The year of big layoffs in the technology sector had the highest salaries in Argentina: what the software industry earns

According to the latest survey conducted by the Argentine Software Industry Chamber (CESSI), the average salary of the software industry increased by 66% and stands at 256,000 pesos, above interannual inflation (64%). Depending on the position, higher salaries can top 600 thousand pesos.

That’s an encouraging figure in the midst of a year full of layoffs at companies like Meta, Amazon and Twitter. The study is conducted through the Permanent Observatory of the Software and IT Services Industry (OPSSI), which contemplates salaries between July 2021 and July 2022. The study is carried out with information on the salaries of 250 companies in the IT sector.

According to the report, while in 2019 the rotation was around 30%, in 2020, at the beginning of the pandemic, it dropped to 25%, but since 2021 the employment dynamic has accelerated and 40% achieved itwith a projection of 42% for 2022.

“Employees in the software industry are, on average, Come in 4% and 5% of the top earners of all private sector employees,” explained a clarion Gustavo Guaragna, OPSSI manager.

“In addition to having some of the best salaries in the country, it is from all businesses that employ more than 50,000 peoplethe one that generated the most work between 2019 and 2021, with 15,500 new positionsa figure that practically doubles that of the automotive industry, for example,” he added, referring to a sector that employs more than 140 thousand people.

Guaragna explained how the software industry in Argentina is made up, which annually generates exports of $7.2 billion.

“We are an industry young. We started relatively few years ago and we are facing a huge challenge, historically usually between 10,000 and 15,000 remain job vacancies. This is why we promote initiatives to promote opportunities that allow them professional and personal development of the first order for all the inhabitants of the country ”, he says.

“The technological question it will continue to be very strong in the future and, therefore, also the demand for knowledge. In this scenario, the challenge for government, business and education systems is to coordinate and work together to train professionals who can learn for life,” he adds.

The mode of use in the software

Although it is often said that the industry has high wages and is paid “in dollars”, there are some particularities that have exploded in recent times. And that forces you to be cautious when you think about it how to upload

“The Economy of platforms (Ubers of remote work) make it relatively easy for people to access work and foreign exchange from abroad, in hard currencies or cryptocurrencies, at international values ​​and evading any type of tax burden. Although it is not something very sustainable for those who have just started working in the sector, it has been an alternative adopted by more autonomous and independent profiles, generally Seniors with good experience and specific knowledge ”, she analyzes.

“This introduced a Pressure upwards in the expectations of those who opt for formal employment. Finally, some unethical recruiters, using digital marketing mechanisms, have flooded social networks and the media with advertising, content and job offers. with inflated salarieswhich later in many cases turn out to be false when the candidate gets to the fine print (usually after several interviews),” he adds.

Especially since all this can lead to frustration: “The speech of ‘I logged in without knowledgeexperience or responsibility for a manager’s salary will lead a generation of frustrated kids, for an illusory promise”.

2“This has only doubled or tripled the expectations of those who are just starting out in this job market, because they are telling a story that we would all like to hear, but very difficult to sustain. Of course there are exceptions, but it is unreal expect 80% to earn as much as the most knowledgeable, experienced and talented 5%,” he develops.

Work stability

There has been a flurry of layoffs at big tech companies like Meta and Amazon this year. This has put the industry on alert, even if it has context: “The wave of mass layoffs It is a phenomenon that is happening especially in technology companies that are publicly traded and whose valuations appear to be overvalued,” he explained.

“On the other hand, those who are suffering a lot are the startups that it is difficult for them to achieve positive returns in the current environment and the flow of cheap money from venture capital is drying up, due to changes in expectations and higher rates making borrowing more expensive,” he added There are other types of companies which, according to the expert, have a constant need for manpower.

“Companies that are related to the real economy and they’re profitable, they’re going to continue to require tech talent, so, there’s going to continue to be a huge unmet demand for employment. The context could be advantageous for making changes to traditional suppliers and relocating services, but it is still early to draw conclusions. Unemployment remains very low in the US (between 2 and 3 points less than in 2021) and the demand for technological talent maintains its ability to be covered ”, he adds.

All of this has a specific weight in our country. “The above could create a window of opportunity for a country like Argentina, considering that many companies implement transnationalization strategies to improve their operational efficiency and we are increasingly established as a quality option in the world,” he concludes.

The report in the foreground 27,216 collaborators distributed throughout the national territory.