Argentina, South America’s second-largest economy, offers a diverse and dynamic market with opportunities across industries such as agriculture, technology, manufacturing, energy, and services. The country’s rich natural resources, educated workforce, and strategic location make it an attractive destination for entrepreneurs and foreign investors. However, navigating the legal, financial, and regulatory landscape requires careful planning. This step-by-step guide provides a comprehensive overview for establishing a business in Argentina, from market research to full operational compliance.

Conduct Market Research and Choose a Business Structure

Before establishing a business in Argentina, it’s essential to analyze the local market. Identify demand for your product or service, research competitors, and assess the economic and regulatory environment of your specific sector. Once the viability of the business has been established, the next step is to choose the appropriate legal structure.

The most common types of business entities in Argentina include:

• Sociedad de Responsabilidad Limitada (SRL) – Limited Liability Company, suitable for small to medium-sized businesses with fewer shareholders.

• Sociedad Anónima (SA) – Corporation, typically used for larger businesses or those seeking to raise capital from investors.

• Sucursal – A branch of a foreign company, subject to specific regulations and reporting requirements.

• Unipersonal Company (SAU) – Allows a single shareholder to operate a company with limited liability.

Each structure has distinct legal, tax, and administrative implications. Foreign investors generally prefer SRLs or SAs due to their flexibility and credibility.

Name Reservation and Company Formation 

Once you’ve selected the type of company for establishing a business in Argentina, the next step is to reserve the business name. You must submit a name reservation request to the General Inspection of Justice (IGJ), which verifies that the desired company name is not already in use. This step is critical because Argentine authorities strictly enforce naming conventions.

After the name reservation is approved, draft the company’s bylaws (estatutos sociales), which must outline the company’s purpose, shareholder structure, capital contribution, administration, and governance model. These bylaws must be signed by all shareholders and certified by a public notary.

Register with the General Inspection of Justice (IGJ)

The IGJ oversees company incorporation in Buenos Aires and other jurisdictions. Once the bylaws are notarized for establishing a business in Argentina, the documents must be submitted to the IGJ for official registration. These include:

• Certified copy of the bylaws

• Identification documents of shareholders and directors

• Proof of capital contribution (minimum capital for an SA is ARS 100,000)

• Certificate of name reservation

• Proof of registered office address

Registration with the IGJ provides legal personality to the business, allowing it to enter into contracts and perform economic activities. Depending on the jurisdiction, the process can take from two to four weeks.

Obtain a Tax Identification Number (CUIT)

After registering the entity for establishing a business in Argentina, you must obtain a tax identification number, known as the Clave Única de Identificación Tributaria (CUIT), from the Federal Administration of Public Revenue (AFIP). The CUIT is necessary for all tax-related transactions, including invoicing, payroll, and filing tax returns.

To obtain a CUIT, you’ll need to provide:

• Proof of business registration

• Identification documents of legal representatives

• A lease agreement or proof of address for the business premises

AFIP also requires businesses to designate a fiscal representative and register a digital tax mailbox, which is used for receiving official communications.

Register for Taxes and Social Security

Once you have a CUIT, you must enroll in relevant tax regimes based on your business activity. This may include:

• Value Added Tax (IVA) – Applied to the sale of goods and services, currently at a general rate of 21%.

• Income Tax – Corporate tax rate is generally 35% on net income.

• Gross Turnover Tax (IIBB) – Levied by provincial governments, the rate depends on the industry and location.

• Social Security Contributions – Employers must register with the Argentine social security system and make contributions for employees, including retirement, health insurance, and work risk coverage.

Tax compliance in Argentina is complex, and many businesses retain local accountants or tax advisors to ensure full compliance with national and provincial regulations.

Open a Corporate Bank Account

To manage your company’s financial operations, you’ll need to open a corporate bank account to establish a business in Argentina. Local banks require the following documents:

• Company’s CUIT

• Proof of company registration with the IGJ

• Bylaws and identification of authorized signatories

• Proof of business address

Some banks may require an in-person meeting with company representatives, and due diligence checks are standard, especially for foreign shareholders. Argentina’s central bank enforces currency controls, so foreign exchange and capital repatriation should be considered carefully when choosing a banking partner.

Register with the Employer Registry and Labor Authorities

If your business will employ workers, you must register with the Registro de Empleadores (Employer Registry) and comply with labor regulations. This includes:

• Obtaining a Libro de Sueldos (Payroll Ledger)

• Registering employees with AFIP and the Social Security Administration (ANSES)

• Signing up for workers’ compensation insurance (ART)

• Ensuring contracts and benefits comply with Argentine labor law

Argentine labor laws are employee-friendly and include strict guidelines for hiring, termination, minimum wages, working hours, paid leave, and collective bargaining agreements. Legal counsel is recommended to avoid non-compliance.

Obtain Sector-Specific Licenses or Permits

Specific industries in Argentina require special permits or authorizations. For example:

• Food businesses must comply with SENASA (National Food Safety Authority) requirements.

• Construction and real estate businesses require municipal licenses.

• Import/export companies must register with the National Registry of Importers and Exporters and may need customs licenses.

• Permitting requirements vary by province and municipality, so it’s important to consult with local authorities or legal advisors familiar with regional regulations.

Implement Accounting and Record-Keeping Standards

• There are specific accounting standards and reporting obligations related to establishing a business in Argentina. Businesses must maintain proper records, including:

• Invoicing books (electronic or manual, depending on company size)

• Inventory records

• Tax filings and payments

• Annual financial statements certified by a public accountant

Larger companies must present financial statements to the IGJ annually. Many firms adopt accounting software compatible with AFIP systems to streamline tax reporting. Hiring a certified accountant (Contador Público) is often essential for compliance.

Consider Investment Incentives and Trade Opportunities

Argentina offers a range of investment incentives, particularly in sectors such as renewable energy, technology, agribusiness, and manufacturing. Examples include:

• Tax benefits for knowledge economy companies under the Ley de Economía del Conocimiento, which includes software development, R&D, and digital services.

• Special customs regimes such as temporary import regimes for industrial inputs and capital goods.

• Provincial incentives, which may include reduced gross income tax rates, real estate tax exemptions, or financing opportunities for businesses in less-developed areas.

Foreign investors should also explore Argentina’s bilateral investment treaties and membership in the Mercosur trade bloc, which offers preferential access to markets in Brazil, Paraguay, and Uruguay.

Comply with Foreign Exchange and Capital Controls

Argentina maintains strict foreign exchange regulations to control capital flight and manage currency stability. Businesses operating in Argentina must:

• Use the official exchange market for most international transactions.

• Request authorization from the Central Bank for profit repatriation or dividend payments.

• Report foreign investments and cross-border transfers as required by local financial regulations.

These controls can impact international operations, so careful financial planning is advised for foreign-owned businesses. Legal and financial advisors with expertise in cross-border finance are helpful in navigating this environment.

Maintain Ongoing Compliance

Establishing a business in Argentina is not a one-time effort. Ongoing compliance includes:

• Monthly tax filings (IVA, income tax advances, IIBB)

• Payroll and labor law reporting

• Annual submission of financial statements

• Renewal of sector-specific licenses

• Updating corporate information with the IGJ as needed

Staying compliant with evolving regulations is crucial for long-term success. Partnering with local professionals for legal, accounting, and human resource management ensures that your business remains in good standing with Argentine authorities.

Conclusion

Establishing a business in Argentina requires a comprehensive understanding of its regulatory environment, legal structures, and fiscal obligations. While the process involves several bureaucratic steps, the opportunities in this growing and diverse economy are significant. With proper planning, local support, and a strategic approach, businesses can thrive in Argentina’s dynamic market. Whether entering the agricultural export sector, launching a tech startup, or opening a manufacturing facility, Argentina offers the resources, talent, and regional access to support sustainable growth.

Foreign direct investment (FDI) continues to play a crucial role in shaping the economic landscape of Latin America and the Caribbean. In 2024, the region welcomed US$188.962 billion in FDI inflows, a promising 7.1% increase from the previous year, according to the Foreign Direct Investment in Latin America and the Caribbean 2025 report by the Economic Commission for Latin America and the Caribbean (ECLAC). This surge, however, is accompanied by significant shifts in investment patterns, offering both challenges and opportunities for the region.

Latin America and the Caribbean FDI Inflows

First, despite the encouraging uptick in overall FDI, the proportion of FDI inflows in 2024 to gross fixed capital formation and GDP dropped to 13.7% and 2.8%, respectively, lagging behind the 2010s averages of 16.8% and 3.3%. This suggests that, while the region is attracting investment, it could benefit from even stronger momentum.

Second, Chile emerged as a bright spot in the Latin American and Caribbean economic horizon, ranking as the fourth Latin American country with the most FDI in 2024. Despite facing a year-over-year decline, the Chilean economy’s resilience, political stability, and transparent regulatory framework continue to make it an attractive destination for investors.

FDI in Chile 2024

Chile’s FDI inflows in 2024 amount to US$12.521 billion, down from US$18.377 billion in 2023. However, as a destination for international investment, Chile remains in high demand.

According to ECLAC, a large share of the regional FDI growth came from reinvested earnings of transnational corporations already operating in the region. In other words, Latin America and the Caribbean can count on existing investors to a certain degree. However, there is a decline in the share of new entrants.

Regional growth is also driven by investment project announcements, which grew considerably in 2024. The largest increase was recorded in the hydrocarbons sector, while both the renewable energy and the high-tech sectors declined. These trends are remarkable, given that the two former are vital for Latin America to achieve the transition to green energy and sustainable growth.

Brazil and Mexico Take the Lead

The FDI growth in 2024 was led by Brazil and Mexico, which together accounted for 62% of all FDI that came to the region. Brazil is the biggest Latin American country with the most FDI by absolute numbers: 38% or US$71.070 billion of the entire FDI flows that arrived in Latin America and the Caribbean in 2024.

Mexico also strengthened its position by attracting 24% of all FDI inflows or US$45.337 billion, far outperforming the runner-up Colombia. While this change at the regional leaderboard is modest, Brazil and Mexico’s combined FDI expansion from US$86.927 billion to US$116.407 billion explains the significant increase in the regional average.

Colombia’s FDI is only marginally lower than the previous year’s, but FDI to Argentina decreased from US$24.757 billion in 2023 to US$11.644 billion in 2024, with a relatively steep drop of 53%. This shows once again the importance of a sound and predictable economic policy.

Sectoral Analysis: Manufacturing Overtakes Services

Sectorally, FDI inflows were allocated as follows: manufacturing 43.6%, services 40.3%, and natural resources 16%. This is significant, as it signals a decrease in investments in the services sector, which had been the largest recipient previously.

In this sense, the pandemic recession of 2020 is over. After attracting investment to recover from a sudden stop, the service sector is now losing ground to manufacturing. However, this trend could signal the region’s recovery in the global manufacturing value chain.

Structurally, cross-border mergers and acquisitions are less frequent in the region than greenfield investments, but they tend to account for a larger share of the total FDI. In 2023, 59% of all FDI that went into Latin America and the Caribbean was in the form of greenfield investments, 28% were cross-border mergers and acquisitions, while 13% were investments in associated enterprises.

Outward Investment Surge Led by Translatinas

FDI outflows from Latin America and the Caribbean increased by an impressive 47% to US$53.033 billion in 2023. Brazil was the main source of FDI outflows (46%), although the country’s own FDI outflows declined by 3%. This suggests that other Latin American economies, as well as translatinas, are entering the ranks of multinational corporations at a growing rate.

In 2024, FDI outflows from Latin America and the Caribbean continued to grow by 17%, reaching a historical high of US$62.304 billion. Brazil once again provided the lion’s share, although the total value of FDI outflows originating from the South American country fell by 24% from the previous year. On the whole, this increase in the aggregate FDI outflows by Latin American and Caribbean economies confirms a trend towards the maturation of the region’s business.

Who Invested in Latin America in 2024

The United States continued to be the main source of FDI for Latin America and the Caribbean, accounting for 38% of the total in 2024. This figure, as well as the overall share of FDI originating from North America (49%), increased by 4 percentage points compared to the previous year.

On the contrary, the European Union (EU), excluding Luxembourg and the Netherlands, reduced its share of FDI into the region to 15% in 2024, the lowest since 2012. This drop is likely associated with the subdued economic performance and uncertainty in the EU economy, which forced European firms to look for other investment opportunities elsewhere.

Latin America and the Caribbean became the third-largest source of FDI for the region. Intra-regional investments accounted for 12% of all FDI inflows into Latin America and the Caribbean in 2024, an increase of 8 percentage points compared to the previous year.

Chinese investment continued to remain insignificant: 2% of the total FDI inflows into Latin America and the Caribbean. However, the ECLAC study states that “this data underestimates the overall share of Chinese FDI, which may be considerably higher when taking into account flows passing through intermediate countries or those recorded in non-traditional channels, such as acquisitions of assets, concessions, or infrastructure contracts”.

Mining: Targeting the Minerals of the Energy Transition

In the mining chapter, the report authors focus on the extractive industry’s role in the energy transition, highlighting the main ingredients, which include lithium and copper, both of which Latin America is extremely rich in.

Additionally, Chile, as the 4th Latin American country with the most FDI in 2024, is the largest lithium producer in the world. The authors of the study write that Latin American countries, by embracing and facilitating this transition, can set the stage for a wave of sustainable and productive investment, creating thousands of new jobs and improving living standards for millions.

FDI in Latin America and the Caribbean in 2024: Continuity and Change

The 2024 FDI trends in Latin America and the Caribbean show both continuity and change. Brazil and Mexico continue to be the region’s leaders in attracting FDI, and Chile remains the 4th Latin American country to receive the most FDI from abroad. This is largely due to long-term and geographically diverse investment in sectors related to the energy transition, particularly lithium and copper mining. The region is also diversifying its sources of FDI, and further integrating into global value chains in manufacturing, via greenfield investments and in outward flows through the rise of translatinas. The region’s economic modernization is picking up momentum. With a conducive mix of stability, innovation, and sustainability, Latin America can further enhance its global economic position in the coming years.

Guatemala Becoming an Outsourcing Destination of Choice

Guatemala is the subject of attention of the outsourcing sector’s international players after it emerged that the companies are evaluating the option of Contact Center and BPO investment in Guatemala. This information was provided by the Guatemalan Association of Exporters (Agexport), whose sources cited in the news have revealed that two firms, IGT Solutions and TSI, are eyeing a capital commitment of US$5 million to US$10 million to set up or expand operations in the Central American nation.

IGT and TSI Contact Center and BPO Investment in Guatemala

Contact center and BPO treasurer Rodrigo de León detailed that, in his organization’s view, businesses in this segment deploy a multimillion-dollar investment when trying to break into the region or expand their footprint. With both companies in the running, Guatemala has solidified its presence in the global contact center and BPO market.

Contact Center and BPO Investment in Guatemala City is on the Agenda

Karla Bolaños, Director of the Office for Productive Investment Support and Competitiveness of the Municipality of Guatemala, shared that the City has 12 firms in the pipeline. “There are also three companies in the Contact Center and BPO area, two of them from the United States and one from India,” she said, confirming that Guatemala is set to host players from a wide range of countries.

The potential contact center and BPO investment in Guatemala is likely to benefit from the activity registered in other segments and will complement the gains that other sectors have been recording in the local market. The Central American country is picking up steam in its mission to host high-added-value services. This is the result of joint actions between public and private agencies, FDI entering the country, and local promotion efforts.

IGT Contact Center and BPO Investment in Guatemala Revenue Data

Guatemala’s contact center and BPO investment is yielding tangible results, as this segment of services was the source of US$737 million in foreign currency earnings in 2024. To date, between January and the end of May 2025, it has already secured US$295 million, according to De León. The growth in investment in the contact center and BPO industry, which currently stands at 3% year-on-year, does not match global expansion, which De León points out has the potential to grow by between 8% and 10%.

On the other hand, when asked about Guatemala’s rate of growth in the future, the official projected that it will match global and regional trends. “Projections for Guatemala in the medium and long term are not different from what is projected for the rest of the world. In Latin America, there is a very high demand for nearshoring and outsourcing,” said De León.

IGT Contact Center and BPO Investment in Guatemala

About IGT

IGT  Solutions is a company dedicated to global customer experience management and delivery, using a combination of support channels: chat, phone, and e-mail, as stated on the company’s official website. The services offered by the business include digital customer experience transformation and data analytics, among others.

As IGT Solutions is considering a Contact Center and BPO investment in Guatemala, the firm seeks to expand its offer of cost-effective, multilingual, and scalable services for its clients.

TSI Contact Center and BPO Investment in Guatemala Overview

TSI is a firm focused on nearstaffing, which means that it works with regional outsourcing talent located near the client, that is, Central America. The company has operations in Nicaragua, Costa Rica, and Panama, and it has set its sights on Guatemala as the logical extension to develop more services and means of delivery in the region. TSI’s approach allows clients to not only cut their overheads but also to enjoy proximity to the time zone and a cultural affinity with local agents in a 24/7 economy.

TSI contact center and BPO Investment in Guatemala also benefit from the fact that it is part of a trend that is growing every year, according to the analysis of the sector’s requirements.

Reasons for Contact Center and BPO Investment in Guatemala

Contact center and BPO investment in Guatemala is fueled by the global nearshoring demand. Nearshoring, as de León detailed, is about companies, mainly from North America, outsourcing their services to nearby nations in a way that is akin to hiring staff, but from a less costly location that is also close in terms of culture and, most importantly, time zones.

De León also said that there was a special interest in Guatemala as a destination for contact center and BPO investment from the United States, Canada, and Spain. He explained that, alongside the rush of external players to enter or expand in Guatemala, there were also local efforts to boost the sector, including the creation of investment groups to develop infrastructure and capabilities.

Contact Center and BPO Investment in Guatemala City: Zones of Special Interest

The primary benefit for BPO and contact centers when choosing where to invest is provided by urban planning and logistics infrastructure. Karla Bolaños has identified five zones as ideal for development: 13, 10, 9, 4, and 12 of Guatemala City. These areas are ideal because they provide:

• Proximity to public transport, for the ease of mobility of workers.
• Commercial and service availability
• Advanced connectivity
• A pool of skilled workers

Contact Center and BPO Investment in Guatemala: Key Areas

Guatemala is developing the following areas of specialization, as the country matures:

• Multichannel support.

De León emphasized that the country is specializing in the multichannel customer experience, particularly in the English-to-Spanish segment. It is not just about voice services but also about offering support through chat, social media platforms, or SMS. This specialization in English is very relevant for serving North American markets and more global audiences.

• Banking and BPO industry’s back-office services.

The segment has also specialized in providing financial services and BPO industry’s back-office operations, such as:

• Market comparison research
• Procurement services
• Logistics and supply management
• Banking data processing, data administration, and the use of RPA

Contact Center and BPO Investment in Guatemala: Tech Edge

As previously said, Guatemala is also trending in technology-driven services, including automating business operations and the integration of artificial intelligence (AI) to provide even more value-added solutions. “Business processes are being automated and will be automated with more and more voice analytics and artificial intelligence tools to become more agile and to have better quality, lower costs, and greater satisfaction with clients,” said De León. Bolaños also pointed to a growing specialization in areas such as software development, IT services, digital training, and data analytics.

Contact Center and BPO Investment in Guatemala: Sectors Leading Demand

According to De León, when the BPO industry is reviewing possible Contact Center and BPO investment in Guatemala, these are the segments that are more actively seeking to outsource their services and specialize their operations with an external workforce.

• Retail, in other words, there is a strong interest in outsourcing from multinational brands.
• Fintech, since the industry is booming, needs this kind of support.
• Hospitality and health care are sectors that are in expansion and are looking for ways to operate more efficiently.

Contact Center and BPO Investment in Guatemala: Challenges

As it is with all FDI, contact center and BPO investment in Guatemala is not without its share of potential problem areas. The main difficulties for the market’s expansion are:

• English proficiency gap. In this respect, De León pointed to the lack of English-speaking workers as the main issue. As he said, Guatemala has lost some business to Mexico and Colombia, where it has been much easier to source bilingual staff for voice support. This remains one of the absolute conditions for BPO work, as it is the primary requirement for outsourcing contact center services.
• Workers’ skills mismatch. Although it was earlier noted that there is a sufficient pool of workers, for the skills and talent to be of high quality, they need to be complemented by solid digital and technological skills. For Bolaños, the ideal employee profile to be able to carry out the kind of work required is:

1. Age from 18 to 30
2. Intermediate and advanced levels of English
3. Advanced digital skills
4. Orientation in customer service
5. Soft skills, such as communication, adaptability, and others

Workforce development is a task on the agenda, so that Guatemala can keep pace with the development of world markets and attract more advanced services.

Contact Center and BPO Investment in Guatemala:  The Municipality’s Involvement

The Municipality of Guatemala is also gearing up to promote the city as a destination for BPO and contact center services. Karla Bolaños presented a short guide for how the capital of Guatemala is approaching this task:

• Actively promoting Guatemala in international trade shows, investment forums, and other FDI-related events
• Sending delegations and participating in investment missions, trade fairs
• Working with Guatemala’s embassies, binational chambers, and multilateral organizations

These measures indicate that Guatemala City is primed to complement the national strategy focused on nearshoring that was earlier presented by Agexport and Rodrigo de León, related to Contact Center and BPO investment in Guatemala.

Conclusion: Prospects for Contact Center and BPO Investment in Guatemala

Considering the industry giants already eyeing the country, Contact Center and BPO investment in Guatemala is poised to attract even more players that have been seeking the right Central American country to enter. With a solid foundation in place and a specialization that is becoming more evident, Guatemala has begun to show its potential strengths in the field and is likely to bring in a growing share of FDI that will enable it to advance faster than the industry’s average growth.

As Latin America begins to adapt to new geopolitical trends, its competitiveness levels have become a core measure of its long-term economic health. The latest publication of the ADEN Institute of Competitiveness provides a valuable overview of regional dynamics and trends. The 2025 Latin American Competitiveness ranking report is based on 125 indicators from ten pillars that include aspects such as infrastructure, access to quality healthcare, education, digital services, and others. In this blog post, we will explore some of the key findings from the report.

Latin America’s Most Competitive Countries in 2025

In 2025, Chile, Uruguay, and Costa Rica took the top spots in the Latin American Competitiveness Ranking report, indicating their superior performance in various factors that affect economic health. Following closely are Panama and Mexico, and trailing somewhat behind are Brazil, Argentina, Peru, Colombia, and the Dominican Republic.

According to the Latin American Competitiveness Ranking Report, Chile is now the most competitive Latin American country, having maintained its leading position due to its consistent investments in public services, notably in education and health. It also continues to outperform the region in institutional capacity and infrastructure. Chile’s competitiveness is complemented by a stable macroeconomic environment and government policies that attract both domestic and foreign investments.

Uruguay, which comes in second in the 2025 Latin American Competitiveness Ranking Report, has been praised for its effective governance and social stability. It is also one of the best in the region at addressing the population’s basic needs. Furthermore, Uruguay is recognized for its transparency and rule of law. Costa Rica is the third most competitive country in Latin America in 2025. The Central American nation has focused on sustainability and education, which has resulted in significant strides in these areas. Costa Rica has also become a hub for knowledge-intensive economic activities, such as medical technology and digital services.

Mexico and Panama also perform well in the Latin American Competitiveness Ranking Report, mainly due to their higher scores in individual categories, such as macroeconomic environment in the case of Mexico. However, it is important to note that Mexico has dropped in the overall ranking, coming closer to Brazil than in previous years.

Costa Rica, Panama, and Uruguay provide evidence that smaller, more focused economies can also achieve the same outcomes.

Performances in the Middle of the Ranking

The countries positioned in the middle of the  2025 Latin American Competitiveness Ranking Report, from sixth to tenth place, are Peru, Argentina, Brazil, Colombia, and the Dominican Republic. These countries have shown improvements in some areas, such as infrastructure and education, but they still lag behind in innovation and institutional capacity.

Peru, for instance, has always had a strong ranking in the labor market efficiency pillar, where it has been number one in the region since 2014. However, this has not translated into overall competitiveness, as it remains in the middle of the ranking due to issues with governance, technology, and digital infrastructure, as well as the need for institutional reform. Argentina and Brazil show a similar pattern of performance, with large and diverse economies with significant potential but held back by political volatility, bureaucracy, and inconsistent policy directions.

Countries Improving and Falling Backward in the Latin American Competitiveness Ranking

The 2025 Latin American Competitiveness Ranking Report also examines the changes in competitiveness levels among the countries in the region between 2012 and 2025. While some nations have improved their rankings, others have either stagnated or even fallen behind.

Notably, five countries have demonstrated significant progress and increased their positions in the competitiveness ranking. These are the Dominican Republic, Paraguay, Uruguay, Costa Rica, and Bolivia. One interesting observation is that the countries that have made the most significant improvements are not necessarily the largest or the wealthiest. Instead, these nations have excelled in improving their scores by tackling the fundamentals: infrastructure and investment, basic services, macroeconomic stability, and institutions.

Bolivia’s upward movement is particularly remarkable because it was among the lowest-ranking countries in 2012 and 2019 but has since moved away from the bottom tier through a focus on economic fundamentals and expanding basic services. On the other hand, the Dominican Republic’s rise is attributed to its strong tourism sector and reforms that have made it an attractive destination for investment.

In contrast, Venezuela has been one of the countries that has fallen farthest in the ranking, due to institutional fragility, economic instability, and lack of access to public goods, among other factors. The country’s trajectory stands out because it was once much closer to the regional average than it is now.

In addition to Venezuela, other countries that were relatively strong in 2012 and 2019, such as Mexico, Brazil, Colombia, and Ecuador, have also regressed toward the regional average, which indicates that the gains are not permanent and can be reversed without continuous effort and adaptation.

Disparities in Tech, Innovation, and Institutional Performance

The report highlights growing disparities between the more competitive countries and those that have fallen behind in various areas, even if the differences between nations were fairly similar in education and labor efficiency. However, there are significant gaps in other categories, such as digital access, institutional quality, and market openness.

Chile, Uruguay, and Panama, in particular, have continued to be the top performers in these areas, setting the standard for other countries in the region to strive for. By contrast, there are a larger number of countries falling behind, widening the gap between the high performers and everyone else.

The digital divide, in particular, is now one of the most important gaps, as the 2025 Latin American Competitiveness Ranking Report shows that access to technology and digital readiness are essential factors that underpin the competitive performance of the more dynamic nations.

The Role of Human Capital

One of the main lessons of the report is that human capital has become a more crucial factor in competitiveness than ever before. As production processes become more complex, value chains more geographically spread, and innovation more pervasive, countries need to have an educated, skilled, and tech-savvy workforce to take advantage of these new opportunities.

The emergence of Costa Rica as a regional hub for technology and service industries in Latin America is a prime example of how human capital can drive competitiveness. Costa Rica has long invested in its education and public healthcare systems, which have paid dividends in the form of a talented and capable workforce that has attracted investment. Similarly, Uruguay is pursuing a similar strategy, with a focus on digital government and innovation.

These examples also suggest that the definition of development in the region is changing. No country can compete solely on the basis of natural resources or cheap labor. The real competition is now for talent, ingenuity, and agility.

Policy Recommendations for Improving Competitiveness

The competitiveness ranking is not only a way to evaluate countries but also a guide to help policymakers identify areas where they can make improvements. Based on the report’s findings, policymakers in the region should focus on several key areas to improve their countries’ competitiveness.

The most important of these are strengthening institutions, expanding access to technology, investing in infrastructure, and developing a skilled workforce. In addition, countries also need to tackle the inequalities that can undermine long-term competitiveness, such as by expanding access to quality education, bridging the urban-rural technology gap, and improving bureaucratic efficiency.

Regional cooperation and integration are also essential for the future, with countries needing to coordinate more on regulatory standards, market access, and even best practices in public policy.

The Way Forward

The 2025 ADEN Latin America Competitiveness Report provides an invaluable overview of the current state of Latin American competitiveness and the factors that drive it. As the region’s economies continue to develop, the definition of competitiveness and development will continue to change, and countries will have to adapt to succeed.

For those that do, there are many opportunities to be seized.

In the rapidly evolving global landscape of digital innovation and technology development, Latin America has become an attractive region for expanding digital ecosystems, increasing tech talent, and launching ambitious digital transformation initiatives. From the tech hubs of São Paulo and Mexico City to the thriving innovation districts of Medellín and Bogotá, the region is a hotbed of digital creativity. Colombia has been a central player in these developments and is emerging as a regional leader for technology employment in 2025. By surpassing its large neighbors in market size and development, the Colombian digital ecosystem is firmly setting the stage to become Latin America’s next digital powerhouse.

Unprecedented Increase in IT Hiring

Colombia leads technology employment growth in Latin America in 2025, according to a recent report by the leading talent solutions firm Experis LATAM, with an exceptional 38% increase in hiring within the information technology (IT) sector in the first quarter of 2025. By comparison, this figure is higher than the impressive 27% increase recorded in Brazil and the 22% reported by its northern neighbor, Mexico. These figures represent the highest ever recorded and unequivocally confirm that Colombia leads technology employment across the region, not only in terms of percentage increase but also in its ability to mobilize tech talent and attract new opportunities.

Colombia leads technology employment growth due to a convergence of both domestic and international forces. As Colombia continues to witness rapid digital transformation across all industries and sectors, from fintech and healthtech to logistics and education, the demand for digital talent has skyrocketed. The leading roles in demand include positions in software development, cloud computing, data analytics, and cybersecurity, while companies, large and small, are mobilizing to invest in and grow their tech teams.

Employer Confidence and Plans for Workforce Expansion

The Colombian digital ecosystem is currently experiencing an extremely positive hiring climate, with employer confidence in the sector at an all-time high. The recent report also reveals that 52% of Colombian technology employers plan to grow their workforce over the remainder of 2025. This sentiment is positive news for job seekers, indicating an ecosystem with an expanding number of opportunities, where many companies are seeking to innovate, grow, and build out their digital capabilities.

This favorable hiring climate has been the result of years of investment in Colombia’s digital infrastructure and talent pools. From university-industry partnerships to accelerate tech education, to the emergence of coding bootcamps, e-learning platforms, and professional certifications, the Colombian digital ecosystem has been making substantial investments in talent development, which is now beginning to yield results. Colombia is also leading the region in terms of the growth of digitally skilled talent, as indicated by the latest workforce data from LinkedIn and Coursera, with Colombian professionals ranking among the most digitally trained in all of Latin America.

Programs such as the national-level “Misión TIC,” which aims to train 100,000 Colombians in programming and other IT-related skills, have helped level the playing field in terms of tech education accessibility and aligned training curricula with market demand.

By focusing on developing the skills needed to fill critical positions in digital innovation and development, these initiatives have already helped Colombia build a tech talent pool that is well equipped to meet the demands of the evolving digital economy.

FDI and fiscal incentives

As the Colombian digital workforce becomes increasingly trained and educated, an influx of foreign direct investment (FDI) has also been a key factor in Colombia’s leading role in Latin America’s technology employment market. A primary factor in this growth of investment capital has been a range of fiscal incentives provided by the Colombian government to technology companies operating within its free trade zones. The country’s free trade zones offer significant benefits to international businesses, including reduced corporate tax rates, exemption from VAT on imported goods, and streamlined customs processes.

Moreover, Colombia’s favorable exchange rate and currency stability make it an attractive and relatively cost-effective option for foreign companies seeking to hire local developers, establish offices, or export information technology (IT) services and solutions to global markets. As a result, Bogotá, Medellín, and Cali are rapidly becoming competitive and vibrant tech centers, hosting a growing number of international companies and technology startups.

The rapidly growing startup scene is also attracting foreign investment as Colombian tech entrepreneurs seek to scale their businesses and reach new markets. Medellín, in particular, has received significant attention as a digital innovation hub and a “sustainable ecosystem for the future” from the European Commission. The city, which has transformed from a historical center of the industrial economy, is attracting major tech companies like PayPal, Facebook, SAP, and Banco Bilbao Vizcaya Argentaria (BBVA) to its so-called “innovation district” for its advanced digital infrastructure and startup support. As a result, foreign investors are beginning to gravitate to Medellin’s burgeoning tech complex known as Ruta N, which promotes the collaborative development of new technologies and ideas between universities, government, and the private sector.

Specialized Roles in Demand

An emerging trend in digital ecosystems around the world is the increasing demand for specialized talent. In Colombia, the most in-demand roles for 2025 include software developers, data scientists, cybersecurity analysts, cloud engineers, and DevOps specialists, among others. Employers are placing an increasing focus on soft skills, as well as traits such as critical thinking, problem-solving, and a “growth mindset,” which become essential to success within fast-paced tech environments.

As an increasing number of companies begin to embrace remote work and hybrid models, the Colombian tech sector is also becoming more decentralized as employers look to tap into talent outside of the major metropolitan centers. In particular, a significant opportunity for growth and job creation lies in Colombia’s secondary cities and remote regions, where an increasing number of companies are offering their services and solutions.

A Growing Ecosystem of Colombian Startups

The local entrepreneurial ecosystem is also thriving, with Colombia emerging as a leader in Latin America in terms of the number and diversity of homegrown tech startups. Colombia is now home to a vibrant ecosystem of Colombian startups, particularly in emerging verticals such as fintech, edtech, healthtech, and agrotech. Colombian startups such as Rappi, Platzi, and La Haus are not only raising global venture capital funding, but they are also helping to create new jobs and opportunities, as well as setting innovation benchmarks in their respective industries.

Policy Support and International Recognition

Public policy has also played a key role in Colombia’s rapidly expanding tech employment numbers. In recent years, the Colombian government has emerged as a leader in driving digital transformation through the launch of a number of ambitious digital innovation initiatives. These have included several meaningful public-private partnerships, as well as significant funding mechanisms for digital innovation.

Colombia also enacted and implemented the Digital Transformation Law in 2022, which seeks to foster the use of cloud solutions across all levels of public administration in the country, while also establishing best practices and standards for cybersecurity. The Colombian government has also made digital trade an important priority, with active participation in multilateral initiatives for digital innovation and inclusive digital trade.

Colombia’s digital employment growth has also been recognized by international observers. In recent months, international organizations such as the Inter-American Development Bank (IDB) and the World Economic Forum have recognized Colombia for its digital readiness and inclusive digital transformation efforts, with the country scoring highly in several digital competitiveness and talent preparedness benchmarks.

Colombia as a Regional Digital Power

Colombia’s lead in technology employment is undeniable. With a heady mix of conducive policies, educational ingenuity, and investment attractiveness, Colombia has managed to create the optimal conditions for sustained job growth in 2025. In doing so, Colombia also sets itself apart as a regional digital powerhouse, no longer just a rising star, but a strategic tech investment destination and model for the inclusive, sustainable, and innovation-driven growth of Latin America’s digital economy.

As the global tech industry continues to evolve, Colombia’s story provides an interesting template for developing nations in Latin America and beyond who are keen to accelerate their role in the Fourth Industrial Revolution through a combination of human capital, technology, and smart policymaking. Colombia leads technology employment in Latin America, and the next 12 months will provide important insights into whether this leadership will last or if other countries will quickly begin to catch up.