martes, 10 de mayo de 2016

Successful Tech Hubs: Buenos Aires



Successful Tech Hubs:
Buenos Aires

Buenos Aires[1] is the capital of the Southernmost country in the world, Argentina, home to over 5 million inhabitants and defines itself as a multicultural city. Migration though has been from different places of Europe (mainly Southern Europe, but also Northern and Eastern Europe), from Latin-America (mainly Bolivia, Peru and Paraguay), and some from Asia (South Korea a good example). It is referred to as the “Paris of South America”, it’s design and architecture was done by the French in it’s conception. In those days, Argentina was amongst the top 10 richest countries in the world (measured in GDP x capita), and French was the 2nd language (popular amongst the rich, who would travel to Europe for leisure and to buy the best clothes and perfume). Spanish is the main language, but influenced also by Italian (so much so that the language in Buenos Aires is a Spanish with Italian accent). This is not so for the rest of the country, mainly influenced only by Spain. With a world class health system and strong educational system (especially at public university level), Argentina is the best place to live… in Latin-America. A city known for it’s artistic creativity, it has been house to great writers, musicians, artists and designers. It’s movie industry has blossomed over the last 15 years, the movie “The Secret in Their Eyes”[2] being awarded the Oscar for Best Foreign Language Film in 2009.
Buenos Aires is the leader in the tech field in the Latin-American region, having produced 4 out of 5 top players in the industry. Examples are Mercado Libre, Despegar, Three Melons and Globant. Globant[3] is the country’s flagship and leader in Software, a company founded by 4 argentines that has expanded to 8 countries and has today a workforce of 4300 workers. It’s main focus is Innovation, and it offers a free day to the employees to work on their own innovative project, in the same fashion as Google. Taking advantage of their highly educated and English speaking work force, the number of jobs in the tech field has increased from 20.000 to 80.000 in the last 13 years, with an average growth of 10% a year. Exports are growing at 20% per year, US being the main customer, other markets including Latin-America, UK and Spain. Services include Software Development, IT Services, Financial Services and Commerce. For a country of 43 million people, results are impressive considering competition from a giant like Brazil. As in the case of Spain, lower cost (but not nearly as low as Asia, more like Spain), a highly skilled labor force and more value added make it an attractive destination for international IT business. The talent does not only have good technical competences, but also a resourcefulness that comes from facing cycles of economic booms and busts.
Buenos Aires offers the most solid ecosystem in the region, and most mature Start-Up culture. Following the example of Hong Kong and Singapore, Palermo Valley[4] is a Tech Hub which has effectively helped startup entrepreneurs develop, incubate and launch their product. It seeks to gather and impulse the entrepreneurship and web-developer Network in Argentina, through events, travel, diffusion and other activities. The Technological District Parque Patricios[5] offers tax breaks and office space, very close to the city’s Financial District. And Start Up Buenos Aires[6] offers a place to Network with likeminded people.
Not being a big market, it is a great place to test your product and go for bigger markets in the region (Brasil being the most attractive, house to 200 million inhabitants and destination to 50% of the country’s exports). Some of the challenges involve an unstable economy, corruption, unclear and ever changing “rules of the game”, difficulties in attracting Venture Capitalists and not so well known outside it’s main market countries. If you dare to ride this wave, and survive, you will be ready to CONQUER. That, I promise you!!!   







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