IT Outsourcing - Argentina

Argentina

Revenue in the IT Outsourcing market is projected to reach US$435.80m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.90%, resulting in a market volume of US$698.80m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$20.03 in 2024.
In global comparison, most revenue will be generated in the United States (US$197.30bn in 2024).

Key regions: Netherlands, United States, Japan, Germany, Italy

Definition:
The IT Outsourcing market refers to the external contracting of IT functions, services, or projects instead of relying on company-owned resources. By outsourcing IT tasks (e.g., to IT suppliers or software developers), enterprises are able to focus on their core functions and save internal resources and costs (e.g., office space, maintenance, and utilities). Thus, outsourcing teams becomes a viable cost resilience strategy in an environment where companies are looking to save money more than ever.

In an IT context, these activities include IT administration, IT application, and web hosting services. Non-IT-related outsourcing services are excluded.

Structure:

IT Outsourcing contains four distinct markets that are based on different services:

Administration Outsourcing refers to the market for services associated with the external sourcing of typical IT administration tasks such as hardware supply, setup, configuration, maintenance, security, and support.
Application Outsourcing refers to the market for all IT application services in a software production context, spanning from requirement assessments to concept and design of software applications.
Web Hosting includes all types of internet hosting services that allow companies or individuals to provide access to their web page via the World Wide Web.
Other IT Outsourcing refers to aggregated revenues of the types of IT outsourcing that are not specifically mentioned in the other IT Outsourcing markets, such as infrastructure outsourcing, network outsourcing, and managed services.

Additional Information:

The IT Outsourcing market comprises revenues, revenue change, average spend per employee, and revenues of the outsourcing types. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Accenture, Capgemini, NTT, and Hewlett Packard Enterprise.

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Market

Region

Region comparison

Currency

Analyst Opinion

Argentina, a country known for its tango, football, and beef, has been experiencing a steady growth in its IT outsourcing market.

Customer preferences: Argentinian IT companies have been successful in attracting clients from the United States and Europe due to their proficiency in English, cultural similarities, and time zone compatibility. Additionally, the country's highly skilled workforce and competitive pricing have also been attractive to foreign clients.

Trends in the market: One of the trends in the Argentinian IT outsourcing market is the increasing demand for software development services. This can be attributed to the country's growing start-up ecosystem and the need for digital transformation in traditional industries. Another trend is the shift towards cloud computing and artificial intelligence services, as companies seek to improve their efficiency and competitiveness.

Local special circumstances: Argentina's political and economic instability has been a challenge for the IT outsourcing industry. However, the country has been making efforts to attract foreign investment and improve its business environment. Additionally, the government has implemented policies to encourage the growth of the IT sector, such as tax incentives for software development companies.

Underlying macroeconomic factors: The devaluation of the Argentinian peso has made the country's IT outsourcing services more affordable for foreign clients, leading to an increase in demand. Additionally, the country's large pool of highly skilled IT professionals, many of whom have studied in top universities, has been a significant factor in the industry's growth. The government's efforts to improve the country's digital infrastructure and promote innovation have also been contributing factors.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.