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Why hiring an EOR and AOR in Argentina can be the greatest option

Access to talent
CXC Global7 min read
CXC GlobalJune 04, 2024
CXC Global

The landscape of remote work has undergone significant growth in the past decade, particularly propelled by the events of the early 2020s. While the technology sector spearheaded this shift, it swiftly permeated other industries – from education to healthcare – and organisations had to adjust to the changes.

Coupled with the rise of remote working, has been the growing trend of global hiring. Organisations experiencing talent shortages, have found a reprieve in their ongoing search for quality hires, by tapping into international markets. According to a recent survey, 77% of employers worldwide struggle to find the necessary talent, especially in the tech industry. The U.S. Bureau of Labor Statistics predicts that by 2026, there will be more than 1.2 million vacant engineering positions in the United States.

For companies looking to expand their global talent reach, Argentina is proving to be a rich source of reliable, skilled and highly tech-enabled workers. And depending on where your business is at, engaging an Employer of Record (EOR) or Agent of Record (AOR) to manage workers in Argentina, could prove to be invaluable.

What is an Employer of Record?

Employer Of Record services enable your company to hire talent compliantly in different countries, without having to set up a legal entity in every new location. The EOR acts on your behalf and functions as an employer for the workers you hire across international locations.

To hire full-time employees in any foreign country, you need to either establish a legal entity in that country or hire through an EOR. Registering your own local legal entity can be time-consuming, complex, and expensive, which is why many companies opt for EOR services.

For hiring in Argentina, an EOR, in addition to allowing you to hire employees, will also manage the payroll, tax, and compliance of these workers, for you.

What is an Agent of Record?

An Agent of Record takes responsibility for engaging, onboarding, and paying independent contractors compliantly. Handling all necessary back-office tasks the AOR ensures smooth operations of your contractor workforce and offers best practices to help maintain correct classification and compliance while adapting to legislation changes, when they occur. Essentially, they shoulder the contractual responsibilities of your contractors, significantly minimising the risk of misclassification or non-compliance. 

In this post, we’ve delved into the benefits of engaging talent in Argentina and have provided insight into this talent market that is ripe for international hiring. Also, we’ve covered the value of engaging an EOR and an AOR in Argentina, as a strategic move to meet your hiring needs and boost your output and profitability.

Why hiring in Argentina is a strategic move

Argentina’s highly skilled workforce

Argentina has a robust human capital base, supported by its excellent higher education system. With 39 universities, including seven in the top 50 in Latin America, and free higher education, over 1.5 million Argentine students enrol at university, annually. Consequently, Argentina boasts one of Latin America’s most educated populations, according to the World Economic Forum.

Buenos Aires, the capital, is renowned for its exceptional education and talent, setting it apart in the region, as per The Next Web.

Argentina is focusing on strengthening its IT education to stay competitive. Program.AR, launched in 2015, promotes computer programming in public schools. Educators nationwide have obtained certification to teach programming through this program. This initiative, coupled with scholarships for technology students and the attractive salaries offered in the tech industry, is inspiring a growing number of students to pursue further education in technology-related fields.

This effort is producing a new cohort of skilled, tech-savvy professionals ready to tackle innovative challenges. Argentina, according to Coursera’s 2019 Global Skills Index, leads in cutting-edge technology skills, especially in software engineering, outshining its neighbours by a significant margin.

Competitive labor costs

Argentina’s economic landscape has undergone various transformations in recent years, with efforts to combat inflation and promote economic stability, since the election of Javier Milei’s government. As a result, labour costs have become more predictable, enhancing the attractiveness of the country for foreign organisations looking to broaden their global footprint.

Inflation has remained high in the first half of 2024 due to peso devaluation, subsidy cuts, and the end of price controls. Various fiscal measures will lead to an economic contraction this year, but a current-account surplus is expected from reduced imports and increased exports. In 2025, a strong economic recovery is predicted with a more supportive business environment, lifted currency controls, increased global investment, and improved private consumption. Radical plans like dollarisation are unlikely to happen any time soon in Argentina.

Compared to other developed countries, Argentina offers competitive labour costs without compromising on the quality of talent, given the high levels of education and industry experience of workers. Therefore, international companies can expect significant cost savings when engaging Argentine labour while accessing a skilled, educated workforce.

Time zone alignment

Argentina’s time zone compatibility with major business regions such as North America, facilitates seamless communication, collaboration and business expansion. This alignment allows for global (and particularly US operations) to be quick to productivity upon engaging talent in Argentina.

Cultural compatibility

The cultural similarities between Argentina and the US (as well as other major business regions), are many, making a talent expansion into Argentina culturally stress-free.

With over 500 US based companies operating in Argentina, the country has a proven track record of business assimilation with international business regions. These US companies employ over 400,000 Argentines and are estimated to invest almost US$15 billion into Argentinian operations.

With a standard 8:00am to 5:00pm workday, fast-paced American style business operations, competency with English (the highest English proficiency in Latin America) and a closely aligned time zone, US and other major business hubs expanding into Argentina will likely experience an ease of cultural integration.

Leveraging Argentina’s growing tech sector

Overview of the tech landscape

Argentina’s tech sector is experiencing remarkable growth, marked by the emergence of tech startups and innovation hubs. Foreign companies stand to benefit from Argentina’s growing tech talent pool and innovative ecosystem.

U.S. companies can tap into Argentina’s tech talent to fuel their innovation initiatives and accelerate product development. Successful collaborations between U.S. companies and Argentine tech startups serve as testament to the value of leveraging Argentina’s growing tech sector.

The surge in Argentina’s tech sector has positioned the country as an appealing choice for companies seeking to broaden their international presence. Over the years, Buenos Aires has evolved into a vibrant hub for startups and digital advancement. From software development to IT outsourcing, Argentina’s technology landscape is progressing swiftly, producing fresh trends and innovations.

And … the Argentine government has been supportive of the tech industry by implementing policies to promote entrepreneurship and global business investment and expansion.

Argentina’s tech industry shows significant potential for ongoing expansion. This is attributed to its skilled workforce, favourable government policies, competitive edge, and the thriving technology landscape, encompassing AI/ML solutions development firms like Intellias. This market has been successfully tapped by providing cutting-edge software services, attracting growing attention from investors at local and global levels.

Advantages for U.S. companies

Argentina has been a prominent tech hub for more than ten years, thanks to the establishment of several leading tech companies in Latin America. This includes numerous high-value tech unicorns: companies valued at over $1 billion. Buenos Aires stands out in the region as a tech breeding ground, with four out of ten Latin American unicorn companies based in the Argentine capital. One of the most famous unicorns is MercadoLibre, often dubbed the Amazon of South America.

This makes Argentina an environment rich for US companies to expand, if they seek innovation and highly skilled tech talent.

However, Argentina’s tech landscape extends beyond these well-known unicorns and is advancing faster into the tech future compared to its neighbours. According to a report from the Wharton School last year, Argentina boasts a dynamic and expanding entrepreneurial ecosystem with numerous tech startups gaining global acclaim for their innovation and growth potential: a great opportunity for savvy US companies looking to innovate and/or engage innovative talent.

Argentina has also become a hub for blockchain technology, hosting notable blockchain startups like Flixxo, Bitfarms, and Ripio Credit Network. The government is also supporting blockchain initiatives, announcing a matching investment of up to $50,000 for Binance-funded blockchain projects.

Additionally, Argentina has experienced significant growth in innovative fintech companies and houses the largest venture capital fund in the region.

The country’s ongoing digital transformation in cutting-edge tech fields showcases a skilled and ambitious tech workforce poised to drive Argentina’s tech sector forward into the future, and as an opportunity for US businesses to expand into the region.

Navigating Argentina’s legal framework for foreign employers can be complex, requiring adherence to local regulations and compliance standards. EOR and AOR services play a crucial role in ensuring compliance with labour laws, tax regulations, and other legal requirements, mitigating risks for foreign companies.

An EOR or AOR (depending on your business’ needs) will take care of hiring and paying workers in Argentina on your behalf, managing various HR tasks related to international recruitment such as onboarding, payroll, benefits, taxes, and compliance. By handling all the necessary legal aspects, an EOR or AOR will ensure that your company operates in compliance with local laws and regulations. Essentially, the AOR or EOR will streamline the process of hiring, compliance, correct worker classification and all other statutory necessities of overseas entities engaging workers in Argentina.

The EOR or AOR can also help with immigration support by overseeing the acquisition of necessary permits and visas for international employees, ensuring a smooth and efficient process.


In summary, leveraging Employer of Record and Agent of Record services for hiring contingent workers or employees in Argentina offers numerous benefits. From accessing a highly skilled workforce and competitive labour costs to enjoying time zone and cultural compatibility, Argentina presents lucrative opportunities for businesses seeking to expand their operations. Additionally, the country’s growing tech sector and supportive government framework further enhance its appeal as a destination for foreign expansion and talent acquisition.

By harnessing the expertise of EOR and AOR providers, companies looking to expand their global footprint can navigate the complexities of hiring employees or contingent workers in Argentina with confidence, driving growth and success in the global marketplace.

We encourage your organisation to consider Argentina when expanding global reach and seeking a skilled, remote workforce.

Contact CXC today and explore our proven AOR and EOR services for streamlining your hiring in Argentina, and ensuring your business always remains compliant. You can reach us, here.

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About CXC

At CXC, we want to help you grow your business with flexible, contingent talent. But we also understand that managing a contingent workforce can be complicated, costly and time-consuming. Through our MSP solution, we can help you to fulfil all of your contingent hiring needs, including temp employees, independent contractors and SOW workers. And if your needs change? No problem. Our flexible solution is designed to scale up and down to match our clients’ requirements.

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