Argentina: software and computer services sector shows exports record

17, May

The software and computer services industry (SSI) continues to grow in Argentina, showing a 28.3% revenues growth ...

The software and computer services industry (SSI) continues to grow in Argentina, showing a 28.3% revenues growth in 2017.

In addition, according to the Permanent Observatory of the Software and Computer Services Industry (OPSSI) of CESSI, there was a 26.5% increase in dollars revenue for exportations.

The software industry generated revenues for ARS 64,494 million, showing records in exportations mostly focused in the United States, followed by Latin America.

The report surveys 153 companies located in the metropolitan area of Buenos Aires (61%), Santa Fe (12%) and Cordoba (11%); as well as Buenos Aires province, Cuyo, NOA, Patagonia and NEA. The report also considers data from INDEC and the Ministry of Labour.

The growth of the SSI industry has been constant in 10 years. Between 2006 and 2015, the number of companies in the industry grew nearly 50%. The largest leap was registered between 2006 and 2010, when the annual growth rate was around 6.5%; as regards the period that goes from 2011 to 2015, the annual growth rate was around 2.8%.

“As regards revenues for sales, the 28.3% increase in ARS can be explained by inflation and price increases, which reached 24.8% in 2017, according to INDEC”, points out the report.

During that same year, revenues in USD for exports showed a 26.5% increase, reaching a historical peak of nearly USD 1,700 million.

Customized software development, and sales of products –plus the implementation and integration linked to such products-, stand for 65% of the industry’s sales during the last two years.

Financial services (including banks, insurance companies, electronic payment services, etc.) are the industry’s main customers. They represent one third of SSI companies’ revenues for the last two years. They are followed by telecommunications companies (16%), the SSI industry (10%), and commerce (9%).

During the last decade, products and services exports experience an average 8.5% annual growth. The United States stands for 48.6% of foreign turnovers, followed by Uruguay (10.2%), Chile (7.8%) and Mexico (7.3%).

Employment grew 42.2% between 2008 and 2017, at an annual accumulative rate of 4%. In addition, there was an annual increase of 3.5% in 2017, without including data from the fourth quarter, which have not been published yet. Last year, the industry employed over 107,000 people, including informal workers, which account for one out of nine in the sector.

“The high demand of qualified staff persists, which shows the growth potential that certain companies in the industry still have. Actually, the industry shall have a demand of 13,000 new workers during 2018”, concludes the report.