The software sector represents one of our greatest opportunities for Argentina to once again become a developing country. However, without a clear strategy, a competitive exchange rate, and active policies, we risk wasting this unique moment.
Today, the software industry can no longer be viewed as just another sector of the Argentine economy; it is essential to the productive infrastructure of this new century. The current economic opening, with its progress and ambiguities, presents a real opportunity to consolidate our sector. But this will only be possible if we stop treating software as an appendage of industrial policy and instead make it the cornerstone of our productive growth.
From my perspective, reaching a standard of living comparable to developed countries is feasible through the software industry. To achieve this, we need a strategic plan, sustained investment, a competitive exchange rate, and a State that reorganizes the value chain of our productive matrix. It’s not enough to mention “AI” in a business presentation and then ignore the sector outside the circles that drive the country, failing to make it part of the value chain.
Considering current national measures, I view the opening of imports positively, as a result of lifting restrictions and repealing the Import Statistics System (SEDI). Improvements in customs processes have streamlined operations, making it easier to import hardware, software licenses, and key technologies for various sectors. This is vital for an industry that competes in real time with markets like Bangalore, Lisbon, or São Paulo. However, we have yet to achieve full liberalization: implicit rules, slow customs permits, and certain arbitrary practices still distort the intended objectives of these policies.
Another crucial aspect of this new context is the relaxation of foreign exchange controls. This new regime allows for greater predictability in export projections, which is positive.
Companies no longer need to devise complex structures to repatriate foreign currency. However, it’s important to note that we remain expensive in an industry that competes globally. Today, the dollar cost of a software developer in Argentina is higher than in regional competitors like Colombia, Mexico, Chile, and even Brazil.
Therefore, although the intent is good, it must be accompanied by other variables that support the sector. As long as the exchange rate remains unfavorable in terms of costs, our industry will only be attractive for highly specialized projects or for companies that value capabilities beyond price, which will limit business volume. From my point of view, Argentina is expensive in dollars and suffers from a lack of investment. In such conditions, competing through innovation becomes difficult.
In line with this, and considering the growing global demand for software development services and innovative solutions (source with 2024 growth data and 2033 projections), I believe Argentina has the opportunity to position itself as a key supplier in the global market. However, we must reclaim the position we once held. In the 1990s, Argentina accounted for 0.4% of global software exports and led the “Global South.” Today, that position has been lost due to a lack of scale, appropriate policies, and long-term vision.
The global market continues to grow—from USD 179.5 billion in 2024 to more than USD 540 billion projected by 2033. However, software employment in the U.S. has dropped to its lowest level in five years, according to the U.S. Bureau of Labor Statistics. Additionally, the Pragmatic Engineer blog noted that major tech companies have been hiring fewer engineers since 2022. Therefore, Argentina must stop thinking about exporting only talent; we must export value, because the world is looking for solutions—not just labor. This requires a new way of competing.
There are examples in our country that prove this is possible. Companies like Ualá, Auth0 (acquired by Okta for over USD 6 billion), and Technisys (sold to Galileo/SoFi) show that Argentine software has global potential.
Thus, it is feasible to expect exports to grow—but not employment—unless deeper changes are made. The industry is growing at a slower rate than the number of graduates from tech-related degrees, which reflects a worrying disconnect.
To reverse this situation, I believe the State must take on a more active role: coordinating value chains, promoting tech parks, rewarding R&D investment, and offering incentives aligned with performance and value creation. With well-aligned policies and measures, we could see ten new Mercado Libres in the next twenty years.
In conclusion, Argentina has a unique opportunity, but if we want the Argentine software industry to become our 21st-century flagship industry, we need more than economic liberalization: we need a strategic plan and a State policy that recognizes talent as an industrial resource. Argentina can become a global software powerhouse—if we decide to take the reins.
Trends – Statistical Data
- In 2023, Argentina’s total exports reached approximately USD 66.788 billion, with the Software and IT Services (SSI) sector contributing around USD 2.445 billion—roughly 3.7% of total exports.
- While software exports have grown significantly over the past two decades—multiplying by 16 since 2003—their share in the global market has declined, from 0.7% in 2011 to 0.25% in 2023.
- In contrast, exports of primary products and agricultural manufactures—such as soybeans, corn, and wheat—continue to dominate Argentina’s export basket, representing a significant share of total exports.
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