Nearshore Americas
Argentina Argentina's software development

Short of Dollars, Argentina’s Government Seeks to Build its Own Software Firm

Argentina’s government plans to launch its own software company in order to reduce its dependence on foreign IT service providers who want to be paid in US dollars.

The proposed software company will have an operating model similar to Arsat (a state-owned telecom firm), according to the country’s Knowledge Economy Minister, Ariel Sujarchuk.

The aim is to procure the IT solutions that the public sector needs to improve its operations, Sujarchuk added.

The state-run company will leverage the expertise of domestic IT suppliers, especially small and medium-sized ones, and enable them to bid for the provision of services to government agencies.

In the offing there’s also a plan to promote domestic IT companies by taking them on trade missions and helping them organize trade shows and exhibitions abroad.

However, starting a software company will require amendments to existing laws.

Most IT solution providers for Argentina’s government firms are based outside the country and refuse to be paid in local currency (the Argentinean peso), which has seen its value eroded tremendously by sky-high inflation.

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Argentina’s software export services are expected to reach US$9 billion in 2023, with the United States being the main export market.

The South American country embarked on a mega initiative called ‘Industry 4.0’ aiming to boost its tech talent pool. According to recent reports, as many as 235,000 students are undergoing skill training across the country.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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