Embajada de la República ArgentinaIrlanda

Welcome

Index

Introduction

Evolution of the ICT market in Argentina

ISS year to year Series & Characterization

Expectations for 2015

Regulatory Framework and Initiatives

IntroductionIn recent years, Argentina has made a significant and sustained development of its software industry and services.

Main features of the IT industry in Argentina

Highly qualified human resources. Academic excellence. English language skills. Innovation and creativity. Solid telecommunications and computing infrastructure. Competitive costs and prices. Increased entry into new foreign markets and increase in exports. Joint work between government, academia and the business sector. Strong domestic market recovery. Legal framework that encourages the development of the sector.

Evolution of the ICT market in Argentina ICT Market Evolution 2003 -2013 In USD Millions

Source: Source: Prince & Cooke - CICOMRA (National Chamber of Informatics and Communications of the Argentine Republic)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

5000

10000

15000

20000

25000

1614 2006 2610 3090 3852 4696 4612 5507 6842 7748 79293013

44405357

62137721

9360 88499989

12626

14901 15124

IT Market Telecommunication Market

Evolution of the ICT market in Argentina ICT Market Evolution 2003 -2013 In USD Millions

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

1000

2000

3000

4000

5000

6000

7000

8000

9000

559 870 1283 1516 1955 2372 2307 27113443 3633 3517

10551135

13271575

18972324 2306

2795

33994115 4412

Information Services & Software Hardware & Imputs

Source: Source: Prince & Cooke - CICOMRA (National Chamber of Informatics and Communications of the Argentine Republic)

The ISS Sector 2003-2014 SeriesYear-on-year sales evolution (in million of Pesos), revenue from abroad (in million of Pesos) and employment (in thousand of employees) for the ISS sector - 2003-2014 Series

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

5000

10000

15000

20000

25000

30000

0

10

20

30

40

50

60

70

80

90

510 647 722 923 1206 1594 2040 2594 3273 4217 546273522700 3292 3740 4626

55337380

830310337

12653

15424

1890925301

19.3

26.332.9

4045.9

52.955.9

60.164.3

69.573.5

77.4

Foreign Revenues Total Sales (Including Exports) Employment

The ISS Sector 2003-2014 SeriesYear-on-year sales evolution (in millions of USD), revenue from abroad (in millions of USD) and employment (in thousand of employees) of the SSI sector - 2003-2014 Series

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

500

1000

1500

2000

2500

3000

3500

4000

0

10

20

30

40

50

60

70

80

90

170 220 247 300 387 504 547 663 792 926 996 891916 1119 1279 15041776

2333 22262642

30633388 3447

3067

19.3

26.332.9

4045.9

52.955.9

60.164.3

69.573.5

77.4

Foreign Revenues Total Sales (Including Exports) Employment

Characterization of ISS sector Main customers per sector (vertical) based on their participation in salesAverage 2012-2014

Telecommunications 18.4%

Financial Services27.80%

Tourism0.40%

Education0.50%

Construction0.70%

Agribusiness1.20%

Transport & logistics3.30%Entertainment and media

3.50%

Public Administration4.10%

Energy5.10%

Health5.80%

Manufacturing Industry8.60%

Commerce9.70%

IT Services & Software10.90%

Characterization of ISS sector Main customers per sector (vertical) based on their participation in revenue from abroad Average 2012-2014

Telecommunications 10,8%

Financial Services23,1%

Tourism1,2%

Education0,6%

Construction0,5%Agribusiness

1,1%

Transport & logistics2,2%

Entertainment and media4,4%

Public Administration1,9%

Energy1,7%

Health4,6%

Manufacturing Industry11,3%

Commerce9,8%

IT Services & Software26,8%

Characterization of ISS sector Participation of different activities in revenue from abroad - average

2012-2014

Software development 58,8%

Others (training, outsourcing, etc.) 2,5%

Solutions as services2,8%

IT Support 7,0%

Sale of own products and related services; 20.9%

Sale of third-party products, and related services 5,6%

Resource provision for development (design, testing, etc.)

2,4%

Characterization of ISS sector

Canada 0,3%

EEUU 50%

Mexico 7,3%

Panama 0,4%

Colombia 1,4%

Ecuador 1,7%

Peru 4,4%

Bolivia 0,4%

Chile 9,4%

Others Latin America 3,3%

Spain 0,7%

Others Europe 7,4%

Asia 1,1%

Participation in revenue from abroad based on export destination - average 2012-2014

Venezuela 0,2%

Brazil 5,6%

Paraguay 0,6%

Uruguay 6%

Expectations for 2015

Sales, revenue from abroad, and employment

Total Sales Revenue from abroad Employment0%

5%

10%

15%

20%

25%

30%

35%29.70%

16.30%

11.60%

2015

Expectations for 2015Argentina IT, International Business Network

The Argentina IT network is a platform for internationalization which aims to facilitate the integration and consolidation of Argentine companies for software and services in the world's most attractive markets.

International offices:US, Colombia, Chile, Brazil, Mexico.

Expectations for 2015Enterprise Europe Network Argentina

Argentina has joined the EEN

Helps SMEs to fully take advantage of the opportunities offered by the European market. It works through local business organizations to provide: Internationalization servicesTechnology transfer Funding and access to fundsLegal advice and information services.

Expectations for 2015Enterprise Europe Network Argentina

Argentina has joined the EEN

The node will provide a range of services aimed primarily at SMEs and research, development and innovation (R + D + i) public and private:

Search for partners in business cooperation, technology transfer and international R + D + iInformation on National Intellectual Property RegimeInformation on industrial promotion schemesInformation on funding and access to fundsPromotion of seminars and workshops in different sectors

Argentina´s first activity of the EEN: "Prime brokerage event EEN Argentina ICT Sector on 24 and 25 June.

Expectations for 2015WebSummit 2015Start Ups Soponsored By The Embassy of the Argentine Republic in Ireland

Within four years Websummit has become one of the most influential events in technology internationally. This year The Embassy of the Argentine Republic in Ireland will sponsor 5 startups which will have the chance to show their products to a large number of potential customers and specialized investors.

Software industry promotionGOVERNING LEGAL

PROVISIONS:Law No. 26692 on the

promotion of the software industry (amending Law

No. 25922)

DESCRIPTION: The program aims to promote the

creation, design, development, production, implementation and fine-tuning of software systems developed

as well as their technical documentation, both in terms of basic

aspects and applications, and including the necessary development to integrate

it into different processors.

BENEFITS: Tax stability for all national taxes

during the term of the promotion (until December 31, 2019). Non-refundable

fiscal credit (except Income Tax) for up to 70% of employer’s social security contributions pertaining to the total payroll associated with the promoted activities. This credit may be offset

against national tax liabilities

Acknowledgment

Observatorio Permanente de la Industria del Software y Servicios Informáticos (OPSSI)

Permanent Observatory of the Software and Informatic Services. http://www.cessi.org.ar/opssi

Cámara de Empresas de Software y Servicios informáticos (CESSI) Chamber of Software and IT Services Companies. http://www.cessi.org.ar

Cámara de Informática y Comunicaciones de la República Argentina (CICOMRA) Chamber of IT and Communications http://www.cicomra.org.ar/

Infoleg http://www.infoleg.gov.ar/

La Subsecretaría de Desarrollo de Inversiones y Promoción Comercial The Undersecretariat for Investment Development and Trade Promotion http://www.inversiones.gov.ar/en/undersecretariat

Embajada de la República ArgentinaIrlanda

Thank you!