Nearshoring LATAM: The Case for Argentina for Engineering Executives

In the era of remote work, businesses are increasingly turning to nearshoring/nearsourcing. A relatively new human resources recruitment approach involves outsourcing IT processes to nearby countries within the same or a similar time zone. For companies in North America, it means outsourcing your projects, the whole or parts of it, to experts in Latin America (LATAM). This trend has especially gained momentum in the IT industry as companies seek to optimize their operations, reduce costs, and enhance their competitive edge.

While nearshoring in IT may involve outsourcing any role to any country in Latin America, this article is about hiring software developers in Argentina. And why Argentina, after all?

We will find out. But first, why nearshoring in the first place?

Why Nearshoring in LATAM?

A simple answer could be geographic proximity and cultural similarities. But at a deeper level, it is more than that—the primary driving factors for companies to turn towards nearsourcing remain cost savings and convenience. Teams in India and Eastern Europe are just too painful to work with for most North American companies due to the time difference. Think of how many stories you’ve heard over the years about the pains of insourcing from India back to your in-house team. There are scheduling and communication issues, in addition to concerns about the quality of work.

A quick glance at the Americas’ map is enough to see that if you are based in Boston, New York, or Toronto, there are half a dozen countries down south in the same time zone. If you are in San Francisco or Seattle, don’t despair—the 2 to 5-hour time difference can easily be overcome, especially since LATAM engineers are used to working with North American clients. The reduced time zone differences associated with nearshoring minimize scheduling conflicts, facilitate real-time communication, and enhance overall project efficiency.

Besides convenience, nearshoring presents a more cost-effective alternative to in-house development, enabling companies to access skilled IT professionals at lower labor costs. How much lower could the labor costs be?

Let’s get to that in the next section: Why should the engineering executive in North America consider software developers from Argentina?

Why Argentinian Software Developers Make the Most Sense for North American Businesses?

Argentina stands out as an ideal nearshoring destination for North American companies, and the reasons extend beyond its advantageous geographic proximity. It boasts a strong educational system, a robust IT infrastructure, and a highly skilled IT workforce, making it well-equipped to handle the diverse IT needs of North American businesses.

Here are some compelling reasons why it makes more sense for businesses in the US and Canada to hire developers from Argentina.

1. It’s Just 2 Hours Ahead

First, the geographic proximity, specifically its major tech hubs, and consequently, the same time zones—almost the same. It’s just 2 hours ahead of Washington DC—so if you are working in the same shift, that means your team from Argentina can join you for 6 hours. With such a small time zone difference, Argentina facilitates real-time communication and collaboration, fostering a sense of partnership and ensuring seamless project execution.

2. English Language Proficiency

The ability to communicate effectively in English is crucial for software and data engineers working with North American clients; it’s easier for teams to facilitate a clear understanding of project requirements, efficient collaboration, and a cohesive team environment.

According to the EF Education First English Proficiency Index, Argentina ranks 1st in Latin America and 28th globally, surpassing many developed nations. This proficiency stems from the country’s strong emphasis on English language education and the widespread exposure to English-language media and technology.

3. Strong IT Education System

Argentina’s educational system is recognized for its quality and rigor, producing a steady stream of highly skilled software developers. The country’s universities and technical institutes offer comprehensive IT programs that emphasize practical skills and industry-relevant knowledge. This emphasis on practical education ensures that graduates are well-prepared to meet the demands of the ever-evolving IT industry.

Moreover, Argentina’s infrastructure, particularly its telecommunications and internet connectivity, is well-developed and reliable. Per Statista, 87.52% of the population has access to the internet in Argentina, much higher than in many other LATAM countries.

Every major global consultancy you can think of has or had a significant presence and hired extensively in Argentina. With close to a dozen large home-grown technology companies in a country of 45 million people, you can bet on a deep and diverse talent pool. 

4. Cost Advantages of Working with Argentinian Software Developers

The Argentinian education system is at par with many developed countries. Internet connectivity is excellent, and the IT industry is growing at a fast rate.

But what’s missing in Argentina is economic stability. As of December 2023, annual inflation is at 143% and climbing, and local currency “Peso” doesn’t instill much confidence in the general population. While there have been elections recently, the whole scene on the economic front is making everybody more nervous than usual. Without passing any judgment, I will let you guess how this might affect the chances of your contract offer (nominated in USD, for example) being accepted vs. a local option.

Back to the cost advantages of Argentina nearshoring, you can expect to save 30%+ compared to your local in-house software development or data engineering team. While the savings can be even more, we urge you not to expect top-notch talent on the cheap – it’s a global market, after all.

Major Skills to Look for in Argentina

Argentina’s IT talent pool is diverse and well-equipped to handle a wide range of IT needs. The country possesses strong expertise in software development, DevOps, data engineering, solutions architecture, project management, and business analysis. You will find a lot of project managers and business analysts in the market with enterprise-level experience and exposure to large international technology projects.

Here’s a bit more on each subject.

Software Developers

Argentina has a long history of software development expertise, with a strong focus on agile methodologies and continuous integration/continuous delivery (CI/CD) practices. Argentina has over 115,000 software developers, projected to grow 2.2% by 2026.

Argentine developers are well-versed in a variety of programming languages and frameworks, including Java, Python, JavaScript, and React. They are also proficient in cloud technologies such as AWS, Azure, and Google Cloud Platform.

DevOps Professionals

Argentina’s IT professionals have a deep understanding of DevOps principles and practices, enabling them to bridge the gap between development and operations teams effectively. They are skilled in automating tasks, managing infrastructure, and ensuring the continuous delivery of high-quality software. So, if you are looking for those well-versed in DevOps, you can count on Argentinian professionals—in the blink of an eye, of course, with caution.

Data Engineers

Argentina possesses a strong pool of data engineers with expertise in extracting, transforming, and loading (ETL) processes, data warehousing, and data analytics. I have worked with engineers and can vouch for their understanding and command over tools such as SQL, Hadoop, Spark, and Tableau, enabling them to handle complex data challenges and provide valuable business insights.

Solutions Architects

Next, solutions architecture. Argentine solutions architects have a proven track record in designing and implementing scalable, secure, and cloud-native IT solutions. They are skilled in evaluating business requirements, translating them into technical specifications, and overseeing the implementation of complex IT projects.

Project Managers

Argentina’s IT professionals are highly skilled in project management methodologies, ensuring the successful planning, execution, and delivery of IT projects. They are proficient in tools such as Jira, Agile, and Scrum—and as I mentioned, you will frequently come across senior project managers of Argentinian origin in large multi-national companies.

Business Analysts

When it comes to business analysis, Argentine business analysts are not behind other nations. They have a strong understanding of business processes and requirements and are skilled in gathering and analyzing business requirements.

So, how do you hire Argentinian software developers—or other IT professionals? That’s where DevEngine steps in!

Hire LATAM Talent With DevEngine

At DevEngine, we do only one thing—connecting LATAM talent with American and Canadian IT companies. With our boots firmly planted in both hemispheres, we bridge cultural divides and unlock the hidden potential of nearshoring. We have presences in three locations across the Americas and a deep understanding of how things work at both ends.

With rigorous testing and vetting, we curate a hand-picked pool of exceptional Argentine software developers, ensuring your nearshoring project is paired with the best talent for your specific needs. Contact us today to unlock the potential of nearshoring and discover how DevEngine can help your software development team reach new heights of success.