in Argentina. Now, what makes Argentina so attractive to these large international companies?
Connaxis has ten reasons for outsourcing activities in Argentina:

1. Proven location:

In the past years many multinationals have established in Argentina or outsourced their activities in this country, including: Teleperformance, Teletech, Apex America, Atento, EDS, Sitel, ActionLine, Arvato, Multivoice, Microsoft, Dell, Sony, MCI, Vodafone, AOL, Motorola, HP, Telefónica (Spain), Citibank, Repsol, Nextel.

2. Geographical location:

In Argentina it is 1 hour earlier than in New York and 4 hours earlier than in San Francisco. The time difference with Europe is 4-5 hours earlier. That’s why Argentina is suitable for 24/7 operating hours for providing support during the European evening. Different from Asia, when it is evening in Europe, it is day in Argentina. That’s why during the European evening support can be delivered at a common price.

3. Salary costs lower than in East-Europe and a little higher than in Asia

After the devaluation salary costs have decreased until below 25%, compared to Europe and the USA. Also costs like rent, electricity and telecommunication are low. Buenos Aires is one of the cheapest capitals in the world. Salary costs in Argentina are 60% lower than the average salary costs in East-Europe, whereas these are 15% higher than the average wages in Asia.

4. Argentineans have character

Argentineans are expressive, spontaneous, passionate and creative and tend to be a little philosophical. Argentines lay emphasis on the physical aspect and have much feeling for design. They are always learning, discussing, going out, and having dinner with family & friends. They are proud of their European descent.

5. Availability of qualified staff

Historically, Argentina has the best educational level of South- America. Argentineans are professional experts abroad. In Argentina there is great availability of highly skilled professionals. The IT sector is well developed. Since the crisis at the end of 2001, many highly skilled professionals find it difficult to find a job. Due to the salary differences between Argentina and Europe, there still exists a great possibility of arbitration in this field. Generally, Argentineans prefer to work for a foreign company.

6. Deep employment market

Argentina has a population of 39 million people, of which 15 million live in the three great urban centers, namely Buenos Aires, Cordoba and Rosario. 3.5 million people have had higher education or achieved a university degree. Buenos Aires and Cordoba jointly have 23 universities counting with 870.000 students, of which 170.000 study business administration and 50.000 informatics.

7. Availability of all the important European languages

Argentina has a large group of people speaking three languages. These people often have a European passport. Apart from Spanish, students generally speak English fluently. Contrary to India and China, a relative small number of employees speak other languages than Italian, French, German and Portuguese.

8. Interesting culture

The Tango is just an example of Argentina and its culture. Argentina is the place to be for cabaret, theatre, cinema and TV productions. Buenos Aires is known as the Paris of South-America. Visitors are unanimously enthusiastic about this cosmopolitan city with its architecture; night life and cultural activity.

9. Excellent IT infrastructure

In the nineties there has been a total liberalization of the Argentinean telecommunication market. The market offers an excellent IT infrastructure for attractive prices.

10. Interesting local growth market

In the past four years the Argentinean economy has shown an average yearly growth of 9%. Argentina offers an interesting internal market of 39 million consumers and is a trampoline to other countries in the region, such as Chile (15 million inhabitants) and Brazil (186 million inhabitants).
For a perfect combination between a highly educated population, European culture and low costs, Argentina is the right option. From here both the European and American market can be focused on. Argentina is the perfect fit for the outsourcing of the following business processes:

• Service and Support;
• Telesales;
• Information Technology;
• Creative work as design and marketing
  

In the next years, Connaxis expects a boom in outsourcing creative activities in Argentina. Better be there on time!

About Connaxis

Connaxis is an Outsourcing Consultants and Service Delivery Company based in Buenos Aires, Argentina. Our services include Captive Centers and Managed Solutions. The Connaxis Service Delivery Center provides Web Development; Internet Marketing and Multi Lingual Support & Translations. Connaxis helps companies stay competitive and operates as an extension of the client organization.

For more information on Connaxis: http://www.outsource-argentina.com – US: +16468108783 ARG: +541152465987 NL: +31208080017

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