4 Reasons Why Financial Outsourcing Is Booming in Argentina
As more and more national economies throughout Latin America continue to strengthen, so does the amount of economic diversity. In many situations, a plethora of new white-collar occupations has appeared over the last five years that were all too scarce in the decades preceding. Ultimately, this growth is being fueled disproportionately by a selection of industries and sectors.
Financial services and the occupations that follow it are appearing more and more throughout Argentina. Once considered a risky proposition, more businesses large and small are finding that their financial service needs can be fulfilled in Argentina – for less cost and comparable quality. Here are four reasons why financial outsourcing specifically is booming in Argentina.
A Fortune 500 Presence
Most new industries – let alone thriving ones – don’t magically appear overnight. One aspect fueling the growth of financial services in Argentina is an increased presence of large, multinational financial entities.
Over the past few years, companies such as Chevron, CitiGroup and JPMorgan Chase have all shifted a variety of jobs from other countries to Argentina. This has helped further grow a base of people with master of financial economics degrees, extensive backgrounds in the world of finance, and a professional finance class that did not exist prior.
New Leadership
Many countries experience changes in economic confidence when new leadership is elected. In Argentina, the most recent presidential election has inspired confidence in businesses and markets. It has also encouraged a variety of investors and financial institutions to reconsider investments in Argentina that would not have previously occurred.
While unemployment and inflation alike remain problems, more businesses with an international clientele relocating to the country has created a rather large number of new jobs in financial services and beyond that are less vulnerable to national economic conditions.
Economic Policy Focused on Tech
Both the new president and various governors/mayors have taken it upon themselves to attract businesses from the global tech community. In Buenos Aires, the current president (then mayor) created technology districts that provided 10-year tax breaks to any innovative companies who relocated.
While tech and finance may seemingly exist separately, one is rarely found without the other in close proximity. Namely, financial outsourcing tends to occur only after cities and countries have built a formidable tech presence. Argentina’s progress on this front has helped pave the way for financial outsourcing.
Cost of Living
For many businesses and individuals working in the finance sector, Argentina provides great value in a low cost of living. Everything, from employees and property to utilities and tax rates often cost much less than in traditional financial capitals. This provides plenty of motivation for financial institutions seeking to outsource a variety of well-paying, stable jobs (looking for an online MFE program to enhance your earning potential? Click here).
After decades of struggle, Argentina’s economy is beginning to show signs of strength. Ultimately, big financial institutions and a variety of other industries outsourcing jobs to the country speaks volumes about its ability to compete in the global economy. This should encourage businesses across all sectors to give Argentina a second look when considering potential future expansion projects and relocations.
