Argentine deregulation presents potential advantages for Globant amid a challenging year. Globant, a software company, indicates that the deregulation of the local financial industry is encouraging firms to increase their investments in technology systems. Argentina is emerging as a notable opportunity amid a challenging landscape for software company Globant SA, as the deregulation of the local financial sector encourages firms to increase their investments in technological infrastructure.
Shares of the Argentine-based company traded in the US have experienced a decline of 55 percent this year, as clients postpone projects due to the uncertainty stemming from US President Donald Trump’s tariff proposals. In the context of Latin America, it has been observed that Mexico and Brazil have faced significant challenges, whereas Argentina has demonstrated superior performance, as noted by company CEO Martin Migoya in a recent interview. “Deregulation leads to growth and unleashes a virtuous cycle in which companies are being forced to invest and renew their technologies,” he stated. All this in a market characterized by persistently low investment levels over an extended period.
Since assuming office in December 2023, Argentina’s President Javier Milei has lifted capital controls and relaxed regulations, measures that are starting to stimulate growth in an economy characterized by prolonged instability and recurrent defaults. According to the company, Latin America constitutes 20 percent of Globant’s total revenue, with Argentina holding the most significant share within the region. Last month, the company revised its revenue growth forecast for this year downward from 10 percent to two percent. This resulted in an unprecedented intraday decline in its shares, exceeding 33 percent. Globant’s decline follows a decade characterized by swift expansion across 36 countries on five continents, during which its total workforce surged tenfold to exceed 31,000 employees.
Looking ahead, Migoya anticipates that Globant’s AI Pods project, a recently launched subscription model for Artificial Intelligence-based services, will significantly influence its business, as it has been “tremendously well received by customers,” he stated. Migoya posits that the prevailing intricate circumstances are “transitory.”