Article on Argentine Outsourcing

[soulskier]

Here's a good post on the outsourcing of work from Argentina.

 

[citygirl]

It's a good article but does gloss over some of the negatives that international businesses face here.

The company that I work for has identified Buenos Aires as one of our global hubs for outsourcing and we recently started a subsidiary company here. The reasons are similar to what the article talks about - availability of workers, highly-educated workforce, bi-lingual, time zones (aka near-shore vs off-shore).

However, the article doesn't discuss the challenges of operating a business here.
The paperwork is a nightmare. Incorporations, filings, all of the paperwork that needs to be filed, amended, changed, etc. It takes A LOT of time and time is money.
The cost savings in headcount isn't as substantial as you might think. Salaries may be low but taxes are HIGH (assuming you do everything en blanco which we do).
Laws are very employee-friendly (aka - if someone wants to quit, as an employer, you're going to pay and pay and pay).
The work calendar is not exactly similar to the US (try getting your employees here in to work at 8 a.m., there are 2 weeks of vacation plus 10+ study days, plus however many holidays - think it's around 15 a year)
The gov't isn't exactly stable.
You have to be willing to risk having funds in the Argentine banking system

I don't disagree that Argentina has a lot of benefits but it's not something I would necessarily say is a slam dunk when it comes to outsourcing.

 

[Denver]

There must be two Argentinas. The one described in the article and the one I live in.

Neil

 

[SaraSara]

Argentina's labor laws are nothing compared to those of Uruguay. I have a summer place in Colonia, and the laws there are positively draconian. I have to pay my caretakers "aguinaldo", plus a whole month's paid vacation per year, PLUS an additional month's salary to have money to go on vacation with.

That article sounds like something straight from International Living's Misinformation Desk. For instance: "...an estimated 70 percent of Argentines have European passports" must refer to Argentines living in Recoleta and Palermo neighborhoods.

Sara

 

[Napoleon]

Argentina's labor laws are nothing compared to those of Uruguay. I have a summer place in Colonia, and the laws there are positively draconian...

Sara

Sara,

If Uruguay's laws are anything like their filing systems, I can totally believe it. These two photo are taken through the window of a government building in Colonia. This is what passes for "record keeping".

Literally a shot of the basement that's visible from the street:

And a close up. I'm not sure exactly what letter/number the files dumped on top are "filed under".

 

[sergio]

Sounds like a dreamy place. And to think that Argentina was an "affluent" country until 2001! How did I ever miss that?

 

[citygirl]

Wow Sara - that is worse (who knew it was possible!)

All I have to pay them for is their 13th month of salary, their 10 "study days" (for the ones still in school), their 13 holidays, their 15 days of vacation and 100% of their health insurance plus provide charter service from Capital for those that want it. It's a bargain

 

[CoachGayle]

Gee, Napoleon, I could swear that photo was taken at the Registro Civil office here in San Nicolas. . . wait, they use SHOE BOXES. I kid you not!!

Btw, my Argentine husband says the Registro Civil is just one example of how this is still a "police state." That made the disorganization and inefficiency suddenly delightfully welcome. . . Positive spin!

 

[SaraSara]

Forgot to say I also must pay my caretakers' health insurance and retirement contributions, plus about twenty holidays per year, and give them a house with all utilities paid.

In return, if I'm very lucky, they will put in twenty hours' work per week. The rest of the time is spent texting on their cell phones (provided by me), sipping mate in their galeria, taking care of their poultry, or simply staring at the horizon. Hard workers they are not - but they are polite and don't get drunk often - I've been told I should be grateful for that...;-)

 

[Vikingo]

Laws are very employee-friendly (aka - if someone wants to quit, as an employer, you're going to pay and pay and pay).quote]

What???????????? In comparison to what country?? Brazil has a month vacation, France has 6 hours working day, Germany has the highest salary per hour in the world, the minimum salary in the US is much higher that Argentina even comparing their cost of living.

Plus, corporations here evade capital gain taxes (they should pay 35%) and don´t pay taxes to dividends.

if someone wants to quit?? You don´t have to pay anything as an employer!! You only have to pay if you fire an employee without cause.

Would you be so kind as to explain why Argentine laws are employee-friendly??