India vs Argentina as Global Outsourcing Destinations
|
Code :ITF0014
|
Region : :India Argentina |
||||
 |
 |
 |
 OR |
||
|
Introduction: During 2003-2004,Argentina emerged as a challenger to Indian IT firms in the outsourcing market, and Buenos Aires began to compete with Bangalore for the ‘most preferred outsourcing destination’ tag. One major reason was the collapse ofArgentina’s currency in January 2002 (Exhibit I), which resulted in a steep decline in the real time software programming wages. By 2003, on an average, software programming wages in Argentina had declined to about $11 an hour, 15%8 lower than those in India. In 2003, Argentina’s IT outsourcing business was one of the fastest growing industries in LatinAmerica with revenues of $132million9with an expected annual growth rate of 28%10 Argentina’s attractiveness as an outsourcing destination was reinforced when Tata Consultancy Services (TCS), India’s largest software exporter, formed a joint venture with Datco, an IT firm-based at BuenosAires, to serve global clients from2004. However, India’s IT industry was more mature thanArgentina’s, having witnessed tremendous growth since the early 1990s and reaching revenues of $12.5 billion11 in 2003-2004.... |
|
| For Case Books
Click Here >> For Case eBooks Click Here >> |
|
