Globant's AI overhaul

Argentine software firm Globant SA is betting that the technology responsible for wiping out 80 percent of its market cap since early 2025 can also reinvent the business that once made it one of Latin America’s biggest tech success stories.

AI business growth plan

Chief Executive Officer Martín Migoya is looking to build out the firm’s AI business, saying the US$700 billion that technology giants are investing in Artificial Intelligence infrastructure will eventually translate into spending elsewhere in the ecosystem, including the services Globant provides.

Glob.AI platform launch

The company launched Glob.AI, a platform that gives clients access to AI Pods where agents work under the supervision of engineers, doing consulting work that previously required nearly two months in a matter of days.

Migoya's vision

‘We’re creating an industry from scratch, and that’s not something that happens every year,’ Migoya said in an interview at the company’s offices in Buenos Aires. ‘This is like the early days of the cloud, when people didn’t really understand what it was.’

“We’re creating an industry from scratch, and that’s not something that happens every year”

Market performance

A stock rout that began in February 2025 has made Globant the second-worst performer among a basket of industry peers, with losses over four times those of the benchmark Bloomberg World IT Services index. It’s worth less than US$2 billion today, from US$13 billion at the end of 2021.

AI revenue target

The company recently appointed former Amazon Web Services executive Sarab Narang to spearhead its AI initiative, which it estimates will account for four to six percent of revenue by year-end.

Investor reaction

Morgan Stanley calls Globant its ‘favourite play for an eventual industry re-acceleration,’ even after trimming its forecasts this year. Its expectation is that AI services could reach 20 percent by the end of the decade.

“favourite play for an eventual industry re-acceleration”

Competitor moves

Globant’s rivals are also investing heavily in AI and experimenting with how they structure their services. EPAM Systems Inc is building what it calls an ‘AI-native’ delivery model, while Cognizant Technology Solutions Corp is embedding AI more deeply into its services and gradually moving away from the traditional practice of billing clients by the hour.