What does it take for Argentina to triple its exports?

The National exports of the software industry in Argentina have increased 16 times in the last 20 years, going from US$150 million in 2003, to a little more than US$2.4 billion in 2023This rapid improvement increased the sector’s share in the country’s total export basket.

Argentina can propose today that a much broader universe of companies software and computer Services are inserted internationally in high value-added segments, boosting talent-intensive exports in the medium term, according to documents published by Found.

This development It requires the study of the structure of the sector, knowledge of the relationships between the parts that constitute it, understanding the heterogeneous business community in the sector, and the review and redesign of the sector policy, in order to rethinking the current promotion regime in reducing the operating costs of firms.

How has the software sector evolved in Argentina?

In the evolution from the sector of world softwareArgentina is uncoupled at the pace of global growth, with a gap of almost 10%due to a combination of phenomena linked to the situation of the sector in the country and the competition that it integrates in the intermediate segment, which includes 38 countries.

The market share that our country can compete for has become smallerwhich represents a challenge for international insertion in this sector. However, it presented a great evolution In the period of these last two decades in the employmentthe sales and the exports of this industry.

image.png

Between 2003 and 2023 the number of registered jobs HE increased 5.5 times and rose from 26,000 to 140,000, surpassing the levels of sectors such as the automotive industry, and activities such as oil and mining. As for the salesalthough a drop was recorded in 2022, it continues to maintain historically high levels With almost $1.2 billion in that year representing 0.65% of total sales made in Argentina.

Proposals for future software development

The country has comparative advantages, where developing a software brand can help global market players understand the qualities that distinguish our country from others in the Global South, which would help start-ups gain market share.

Founding determines four aspects to think about the development of this industry in the country:

1. Improve conditionalities: that the permanence of the beneficiary companies is subject to the achievement of objectives and especially for those that have presence in multiple countries and raise large capital investments.
2. Scope of benefits of the regime: aimed at smaller companies and companies focused on developing products for dynamic export sectors. The most likely path is the development of software products for sectors where Argentina is already highly competitive and that this serves as a testing ground for clients before going out into the world.
3. Co-investment mechanisms: together with the creation of funds and the benefit that the regime has for greater involvement of private individuals who know the sector and the opportunities that companies have.
4. Redesign of the regime: It must be accompanied by appropriate transparency mechanisms that provide information on its coverage, its operation and its results.

The importance of rethinking the promotion regime is complemented by modifying and implement measures that complement itsuch as financing companies with high uncertainty and potential, knowledge of target markets and potential international clients, increased integration with the national production structure and the promotion of trained teams.