As globalization and digitization continue to redefine our world, companies worldwide can now easily tap into the potential of global talent, including the rich pool of South American professionals.
One country that stands out in this global trend is Argentina. The 2023 Deel "State of Global Hiring" report ranks Argentina as the regional leader, with the highest number of employees hired by foreign companies. This surge in offshore hiring raises questions about the future of employment patterns in major business hubs like the US and Europe, especially in the accounting and finance sector in which Argentina seems to be thriving.
Beyond IT: Exploring Financial Sectors
While the IT sector continues to stand out as the main international employer for south american contractors, there is a notable shift in employment trends that is going beyond the IT industry. Foreign companies are outsourcing a diverse range of jobs from Argentina, expanding into sectors like education, financial services, and real estate. Unsurprisingly, the finance sector is one of the most prominent in this wave, with roles such as Financial Analysts and global accountants being in high demand.
Demographics and Preferences of Argentine Professionals
Most professionals hired remotely from Argentina belong to the Millennial and Gen Z demographics. Over half of these offshore workers are between 25 and 34, with nearly 30% under 44. This trend indicates that younger professionals are leaning more towards flexible work arrangements. Interestingly, a significant proportion of hired Argentine professionals (27% as of December 2022) opt to receive part of their fees in cryptocurrencies, marking a clear adaptation to global financial trends.
But Why Argentina Is the Top Choice for Offshore Hiring?
1. Cost-effective Prospects
The country's currency competitiveness plays a pivotal role. Paying in dollars or other stable currencies is an effective strategy to attract talent while also counteracting local inflation, benefiting foreign employers.
2. Good conditions for remote work
The infrastructure and digital access in Argentina provide the necessary conditions for remote work, with more than 90% of the population having internet access. Moreover, Argentina ranks first in Latin America for English proficiency according to the EF English Proficiency Index, making it an attractive hiring choice for international firms.
3. Quality of Talent and Education
The quality of Argentine talent is another strong draw for foreign companies, especially within the finance sector. Approximately 40% of Argentines aged between 25 and 34 hold a tertiary degree. This statistic reveals a highly educated workforce, making Argentina a pool of qualified professionals, including global accountants.
4. Similar Time Zone
Argentina's time zone compatibility with the US and Europe allows synchronous work, which is particularly beneficial in accounting and finance roles that often require real-time collaboration.
North America and Europe: Main Hirers of Argentine Talent
North America and Europe hold a significant position in the global hiring landscape, specifically in the remote work sector. According to an internal survey conducted by Payoneer, a global platform that streamlines global commerce for millions of small businesses, freelancers, and financial service providers, these two regions are at the forefront of hiring international freelancers and contractors, including from Argentina.
The data suggests that 63% of the total demand for global offshore talent comes from these regions. This can be attributed to various factors including their strong economies, expansive corporate sectors, and a need for diverse and multilingual talent to cater to their multicultural consumer bases.
The prominence of English as a business language also plays a significant role. With Argentina ranking first in Latin America in English proficiency, it is no surprise that North America and Europe are the main hirers of Argentine professionals. This language proficiency facilitates smoother communication, better collaboration, and more efficient work processes, reducing the potential barriers that could arise from language differences.
The Future of Work: More Remote Positions
As remote work becomes more commonplace, Argentina's role as a major hub for remote hiring is set to grow. In a context where 16% of the global workforce already works remotely, it is likely that more Argentinians will transition from traditional employment to remote roles for foreign companies, changing the face of work not only locally but also globally.
The rise of offshore accounting hiring in Argentina, and generally in the finance sector, is indicative of a larger global trend. As the world continues to become more interconnected, companies can tap into the talent pool of different regions, further blurring geographical boundaries.
For Argentine professionals, this shift represents an opportunity to engage in stimulating work with foreign companies while enjoying the flexibility and financial benefits of remote work. As Argentina continues to lead in remote hiring, it will serve as an interesting case study for other countries navigating the changing landscape of work in the digital age. The future of work has already arrived, and it is excitingly remote.
Kevin Mitchell, CPA
Senior Manager and CPA with over 20 years of experience in accounting and financial services, specializing in risk management and regulatory compliance. Skilled in managing audits and leading teams to deliver exceptional services. Proud father of two.
References:
Contrataciones remotas: Argentina primera de la región en cantidad de freelancers y contractors. (2022, May 1). HeyAtlas. https://www.heyatlas.com/post/contrataciones-remotas-argentina-primera-de-la-region-en-cantidad-de-freelancers-y-contractors
