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