Information Technology in Argentina
Telecommunications Equipment
According the U.S. Department of Commerce this market was projected to be $1.6 billion in 1995 and to grow 10 percent in 1996 reaching $1.76 billion. In 1995, U.S. exports to Argentina were estimated to total $450 million, accounting for 18 percent of imports. As basic telephone services become more available throughout the country, demand for specific telecommunications equipment is expected to increase. Recent developments in this market have been driven by the privatization of the Argentine telecommunications sector. The continuing effects of privatization, liberal trade policies, firms' desire for state-of-the-art telecommunications equipment, and an expanding local market will provide increasing opportunities for companies. [10]
The surge in demand for LAN and WAN software has naturally generated the appearance of numerous local firms attempting to tap the demand. Competition is strong among local partners of U.S. firms. This has in turn resulted in local distributors almost invariably carrying a wide variety of products and services. They must offer integrated solutions to their clients in order to close a deal, and must therefore include hardware, software, maintenance and training in their portfolio of supplies. U.S. LAN and WAN software suppliers will most likely find their software sold as a packaged solution together with other products, rather than sold individually.
The highest demand for LAN and WAN software will be from local small and medium-sized companies. Competition from imports is felt strongly by local firms in this segment and they are still somewhat hesitant about making large investment in capital goods. Two considerations are crucial in marketing LAN and WAN software to these firms: the key role played by qualified local distributors, and payment terms, i.e. financing.
Because Argentine business people tend to look to U.S.-based suppliers of software, basically due to the excellent reputation earned by numerous U.S. suppliers of hardware and software in the local sector, there is limited software developed for use within the country, and subsequently for export.
Foriegn vendors only face significant competition from local developers of customized administration applications which suit Argentine taxation practices.
| 1991 | 1992 | 1993 | Estimated Annual Growth (*) | |
| Import Market | 297.3 | 368.5 | 488.5 | 30% |
| Local Production | 25.0 | 15.7 | 9.1 | 0% |
| Exports | 5.0 | 0.0 | 0.0 | |
| Total Market | 317.3 | 384.2 | 497.6 | 30% |
| Source: U.S. Dept. of Commerce National Trade data Bank, 1995 | ||||
Computer
Hardware and Software
Last Updated: 5/5/97
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