As progressive technology continues to break down global barriers, “nearshoring” in Central and South America is getting traction as a viable alternative to outsourcing to India.
As U.S. companies continue to look for ways to cut spending and operate in a more lean, efficient manner, outsourcing to Argentina could provide a savings of 50% or more off traditional U.S. creative talent, and potentially more for highly specialized skill sets. With attractive time zone differences — one hour in the summer and three hours in the winter (Eastern time) — and a highly skilled labor pool with an affinity for western culture, Argentina is a convenient and cost-effective alternative.
Many leading American companies, such as Turner, MTV, MySpace, Gameloft, Fox, and Disney have established a presence in Argentina in support and recognition of its importance in the global offshore opportunity.
Key Features and Benefits
- The strong value of the U.S. dollar vs. the ARG Peso (http://finance.yahoo.com/currency-converter)
- The availability of highly skilled talent in the areas of web design, programming, multimedia, print, mobile production, broadcasting, rich media, interactive and 3D animation
- A well-educated population
- An abundance of highly specialized creative talent producing a fertile environment for first-rate skill sets at competitive wages
- Advantageous time zone differences results in easier handoffs and real-time collaboration
- More talented creative output than India as Argentineans have a deeper experience in rich media and creative design
- Outsourcing costs that are on par with or slightly above those of India.
Exchange Rate
Below is a look at the currency trend for the Argentine peso since the financial crisis accelerated in September 2008. You will note that the U.S. dollar has gained some 18%, which translates into greater leverage per U.S. dollar spent on creative output in Argentina making a strong case for offshoring.
Value of the Argentine Peso per U.S. Dollar
Source: Yahoo Finance, August 2009
