Don’t overlook Argentina when considering offshoring destinations
When accounting professionals hear the term “offshoring,” India frequently comes to mind. Or perhaps the Philippines or Mexico. But Argentina is quickly becoming a promising offshoring destination, not just for the accounting industry, but for technology and other back-office services. I’m optimistic about Argentina because it offers several benefits that neither India nor the Philippines can provide — and I’m not just talking about world-class soccer talent.
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For starters, Argentina has a large pool of well-qualified accounting professionals. Being an accountant is considered one of the most prestigious professions in the country. Many students study accounting in college there because of career opportunities and stability in a generally fragile economy. There are approximately
Time zone alignment: Argentina’s time zone is similar to the U.S. and Canada, not half a day ahead as it is in India, the Philippines and other Asian countries. This makes it easier for your offshore team to work with your U.S. team during your normal hours and to attract top talent. Granted, you can find plenty of people in India and The Philippines willing to work overnight (i.e., U.S daytime hours), but they’re often just starting their careers or not highly in demand.
High retention rates: As mentioned in an
Cultural similarities with the U.S. and Canada: The work habits, communication styles and general attitudes of Argentinian professionals are closer to their North American colleagues than Indian or Filipino workers. For instance, Argentinians take deadlines just as seriously as we do in the U.S. and Canada. By contrast, workers tend to be more relaxed about deadlines in other offshore destinations. Also, Argentinian workers are not afraid to ask questions if they don’t understand something — a sharp contrast with offshore workers in Asian countries. Also, since Argentina is a primarily Christian country, it observes many of the same holidays observed in the U.S. and Canada. This makes scheduling less complicated than in other offshore locations. These small cultural nuances can add up over time, making a significant difference in day-to-day operations and collaboration.
Great bookkeeping talent: In Argentina, only certified accountants are allowed to provide bookkeeping services. This means you naturally get someone with significant experience and skill handling your bookkeeping needs without paying more in salaries and benefits (see below). This ensures higher quality results and less re-work.
Cost savings: Argentinian workers generally cost more than comparable talent in India and the Philippines, but they’re still 30% to 40% less expensive than their counterparts in the U.S. However, most U.S. firms feel the premium is worth it thanks to time-zone convenience, cultural similarities and lower turnover.
Real-world example
A small Canadian accounting firm I work with needed to add a bookkeeper. When I suggested looking to India or the Philippines, the leaders were initially unsure how clients would react due to the stigma associated with moderately trained, hard to understand customer service call centers in those countries. They really wanted a bookkeeper who could speak directly with their clients, not just crunch the numbers, and do so during normal hours. Thanks to the time zone convenience, Argentina was much more appealing to them, and the bookkeeper they ultimately hired worked out terrifically. He was working directly with their clients in a matter of months — not the typical two year ramp up period — and getting favorable reviews from clients. I also work with a top 25 CPA firm and a private equity firm that already have offshore operations in India but are looking to have 20% of their total offshore staff in Latin America by year-end.
Challenges of offshoring to Argentina
Of course, no offshore location is perfect and there is no single best country for every U.S. accounting firm’s needs. Like the Philippines, Argentina also has a less diverse accounting talent pool than India. While Argentina has strong bookkeeping talent and excellent junior talent for both tax and audit, the availability of experienced professionals in these areas is limited.
If you are looking to build a tax and audit team, you should be prepared to invest substantially in training junior talent for your specific processes. If your goal is to find a team that can start delivering from day one, Argentina may not be the best fit. However, if you are willing to invest in the development of young talent, Argentina offers the potential for a loyal workforce that will stay with your firm for years to come.
Untested offshoring destination
Argentina is still an emerging offshoring destination, which means there is a certain level of uncertainty and risk if you decide to operate there. Unlike India and the Philippines, which have well established offshoring ecosystems with U.S. firms operating there, Argentina is in the early stages of becoming a prominent offshoring hub.
You will be considered an early adopter of offshore teams in Argentina, which means fewer case studies, references and established support services. On the plus side, this means less competition for talent. However, the dearth of a well-developed offshoring base might make Argentina less attractive to firms looking for a proven and stable overseas destination.
Three more reasons Argentina is attractive
1. No stigma: In the early 2000s, many large U.S. corporations offshored or outsourced their customer service center to India and Philippines. It was all about saving money. Training and best practices were minimal. While the infrastructure and the results from offshoring have greatly improved, accounting firms worry about losing clients who ever had a frustrating customer service experience with a consumer brand’s call center in India or the Philippines.
2. Spanish: Talent in Argentina is bilingual. Most Argentinian workers speak English and Spanish fluently. That’s a great benefit for accounting firms who either themselves are bilingual or serve clients who speak both English and Spanish.
3. Accent: Sometimes U.S. accountants find it hard to understand Indian or Filipino colleagues who have heavy native accents — even if that colleague is speaking perfect English. While we now have AI tools that smooth out somebody’s accent, American firms (and their clients) are more accustomed to the Latin American accent than to the Indian or the Filipino accent.
While relatively new to the offshore accounting landscape, Argentina offers a compelling combination of cost savings, cultural alignment and the promise of building a long-term team of your own. The right choice depends on your firm’s specific needs, priorities and long-term goals. By weighing the pros and cons of each destination, you can determine which option best suits your firm’s unique requirements.
