Written by Mario Agüero|Posted on August 24, 2023
What’s the history in a nutshell?
Up until 2001, the Argentine currency was valued at 1:1 to the US dollar. However, in 2001 the Argentine government defaulted on their debts, sending the country into economic collapse. Their currency finally stabilized at a ratio of 15:1 where it sits today.
A lot. In order to spur economic growth in the aftermath of the crisis, the government offered major tax incentives to businesses and universities to increase the exportation of IT development services to countries like the US, who have the technological demand and the funds to purchase it. Their goal was to double their IT engineer graduates by the year 2020 in order to generate enough labor supply to have an economic impact.
They also began to require English and other foreign languages to be included as a part of the core curriculum and a requirement for graduation from these programs.
This way their labor supply would be fluent in the native languages of the countries that they wished to export to.
Wow. Anything else?
Yes. The cost of living in Argentina, particularly Buenos Aires, is quite high. It is estimated that over 70% of the students have to work while they are studying and, as a result, getting a university degree takes longer (6-10 years). In order to support themselves during these years, many of them go to work for the major IT companies in Argentina, such as Globant, where they receive excellent on-the-job work training and experience. Working full-time while also going to school takes some great compromises that lead to a strong work ethic.
Buenos Aires, Argentina