Software development is one of the most critical processes in many tech companies. Finding good software developers is essential for remaining competitive and developing quality products.
However, the demand for developers is so high that it’s difficult for companies to find affordable employees. That’s why so many companies are choosing to outsource software development. If you’re looking for the right place to find engineers, Argentina is one of the best locations to look for talent.
Why? For several reasons. Argentina is in the middle of a tech education boom, so the number of well-trained software developers is rising daily. Furthermore, the country’s time zone neatly meshes with US companies, and the workforce has strong English skills.
Keep reading to learn all the reasons why Argentina is a perfect choice for finding tech and how you can best take advantage of this opportunity.
Argentina Fast Facts
Before going into the nitty-gritty benefits of outsourcing software development to Argentina, let’s examine the country itself.
Essential details about Argentina include:
- Location: South America
- Time Zone: UTC-3 (One to two hours earlier than New York City)
- Common Languages: Spanish, English, French, Italian
- Currency: Argentine peso (ARS)
- Population: 45,751,957
- Trained Software Developers: 134,000
- Business Climate: B
Advantages of Outsourcing Software Development to Argentina
Argentina is entering the world market in a tangible way. While the country has a history of conflict and unrest, today, major cities like Buenos Aires and Córdoba have matured into metropolitan economic hubs. They have all the resources and infrastructure necessary to support software development across international borders. Furthermore, Argentina has spent years heavily investing in education.
These factors combine to make Argentina an excellent source for finding great developers with lower rates. Since Argentina is still recovering from its past struggles, wages and salaries are lower than in many other countries. You can bring in highly qualified developers for significantly lower rates than you can hire US developers.
But there’s more to the country than costs. Keep reading to learn the seven most significant advantages of outsourcing your software development to Argentina.
1. Time Zone Overlap with the United States
Argentina’s time zone is UTC-3, or three hours behind Coordinated Universal Time (UTC). For comparison, New York City bounces back and forth between UTC-4 and UTC-5 depending on Daylight Savings Time. Meanwhile, San Francisco switches between UTC-7 and UTC-8. On January 1st, noon in Argentina is 10 am in New York, and 7 am in San Francisco.
This means that Argentine workers have typically just begun working when US business hours start. The time zone overlap is invaluable. It makes it easy for you to find times to chat live with your outsourced employees. There are no gaps in communication, and deadlines can be set with ease. For most of the US, outsourcing to Argentina is no more difficult time-wise than working with someone a state away.
Argentina is also one of a relatively small number of countries where this overlap exists. Other countries where software development outsourcing is common, such as Thailand, Vietnam, and China, have almost no overlap with US business hours. For instance, 8 am in New York is the same as 8 pm in Beijing, making coordination and deadlines that much more complicated. Choosing Argentina as your outsourcing location can streamline your planning processes significantly.
2. Top Ranked in Tech Education
One of Argentina’s top priorities over the past decade has been education. The country has invested heavily in schools and universities, increasing access to education for people of all economic statuses. As a result, the country ranks 29th in education worldwide, above other major countries like Brazil and Saudi Arabia.
However, in tech education, Argentina ranks even better. In fact, according to the 2020 Coursera Global Skills Index (GSI) report, Argentina ranks #1 worldwide in terms of technological skills. Coursera, a top global digital education platform, ranked countries based on their skills in:
- Software engineering
- Operating systems
- Computer networking
- Human computer interaction
- Security engineering
According to the paper, “Argentina takes the #1 spot in Technology in both the region and the world. Driven by a powerful performance in Software Engineering (100%) and Operating Systems (95%), it outshines all of its neighbors by a wide margin. This reflects the country’s strong technology community and tech-savvy government, as well as its ambitious goal to be the center of the Fourth Industrial Revolution.”
What does this mean? If you’re looking for highly-qualified software engineers, there’s literally no better country in the world to find the skills and staff you need.
3. Large Talent Pool of Software Developers
Argentina software engineers aren’t just well-educated. They’re also relatively common. The Argentine government has prioritized software development, offering support to people who want to become software engineers and developing new legislation to make it easy for these new engineers to get work.
For instance, between 2016 and 2020, the government implemented a massive educational campaign to help more people become software engineers. The project, known as Plan 111 Mil, has implemented programs to raise the number of women in IT, significantly increasing the number of software developers overall. Current estimates place the number of software engineers in the country at 134,000. Hence, there are more than enough talented workers from which to choose.
Argentine laws have also made it easy for you to connect with these workers. The 2020 Teleworking Law (Legal Regime of Teleworking Contract) went into effect in April of 2021. This law designates specific rules for teleworkers and their employers. While the law does establish some restrictions, it also clarifies how telework like outsourced software development should be approached. As a result, you can confidently choose to work with one of the many software developers in the country without confusion about the legal considerations.
4. Developed IT Infrastructure
Major Argentine cities like Buenos Aires and Córdoba are on par with many other major cities around the globe. They offer infrastructures like cheap public transport, four and five-star hotels, and major exhibition centers. Most importantly for software developers, these major cities have all the tech infrastructure to support in-depth software development.
Tech workers, in particular, have access to high-speed internet and robust tech tools. While internet speeds don’t average quite as high as they do in major US cities, they are still more than enough to video chat, upload and download software, and stay in contact with your business.
Furthermore, Argentina has been steadily growing its IT infrastructure with dedicated tech parks. These parks are supported with additional investments into infrastructures like technology supply chains and knowledge exchanges. Working with certain outsourcing providers can help you connect with workers who have access to these spaces.
There are also many co-working spaces across Buenos Aires and other large cities. These places give independent freelancers and consultants a place to work with consistent access to better connectivity and professional workspaces. No matter where you choose to source your Argentine software developers, you can be confident that they will have access to all the tools they need to perform their jobs.
5. English-Speaking Workforce
In Argentina, the official language is Spanish. However, many people in the country are multilingual, notably those who’ve accomplished higher education. In the major metropolitan areas, up to 15% of the population speaks at least some English. The country has some of the highest English proficiency in Latin America. Furthermore, Spanish is the most common second language in most of the US.
This makes hiring software engineers significantly easier. Between the number of English-speaking Argentinians and Spanish-speaking Americans, it’s relatively simple to find an outsourced worker who can communicate with your team. This stands in contrast to other common outsourcing locations, where English is less understood, and the primary language isn’t common in the US.
6. Cultural Similarity
Cultural fit is a big concern for many companies, especially those performing creative tasks like programming and software engineering. Everyone on the team needs to approach the project with the same goals and priorities in mind, or the chance of miscommunications and delays increases.
That’s one of Argentina’s biggest draws in terms of outsourcing. The Argentine government’s goal to be the center of the Fourth Industrial Revolution has led to a work culture similar to the US’s Silicon Valley and other tech hubs. Both US companies and Argentine developers prize qualities like innovation, improvement, and attention to detail.
As a result, Argentinian workers are likely to blend well with your team. While every individual consultant or freelancer is different, the overall work culture is similar. You’ll be able to find outsourced staff that fit your company’s culture with less time and effort than in other countries.
7. Cost Savings
A primary reason for outsourcing software development is achieving high-quality results while reducing costs. Argentina offers a reasonable way to achieve cost savings while still developing software that works well.
There are a few reasons for this. First, the currency difference between the US and Argentina is significant. Argentina uses the Argentine peso as its primary currency. On average, one Argentine peso (ARS) is worth about one cent USD. As with many countries, the lower value of Argentina’s currency is also connected to lower overall wage rates.
Second, since there are so many software developers in the country, the field is less competitive than it is elsewhere. Currently, developers are competing for positions just as companies compete for top talent. This has kept the average hourly rates for development reasonable, especially compared to American tech hubs.
Finally, outsourcing to Argentina also saves your company US-based expenses like employment taxes, Social Security payments, and benefits. You can simply connect with a freelancer and pay them a set rate. The freelancer is responsible for handling Argentinian taxes instead. This also saves you the effort and cost of navigating those legal and financial concerns.
The Cost of Hiring Argentine Software Developers
Hiring an Argentine software developer does have costs associated. After all, you’re paying for someone to do work for your business. However, the price is still more reasonable than many other locations.
Outsourcing development always includes costs like:
- Finding talent
- Interviewing candidates
- Hourly development rates
- Managerial expenses
- Offering benefits
Of course, hiring local talent includes all of these expenses, too. Argentine courts treat almost every worker as a full employee, so there’s no escape from paying benefits. Still, Argentina’s typical salaries are so much lower than the US that this still comes out as significantly less expensive than hiring a US-based worker.
Average Argentinian Software Developer Salaries
The cost of living in Argentina is significantly lower than it is in the US. According to studies, the cost of living (CoL) for a single person in Buenos Aires is about $647 US dollars a month. As a result, Argentine software developers don’t need to demand the same rates as those in major US cities like New York or San Francisco, with respective CoLs of $2700 and $3293.
For instance, the average annual cost to hire Argentinian software developers (including salary, the cost of sourcing candidates and hiring, offering benefits and managing cross-border payroll and local compliance) are as follows:
- Junior developers: $80,130 USD per year
- Mid-career developers: $90,710 USD per year
- Senior developers: $108,000 per year
For comparison, the average software developer salary in the US is $152,872 per year for a senior developer. According to US Small Business Administration, the total cost of an employee can be 1.25 to 1.40 times the base salary. You can save at least $50,000 per year by hiring an Argentinian senior developer instead of hiring an US senior developer.
The last number that should concern your business is the average monthly salary rate and how it compares to the rates in the US for each tech stack. Some tech stacks are more in-demand than others, which will affect their rates.
Comparison from annual cost to hire Argentinian senior developers versus yearly salaries for US senior developers:
- C/C#: $109,882 USD, vs. $127,922
- Java: $103,773 USD, vs. $136,295
- .NET: $107,250 USD, vs. $159,516
- NodeJS: $110,310 USD, vs. $128,881
- PHP: $83,916 USD, vs. $121,719
- React: $105,791 USD, vs. $144,876
- Ruby: $110,597 USD, vs. $152,553
*US salaries do not include cost of sourcing and hiring, benefits, compliance
As you can see, in some fields like C# development, the difference between Argentine and US salaries is dramatic. Others, such as PHP and React development, have smaller but still noticeable gaps.
Challenges to Consider When Outsourcing Software Development to Argentina
No business relationship is entirely friction-free. There are a few challenges that you’ll need to consider before outsourcing software development to Argentina. These issues aren’t insurmountable, but you should be prepared to handle them before diving into the outsourcing process. Here are the potential problems you should watch out for while preparing to work with Argentine software developers.
Confusing Bureaucracy for Foreign Businesses
If you’re not used to working across international borders, outsourcing your work can seem overwhelming. After all, Argentina is an entirely different country, and there are some significant differences in how its government and laws are structured. For businesses, this means that there’s a whole new bureaucratic system that must be navigated.
For instance, the country requires anyone hiring an employee to have a local legal entity set up. This entity is the Argentine representative for your company overall, and it’s through the local entity that you’ll hire and pay workers. If you don’t want to go through the process of opening a whole Argentine branch of your business, you’ll need to work with a local organization to hire and manage your employees for you.
Furthermore, Argentine laws surrounding freelancing and contracting aren’t the same as those in the US. If you’re planning on hiring software developers in the country, you’ll need to be careful to classify them as a contractor or employee as appropriate. Misclassifying employees can have significant financial penalties, and most workers are considered employees regardless.
Navigating this bureaucracy alone can be difficult for any business. If you’re concerned about your ability to handle it, you should never hesitate to work with an experienced talent procurement platform to help you through it.
Learn More: Team Lead vs Manager: What’s the Difference?
Argentina is home to many labor unions. These unions have strict standards for working conditions, minimum wage, and when businesses can contact their workers. These unions have had a substantial impact on the Argentine labor market and associated laws. While there are no significant unions for tech workers, unions still shape how Argentine workers approach their jobs.
The Teleworking Law has similar effects on industries without unions. The law, intended to provide guidance on how remote work is handled in the country, also dictates how employees should be treated and what benefits they should receive. As a result, whether you’re hiring independent contractors or employees, you’ll need to understand how to implement the law’s requirements, such as:
- When employees can be contacted
- Who is responsible for providing the equipment to do the work
- How employees are paid
You can choose to work with an Argentine specialist attorney to handle these elements, or you can work with a talent procurement platform that will manage them for you.
Historical Economic Instability in Argentina
Argentina is becoming a tech hub now, but this hasn’t always been the case. Historically, the country was the site of significant economic instability. For example, Argentina has defaulted on its foreign debt multiple times. This has slowed the country’s growth. It has also experienced considerable inflation at various points in the past several decades, leading to the current status of the Argentine peso as worth one cent USD.
This economic instability can make some companies cautious about investing in the country. However, when it comes to outsourcing to Argentina, instability is less of a problem than you think. In times of economic instability, people prefer to work more stable jobs such as software development for a US company. Financial upheaval can complicate your payment structure if you’re hiring your employees through your own local business entity. However, if you’re working with a talent marketplace, the agency will handle these issues for you.
The Best Places to Source and Hire Argentine Software Developers
Once you’ve decided to hire Argentine developers, your next decision is choosing where to find talent. Argentina has just as many sources for identifying talent as the US, which can be overwhelming. Choosing the wrong hiring platform can lead you to miss talent or hire someone unqualified for the position.
The three best solutions for hiring in Argentina are Argentine IT outsourcing companies, job boards, and talent marketplaces. Below, these three options are broken down to help you choose the right solution for your business.
Argentine IT Outsourcing Companies
The first solution is to look for Argentine IT outsourcing companies. With an outsourcing company, you determine the project and the deliverables you want to receive. You give those guidelines to the outsourcing company, and the company produces what you need. You don’t directly or indirectly hire anyone. Instead, you’re subcontracting work out to the firm.
This has its pros and cons. Working with an IT outsourcing company lets you step around the hiring process entirely. However, it also gives you very little control over who’s working on your project and what it looks like. You’ll have almost no oversight on the project, and you may not get a satisfactory final result. IT outsourcing companies have their benefits, but they’re not the right choice if you’re looking for people to make a part of your team.
Argentine Job Boards
Job boards are a familiar hiring tool in any country. If you’re familiar with using sites like Indeed, then you understand how job boards function. As with US job boards, you can post the same job in multiple locations, but you need to maintain each posting independently. The most popular job boards in Argentina include:
- Bumeran.com.ar: This job board is for Latin American countries in general, but it has a specific Argentina domain. It does require you to have a fiscal number, which you receive for opening a business entity in the country. You don’t need to contact specific potential candidates, but you need to write your listings in Spanish.
- Buscojobs: One of the largest job boards in the country, Buscojobs has more than 24,000 listings related to IT. You can post a limited number of free listings. The site supports Spanish only for Argentine listings, but you can access it in English.
- Discover Computrabajo: This tech-oriented job board is one of the most popular among IT and software engineers in Argentina. You can create a limited number of free listings. You’ll need to make an account, but you don’t need a fiscal number. Once again, it only offers Spanish support.
- Un Mejor Empleo: This free job board covers many Spanish-speaking countries. As a result, you’ll need to write your listing in Spanish, but it won’t cost you anything. It has a smaller Argentine presence than the other boards, but it makes up for this by never charging you for posts.
- Zonajobs: A pan-Argentina job board that’s been around since 2008. This platform lets you advertise jobs and wait for candidates to come for you. However, it requires you to write listings in Spanish and has a relatively small tech job section.
The most effective way to hire Argentine developers is to use a talent marketplace like Revelo. These platforms combine the best of outsourcing companies and job boards in one place.
Like an outsourcing company, a talent marketplace has already done the work of collecting and vetting qualified software engineers. Meanwhile, like job boards, talent marketplaces let you connect with individual workers and make them part of your team. Furthermore, a good talent marketplace will handle the bureaucratic hiring requirements in Argentina so that you don’t have to.
That’s just what Revelo does. Revelo has a collection of qualified, experienced software developers for every specialty. Hiring is simple, too. You just reach out to Revelo with the details of the position you need to fill, and Revelo will provide you with a list of candidates that meet your specifications. The platform also handles everything from payment to benefits to employee development. If you’re looking for the easiest way to hire in Argentina, Revelo is the right choice.
Make the Most of Argentinian Software Developers Today
If you’re looking for reliable, trained software developers, Argentina is full of the talent you need. While there are some challenges you’ll need to consider, they’re outweighed by the many benefits of working with Argentine experts. As long as you work with the right talent procurement service, you can make Argentine software developers part of your business just as quickly as you can hire in the US.
You can get started on finding Argentine talent today with Revelo. Reach out to a Revelo specialist today to learn how you can connect with pre-vetted engineers and begin the development process as soon as possible.
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