Information Technology in Argentina

Global Economies

To help countries attract businesses in the global environment, countries must become centers of globally relevant skills, offering ways their occupants can link to the world. For a country to be world class, they must have "core capabilities" that link them to the world economy. The time is gone when countries can be dominated by traditional downtown banks, utilities, and real estate.

Countries must offer the connective infrastructures to draw business and talent. Argentina is developing the communication linkages required for, what some call, world class centers for investment and production. Heavy investment by telecommunications operators has led to a rapid rise in the number of telephone lines, digitalization, wireless communications and international wide area networks.

Argentina's growing modern infrastructure with its stable government and economy make it an ideal place for locating a company. Argentina's telecommunications privatization has led to rapid growth and innovation that benefits all industries. For example, Telefónica de Argentina has a new calling card telephone service in Argentina. The calling card, an advanced "smart card" with a chip inside it, will allow customers to use any phone at their reach as if it were using their own home phone. Mobile users, such as frequent travelers, or professionals who, due to the characteristics of their job or activity, are frequently on a business trip or out of the office and need to be constantly in touch. By inserting their card in the public phone slot, customers will only need to punch in their password and the desired telephone number. Because of the network is digitized, Telefónica de Argentina can provide advanced services such as call blocking, automated dialing, and credit limits.

With Argentina's expansion in private networks, I would open or expand a manufacturing, distributing, or service oriented business. The electronic linkages are nearly in place to allow businesses to take advantage of advanced supply chain management.

With heavy foreign investment in the areas of telecommunications and information technology in Argentina, the technical expertise will slowly be absorbed into Argentina's workforce. I don't believe it to be the case now, but within 3-5 years, Argentina will have the labor supply to support business to business EDI and strategic linkages.

I would begin creating small scale distribution centers in Argentina to take advantage of Argentina's favorable labor costs, growing agricultural and manufacturing industries for international trade. As the distribution centers grow and business relationships are made, the country's communications infrastructure will have matured to a point where international inventory management and ordering systems will be advanced enough to offer a direct competitive advantage over other distribution centers.

Analysis: IT Strengths and Weaknesses

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 Last Updated: 5/5/97