Argentina's 'Silicon Valley' thrives

Still, Krawchik says, until now, "Argentina has never seriously worked to convert its intellectual talent into a competitive advantage."

Technology leaders here explain that the 2001 crisis forced the National Central University, or UNICEN, a leading Argentine school, to wean itself from government funding, partnering instead with private businesses. IFS was its first partner, employing 10 students.

Today, UNICEN, 200 miles south of Buenos Aires, is the hub of a technology park, which consists of 30 companies.

The government is also playing an increased role. This month, the Ministry of Economy, together with Intel and Microsoft, unveiled "Mi PC," which enables Argentines to buy computers for less than $500, a 30 percent reduction from market price. Paul Otellini, who will replace Craig Barrett as Intel CEO next month, spoke to industry leaders here last week, estimating that 400,000 computers will be sold this year through "Mi PC."

Last year, 255 government officials, business leaders, and academics spent nine months producing a strategic 10-year plan for the IT industry. It contains 30 measures, including doubling the number of private-sector IT jobs and exports in the next three years. One measure, the Promotion of Software Industry Law, already implemented, reduces taxes by 60 percent for IT companies.

Still, not everyone is bullish on Argentina. In AT&Kearney's 2004 Offshore Location Attractiveness Index, Argentina ranked 15th, finishing behind the Philippines and Malaysia; among Latin American countries, Brazil was ranked seventh and Chile finished ninth. In the World Economic Forum's 2004-2005 Global Competitiveness Report, Argentina ranked No. 74.

Even skeptics, however, admit that Argentina is on the right track. While working in California's Silicon Valley from 1998 to 1999, Guillermo Marsicovetere, president of Sun Microsystem's Latin America Southern Cone division, never once recommended investing in Argentina. But today, back in his native Buenos Aires, he describes the current government as "stable and predictable." Given Argentina's history, that's a huge compliment.

As more multinationals diversify their offshore operations, weaning themselves from a dependency on India, Argentine start-ups stand to gain, experts say. EDS, despite its own large operation in Argentina, last month selected IFS as one of its primary software providers.

And increasingly, people like Krawchik are leaving corporate giants to join Argentina's up-and-comers. Mauro Capponi, a software engineer, left international technology consultant Accenture to join IFS. "Your work is more visible here, and you are more valued," he says.

The slogan on Krawchik's business card could best sum up their hope: "Argentine talent for the world."

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