Nearshore Outsourcing in Argentina: What You Need To Know

Nearshore outsourcing has become a popular strategy for North American companies looking to expand their business operations globally while reducing overhead costs and accessing top-tier talent.

And while there are several attractive locations for nearshoring in Latin America, one country that is currently gaining traction in this field is Argentina. 

With its highly skilled pool of talent, favorable time zone, and competitive pricing, Argentina offers numerous benefits for businesses considering nearshore outsourcing. Its talented workforce provides the perfect balance of high value and competitive rates.

Whether you are a small business owner or part of a large corporation, understanding the benefits and drawbacks of outsourcing to Argentina can help you make an informed decision about expanding your team with Latin American talent.

In this article, we will explore the strategic advantages of nearshore outsourcing to Argentina and how to handle the potential challenges that you may face. 

Advantages of Nearshore Outsourcing in Argentina

Tapping into the Argentine market for outsourcing can bring many competitive advantages to businesses. Here are just a few.

A highly skilled talent pool

Argentina has a strong education system that emphasizes technical and professional training. As a result, the country boasts a large pool of skilled workers in various industries, such as IT, engineering, finance, and more.

This means that US-based companies can easily find qualified professionals to handle complex tasks and projects. Additionally, Argentina has a high English proficiency rate, ranked #28 out of 113 countries, making seamless collaboration and communication with remote workers easier.

Cost efficiency

One of the main reasons why companies consider nearshore outsourcing is cost savings. Argentinian professionals offer competitive pricing compared with the United States and many other English-speaking countries.

These lower costs can be attributed to a favorable exchange rate and lower living expenses in Argentina. This means that you can often access top talent at a fraction of the cost you would pay for a local employee or when outsourcing from other regions.

To get a picture of how salary rates in Latin American countries like Argentina compare with those in the US, see our US versus Latin America salary guide.

Bilingual workforce

Apart from having strong English skills, Argentinian workers are also fluent in Spanish. This makes them highly desirable for businesses looking to target both the North and Latin American markets. 

Additionally, the US has a sizable population of English language learners fluent in Spanish who are immigrants from Central and South America, so Spanish-speaking workers can help you connect with that portion of the market linguistically and culturally.

With a bilingual workforce, you can tap into new markets and expand your customer base without worrying about language barriers.

Time zone alignment and geographical proximity

Argentina’s time zone is GMT-3, which overlaps with many US and Canadian cities during regular business hours. This makes it easier to maintain real-time communication with your team and coordinate without major disruptions in work schedules.

Moreover, flights between the US and Argentina are shorter than to offshore outsourcing regions, making it more convenient to visit your nearshore partners in person and vice versa if needed.

Team building is important for any business—but especially in an isolated remote environment. Whether you’re having an in-person board meeting or a digital happy hour, it’s much easier to schedule events between the US and Latin America, especially Argentina.

Cultural similarities with the US

Argentina shares many cultural similarities with North America, making it easier to work with Argentinian professionals. This includes similar business practices, work ethic, and communication styles.

Moreover, Argentina’s culture and education system have a strong Western influence, making it easier to seamlessly integrate remote workers from this country into your team.

Strong government support and incentives

The Argentine government has implemented various policies and initiatives to promote the country’s outsourcing industry. These include tax incentives, grants, and subsidies for businesses that choose to outsource in Argentina.

These incentives make it even more cost effective to outsource your projects to Argentina, making it an attractive option if you’re looking to reduce expenses. 

Highly developed information and communication technology (ICT) infrastructure

Argentina has a well-developed ICT infrastructure, with high-speed internet and advanced technology. This makes it easier to communicate and collaborate with your nearshore teams with minimal technical issues.

Furthermore, the country has a high number of successful tech startups and an active tech industry, indicating its commitment to investing in and developing technology. 

While you might have to worry about providing technology to workers in other countries, that shouldn’t be a problem for Argentinians.

Thriving tech startup scene

Argentina has become a hub for startups over the past decade, with Buenos Aires being recognized as one of the top emerging tech cities in Latin America. This thriving startup ecosystem has attracted highly skilled professionals and created a culture of innovation and entrepreneurship.

Thanks to the country’s strong technology sector, it can be a strategic move to nearshore software outsourcing to Argentina. You can tap into its talent pool to find creative and innovative solutions for your business. Additionally, working with these startups can provide you with access to cutting-edge technology and ideas. 

Possible Challenges of Nearshore Outsourcing in Argentina

While there are plenty of benefits to nearshore outsourcing in Argentina, there are also a few potential hurdles to overcome. Below are some possible challenges to anticipate, along with tips on dealing with them.

Macroeconomic instability

Argentina has a history of economic instability, with frequent currency fluctuations and high inflation rates. This can create challenges for businesses looking to outsource work to the country, as it may affect project timelines and budgets.

When considering outsourcing to Argentina, it is important to carefully research the current economic climate and choose a reputable outsourcing partner that can help navigate any potential challenges. 

Additionally, setting clear expectations and deadlines from the beginning can mitigate the impact of any macroeconomic issues.

Complex political and economic context

As with most countries, Argentina has a complex political and economic context, with frequent changes in government policies and regulations that can affect businesses outsourcing there. This can create uncertainty for employers looking to outsource work to the country.

To overcome this challenge, it is crucial to partner with an experienced outsourcing provider like Near that has a deep understanding of the local market and can provide guidance on navigating any potential political or economic changes. 

Building strong relationships with your outsourcing team can also help ensure clear and efficient communication and alignment during uncertain times.

Risks of language or cultural misalignment

Language and cultural differences can create communication barriers and misunderstandings, which can negatively impact the quality of work. This can be especially difficult if you or your team have little to no knowledge of Latin America or if the team is unwilling to learn and adopt new practices.

It is essential to choose an outsourcing partner that has a strong understanding of both English and Spanish. Additionally, investing in cultural training for your team members can help bridge any potential gaps and foster a collaborative working relationship.

Top 5 Locations for Nearshore Outsourcing in Argentina

Argentina is the second-largest country in Latin America and boasts a highly educated population, making it an ideal location for nearshore outsourcing. While there are many cities in Argentina that offer skilled talent for businesses, here are some of the top locations.

1. Buenos Aires

The capital city of Argentina is a hub for tech talent, with many Argentine universities offering degrees in computer science and engineering.

It has a large pool of bilingual professionals, making it an attractive location for companies looking to expand into Spanish-speaking markets.

Popular jobs outsourced to Buenos Aires include software developers, digital marketers, customer service representatives, and data analysts.

2. Córdoba

Known as the “Silicon Valley of Argentina,” Córdoba is Argentina’s second-largest city and home to many technology companies. It is known for its strong focus on innovation.

The city has a young population, with over half under the age of 30, making it a strategic location for businesses looking to tap into youthful energy and creativity.

Popular jobs outsourced to Córdoba include software development, graphic design, and IT support.

3. Rosario

Located in the central region of Argentina, Rosario is known for its strong industrial and manufacturing sector.

It has a talented pool of workers in fields such as engineering, logistics, and supply chain management.

It’s common to outsource roles in manufacturing, logistics and supply chain management, and IT support to Rosario.

4. Mendoza

Mendoza is widely known for its wine production, but it also has a growing tech sector.

The city has a lower cost of living than Buenos Aires, making it an attractive option for companies looking to save on labor costs.

Companies often hire professionals in Mendoza for positions in IT support, graphic design, and web development.

5. La Plata

Located just an hour away from Buenos Aires, La Plata is home to some of the top universities in Argentina.

Its strong focus on technology and innovation makes it an ideal location for companies looking for skilled IT professionals.

Web development, graphic design, and virtual assistant services are commonly outsourced to La Plata.

Final Thoughts

Nearshore outsourcing to Argentina can be a game changer for businesses looking to expand their team with top Latin American talent. With its skilled workforce, convenient GMT-3 time zone, and cost-effective pricing, Argentina offers numerous advantages for employers considering nearshore outsourcing.

However, it is important to be aware of the potential challenges that may arise when nearshoring to Argentina, such as political and economic instability or cultural misalignment. 

By understanding these challenges and partnering with the right nearshore outsourcing company, you’ll be better equipped to start hiring qualified talent in this attractive nearshoring outsourcing destination.

Interested in exploring other nearshore countries? See our list of the top nearshore locations for US companies and discover how to expand your global reach.