Recruitment flyer for IBM Argentina; IT demand outweighs the supply of candidates in Buenos Aires.

Recruitment flyer for IBM Argentina; IT demand outweighs the supply of candidates in Buenos Aires.

Representatives of two of the biggest players in the Buenos Aires IT space made back-to-back appearances on the BA business radio program Efecto Mariposa (Butterfly Effect) today and shared valuable insight on the advantages and challenges to sustained sector growth in Argentina. IBM Argentina’s Director of Marketing, Communications & Community Relations, Ignacio Vaca de Osma, said the English accent spoken here and the time zone overlap with the U.S. were two local advantages of doing business in BA. In terms of challenges, he emphasized the need to re-evaluate and accelerate the traditional Argentine six-year university programs. BA students would be much more inclined to choose an IT career if they could finish in three years and start working for a first-class company like IBM immediately upon graduation. Carlos Stella, Human Resources Director for Tata Consultancy Services in Latin America, agreed with the need for curriculum tweaking, emphasizing the need for intensive English language and cultural integration training, considering many local IT employees have supervisors in foreign countries. Tata currently has 240 employees working in the new Parque Patricios Tech District and plans to have 1,400 by year-end. Argentines make up roughly 90% of Tata’s current workforce with employees from India filling out the ranks. Both representatives felt greater emphasis needs to be placed on promoting IT careers if the country is going to keep pace with the global demand. As Vaca de Osma summed it up, “this is an historic opportunity to generate value-added services for the world.”

Rooftop view from a 3-room apartment in Parque Patricios currently listed at $63,500.

Emerging: Rooftop view from a 3-room apartment in Parque Patricios currently listed at $63,500.

When looking for residential real estate opportunities, many porteños and foreign investors have historically focused on three of the wealthiest and most densely-populated neighborhoods in Buenos Aires: Belgrano, Palermo and Barrio Norte. And while outside interest and new project development in these three barrios continues unabated, local studies suggest some smaller, grittier neighborhoods are emerging as potentially more attractive investment alternatives. CIBA, the Real Estate Chamber of Buenos Aires Province, reports that three BA barrios—once considered only marginal—are actually offering better returns for some real estate investors. In calculating ROI, the study focused on the ratio of average annual rental income (that a buyer could anticipate) to average purchase price for an existing three-room property in good condition. Based on this criteria, the Top 3 neighborhoods in Capital Federal were Parque Patricios (6.10%), La Boca (5.95%) and Congreso (5.93%). The numbers highlight the affordability of units in these lesser-known areas according to local broker Luis Ramos of L.J. Ramos: “Today, in general, it’s more convenient to purchase real estate located in areas that aren’t so coveted, because the rental rate differential isn’t so great to make you think you could make significantly more income in one neighborhood over another.” In addition to offering the greatest ROI in this study, the Parque Patricios neighborhood is home to the City of Buenos Aires Technology District which seeks to create 30,000 new jobs by 2012. For more information about investment opportunities in these and other Buenos Aires neighborhoods, send your inquiry to in@investba.com.

Young Argentines working in one of the offices in the Buenos Aires Tech District.

Young Argentines working in one of the offices in the new Buenos Aires Tech District.

WiFi connectivity, generous tax breaks, grants to cover the cost of quality certification, preferred lines of credit at local banks, and a government-sponsored training program to groom future talent. It may sound like a Christmas wish list, but it’s an emerging high tech reality in the Parque Patricios neighborhood thanks to the City of Buenos Aires. And according to Cronista, the list of goodies is attracting large multinationals and small start-ups alike. Iron Mountain and Clarín Global have both reserved office space, while India’s Tata Consultancy Services announced a new Global Delivery Center back in September. Cronista says small and medium-sized businesses (in Argentina, PYMEs or Pequeñas y Medianas Empresas) make up the majority of Argentina’s 1,600 tech companies, and 70% of those companies are located in Buenos Aires. Carlos Pirovano, Subsecretary of Investment for the City, says the number of companies working in the Distrito Tecnologico will more than double in 2010 to 50 with over 10,000 employees, so the City is investing in everything from a new fiber optic network to new subway stations to accommodate the growing talent pool. Another important development will be the launch of the Metropolitan Tech Center, an initiative to connect with secondary school students and groom the next generation of IT talent here in BA. (Full Cronista article).

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