Globant Growth Driven by Growing Demand for Digital Services

The company attributed the growth to the growing demand for digital services, but its delivery centers in strategic locations and its attraction rate for customers in diversified sectors could also be contributing factors.

Argentinean information technology firm Globant has posted US$79.9 million in revenue for 2Q16, a 32% increase over the same period last year.

The company attributed the growth to the growing demand for digital services, but analysts say its delivery centers in strategic locations and its attraction rate for customers in diversified sectors could also be contributing factors.

The ongoing volatility in Latin America’s currency market did not hurt Globant’s revenue; the geographic breakdown showed that Latin America accounted for just 10.7%, with Chile contributing more than Argentina, while a record 81.1% came from clients in North America, particularly the United States. The remaining 8.2% came from Europe, with the UK bringing in the majority.

Furthermore, 90.9% of Globant’s revenue for the second quarter was denominated in U.S. dollars, while the remaining 9.1% was denominated in other currencies.

Globant, it seems, is focusing more on its digital consulting services rather than software development. About three months ago, it acquired WAE, a London-based innovative digital services firm, to create what it called “digital journeys” for its clients.

“The market continues to rely on the growth of digital services demand,” stated Martín Migoya, Globant’s CEO and co-founder, underscoring his company’s increasing shift towards digital consulting services.

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Globant served as many as 366 customers between July 2015 and June 2016, but around 16 of its top customers represented nearly 90% of its revenue.

Globant did not disclose how many people it added to its workforce during the quarter, but stated it completed the quarter with 5,380 employees, 4,932 of whom were IT professionals.

Although incorporated in Luxembourg, Globant was founded in 2003 in Buenos Aires, where it maintains its principal operating subsidiary.

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