For years, Eastern Europe was the go-to destination for companies looking to scale their development teams while keeping costs under control. But the landscape is changing. Rising salaries, increasing demand, demographic and economic pressures are making it harder for businesses—especially those servicing clients in the UK, EU, and US—to maintain sustainable profit margins. While keeping key strategic resources in the region still makes sense, many companies are now looking elsewhere to optimize costs.
This search for cost-effective tech talent often leads to two main regions: Asia (with hotspots like the Philippines and Vietnam) and Latin America (LATAM). At DevEngine, we specialize in helping companies build high-performing development and data teams in Argentina and across LATAM, offering an ideal blend of affordability, technical expertise, and seamless collaboration.
What is Build-Operate-Transfer (BOT)?
Think of BOT as a way to fast-track your expansion without the growing pains. Instead of navigating the complexities of setting up a new office from scratch, you partner with an experienced and enthusiastic provider who does the heavy lifting. First, they build the team and infrastructure. Then, they operate everything—handling management, payroll, and legalities—while making sure the team is fully aligned with your company culture.
A good BOT partner also assists with travel arrangements for the executive or management team to visit the new nearshore operation. This allows leadership to oversee the team’s progress, conduct on-site training, and ensure cultural alignment. Beyond business operations, these visits help foster personal connections, strengthening collaboration and long-term commitment.
When the time is right, the provider hands over the fully operational team, ensuring a seamless transition.
Why Argentina?
Argentina has quietly become one of the most attractive destinations for software development and tech innovation. Companies like MercadoLibre and Globant didn’t just pop up by chance—Argentina has built an ecosystem that fosters high-quality engineering talent, cost efficiency, and smooth collaboration with North American businesses.
A big draw is the talent pool. Every year, over 130,000 university graduates enter the workforce, with many specializing in software development, data science, and engineering. Plus, Argentina ranks second in Latin America for English proficiency, meaning communication barriers are very manageable.
Then, there’s the cost factor. A senior developer in the U.S. commands a six-figure salary, whereas in Argentina, the cost is significantly lower—without sacrificing quality. However, it’s important to set the right expectations: Argentina won’t match the ultra-low costs of outsourcing destinations like India or the Philippines. Instead, it sits in a goldilocks zone, offering a balance between cost savings and access to high-caliber talent at rates more affordable than North America but higher than typical Asian markets. Add in favorable exchange rates and government incentives (like tax breaks for tech companies), and you have a formula for serious cost savings.
From a logistical standpoint, Argentina’s time zone (GMT-3) is another win. For companies based in North America, real-time collaboration is a breeze. Compare that to working with teams in Asia, where scheduling a simple meeting can be an ordeal.
Additionally, developers in Argentina are accustomed to working with companies in Spain, making it a natural fit for EU and UK-based businesses. Collaborating with European clients is second nature to most Argentinian engineers, ensuring a smooth transition for businesses looking to expand their nearshore presence in the region.
Finding the Right City for Your BOT Center
Choosing the right city for your nearshore development center depends on your team size and long-term goals. Buenos Aires offers the largest talent network and infrastructure, making it ideal for larger teams that require access to a vast pool of skilled developers. However, if you’re building a smaller team, other cities may provide better value in terms of lower operating costs and access to emerging talent.
If you’re looking to hire bright university graduates and are willing to invest in training, Córdoba stands out. Its universities consistently produce high-caliber engineers, and the city’s lower cost of living makes it an excellent option for companies committed to long-term workforce development.
Not all Argentine cities offer the same advantages, so selecting the right location can significantly impact your success.
Buenos Aires remains the premier choice—Argentina’s dominant tech hub with a mature ecosystem of startups, established tech firms, and experienced engineering talent.
Córdoba has evolved into a compelling alternative, powered by its world-class universities and increasing government support for tech initiatives.
Rosario is gaining recognition as an emerging tech center, offering a strategic balance of lower operational costs while maintaining strong connectivity to Argentina’s economic centers.
Mendoza deserves consideration for organizations seeking less congested yet well-connected environments with growing tech communities.
Setting Up a BOT Center in Argentina
So, what does it take to get a BOT center up and running in Argentina? The process starts with market research—understanding the best locations, talent availability, and regulatory landscape. Then comes financial planning, where companies set budgets and explore tax incentives that can make expansion even more cost-effective.
Recruiting is a key step, and this is where local expertise makes all the difference. Argentina has a strong engineering culture, and working with a BOT partner ensures you hire the right mix of developers, project managers, and IT specialists. Once the team is assembled, the Operate phase begins, where everything runs under the guidance of the local provider. This period allows companies to fine-tune workflows, align the team with their company culture, and make sure everything is running like a well-oiled machine.
One often overlooked but critical part of this process is finding the right office space. While remote work is standard, scaling a nearshore team beyond 15 people typically requires a hybrid setup. Junior developers, in particular, benefit from hands-on training, so having them on-site for the first three months before transitioning to a hybrid schedule (2-3 days per week) helps accelerate onboarding. Senior engineers may need fewer office days from the start, but having a physical space ensures productivity and collaboration when needed.
For smaller teams, a well-selected co-working space in a strategic location can offer the best mix of flexibility and infrastructure. Larger teams often require dedicated offices, and this is where a strong BOT partner shines—by securing the right space, handling leases, and ensuring the workspace aligns with company needs.
Another key advantage of a BOT partner is their ability to connect with local universities. Argentina has a deep pipeline of emerging talent, and partnering with top institutions allows companies to recruit the best graduates early. Investing in training ensures long-term success, cost efficiency, and a steady flow of skilled professionals who are already familiar with company culture and workflows.
Understanding BOT Costs and Fees
The BOT model comes with specific cost structures, but it offers long-term savings and scalability. Here’s how the pricing typically works:
- Build Phase: The service provider covers most upfront investments, including setting up facilities, technology infrastructure, and hiring team members.
- Operate Phase: Clients pay ongoing fees for management and operational services, which vary depending on the level of service and contract structure.
- Transfer Phase: A one-time transfer fee is charged, usually 20-30% of the ongoing annual fee from the build phase. Fee structure can vary broadly depending on the client’s specific needs and constraints
Pricing is influenced by factors like service level, hiring country, tax regulations, and customization needs. Companies benefit from spreading capital expenditures over time, avoiding major upfront costs while leveraging outsourcing partners’ economies of scale.
Scaling Your BOT Team Over Time
Depending on the size of the nearshore team you’re building and the urgency, the entire BOT process can take anywhere from 12 months to several years. A smaller team of 20-30 might be up and running within a year, while larger teams of 100+ will require a phased approach.
For bigger teams, a common strategy is to start with a core group of 20-25 people in the first year, including an operations manager, key developers, and support staff. This phase is focused on establishing processes and policies, stabilizing the team, and setting up HR support and training programs. Once the foundation is in place and workflows are optimized, hiring can ramp up aggressively in year two, ensuring a sustainable and structured scaling process.
The Operate phase can last anywhere from 4 months to 3 years, depending on the size and complexity of the operation. While some companies prefer a shorter timeline to gain control quickly, others leverage the BOT provider’s operational expertise for a longer period before assuming full ownership.
Final Thoughts: Why BOT in Argentina Makes Sense
For engineering leaders and executives, setting up a nearshore team isn’t just about saving money—it’s about long-term growth, access to top talent, and creating a scalable, resilient business. Argentina checks all those boxes.
If you’re looking to build a nearshore development center without the usual risks and operational headaches, the Build-Operate-Transfer model in Argentina is worth serious consideration. And if you need a partner who can navigate the local landscape and ensure a smooth transition, DevEngine is here to help. Let’s talk about how we can make your nearshore expansion a success.