“The software industry is the queen of the knowledge era”, likes to say the president of the chamber that brings together the IT services companies, Aníbal Carmona .
The “feudal lords” exporters that depend on this queen received the peso devaluation and the end of the FX market well but demanded the national government to control inflation so that does not vanish “benefits “generated by the new value of the dollar .
Exporting companies of this industry, which had then taken off from the 2002 devaluation, the exchange rate regime suffered with the government of former president Cristina Fernandez de Kirchner , a decline in the competitiveness of their services in foreign markets.
The stocks also affected the provision of computer and technological equipment , to provide services to their clients and the transfer of foreign currency and royalties to parent companies, in the case local subsidiaries of foreign multinationals.
Context
The sector of the software and IT services (SSI) in Argentina is composed of around 4,300 companies employing some 80,000 people , generate annual sales of more than 3 billion dollars and exports 900 million dollars.
USA stands out as the country that can earn income from abroad, with 50% of total exports SSI, according to data from the camera.
Then come Chile (9.4%), Europe (7.4%, except for Spain ) Mexico (7.3%), Uruguay (6%) Brazil (5.6%) and Peru (4.4%).
Between 2003 and 2014, latest data available on the camera, income from abroad in dollars grew at an average annual rate of 16.9% and rose nearly 35% in pesos during 2014.
In recent years, the custom software development said on average more than half of income from abroad (58.8% of total).
Return competitiveness?
“The export model of Argentina is a model of added value, and we do not compete for volume, but for added value. In some scenarios it were running expensive, compared to other countries “, he admitted to iProfesional Gustavo Guaragna , CEO of Snoop Consulting , a company with offices in Argentina and Chile, has 130 employees and 2014 revenues of 42 million pesos.
The exchange measures announced by the macrismo were not indifferent to these companies, but everything is not “rosy” .
“We return to a new and more normal market situation “admitted to iProfesional Alejandro Garcia (pictured, right), Director of Corporate Business Sofrecom Argentina , a subsidiary of a French multinational computer in turnover in 2015 the country about 358 million pesos.
For Garcia, this new change in the value of the peso would affect “positively” because it would become “more competitive internationally” in exports of services, which would benefit a “significant rise”.
However, he warned that there is a “strong exchange loss” for the debt in foreign currency held by foreign suppliers and the parent company in France as well as “ some uncertainty about how the market will Industry “.
“ need a little more clarity or wait some time settling of the situation and reviving the economy in general,” said Garcia, whose firm serves clients oil and gas, banking and finance, telecommunications, automotive and health.
Guaragna highlighted other benefits in order to exchange restrictions: “resource recovery” human .
“During the period in which there were two types of changes, many resources took the option freelancer way to work abroad. Thus they getting a difference in pay, charging in blue dollar. With the disappearance of two exchange rates, these human resources return to the market and the problem for the local industry is eliminated, “said CEO of Snoop Consulting, winner of the 2014 IDEA Award for” Business Excellence SME “.
From Latinvia , one of the main local players in the business of e-business products provided in the form of software as a service, its CEO, Diego Berardo (pictured, right), clarified to iProfesional devaluation “by itself does not generate us an impact in the medium term that can stand”.
However, he acknowledged that “what has indeed improved the operations of our company, our employees and business is simplifying the operative has been driven a few days ago “
Norberto Caniggia , president of C & Dev. S software engineering company, training and consulting company that employs 104 people and had a turnover of 45 million pesos, to iProfesional praised “all realities sincerity of whitening is positive because they avoid bureaucratic procedures and unclear or discretionary “.
So, the devaluation will allow them to develop “ more business abroad and expand our services to other countries in the region” in addition to Chile, the main market.
Clouds inflationary
This recovery of lost competitiveness, obtained thanks to the devaluation may darken if the rise in the cost of living eats those benefits.
“What we have to do at this point is that this does not become inflation. We hope that if there is inflation, we get a sustainable advantage in time “estimated Guaragna.
” We it is important that the change does not result in inflation in costs because the software services business make contracts to medium and long term “, said the CEO of Snoop Consulting (pictured, right).
It is also important that the software companies and computer services are conditioned by the low supply of human resources , which have their own sectoral inflation.
“ 80% of our cost structure are the wages , so we have to see how it fits elastically. We come from a period of cumulative inflation to very high levels, “said Guaragna.
Javier Porretti (pictured, right), commercial director at the local office of Softtek , the largest software company in Mexico and one of the largest exporters of computer services, coincided with this warning.
“To be competitive in Latin America must be a type appropriate change to the other countries. Colombia, Chile, Brazil and Mexico devalued over the past 12 months, all at levels that exceed 40% of Argentina and therefore only puts us almost on par, not at similar levels ” warned the executive of this company that provides targeted Aztec develop, maintain and optimize business applications through its more than 800 employees in the country services
To Porretti (pictured, right) will be key for the benefits of the devaluation will not evaporate” the real and objective measure of inflation , control of inflation for macro competitiveness not vanish, “and the” possibility of long-term contracts with adjustment factors that are predictable to all parties “.
Berardo, a historic leader of the CESSI, expected to exchange measures are supplemented by others to have” a predictability of costs and gains a clear perspective of evolution change, and predictability current and potential income based on the ability to unlock new projects are usually waiting for clarity of operation in different sectors of the economy. “
External support
From these exporters of IT services also claim the Government I support abroad to increase their business, plus some protection to local players.
Caniggia (pictured, right) noted, for example, to be” improve diplomatic support abroad and increase the percentage of contracts by the State to Argentine SMEs “
” It would take a ‘special eye’ to protect the SME segment, “said Guaragna .
“There is no doubt that all these measures will benefit large employers and importers but can be a major threat to smaller companies that are moving a large part of the economy, consume and pay taxes in Argentina. He considered that eventually appropriate to the sector specific measures required, “said
From Latinvia, Berardo, a historic leader of the CESSI, asked.” clear plan of export promotion and development investments ” in addition to “all measures aimed at simplifying the procedures required in the development of business,” key to define “how to advance the development of new projects and new businesses and markets.”

