Argentina advances as an attractive market for “nearshore” hiring”

From the pandemic onwards, it became clearer than ever that a large part of the human resources that a company needs to be active can be obtained remotely. In fact, despite the careful return to in-person work, many job positions continue in home office mode. 

The disruption generated by COVID not only accelerated the digitalization of the economy at a local and international level, but also boosted the creation of new strategies to generate valuable assets at lower costs.

In some sectors, the traditional model of service contracting became a thing of the past. Today it is possible and increasingly frequent to contract services virtually, obtaining qualified resources at very accessible prices.

This is precisely what is called “nearshore,” a form of contracting that allows countries with strong economies to hire personnel in nearby countries, obtaining an exchange rate benefit that allows them to reduce costs.

This modality was previously occurring “offshore,” in countries outside the time zone like China or India which -despite being economical- present a language difficulty and an unfriendly time difference for countries like the United States, among others. 

Therefore, the shift to a “nearshore” modality prioritizes geographical proximity, within the same time zone if possible, and especially with cultural affinity. 

Software development is one of the most demanded sectors, and Argentina is competitive because “we have a body of very good quality developers and designers who are economically accessible. Also, due to a linguistic matter, there are many professionals who speak English fluently,” highlighted Agustin Nastasia, CEO of Grupo Vansur.

In summary, the nearshore strategy is based on the following benefits: 

• The country is located in the western hemisphere of the globe, so a short time difference is maintained with the client.
• Communication with workers can be in real time.
• The cost of services is considerably reduced for the client.
• Highly qualified human resources. 
• Greater linguistic and cultural affinity between the parties.

Another interesting aspect that this hiring model allows is the possibility of gaining scalability, giving companies the opportunity to grow and expand their offering without overwhelming their stable work team.

The formula yields benefits for both demand and supply. On the one hand, resource-providing companies are greatly benefited by accessing international markets, and on the other, those who contract services obtain more competitive conditions and greater profitability.

Did you know about this strategy? If you want more information, leave us your comment!