What makes Argentina an attractive hub for American companies

Posted on February 2nd, 2011 by Ricardo Farias

Argentina isn’t the first country that comes to mind when people think of IT, but Hexacta has been helping devise IT solutions for US clients since 1999. Housed in a chic loft in the heart of Palermo in Buenos Aires, Hexacta boasts an impressive list of clients such as Comcast, Microsoft and Shell.

So what makes Argentina such an attractive hub for American companies that want to call in some outside help?
Argentina’s geographic location offers an array of competitive advantages when compared. Not only is Buenos Aires in the same time zone as eastern US, but the focus on technical education and the proximity of several universities allows Hexacta access to some of the most highly qualified software engineers. IT and telecom infrastructure has been expanding rapidly and all network technologies are now digital with almost 15 million lines installed which translates to 45 lines/100 people, the largest operation in South America. Furthermore, the Argentinian government has established numerous incentives to spur the development of the software industry.

With all of these advantages, companies like Hexacta able to offer highly competitive prices that make Argentina an attractive choice for US companies considering IT outsourcing.

Kevin Sun, MBA Class of 2011
Sloan School of Management, Massachusetts Institute of Technology

Hexacta at GoogleDevFest Argentina

Posted on November 16th, 2010 by Laura Lowenthal

For the past few years, Google has been hosting DevFest events in several cities all over the world. It’s a couple of days where developers, designers and other software professionals get together to hear the latest on google technologies and related topics, straight from the engineers who work on them.

On November 1st and 2nd, we had the second edition of the DevFest in Buenos Aires. Hexacta sent around five or six excited participants each day — I got to be there on day one.

Android and Internet computing caught the focus this year. The event featured a number of presentations on Android, Chrome and HTML5, Application Engine and GWT. Not all of them were purely technical: we also heard tips and guidelines on how to make the most of these products to build great applications (and hopefully sell them, too!). We will be writing all about it on our IT Blog.

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Thank you so much, Watts Humphrey

Posted on October 30th, 2010 by Santiago Ceria

Watts Humphrey I learned today that Watts Humphrey died yesterday. His obituary from the SEI can be found here.

I have great admiration for Humphrey’s work. During my stay in CMU in 92-93, he was a guest lecturer in our      Software Process Improvement course. His lecture was about the Personal Software Process. I was deeply  impressed by his insights and the fascinating anecdotes he had to tell… his professional life was immensely rich.    He was also a very talented lecturer.

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Outsourced Development Myths

Posted on October 25th, 2010 by Ricardo Farias

In a global economy where productivity is rising in many segments and production costs are shaping innovative strategies, looking for a strategic IT partner it has become crucial to any organization’s success. Many are addressing these growing concerns by reformulating their business plans, shipping their in-house software development needs to emerging markets’ outsourcing companies.

In these new scenarios, where off-shore outsourcing services are growing exponentially in the world, some myths surrounding this matter are raising as well.  Progressively, public opinion and media coverage are more uneasy about it and many companies everywhere recognize that a lot is at stake for their business. In this blog post I will attempt to tackle some of these myths.

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Argentinean Key Factors for Success

Posted on October 4th, 2010 by Ricardo Farias

A recent survey presented by Capgemini highlights the top factors listed by 300 senior executives from Fortune 1000 companies in choosing an outsourcing destination, and it presents the Latin American region as the third most popular outsourcing destination in the globe.

Among these factors, the top 5 are: labor costs (79 percent), technology & infrastructure capabilities (62 percent), skilled labor (61 percent), language proficiency (49 percent), and economic stability (44 percent).

A closer analysis of each of the factors reveals how Argentina has an important advantage among its neighbors, at least in the short and mid-term.

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More comments on SEMAT

Posted on September 6th, 2010 by Santiago Ceria

I’d like to go back to the SEMAT discussion. As I mentioned in my previous post, I believe that a widely accepted and sound theoretical basis is the key to moving from commercial practice to an engineering discipline. SEMAT looks to agree on the theories underlying software development, so in this sense it’s heading in the right direction. I also like that the list of signatories includes some of the key persons in our discipline such as Barry Boehm, Victor Basili, Watts Humphrey and David Harel. SEMAT wants to achieve its goals by building a “kernel” of widely agreed elements, extensible for specific uses.

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Software Engineering versus Software Management

Posted on July 28th, 2010 by Santiago Ceria

Before getting into discussions about SEMAT I need to talk about a related topic I think will clarify my point of view on the initiative.
In Nov 1990 Mary Shaw published in IEEE Software a great, very influential paper titled “Prospects for an Engineering Discipline of Software”. In November 2009 she published an update of her view on the subject titled “Continuing Prospects for an Engineering Discipline of Software”. This short article is also very interesting and I would like to extract a paragraph from it.

Talking about CMM, Shaw says: “Software has engineering challenges aplenty, and mislabeling management and process issues as “engineering” diverts attention from the equally important technical issues of creating a systematic, scientific basis for an engineering discipline. Our prospects would be better if we’d recognize the former as “software management” allowing the latter to fully occupy the mindspace of “software engineering.” No other engineering discipline suffers this confusion. As for our field’s maturity, whenever someone says, “We don’t need technical advances; we need a better process,” that’s a sign that production skills haven’t yet brought us to a fully mature commercial practice.”

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SEMAT – A new hope?

Posted on July 19th, 2010 by Santiago Ceria

During the SEAFOOD conference I attended in June we had a Keynote from Ivar Jacobson where he presented the SEMAT initiative that he is leading with Bertrand Meyer and Richard Soley. I have to include some texts to present SEMAT:
“Semat seeks to develop a rigorous, theoretically sound basis for software engineering practice, and its wide adoption by industry and academia.”
The SEMAT Call for Action states:
“Software engineering is gravely hampered today by immature practices. Specific problems include:
• The prevalence of fads more typical of fashion industry than of an engineering discipline.
• The lack of a sound, widely accepted theoretical basis.
• The huge number of methods and method variants, with differences little understood and artificially magnified.
• The lack of credible experimental evaluation and validation.
• The split between industry practice and academic research.
We support a process to refound software engineering based on a solid theory, proven principles and best practices that:
• Include a kernel of widely-agreed elements, extensible for specific uses
• Addresses both technology and people issues
• Are supported by industry, academia, researchers and users
• Support extension in the face of changing requirements and technology”
It’s hard not to agree with the above. However, some important persons in the international software engineering community such as Alistair Cockburn believe that this initiative is flawed (see: http://alistair.cockburn.us/A+Detailed+Critique+of+the+SEMAT+Initiative). For the moment I invite the readers of this blog to take a look at the SEMAT site. I’ll come back soon with my comments. Initially, I find this initiative very promising and I believe that the fact that the goal they are trying to achieve is extremely hard shouldn’t prevent us from giving it a try.

SEAFOOD Presentation

Posted on July 13th, 2010 by Santiago Ceria

Last month I presented at SEAFOOD 2010 a paper we wrote with Carlos Pallotti about Argentina’s Offshore Software Industry. It’s great to see how Argentina is, little by little, getting more attention in the offshore landscape. However, we are not alone: many countries around the globe are doing the same and many of them have interesting competitive advantages. Just to mention an example, Russia, the Country that hosted the conference, has a very compatible time zone with Western Europe and a very strong scientific system. I also got the impression that Argentina is somewhat ahead in the adoption of innovative Software Engineering approaches. I hope this will also help us.

I got an interesting question from someone in the audience who asked “Considering Spanish is the most spoken language in the world after Mandarin Chinese, why do you say that Argentina’s good level of English is a competitive advantage”. My answer was the typical “The most attractive markets require English”, but it left me thinking whether Argentina is using this opportunity as much as it should.

We also had quite interesting Keynotes from Ivar Jacobson, about SEMAT, from Bertrand Meyer, about Empirical Software Engineering, and from Richar Soley, about his work at OMG. The SEMAT initiative is very interesting, although it received some powerful critics. I’ll write a post about it soon.

Innovation in Offshore Relationships

Posted on July 5th, 2010 by Juan Navarro

The other day I ran into a very interesting McKinsey article. It describes how successful innovators are shaping the offshore industry. I found the article very clear and right on the mark. It is titled “How innovators are changing IT offshoring”, available from the McKinsey Quarterly. If you have access to it, I’d recommend you read it.

Basically, the authors argue that to achieve long term productivity in an offshore relationship, clients and vendors should engage through a “managed service” model instead of the more traditional “staff augmentation” model. The “managed service” model implies that more leeway is granted to the vendor, so as to allow the offshore company to staff and manage the team more freely. The client does not micromanage what’s happening in the offshore location. In turn, more responsibility for the delivery of concrete services is demanded from the vendor, as well as deeper functional knowledge and alignment with high level business metrics of the client. This model requires trust. Trust is hard to come by these days, but it’s very powerful when appropriately leveraged in an offshore relationship.

Most interesting is one of the metrics brought to the table as an indicator of successful relationships: people retention.

At Hexacta we have always believed that keeping a motivated team is crucial to achieving high productivity and to retain valuable resources. Key for keeping motivation high is setting up the right team structure in the offshore location. Offshore teams should be structured with different seniority levels, and should have a strong local management. Having different seniority levels in the team allows for the most complex tasks to be tackled by the most experienced developers while the easier and repetitive tasks are tackled by the more junior team members. This provides room for people to grow, to coach and to be coached, thus rising motivation. Team member rotation is also necessary. When appropriately planned, functional knowledge is not lost, it is refreshing for the team and ends up generating a much higher retention level.

It is nice to hear that what we’ve advocated for many years is now recognized as a best practice. It’s also nice to be called an “innovator” after so many years of thinking the same way!