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The revenue contribution from Argentine software developer InterSoft's software factory will be lower than expected this year due to political uncertainties in the country and lower competitiveness, general manager Juan Carlos Martínez told BNamericas.
Martínez said the software factory unit is being affected by higher labor costs. Meanwhile, some clients have decided to hold back on investments due to uncertainty over the results of the presidential elections, slated for October.
The executive said the software factory unit is expected account for some 10% of the company's total revenues this year and 25% in 2012.
"We were expecting the software unit to represent some 25% of our revenues this year, but I don't think we will reach this figure. We believe that we'll be able to reach this contribution by the end of next year," he said.
The software factory was launched at the end of last year and is currently involved in three projects, the executive said.
Among its offerings are social networking 2.0 web developments, web applications and mashups suitable for marketing according to the SaaS model. A mashup is a website or application that combines data or functionality from two or more external sources to create a new service.
InterSoft - which offers tailor-made solutions according to the client's needs - expects its revenues to expand 15-20% this year, Martínez said without providing hard figures.
"Our business in the first half of the year was flat compared to the same period last year, but we're thinking that we will have more activity during the second half. This is not an easy year due to the presidential election," he added.
The company currently has more than 150 companies in its client portfolio and expects its client base to expand some 10% this year. "Half of our client base is very active," he said.
InterSoft's plans to operate in Colombia and Peru were put momentarily on hold due to a lack of competitiveness for Argentine companies in those markets, Martínez noted, adding, "We are now starting to shift the focus to the Brazilian market."
Headquartered in Buenos Aires, InterSoft's development methodologies and processes are certified under CMMI standards. It also develops a range of products including BI solutions, CRM systems and specific software solutions for several industries.