Sergio Kaufman, president of Accenture: “Worries about the blue employment circuit that was generated in Argentina”

Accenture is one of the key players in the so-called Knowledge Economy, a sector with record employment that nevertheless suffers “the Argentina effect” and not only because of the dollar and local swings. Its local president, Sergio Kaufman, says that one of the issues that most affects them today is what he defines as “blue employment”, young employees who choose to work abroad independently and collect in foreign currency. “This parallel circuit makes the work precarious and makes the Central Bank unable to access dollars it should have,” he said in a dialogue with Infobae.

Accenture is a multinational professional services company focused on digital development, cloud and security. It has a presence in 120 countries and almost 700,000 employees, of which 12,000 are in the country. Half of the services it generates locally are exported.

In recent months, the company showed part of its relentless activity in the country with two purchases: Wolox, a rising startup linked to cloud developments, and Glamit, a fashion-related e-commerce platform. This week it launched its Technology Vision 2022 study, where it identifies the metaverse, digital twins, quantum computing and artificial intelligence as the main trends that will mark businesses in the coming years.

What concerns you most about the local macroeconomic context?

— When we talk about concern we have to go down to social, it's not just the economy. Poverty of 50% or more between boys and girls under 15 is a sword of Damocles that hangs all over us. To change that, a predictable country is needed; for companies to want to employ, generate formal employment, invest. The basis is employment, but the requirement is macro stability. The agreement with the Monetary Fund, which some will like more and others less like, does not solve Argentina's problems, but it provides a basis for building stability.

— Is Accenture more attentive to the exchange rate, salaries or recruitment issues?

— Everything related to the Knowledge Economy remains at record employment levels. There is a huge lack of people to hire and “blue employment” is a big problem today in Argentina.

— What is blue employment?

— People from technology, finance services, human resources, economists who find job offers abroad that are paid in dollars and do not enter through the formal circuit. They are totally precarious jobs, but very tempting because of the exchange rate gap we have. Much of the employment that goes through this channel could be formal employment that brings foreign currency into the country. I'm worried about that informal blue employment circuit.

— What impact does it have?

- It weighs, and a lot. In the pandemic we added about 2,000 jobs, but people are also leaving. Out of every 100 people who leave Accenture, and I guess it must be something that happens everywhere, two-thirds do so with some kind of hard currency offer on a parallel circuit. We no longer compete only with the formal market and the parallel circuit is the one that hinders further growth. This generates precarious people, with jobs that do not have social security, who do not pay social security...

— With high salaries.

- Yes, but without any formal relationship. It has a lot of disadvantages. They are hourly projects without coverage. In the long term, it is something that conspires with the ecosystem of the Knowledge Economy.

What do you do to convince people to stay with the company?

— We offer career and future. Last year, 25% of the nearly 12,000 employees we have were promoted to a higher position. They are people who make careers very fast: many reach managerial levels before the age of 30 and continue to grow from there, even with global careers. This level of growth in Argentina is higher than in Europe and the United States. In that regard, Argentina has a dynamic and an acceleration that does not exist anywhere else in the world.

— Does the project that a multinational can offer or collect in dollars working abroad weigh more heavily?

— They weigh the dollar, the macro and some hint of disappointment with Argentina. Many are still here, but dollarized. It's a relatively small portion, 15 or 20% of the people, but in an over-demanded sector it all adds up. Others decide to leave the country; I don't question them, everyone has the right to raise their own lives. I insist: Argentina has a dynamic of professional growth and very good possibilities for promotion. Despite being in a highly challenging context in many respects, the Knowledge Economy is a State policy. The general issues of the country, such as the exchange rate gap, make it difficult for us, but the sector is a locomotive and the world continues to provide opportunities as we accelerate education, give young people more confidence to stay and the macro stabilizes.

— The sector exports between USD 6 billion and 7 billion in recent years. Why doesn't it finish taking off in terms?

— We grow little because the informal part is not registered. If that represents 20%, the account would give about $8.5 billion annually.

What do you think of the agreement with the IMF?

— The important thing about making the agreement is to continue being in the world. We already see in the context of war what happens when you move away from the world: companies leave, jobs go away and innovation disappears. I am not an economist, but the Fund has made a number of interesting things more flexible. Now, we have to do our homework. The problem is not the Fund, the problem is the things we have to do as Argentines. It's like when you don't manage well at home and the bank says, “I give you a loan, but with conditions.” The problem is not the bank, the problem is that you have to tidy up your house. Politics, entrepreneurship, the establishment and the unions have to agree on the things that we need to do in the long term to tidy up the house. It's the best favor we can do to the generations to come. Many of the things that need to be done are not going to be seen tomorrow, but it is the exercise that one sees in the countries with the most history: start planting trees in whose shade one will not rest, but our grandchildren do. We owe ourselves that exercise.

Part of the opposition and some economic sectors say that again the biggest sacrifice will fall on the private sector. Does it match?

— The private sector is going to be part of the sacrifice, but I think there will be a huge sacrifice of those who are in the most vulnerable conditions. The private sector must continue to be given the conditions to generate employment, we must not kill the goose that lays the golden eggs. The balance between protecting a part of society, giving incentives and making corrections without having an impact on companies that have to generate work — to, precisely, generate social mobility — is a complex policy exercise that requires agreements. A match alone can't do it.

— Do you think that the current Government will push this path of agreements?

- It depends on both of us. A tango is danced in two. From what I speak informally with both sectors, they understand that there are ways of agreement in which certain positive reforms for the country will not be possible.

— He is a regular attendee to meetings with the President and the Minister of Economy. What are these meetings like and how do you see the Government in that vicinity?

— There are many myths about these events. In general, they are very transparent events, where both the President, the Minister and others seek to be close to businessmen and unions in order to join positions. It was also the case with the previous government. They are transparent talks where one poses needs to continue growing. They listen, but then, obviously, they can't do everything. It's easy from the rostrum to say “you have to do this or that” or “you were wrong”. When you are on the court everything is much more dynamic. I don't want to excuse anyone, but there are things that seem like mistakes on the outside and when you see it on the other side you understand that there is no other alternative. Or there is the invasion of Russia and the rise in commodity prices.

— Does the stocks have a solution in Argentina?

— Nowadays everyone is talking about structural constraints to growth, and one is the hard currency. Argentina needs inputs. We export added value from people, but we also need technology, sophisticated communication equipment, notebooks, high-performance servers, platelets that allow artificial intelligence. If there are no dollars to import, the ability to generate employment is blocked. “Let's live with what is ours” is a fantasy that is impossible at this point in history. Dollars allow us to grow and generate jobs; building trust means more availability of dollars because there are people who are going to bring them to invest and at the same time it makes that gap narrow. That gap is an indicator of confidence, I mean that the government does not have dollars to sell them freely because people would overdemand them. Some kind of gap will probably exist in the next few years, the issue is to have a decreasing path that involves confidence, investment and growing jobs.

— Is it necessary to carry out a labor reform?

— In our sector we don't have any labor issues, it is a regime perfectly compatible with other parts of the world where we operate.

— And at a general level?

— We have to adapt to certain sectors that have been changing over time. A clear example is Vaca Muerta, where there were changes because operating an oil well today is not the same as it was 30 years ago. The automotive sector has made changes and workers benefited. It is more sector by sector than a change in labor law.

— They have about 1,000 job searches open at the moment. What are they looking for?

— Technology. After the pandemic, someone who works in cybersecurity has assured work anywhere in the world. Also artificial intelligence, mathematicians, physicists who know how to make sophisticated mathematical models. And, of course, more traditional technology, such as programming and design. All bilingual. An important issue for our education system is to start generating a serious, strong second language. Insertion into the world involves being able to speak English.

— What career would you recommend to a boy who is finishing high school?

— Adults sometimes don't tell kids the whole truth because in my generation, to be politically correct, we say “study what you like”. It is a falsehood because many times, no matter what is studied, it is not worked on. I am an industrial engineer and my work has only a little bit of it, the rest are things that I learned, studied, read. You have to study thinking about what kind of things you are going to like to work on. I studied at Oxford and a demographer always said that a boy born today probably lives about 100 years old with a head that will work for him until he is 90, 95 years old. That is, he will be able to work from 24 to 94. You're going to do the same 70 years? No. So, my recommendation is to do something that reasonably likes, but that gives a basis to be able to evolve in the professional career. You don't have to think small, you have to think big, broad. What's more, it's good to be a little generalist in studies because then a lot is built up throughout life. Technology, for example, changes every six months: if you don't make that permanent construction you will become obsolete early.

— What is the photo of the company today in Argentina?

— In large numbers, half of what we do we export and half goes to the local market. The good thing about that dynamic is that we are very resilient towards Argentina. If you suddenly have a crisis and the dollar flies, the export share grows a little. The rule is not to go beyond 60/40. There are times when Argentina invests, comes strong and then we take advantage of those that were formed in times of the most exports.

— How is this exporting mix made up?

— Technology, application building, many data services and artificial intelligence. That started two or three years ago and today we already have 200 or 300 people in those areas. Cybersecurity also grew tremendously: Argentina is one of the largest cybersecurity hubs in the world for the company. There are issues of process outsourcing, lawyers, human resources. The service sector is growing strong.

— He has been in charge of the local subsidiary for more than six years. How does Argentina explain to its bosses?

— The world is so complicated that Argentina is another case within that complexity. Accenture has nearly 700,000 employees and relies on local leadership. At most, they ask. And from here we say: “It is under control”, “This is normal”, “We are handling it this way...”, and we move on. We bought some companies from Argentina and we will continue to do so. Why? Because of the quality of people we find, there is no other secret. These are hard-to-get people in the world.

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