Intelligent CIO LATAM Issue 62 | Page 38

FEATURE
Argentina legacy IT modernisation at a glance
• Forecast CAGR( 2026 – 2035): 6 – 9 %
• Imported hardware: 70 – 80 % of core infrastructure
• Largest end-user: Industrial automation and manufacturing
• Fastest-growing technologies: Hyper-converged infrastructure and edge computing
• Major challenges: Inflation, currency volatility, import licensing and regulatory compliance
Key growth sectors: Banking, energy, manufacturing and government Digital Transformation
Packard Enterprise, IBM, Cisco, Siemens and Schneider Electric continue to dominate largescale infrastructure projects. Their success is reinforced by established partner ecosystems and proven experience delivering complex enterprise deployments.
However, the report also notes the growing influence of local systems integrators.
Companies such as Grupo Datco, Baufest and Liderar Sistemas increasingly differentiate themselves through installation expertise, lifecycle management and flexible financing rather than competing directly on hardware pricing.
The energy sector offers high-value projects in upstream oil and gas process optimisation and next-generation electrical transmission control systems. and 35 % of Argentina’ s legacy IT modernisation market. Manufacturers are replacing ageing programmable logic controllers( PLCs), supervisory control systems and industrial networking infrastructure as they seek greater efficiency, improved reliability and compliance with international safety standards.
Banking follows closely behind. According to IndexBox, financial institutions are undertaking extensive migrations away from legacy mainframes towards distributed and virtualised computing environments that provide greater flexibility while supporting increasingly sophisticated digital banking services.
Government agencies also represent a significant growth opportunity. Tax administration, healthcare, defence logistics and citizen services all feature prominently in the report, with Digital Transformation programmes expected to generate sustained demand for new data centre infrastructure throughout the coming decade. Meanwhile, the energy sector – particularly oil, gas and electricity – is emerging as one of Argentina’ s most promising modernisation markets.
IndexBox identifies pipeline control systems, substation automation and smart-grid infrastructure as major investment priorities as operators seek greater operational resilience while supporting expanding renewable energy capacity.
The supplier landscape continues to evolve
Although Argentina remains heavily dependent on imported hardware, competition among suppliers continues to intensify.
According to the IndexBox report, multinational vendors including Dell Technologies, Hewlett
Meanwhile, Chinese manufacturers are steadily increasing their presence, particularly within the mid-range server and storage markets.
According to IndexBox, vendors including Huawei and Inspur have gained market share by offering equipment at prices between 10 and 15 % below established competitors, although qualification requirements continue to slow adoption within government departments and highly regulated industries.
Compliance has become a competitive advantage
Technology procurement in Argentina increasingly revolves around more than price.
The IndexBox report highlights an expanding web of regulatory requirements governing electrical safety, telecommunications certification, industrial standards and data protection.
Products frequently require IRAM certification, while networking equipment must satisfy ENACOM approval processes before deployment. Organisations operating within financial services, healthcare and critical infrastructure must also demonstrate compliance with increasingly demanding cybersecurity and data residency requirements.
For suppliers, these regulations represent both a challenge and an opportunity.
Those capable of delivering fully certified, locally supported solutions can significantly reduce implementation risks for customers navigating complex procurement processes.
The report estimates that regulatory compliance alone can increase project costs by between five and ten percent, reinforcing the value of experienced implementation partners.
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