Argentine Chamber of Software and IT Services Companies (CESSI) reported that 85 percent of companies in Argentina plan to invest in ICT for the following reasons:

• Current systems need upgrades
• Increased complexity and convergence of technologies
• Increased demand for cyber security platforms
• Only 20 percent of companies are content with their online presence

Sub-Sector Best Prospects

Telecom Infrastructure

In the telecom sector, investments focus on four areas: deployment and enhancement of the 4G+LTE network; expansion of broadband Internet access; expansion of data transmission/broadband and content over cellular networks; and satellite services (for remote and rural areas of the country). Even though the Argentine regulator, ENACOM, recently announced 5G band allocation, 5G deployment remains a mid-term reality in Argentina, given the current status of the fiber optic network required for 5G operational implementation. The current fiber optic network covers more than 33,000 km with 85 percent of the fiber “lit” (active), but many localities are still in the dark and Internet speed is 15 percent lower than regional peers. The Federal Internet Plan network will use state-owned telecommunications and satellite company ARSAT’s fiber optic network as a provider of data transport services at a wholesale level and offer access to local internet service providers, co-ops, municipalities, and SMEs. The Argentine government is implementing a “cloud first” policy by investing in and developing a robust national datacenter at ARSAT.

IT Services

IT Services offer opportunities for U.S. companies in network implementation, management and maintenance, legacy applications, RTE (real-time infrastructure) implementation, remote operation processing, back-up, critical mission services, disaster recovery systems, Internet and network security systems, digital asset management, storage, utility computing, and information systems for rural areas. Cloud computing and virtualization-related services will continue to have high demand in 2023. The outsourcing of software development and call/contact centers continues to see new investments, exports, and increased sales in the domestic market. Other market conditions will foster growth in IT services, such as the increased use of online platforms for sectors such as banking, e-commerce, and government, have increased awareness related to information technology security. A noteworthy factor of which IT service companies should be mindful is that the Argentine Central Bank restricts access to FX markets to pay for imported services. U.S. companies should ensure appropriate communication and planning with their local partner or client.

Cybersecurity

Argentine companies invested more than $60 million in cybersecurity in 2021, which represents a 10 percent annual increase. Additionally, 85 percent of Argentine companies plan to invest in cybersecurity over the next four years. Despite the recent growth of the local cybersecurity market, this is just the initial stage of maturity. In general terms, cybersecurity technology adoption is between two to three years behind more mature markets. Some of the leading sectors for cybersecurity investment in Argentina include banking, energy (oil & gas), telecommunications, manufacturing, retail, and very recently the public sector.

Opportunities

The Argentine government will continue investing in infrastructure and improving the country’s long delayed implementation of FTTH (Fiber to the Home). The state-owned company, ARSAT, continues to connect over 1,200 towns in the country with their main fiber network, with an estimated investment of $80 million in the next 18 months.

According to the Argentine Investment Agency, the expansion of cell and broadband Internet coverage in Argentina represents an investment opportunity of $5 billion. Mobile phone penetration is high, but coverage is not uniform across the country and is often poor due to insufficient cell tower coverage, (15,000 active cell sites).

Web Resources                                                                                                  

Argentine Chamber of Software and IT Services Companies (CESSI) (Spanish)

For additional information, including market analysis, trade events, contacts, and the products and services that the U.S. Commercial Service can provide to help you succeed in the Argentine market, please contact ICT Industry Specialist Marina Millet.