2011

So�ware and IT Servicesin ArgentinaInformation Sources

Public Sector:

Ministry of Science and Technology (MINCyT)www.mincyt.gov.ar

National Agency to PromoteScience and Technology www.agencia.gov.ar

National Institute of Statistics and Censuses (INDEC) www.indec.gov.ar

Business associations and chambers of commerce

Chamber of Commerce of IT Companies (CESSI) www.cessi.org.ar

SME Observatory Foundation www.observatoriopyme.org.ar

Permanent Observatory for the So�ware and IT Services in Argentina (OPSSI-CESSI)www.cessi.org.ar/opssi/

Others

Research Center for Transformation (CENIT)www.fund-cenit.org.ar

Centro Redeswww.centroredes.com.ar

Global Insightwww.globalinsight.com

International Data Corporation (IDC)www.idc.com

World Trade Organization (WTO)www.wto.org

Public sector commitment and benefits for the investor �e public sector’s recognition of the importance of the so�ware and IT industry for economic development led to the implementation of a series of sector-specific policies and benefits.

One of the most important incentives has been the So�ware Industry Promotion Act, which establishes a wide range of fiscal benefits and li�s restrictions on foreign exchange transfers for hardware and computer component imports.

FONSOFT (a fiduciary fund to promote the so�ware industry); actions taken within the framework of the Argentine Digital Agenda; scholarship programs for students studying sector-relevant degrees; and professional training programs are additional public sector initiatives supporting industry growth. Moreover, so�ware has been identified as one of the priority development industries in the Industrial Strategic Plan 2020.

�e Chamber of Commerce of IT Companies in Argentina(CESSI) also has several industry promotion programs.

Discover the unbeatable investment opportunities Argentina’s Software and IT services industry o�ers investors.

�e Undersecretariat for Investment Development offers professional assistance for your business to succeed in ArgentinaWhat the Undersecretariat for Investment Development can do for you:» Provide timely and relevant information on business sectors and

geographical locations in Argentina.

» Help identify investment and innovation opportunities in strategic sectors.

» Facilitate the investment process and doing business in Argentina.

» Assist in building partnerships between foreign investors and local companies.

So�ware and IT Services in Argentina

Innovative solutions for the world

Contact us:infosuinv@mrecic.gov.arwww.inversiones.gov.ar+ 5411-4328-9510

Undersecretariat for Investment DevelopmentSecretariat of International Trade and International Economic Relations

“ In our search for the right location for our third global so�ware development center, sourcing the right IT profiles capable of developing our complex technology was crucial. We found an impressive combination of experience, analytical capabilities, creativity and true passion for business in Argentina. ProsperAr played a key role in our decision-making process. �ey facilitated our access to information as well as to key local organizations, which was decisive when it came to choosing Argentina as the destination for our investment.”JORGE CORDOVAMANAGING DIRECTORSABRE HOLDINGS

Argentina, a rapidly expanding IT pole

Why invest in Software and Information Technology Services in Argentina?

Professional talentArgentina has highly qualified professionals and technical experts �ecialized in IT with excellent English-language skills. Some 80,000 �udents are currently enrolled in IT courses at 77 education centers throughout the country. �e level of education is comparable to developed countries and surpasses �andards in mo� other Latin American countries. �ere is also an out�anding level of research in the hard sciences. Inve�ors in the se�or highlight the creativity and innovative �irit of local human resources.

Optimal price-quality ratioA competitive exchange rate and a favorable relative cost structure help to ensure advantageous costs in terms of communications and other basic inputs required by so�ware and IT companies (offices, power supply, installations, etc.). �e cost-quality ratio of Argentine human resources is particularly attractive compared to regional and International competitors.

Encouraging scenarioArgentina offers businesses a range of clear advantages compared to other emerging markets. Its time zone (GMT-3) is highly valued by companies operating locally, especially those requiring real time communications. Argentina also boasts a modern telecommunications system and one of the highest rates of broadband penetration in the region. Companies operating locally have access to a technological platform that allows them to compete with key global players in the industry. By generating new financing and development opportunities, the public sector plays an active role in the stimulation of the sector’s development. In addition, Argentina is in the forefront of data protection legislation.

A range of solutions�e Argentine so�ware and IT services industry encompasses a wide range of products including consulting, support, applications implementation, custom so�ware and solutions development, business management and security programs. �e companies established in Argentina also excel in the development of video games and animated film; areas in which Buenos Aires ranks as one of the top locations worldwide, according to �olons. According to the University of Carnegie Mellon, Argentina ranks among the top 13 countries in the world in terms of the effectiveness of its processes in the areas of so�ware development, operations and maintenance, above countries like Canada and Australia.

Segments and potentialSegments offering outstanding investment opportunities include so�ware design for agribusinesses, healthcare, security programs, digital content, solutions for dynamic content (E-learning, E-marketing) and value-added services (BPO and KPO). �e Spanish speaking market, where Argentina is already a leader, offers additional possibilities for the development of so�ware and IT services. Likewise, e-government, logistics, distribution and commercialization solutions and tourism all have high growth potential for the development of applications and services within the country.

A dynamic sectorRelatively young in Argentina, this sector has been one of the most dynamic in recent years. Between 2002 and 2010, the sector’s revenue in US dollars grew at an annual rate of 18%, while exports expanded by 24% per year. Currently, foreign sales represent 22% of the sector’s revenue. Employment also increased substantially, registering an annual growth of 21% on average during the same period. �e industry employs almost 65,000 people, more than half of which are professionals with tertiary or university education.

Leadership and expansionA number of leading multinational companies operate locally, including IBM, NEC, Microso�, Oracle, Siemens, EDS, Accenture, SAP, NCR, Neoris, Datasul, Google, Gamelo� and TATA. While some have accumulated considerable experience in Argentina over time, others are more recent arrivals intent on making the most of the competiti-ve advantages offered by the local market. Small and medium-sized local companies are expanding their activities abroad and entering new markets by designing specific solutions: Argentine companies have over 100 offices abroad, while 65% regularly export to diverse destinations, among which Brazil, Chile, Mexico, the United States, Canada and Spain stand out.

Poles and technology clusters countrywideSo�ware and IT service companies are mostly found in large urban centers where leading international firms, local companies and universities all work together in synergy. �e diverse poles and technology clusters throughout the country offer an ideal scenario for the development of profitable high-potential projects. �e IT Pole in Buenos Aires and the clusters in Córdoba and Rosario are the most important ones. But opportunities in the sector have led to the development of new initiatives such as the Information District in Greater La Plata, the technology poles in Bahía Blanca, Corrientes, Junín, Mar del Plata, Mendoza, Resistencia, Rafaela, San Miguel de Tucumán and San Salvador de Jujuy as well as the science-technology parks in Tandil and in the province of Santa Fe.

From Argentina to the worldGlobant, an Argentine information technology company, started operating in 2003 and rapidly became one of the leading international players in the creation of innovative and competitive so�ware solutions.

Today, it is one of the 10 most important so�ware development companies in the world with offices in several countries.

Ranked 8th among the International Association of Outsourcing Professionals´ Rising Stars in 2010, Globant has won numerous awards and has been distinguished by prestigious institutions such as MIT, Global Services, Endeavor and the newspapers La Nación and El Mercurio.

Argentina: dynamism, innovative talent and proven quality

3,000

0

500

1,000

1,500

2,000

2,500

2002 2003 2004 2005 2006 2007 2008 20102009

Domestic sales Exports

+17.9%per year

+23.8% per year

So�ware and IT services: robust growth(in millions of USD)

Fuente: ProsperAr based on data from CESSI and INDEC.

Glob

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Goog

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Glob

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A lattice of 1,600 firms, ranging from globally consolidated multinationals to a growing network of highly innovative small and medium-sized enterprises, make up the local so�ware and IT services sector. �e global projection of Argentine companies is increasing as one quarter of its production is exported to international markets.