UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549






FORM 20-F



|(Mark One)
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|OR        
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|x         



For the fiscal year ended December 31,
2016



|OR
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|OR
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Commission file number: 001-36535








GLOBANT S.A.

(Exact name of Registrant as specified in
its charter)



Not applicable

(Translation of Registrant’s name
into English)



Grand Duchy of Luxembourg

(Jurisdiction of incorporation or organization)



37A, avenue J.F. Kennedy,

L-1855 Luxembourg

Tel: + 352 20 30 15 96

(Address of principal executive offices)



Patricio Pablo Rojo

37A, avenue J.F. Kennedy,

L-1855 Luxembourg

E-Mail: pablo.rojo@globant.com

Tel: + 352 20 30 15 96

(Name, Telephone, E-Mail and/or Facsimile
number and Address of Company Contact Person)








Securities registered or to be registered
pursuant to Section 12(b) of the Act.



|Title of each class                  | Name of each exchange on which registered
|------------------------------------ | -----------------------------------------
|Common shares value $ 1.20 per share | NYSE                                     








Securities registered or to be registered
pursuant to Section 12(g) of the Act.



None













Securities for which there is a reporting
obligation pursuant to Section 15(d) of the Act.



None



Indicate the number
of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by
the annual report: 34,791,236 common shares of which 143,593 are treasury shares held by us.



Indicate by check mark
if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

 ̈
 Yes x No



If this report is an
annual or transaction report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13
or 15(d) of the Securities Exchange Act of 1934.   ̈ Yes x
 No



Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.  x Yes
 ̈  No



Indicate by check mark
whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required
to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding
12 months (or for such shorter period that the registrant was required to submit and post such files). (*)  ̈
 Yes  ̈ No



(*) This requirement
does not apply to the registrant in respect of this filing.



Indicate by check mark
whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.



|Large accelerated filer  x | Accelerated filer   ̈ | Non-accelerated filer   ̈
|-------------------------- | -------------------- | ------------------------



Indicate by check mark
which basis of accounting the registrant has used to prepare the financial statements included in this filing:



U.S. GAAP   ̈
International Financial Reporting Standards as issued by the International Accounting Standards Board  x Other 
 ̈



If “Other”
has been checked in response to the previous question indicate by check mark which financial statement item the registrant has
elected to follow.  ̈  Item 17   ̈
 Item 18



If this is an annual
report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). 
 ̈  Yes  x  No











TABLE OF CONTENTS



|CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS    | 1  
|------------------------------------------------------------- | ---
|CURRENCY PRESENTATION AND DEFINITIONS                         | 2  
|PRESENTATION OF FINANCIAL INFORMATION                         | 2  
|PRESENTATION OF INDUSTRY AND MARKET DATA                      | 2  
|PART I                                                        | 3  
|ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS | 3  
|ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE               | 3  
|ITEM 3. KEY INFORMATION                                       | 3  
|                                                              |    
|A. Selected Financial Data                                    | 3  
|B. Capitalization and Indebtedness                            | 8  
|C. Reasons for the Offer and Use of Proceeds                  | 8  
|D. Risk Factors                                               | 8  
|                                                              |    
|ITEM 4. INFORMATION ON THE COMPANY                            | 34 
|                                                              |    
|A. History and Development of the Company                     | 34 
|B. Business overview                                          | 35 
|C. Organizational Structure                                   | 63 
|D. Property, Plant and Equipment                              | 63 
|                                                              |    
|ITEM 4A. UNRESOLVED STAFF COMMENTS                            | 63 
|ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS          | 63 
|                                                              |    
|A. Operating Results                                          | 65 
|B. Liquidity and Capital Resources                            | 77 
|C. Research and Development, Patents and Licenses, etc.       | 88 
|D. Trend Information                                          | 88 
|E. Off-Balance Sheet Arrangements                             | 88 
|F. Tabular Disclosure of Contractual Obligations              | 88 
|G. Safe harbor                                                | 88 
|                                                              |    
|ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES            | 89 
|                                                              |    
|A. Directors and Senior Management                            | 89 
|B. Compensation                                               | 93 
|C. Board Practices                                            | 96 
|D. Employees                                                  | 98 
|E. Share Ownership                                            | 100
|                                                              |    
|ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS     | 101
|                                                              |    
|A. Major Shareholders                                         | 101
|B. Related Party Transactions                                 | 103
|C. Interests of Experts and Counsel                           | 104











|ITEM 8. FINANCIAL INFORMATION                                                         | 104
|------------------------------------------------------------------------------------- | ---
|                                                                                      |    
|A. Consolidated statements and other financial information                            | 104
|B. Significant Changes                                                                | 106
|                                                                                      |    
|ITEM 9. THE OFFER AND LISTING                                                         | 106
|                                                                                      |    
|A. Offering and listing details                                                       | 106
|B. Plan of Distribution                                                               | 108
|C. Markets                                                                            | 108
|D. Selling Shareholders                                                               | 108
|E. Dilution                                                                           | 108
|F. Expenses of the Issue                                                              | 108
|                                                                                      |    
|ITEM 10. ADDITIONAL INFORMATION                                                       | 108
|                                                                                      |    
|A. Share capital                                                                      | 108
|B. Memorandum and Articles of Association                                             | 108
|C. Material Contracts                                                                 | 117
|D. Exchange Controls                                                                  | 117
|E. Taxation                                                                           | 117
|F. Dividends and Paying Agents                                                        | 124
|G. Statement by Experts                                                               | 124
|H. Documents on Display                                                               | 124
|I. Subsidiaries Information                                                           | 124
|                                                                                      |    
|ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                   | 124
|ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES                       | 126
|                                                                                      |    
|A. Debt Securities                                                                    | 126
|B. Warrants and Rights                                                                | 127
|C. Other Securities                                                                   | 127
|D. American Depositary Shares                                                         | 127
|                                                                                      |    
|ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES                              | 127
|ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | 127
|ITEM 15. CONTROLS AND PROCEDURES                                                      | 127
|ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT                                            | 129
|ITEM 16B. CODE OF ETHICS                                                              | 129
|ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES                                      | 130
|ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                  | 130
|ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS      | 130
|ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT                                | 130
|ITEM 16G. CORPORATE GOVERNANCE                                                        | 131
|ITEM 16H. MINE SAFETY DISCLOSURE                                                      | 132
|PART III                                                                              | 133
|ITEM 17. FINANCIAL STATEMENTS                                                         | 133
|ITEM 18. FINANCIAL STATEMENTS                                                         | 133
|ITEM 19. EXHIBITS                                                                     | 133











CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS



This annual report
includes forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than
statements of historical facts contained in this annual report, including, without limitation, those regarding our future financial
position and results of operations, strategy, plans, objectives, goals and targets, future developments in the markets in which
we operate or are seeking to operate or anticipated regulatory changes in the markets in which we operate or intend to operate.
In some cases, you can identify forward-looking statements by terminology such as “aim", “anticipate", “believe",
“continue", “could", “estimate", “expect", “forecast", “guidance",
“intend", “may", “plan", “potential", “predict", “projected",
“should” or “will” or the negative of such terms or other comparable terminology.



You should carefully
consider all the information in this annual report, including the information set forth under “Risk Factors.” We believe
our primary challenges are:



| | • | If we are unable to maintain current resource utilization rates and productivity levels, our revenues,
profit margins and results of operations may be adversely affected;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | If we are unable to manage attrition and attract and retain highly-skilled IT professionals, we
may not have the necessary resources to maintain client relationships, and competition for such IT professionals could materially
adversely affect our business, financial condition and results of operations;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | If the pricing structures we use for our client contracts are based on inaccurate expectations
and assumptions regarding the cost and complexity of performing our work, our contracts could be unprofitable;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | We may not be able to achieve our anticipated growth, which could materially adversely affect our
revenues, results of operations, business and prospects;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | We may be unable to effectively manage our rapid growth, which could place significant strain on
our management personnel, systems and resources;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------



| | • | If we were to lose the services of our senior management team or other key employees, our business
operations, competitive position, client relationships, revenues and results of operation may be adversely affected;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | If we do not continue to innovate and remain at the forefront of emerging technologies and related
market trends, we may lose clients and not remain competitive, which could cause our results of operations to suffer;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | If any of our largest clients terminates, decreases the scope of, or fails to renew its business
relationship or short-term contract with us, our revenues, business and results of operations may be adversely affected;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | We derive a significant portion of our revenues from clients located in the United States and,
to a lesser extent, Europe. Worsening general economic conditions in the United States, Europe or globally could materially adversely
affect our revenues, margins, results of operations and financial condition;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Uncertainty concerning the instability in the current economic, political and social environment
in Argentina may have an adverse impact on capital flows and could adversely affect our business, financial condition and results
of operations;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Argentina’s regulations on proceeds from the export of services may increase our exposure
to fluctuations in the value of the Argentine peso, which, in turn, could have an adverse effect on our operations and the market
price of our common shares. The imposition or re-imposition in the future of regulations on proceeds collected outside Argentina
for services rendered to non-Argentine residents or of export duties and controls could have an adverse effect on us;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | As of March 20, 2017, our greater than 5% shareholders, directors and executive officers and entities
affiliated with them beneficially own approximately 58.98% of our outstanding common shares (this calculation includes common shares
subject to options currently exercisable and options exercisable within 60 days of March 20, 2017), of which approximately 19.17%
of our outstanding common shares are owned by affiliates of WPP. These shareholders therefore continue to have substantial control
over us at the date of this annual report and could prevent new investors from influencing significant corporate decisions, such
as approval of key transactions, including a change of control; and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | By their nature, forward-looking statements involve risks and uncertainties because they relate
to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of
future performance and are based on numerous assumptions. Our actual results of operations, financial condition and the development
of events may differ materially from (and be more negative than) those made in, or suggested by, the forward-looking statements.
Readers should read “Risk Factors” in this annual report and the description of our business under “Business”
in this annual report for a more complete discussion of the factors that could affect us.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



1







Unless required by
law, we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future
events or developments or otherwise.



CURRENCY PRESENTATION AND DEFINITIONS



In this annual report,
all references to “U.S. dollars” and “$” are to the lawful currency of the United States, all references
to “Argentine pesos” are to the lawful currency of the Republic of Argentina, all references to “Colombian pesos”
are to the lawful currency of the Republic of Colombia, all references to “Uruguayan pesos” are to the lawful currency
of the Republic of Uruguay, all references to “Mexican pesos” are to the lawful currency of Mexico, all references
to “Rupees” or “Indian rupees” are to the lawful currency of the Republic of India, all references to "Reais"
or "Brazilian Real" are to the lawful currency of Brazil, all references to "Peruvian Sol" are to the lawful
currency of Peru, and all references to “euro” or “€” are to the single currency of the participating
member states of the European and Monetary Union of the Treaty Establishing the European Community, as amended from time to time.
All references to the “pound,” “British Sterling pound” or “£” are to the lawful currency
of the United Kingdom.



Unless otherwise specified
or the context requires otherwise in this annual report:



| | • | “IT” refers to information technology;
| | - | --------------------------------------

| | • | “ISO” means the International Organization for Standardization, which develops and publishes international standards
in a variety of technologies and in the IT services sector;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | “ISO 9001:2008” means a quality management software developed by the ISO designed to
help companies ensure they meet the standards of customers and other stakeholders;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | “Agile development methodologies” means a group of software development methods based
on iterative and incremental development, where requirements and solutions evolve through collaboration between self-organizing,
cross-functional teams;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | “Attrition rate,” during a specific period, refers to the ratio of IT professionals
that left our company during the period to the number of IT professionals that were on our payroll on the last day of the period;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | “Globers” refers to the employees that work in our company; and
| | - | ---------------------------------------------------------------

| | • | “Digital journey” means a context-aware interaction between an end user and a brand
or business whereby the interaction becomes a digital conversation in which technology establishes and builds a powerful experience
with deep emotional connections through three key values: simplification, surprise, and anticipation.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



“GLOBANT”
and its logo are our trademarks. Solely for convenience, we refer to our trademarks in this annual without the TM and ® symbols,
but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law,
our rights to our trademarks. Other service marks, trademarks and trade names referred to in this annual report are the property
of their respective owners.



PRESENTATION OF FINANCIAL INFORMATION



Our consolidated financial
statements are prepared under International Financial Reporting Standards (“IFRS”) as issued by the International Accounting
Standards Board (“IASB”) and presented in U.S. dollars because the U.S. dollar is our functional currency. Our fiscal
year ends on December 31 of each year. Accordingly, all references to a particular year are to the year ended December 31 of that
year. Some percentages and amounts included in this annual report have been rounded for ease of presentation. Accordingly, figures
shown as totals in certain tables may not be an exact arithmetic aggregation of the figures that precede them.



PRESENTATION OF INDUSTRY AND MARKET DATA



In this annual report,
we rely on, and refer to, information regarding our business and the markets in which we operate and compete. The market data and
certain economic and industry data and forecasts used in this annual report were obtained from International Data Corporation (“IDC”),
Gartner, Inc. (“Gartner”), internal surveys, market research, governmental and other publicly available information,
independent industry publications and reports prepared by industry consultants. Industry publications, surveys and forecasts generally
state that the information contained therein has been obtained from sources believed to be reliable, but that the accuracy and
completeness of such information is not guaranteed. We believe that these industry publications, surveys and forecasts are reliable,
but we have not independently verified them and cannot guarantee their accuracy or completeness.



Certain market share
information and other statements presented herein regarding our position relative to our competitors are not based on published
statistical data or information obtained from independent third parties, but reflect our best estimates. We have based these estimates
upon information obtained from our clients, trade and business organizations and associations and other contacts in the industries
in which we operate.



2







PART I.



ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS



Not applicable.



ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE



Not applicable.



ITEM 3. KEY INFORMATION



A. Selected Financial Data



The following selected
consolidated financial and other data of Globant S.A. should be read in conjunction with, and are qualified by reference to, “Operating
and Financial Review and Prospects” and our audited consolidated financial statements and notes thereto included elsewhere
in this annual report. The selected consolidated financial data as of December 31, 2016 and 2015 and for the years ended December 31,
2016, 2015 and 2014 are derived from the audited consolidated financial statements of Globant S.A. included elsewhere in this annual
report and should be read in conjunction with those audited consolidated financial statements and notes thereto. Our selected consolidated
financial data as of December 31, 2014 set forth below were derived from our consolidated financial statements as of December 31,
2015 and 2014 and for the years ended December 31, 2015, 2014 and 2013 filed with the SEC on April 29, 2016 in our annual report
for the year ended December 31, 2015 and which are not included in this annual report. Our selected consolidated financial data
as of December 31, 2013 and 2012 and for the years ended December 31, 2013 and 2012 set forth below were derived from our consolidated
financial statements as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012 and 2011 filed with the SEC
on July 18, 2014 in our prospectus dated July 17, 2014, filed pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended
(the "Securities Act"), which are not included in this annual report.



3







|                                                                          |  | Year ended December 31,                                   |         
|------------------------------------------------------------------------- |  | --------------------------------------------------------- | --------
|                                                                          |  | 2016                                                      |         
|                                                                          |  | (in thousands, except for percentages and per share data) |         
|                                                                          |  |                                                           |         
|Consolidated Statements of profit or loss and other comprehensive income: |  |                                                           |         
|Revenues(1)                                                               |  | $                                                         | 322,856 
|Cost of revenues(2)                                                       |  |                                                           | (191,395
|Gross profit                                                              |  |                                                           | 131,461 
|Selling, general and administrative expenses(3)                           |  |                                                           | (81,889 
|Impairment of tax credits, net of recoveries                              |  |                                                           | —       
|Profit (Loss) from operations                                             |  |                                                           | 49,572  
|Gain on transactions with bonds(4)                                        |  |                                                           | —       
|Finance income                                                            |  |                                                           | 16,215  
|Finance expense                                                           |  |                                                           | (19,227 
|Finance (expense) income, net(5)                                          |  |                                                           | (3,012  
|Other income and expenses, net(6)                                         |  |                                                           | 3,629   
|Profit (Loss) before income tax                                           |  |                                                           | 50,189  
|Income tax(7)                                                             |  |                                                           | (14,327 
|Net income (Loss) for the year                                            |  |                                                           | 35,862  
|Earnings (Loss) per share                                                 |  |                                                           |         
|Basic                                                                     |  |                                                           | 1.04    
|Diluted                                                                   |  |                                                           | 1.01    
|Weighted average number of outstanding shares (in thousands)              |  |                                                           |         
|Basic                                                                     |  |                                                           | 34,402  
|Diluted                                                                   |  |                                                           | 35,413  



| | (1) | Includes transactions with related parties of $6,462, $6,655, $7,681 and $8,532 for the years ended
December 31, 2016, 2015, 2014 and 2013, respectively.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Includes depreciation and amortization expense of $4,281, $4,441, $3,813, $3,215 and $1,964 for
the years ended December 31, 2016, 2015, 2014, 2013 and 2012, respectively. Also includes transactions with related parties
of $2,901 for the year ended December 31, 2012. Finally, it includes share based compensation for $917, $735, $35, $190 and $4,644
for the years ended December 31, 2016, 2015, 2014, 2013 and 2012, respectively.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | Includes depreciation and amortization expense of $6,637, $4,860, $4,221, $3,941 and $2,806 for
the years ended December 31, 2016, 2015, 2014, 2013 and 2012, respectively. Also includes transactions with related parties
of $1,381 for the year ended December 31, 2012. Finally, it includes share based compensation of $2,703, $1,647, $582, $603 and
$7,065 for the years ended December 31, 2016, 2015, 2014, 2013 and 2012, respectively.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | Includes gain on transactions with bonds of $19,102, $12,629 and $29,577 acquired with funds from
capitalizations and proceeds received by our Argentine subsidiaries as payments from exports for the years ended December 31,
2015, 2014 and 2013, respectively. For additional information about gain on transactions with bonds during the years ended December
31, 2015 and 2014, see note 3.18 to our audited consolidated financial statements included elsewhere in this annual report. For
additional information about gain on transactions with bonds during the year ended December 31, 2013, see Item 3.A. of our annual
report for the year ended December 31, 2015.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5) | Includes foreign exchange loss, net, of $8,620, $10,136, $2,946, $4,238 and $1,098 for the years
ended December 31, 2016, 2015, 2014, 2013 and 2012, respectively.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (6) | Includes a gain of $418 on the remeasurement of contingent consideration related to the acquisition
of Clarice Technologies Private Ltd. (now called Globant India Private Ltd. or "Clarice"), a gain of $2,981 related to
the remeasurement of the fair value of the call and put option over our non-controlling interest in Dynaflows, and a gain of $225
related to the bargain business combination of Difier S.A. ("Difier") for the year ended December 31, 2016. See notes
23, 27.10.1 and 27.10.2 to our audit consolidated financial statements, respectively. Includes a gain related to the valuation
at fair value of our 22.7% share interest held in Dynaflows of $625 for the year ended December 31, 2015. Includes a gain
related to the bargain business combination of Bluestar Peru of $472 for the year ended December 31, 2014. See note 23 to
our audited consolidated financial statements. Includes a gain of $1,703 on remeasurement of the contingent consideration related
to the acquisition of TerraForum for the year ended December 31, 2013.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (7) | Includes deferred tax gains of $730, $1,102, $529 and $2,479 for the years ended December 31,
2016, 2015, 2013 and 2012, respectively, and a deferred tax charge of $370 for the year ended December 31, 2014.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



4







Reconciliation of Non-IFRS Financial Data



Overview



To supplement our financial
measures prepared in accordance with IFRS, we use certain non-IFRS financial measures including (i) adjusted diluted earnings
per share ("EPS"), (ii) adjusted net income, (iii) adjusted gross profit, (iv) adjusted selling, general and
administrative ("SG&A") expenses, and (v) adjusted profit from operations. These measures do not have any standardized
meaning under IFRS, and other companies may use similarly titled non-IFRS financial measures that are calculated differently from
the way we calculate such measures. Accordingly, our non-IFRS financial measures may not be comparable to similar non-IFRS measures
presented by other companies. We caution investors not to place undue reliance on such non-IFRS measures, but instead to consider
them with the most directly comparable IFRS measures. Non-IFRS financial measures have limitations as analytical tools and should
not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding
measures calculated in accordance with IFRS.



The reconciliations
of these non-IFRS measures to the most directly comparable financial measures calculated and presented in accordance with IFRS
are shown in the tables below. We use these non-IFRS measures as key metrics in the evaluation of our performance and our consolidated
financial results. We believe these non-IFRS measures are useful to investors in their assessment of our operating performance
and the valuation of our company. In addition, these non-IFRS measures address questions we routinely receive from analysts and
investors and, in order to assure that all investors have access to similar data, we have determined that it is appropriate to
make this data available to all investors.



Adjusted Diluted EPS and Adjusted Net
Income



We utilize non-IFRS
measures of adjusted diluted EPS and adjusted net income for strategic decision making, forecasting future results and evaluating
current performance. Adjusted diluted EPS and adjusted net income are most directly comparable to the IFRS measures of EPS and
net income, respectively. Our non-IFRS measures of adjusted diluted EPS and adjusted net income exclude the impact of certain items,
such as acquisition-related costs, impairment of tax credits, net of recoveries, share-based compensation expense and expense related
to the US settlement agreement (See “Financial Information - Consolidated Statements and Other Financial Information - Legal
Proceedings”).



Adjusted Gross Profit and Adjusted SG&A
Expenses



We utilize non-IFRS
measures of adjusted gross profit and adjusted SG&A expenses as supplemental measures for period-to-period comparisons. Adjusted
gross profit and adjusted SG&A expenses are most directly comparable to the IFRS measures of gross profit and selling, general
and administrative expenses, respectively. Our non-IFRS measures of adjusted gross profit and adjusted SG&A expenses exclude
the impact of certain items, such as amortization and depreciation expense, share-based compensation expense and, only with respect
to adjusted SG&A expenses, acquisition-related costs.



Adjusted Profit from Operations



We utilize the non-IFRS
measure of adjusted profit from operations as a supplemental measure for period-to-period comparisons. Adjusted profit from operations
is most directly comparable to the IFRS measure of profit from operations. Adjusted profit from operations excludes the impact
of certain items, such as share-based compensation expense, impairment of tax credits, net of recoveries and acquisition-related
costs.



5







|                                                                        |  | Year ended December 31, |        
|----------------------------------------------------------------------- |  | ----------------------- | -------
|                                                                        |  | 2016                    |        
|                                                                        |  |                         |        
|Reconciliation of adjusted gross profit                                 |  |                         |        
|Gross profit                                                            |  | $                       | 131,461
|Adjustments                                                             |  |                         |        
|Depreciation and amortization expense                                   |  |                         | 4,281  
|Share-based compensation expense                                        |  |                         | 917    
|Adjusted gross profit                                                   |  | $                       | 136,659
|Reconciliation of adjusted selling, general and administrative expenses |  |                         |        
|Selling, general and administrative expenses                            |  | $                       | (81,889
|Adjustments                                                             |  |                         |        
|Acquisition-related costs                                               |  |                         | —      
|Depreciation and amortization expense                                   |  |                         | 6,637  
|Share-based compensation expense                                        |  |                         | 2,703  
|Adjusted selling, general and administrative expenses                   |  | $                       | (72,549
|Reconciliation of adjusted profit from operations                       |  |                         |        
|Profit (Loss) from operations                                           |  | $                       | 49,572 
|Adjustments                                                             |  |                         |        
|Acquisition-related costs                                               |  |                         | —      
|Impairment of tax credits, net of recoveries                            |  |                         | —      
|Share-based compensation expense                                        |  |                         | 3,620  
|Adjusted profit from operations                                         |  | $                       | 53,192 
|Reconciliation of adjusted net income (loss) for the year               |  |                         |        
|Net income (loss) for the year                                          |  | $                       | 35,862 
|Adjustments                                                             |  |                         |        
|Acquisition-related costs                                               |  |                         | —      
|Share-based compensation expense                                        |  |                         | 3,620  
|US settlement agreement, net                                            |  |                         | 845    
|Adjusted net income for the year                                        |  | $                       | 40,327 
|                                                                        |  |                         |        
|Calculation of adjusted diluted EPS                                     |  |                         |        
|Adjusted net income                                                     |  |                         | 40,327 
|Diluted shares                                                          |  |                         | 35,413 
|Adjusted diluted EPS                                                    |  |                         | 1.14   
|                                                                        |  |                         |        
|Other data:                                                             |  |                         |        
|Adjusted gross profit                                                   |  |                         | 136,659
|Adjusted gross profit margin percentage                                 |  |                         | 42.3   
|Adjusted selling, general and administrative expenses                   |  |                         | (72,549
|Adjusted profit from operations                                         |  |                         | 53,192 
|Adjusted profit from operations margin percentage                       |  |                         | 16.5   
|Adjusted net income for the year                                        |  |                         | 40,327 
|Adjusted net income margin percentage for the year                      |  |                         | 12.5   



6







Consolidated Statements of Financial Position Data



|                                                       |  | As of December 31, |        
|------------------------------------------------------ |  | ------------------ | -------
|                                                       |  | 2016               |        
|                                                       |  |                    |        
|Consolidated statements of financial position data:    |  |                    |        
|Cash and cash equivalents                              |  | $                  | 50,532 
|Investments                                            |  |                    | 9,355  
|Trade receivables                                      |  |                    | 54,170 
|Other receivables (current and non-current)            |  |                    | 46,334 
|Deferred tax assets                                    |  |                    | 7,691  
|Investment in associates                               |  |                    | 800    
|Other financial assets (current and non-current)       |  |                    | 1,219  
|Property and equipment                                 |  |                    | 35,676 
|Intangible assets                                      |  |                    | 13,791 
|Goodwill                                               |  |                    | 65,180 
|Total assets                                           |  |                    | 284,748
|                                                       |  |                    |        
|Trade payables                                         |  |                    | 5,603  
|Payroll and social security taxes payable              |  |                    | 30,328 
|Borrowings (current and non-current)                   |  |                    | 217    
|Other financial liabilities (current and non-current)  |  |                    | 31,826 
|Tax liabilities                                        |  |                    | 6,249  
|Other liabilities and provisions                       |  |                    | 1,965  
|Total liabilities                                      |  |                    | 76,188 
|Total equity and non-controlling interest              |  |                    | 208,560
|Total equity, non-controlling interest and liabilities |  |                    | 284,748



7







B. Capitalization and Indebtedness



Not applicable.



C. Reasons for the Offer and Use of Proceeds



Not applicable.



D. Risk Factors



You should carefully
consider the risks and uncertainties described below, together with the other information contained in this annual report, before
making any investment decision. Any of the following risks and uncertainties could have a material adverse effect on our business,
prospects, results of operations and financial condition. The market price of our common shares could decline due to any of these
risks and uncertainties, and you could lose all or part of your investment. The risks described below are those that we currently
believe may materially affect us.



Risks Related to Our Business and Industry



If we are unable to maintain current
resource utilization rates and productivity levels, our revenues, profit margins and results of operations may be adversely affected.



Our profitability and
the cost of providing our services are affected by our utilization rate of the Globers in our Studios. If we are not able to maintain
appropriate utilization rates for our professionals, our profit margin and our profitability may suffer. Our utilization rates
are affected by a number of factors, including:



| | • | our ability to transition Globers from completed projects to new assignments and to hire and integrate new employees;
| | - | ---------------------------------------------------------------------------------------------------------------------

| | • | our ability to forecast demand for our services and thereby maintain an appropriate headcount in
each of our delivery centers;
| | - | ------------------------------------------------------------------------------------------------------------------------------

| | • | our ability to manage the attrition of our IT professionals; and
| | - | ----------------------------------------------------------------

| | • | our need to devote time and resources to training, professional development and other activities
that cannot be billed to our clients.
| | - | --------------------------------------------------------------------------------------------------------------------------------------



Our revenue could also
suffer if we misjudge demand patterns and do not recruit sufficient employees to satisfy demand. Employee shortages could prevent
us from completing our contractual commitments in a timely manner and cause us to pay penalties or lose contracts or clients. In
addition, we could incur increased payroll costs, which would negatively affect our utilization rates and our business.



Increases in
our current levels of attrition may increase our operating costs and adversely affect our future business prospects.



The total attrition
rate among our Globers was 19.3%, 17.7% and 20.2% for the years ended December 31, 2016, 2015 and 2014, respectively. If our
attrition rate were to increase, our operating efficiency and productivity may decrease. We compete for talented individuals not
only with other companies in our industry but also with companies in other industries, such as software services, engineering services
and financial services companies, among others, and there is a limited pool of individuals who have the skills and training needed
to help us grow our company. High attrition rates of qualified personnel could have an adverse effect on our ability to expand
our business, as well as cause us to incur greater personnel expenses and training costs.



If the pricing
structures that we use for our client contracts are based on inaccurate expectations and assumptions regarding the cost and complexity
of performing our work, our contracts could be unprofitable, which could adversely affect our results of operations, financial
condition and cash flows from operation.



We perform our services
primarily under time-and-materials contracts (where materials costs consist of travel and out-of-pocket expenses). We charge out
the services performed by our Globers under these contracts at hourly rates that are agreed to at the time the contract is entered
into. The hourly rates and other pricing terms negotiated with our clients are highly dependent on the complexity of the project,
the mix of staffing we anticipate using on it, internal forecasts of our operating costs and predictions of increases in those
costs influenced by wage inflation and other marketplace factors. Our predictions are based on limited data and could turn out
to be inaccurate. Typically, we do not have the ability to increase the hourly rates established at the outset of a client project
in order to pass through to our client increases in salary costs driven by wage inflation and other marketplace factors. Because
we conduct a substantial part of our operations through our operating subsidiaries located in Argentina, we are subject to the
effects of wage inflation and other marketplace factors in Argentina, which have increased significantly in recent years. If increases
in salary and other operating costs at our Argentine subsidiaries exceed our internal forecasts, the hourly rates established under
our time-and-materials contracts might not be sufficient to recover those increased operating costs, which would make those contracts
unprofitable for us, thereby adversely affecting our results of operations, financial condition and cash flows from operations.



8







In addition to our
time-and-materials contracts, we undertake some engagements on a fixed-price basis. Revenues from our fixed-price contracts represented
approximately 7.9%, 3.7% and 9.3% of total revenues for the years ended December 31, 2016, 2015 and 2014, respectively. Our
pricing in a fixed-price contract is highly dependent on our assumptions and forecasts about the costs we will incur to complete
the related project, which are based on limited data and could turn out to be inaccurate. Any failure by us accurately to estimate
the resources and time required to complete a fixed-price contract on time and on budget or any unexpected increase in the cost
of our Globers assigned to the related project, office space or materials could expose us to risks associated with cost overruns
and could have a material adverse effect on our business, results of operations and financial condition. In addition, any unexpected
changes in economic conditions that affect any of the foregoing assumptions and predictions could render contracts that would have
been favorable to us when signed unfavorable.



We may not be able to achieve anticipated
growth, which could materially adversely affect our revenues, results of operations, business and prospects.



We intend to continue
our expansion in the foreseeable future and to pursue existing and potential market opportunities. As we add new Studios, introduce
new services or enter into new markets, we may face new market, technological and operational risks and challenges with which we
are unfamiliar, and we may not be able to mitigate these risks and challenges to successfully grow those services or markets. We
may not be able to achieve our anticipated growth, which could materially adversely affect our revenues, results of operations,
business and prospects.



If we are unable to effectively manage
the rapid growth of our business, our management personnel, systems and resources could face significant strains, which could adversely
affect our results of operations.



We have experienced,
and continue to experience, rapid growth in our headcount, operations and revenues, which has placed, and will continue to place,
significant demands on our management and operational and financial infrastructure. Additionally, the longer-term transition in
our delivery mix from Argentina-based staffing to increasingly decentralized staffing in Latin America, the United States and India
has also placed additional operational and structural demands on our resources. Our future growth depends on recruiting, hiring
and training technology professionals, growing our international operations, expanding our delivery capabilities, adding effective
sales staff and management personnel, adding service offerings, maintaining existing clients and winning new business. Effective
management of these and other growth initiatives will require us to continue to improve our infrastructure, execution standards
and ability to expand services. Failure to manage growth effectively could have a material adverse effect on the quality of the
execution of our engagements, our ability to attract and retain IT professionals and our business, results of operations and financial
condition.



If we were to lose the services of
our senior management team or other key employees, our business operations, competitive position, client relationships, revenues
and results of operation may be adversely affected.



Our future success
heavily depends upon the continued services of our senior management team and other key employees. We currently do not maintain
key man life insurance for any of our founders, members of our senior management team or other key employees. If one or more of
our senior executives or key employees are unable or unwilling to continue in their present positions, it could disrupt our business
operations, and we may not be able to replace them easily, on a timely basis or at all. In addition, competition for senior executives
and key employees in our industry is intense, and we may be unable to retain our senior executives and key employees or attract
and retain new senior executives and key employees in the future, in which case our business may be severely disrupted.



If any of our senior
management team or key employees joins a competitor or forms a competing company, we may lose clients, suppliers, know-how and
key IT professionals and staff members to them. Also, if any of our sales executives or other sales personnel, who generally maintain
a close relationship with our clients, joins a competitor or forms a competing company, we may lose clients to that company, and
our revenues may be materially adversely affected. Additionally, there could be unauthorized disclosure or use of our technical
knowledge, practices or procedures by such personnel. If any dispute arises between any members of our senior management team or
key employees and us, any noncompetition, non-solicitation and nondisclosure agreements we have with our founders, senior executives
or key employees might not provide effective protection to us in light of legal uncertainties associated with the enforceability
of such agreements.



9







If we are unable to attract and retain
highly-skilled IT professionals, we may not be able to maintain client relationships and grow effectively, which may adversely
affect our business, results of operations and financial condition.



Our business is labor
intensive and, accordingly, our success depends upon our ability to attract, develop, motivate, retain and effectively utilize
highly-skilled IT professionals. We believe that there is significant competition for technology professionals in Latin America,
the United States, Europe, Asia and elsewhere who possess the technical skills and experience necessary to deliver our services,
and that such competition is likely to continue for the foreseeable future. As a result, the technology industry generally experiences
a significant rate of turnover of its workforce. Our business plan is based on hiring and training a significant number of additional
technology professionals each year in order to meet anticipated turnover and increased staffing needs. Our ability to properly
staff projects, to maintain and renew existing engagements and to win new business depends, in large part, on our ability to hire
and retain qualified IT professionals.



We cannot assure you
that we will be able to recruit and train a sufficient number of qualified professionals or that we will be successful in retaining
current or future employees. Increased hiring by technology companies, particularly in Latin America, the United States, Asia and
Europe, and increasing worldwide competition for skilled technology professionals may lead to a shortage in the availability of
qualified personnel in the locations where we operate and hire. Failure to hire and train or retain qualified technology professionals
in sufficient numbers could have a material adverse effect on our business, results of operations and financial condition.



If we do not continue to innovate
and remain at the forefront of emerging technologies and related market trends, we may lose clients and not remain competitive,
which could cause our revenues and results of operations to suffer.



Our success depends
on delivering digital journeys that leverage emerging technologies and emerging market trends to drive increased revenues and effective
communication with customers. Technological advances and innovation are constant in the technology services industry. As a result,
we must continue to invest significant resources in research and development to stay abreast of technology developments so that
we may continue to deliver digital journeys that our clients will wish to purchase. If we are unable to anticipate technology developments,
enhance our existing services or develop and introduce new services to keep pace with such changes and meet changing client needs,
we may lose clients and our revenues and results of operations could suffer. Our results of operations would also suffer if our
innovations are not responsive to the needs of our clients, are not appropriately timed with market opportunities or are not effectively
brought to market. Our competitors may be able to offer engineering, design and innovation services that are, or that are perceived
to be, substantially similar or better than those we offer. This may force us to compete on other fronts in addition to the quality
of our services and to expend significant resources in order to remain competitive, which we may be unable to do.



If the current effective income tax
rate payable by us in any country in which we operate is increased or if we lose any country-specific tax benefits, then our financial
condition and results of operations may be adversely affected.



We conduct business
globally and file income tax returns in multiple jurisdictions. Our consolidated effective income tax rate could be materially
adversely affected by several factors, including changes in the amount of income taxed by or allocated to the various jurisdictions
in which we operate that have differing statutory tax rates; changing tax laws, regulations and interpretations of such tax laws
in multiple jurisdictions; and the resolution of issues arising from tax audits or examinations and any related interest or penalties.



We report our results
of operations based on our determination of the amount of taxes owed in the various jurisdictions in which we operate. We have
transfer pricing arrangements among our subsidiaries in relation to various aspects of our business, including operations, marketing,
sales and delivery functions. Transfer pricing regulations require that any international transaction involving associated enterprises
be on arm’s-length terms. We consider the transactions among our subsidiaries to be on arm’s-length terms. The determination
of our consolidated provision for income taxes and other tax liabilities requires estimation, judgment and calculations where the
ultimate tax determination may not be certain. Our determination of tax liability is always subject to review or examination by
authorities in various jurisdictions.



Under Argentina’s
Law No. 25,922 (Ley de Promoción de la Industria de Software), as amended by Law No. 26,692 (the “Software
Promotion Law”), our operating subsidiaries in Argentina benefit from a 60% reduction in their corporate income tax rate
(as applied to income from promoted software activities) and a tax credit of up to 70% of amounts paid for certain social security
taxes (contributions) that may be offset against value-added tax liabilities. Law No. 26,692, the 2011 amendment to the Software
Promotion Law (“Law No. 26,692”), also allows such tax credits to be applied to reduce our Argentine subsidiaries’
corporate income tax liability by a percentage not higher than the subsidiaries’ declared percentage of exports and extends
the tax benefits under the Software Promotion Law until December 31, 2019.



10







On September 16, 2013,
the Argentine government published Regulatory Decree No. 1315/2013, which governs the implementation of the Software Promotion
Law. Regulatory Decree No. 1315/2013 introduced specific requirements to qualify for the tax benefits contemplated by the Software
Promotion Law. In particular, Regulatory Decree No. 1315/2013 provides that from September 17, 2014 through December 31, 2019,
only those companies that are accepted for registration in the National Registry of Software Producers (Registro Nacional de
Productores de Software y Servicios Informaticos) maintained by the Assistant Secretary
of Technological and Productive Services (Subsecretaría de Servicios Tecnológicos y Productivos) - former
Secretary of Industry (Secretaria de Industria del Ministerio de Industria)- will be entitled to participate in the benefits
of the Software Promotion Law.



On March 11, 2014,
the Argentine Federal Administration of Public Revenue (Administración Federal de Ingresos Publicos, or “AFIP”)
issued General Resolution No. 3,597 (“General Resolution No. 3,597”). This measure provides that, as a further prerequisite
to participation in the benefits of the Software Promotion Law, exporters of software and related services must register in a newly
established Special Registry of Exporters of Services (Registro Especial de Exportadores de Servicios). In addition, General
Resolution No. 3,597 states that any tax credits generated under the Software Promotion Law by a participant in the Software Promotion
Law will only be valid until September 17, 2014.



According to the abovementioned
regulations, on March 14, May 21 and May 28, 2014, our Argentine subsidiaries Huddle Group S.A., IAFH Global S.A. and Sistemas
Globales S.A., respectively, were accepted for registration in the Special Registry of Exporters of Services.



On June 25, 2014, our
Argentine subsidiaries Huddle Group S.A., IAFH Global S.A. and Sistemas Globales S.A. applied for registration in the National
Registry of Software Producers.



The Secretary and Subsecretary
of Industry issued rulings approving the registration in the National Registry of Software Producers of our subsidiaries as follows:
(i) Sistemas Globales S.A. on March 18, 2015 and (ii) Huddle Group and IAFH Global S.A. on April 13, 2015. In each case, the ruling
made the effective date of registration retroactive to September 18, 2014 and provided that the benefits enjoyed under the Software
Promotion Law as originally enacted were not extinguished until the ruling goes into effect (which have occurred upon its date
of publication in the Argentine government’s official gazette on before mentioned dates).



On May 7, 2015, Huddle
Group deregistered from the National Registry of Software Producers before the Subsecretary of Industry, as the subsidiary had
discontinued activities since January 1, 2015. As a result of the deregistration, Huddle Group S.A., the Argentine subsidiary of
the Huddle Group, became subject to a 35% corporate income tax rate effective January 1, 2015.



Our subsidiary in Uruguay,
Sistemas Globales Uruguay S.A., which is situated in a tax-free zone, benefits from a 0% income tax rate and an exemption from
value-added tax.



Additionally,
services provided by Difier are exempted from income tax in Uruguay. The exemption applies to software development services as
long as they are exported and utilized abroad.



In India, under the
Special Economic Zones Act of 2005, the services provided by export-oriented companies within Special Economic Zones (each
a "SEZ") are eligible for a deduction of 100% of the profits or gains derived from the export of services for the first
five years from the financial year in which the company commenced the provision of services and 50% of such profits or gains for
the five years thereafter. Companies must meet the conditions under Section 10AA of Income Tax Act to be eligible for the
benefit.  Other tax benefits are also available for registered SEZ companies. Our Indian subsidiary is subject to corporate
income tax at the rate of 34.61%, including surcharges. We expect our Indian subsidiary to apply for registration in
the SEZ in 2017. If the Indian government changes its policies after our Indian subsidiary obtains registration in the SEZ,
our business, results of operations and financial condition may be adversely affected. With the growth of our business in the SEZ,
our Indian subsidiary may be required to compute its tax liability under Minimum Alternate Tax ("MAT") in future years
as its tax liability under the general tax provisions may be lower compared to MAT liability.



If these tax incentives
in Argentina, India and Uruguay are changed, terminated, not extended or made unavailable, or comparable new tax incentives are
not introduced, we expect that our effective income tax rate and/or our operating expenses would increase significantly, which
could materially adversely affect our financial condition and results of operations. See “Operating and Financial Review
and Prospects — Operating Results — Certain Income Statement Line Items — Income
Tax Expense” and “Operating and Financial Review and Prospects — Liquidity and Capital Resources — Future
Capital Requirements.”



11







If any of our largest clients terminates,
decreases the scope of, or fails to renew its business relationship or short-term contract with us, our revenues, business and
results of operations may be adversely affected.



We generate a significant
portion of our revenues from our ten largest clients. During the years ended December 31, 2016, 2015 and 2014, our largest
customers based on revenues, Southwest Airlines Co. in 2016 and Walt Disney Parks and Resorts Online in 2015 and 2014, accounted
for 9.7%, 12.3% and 8.7% of our revenues, respectively. During the years ended December 31, 2016, 2015 and 2014, our ten largest
clients accounted for 46.5%, 46.7% and 43.9% of our revenues, respectively.



Our ability to maintain
close relationships with these and other major clients is essential to the growth and profitability of our business. However, most
of our client contracts are limited to short-term, discrete projects without any commitment to a specific volume of business or
future work, and the volume of work performed for a specific client is likely to vary from year to year, especially since we are
generally not our clients’ exclusive technology services provider. A major client in one year may not provide the same level
of revenues for us in any subsequent year. The technology services we provide to our clients, and the revenues and income from
those services, may decline or vary as the type and quantity of technology services we provide changes over time. In addition,
our reliance on any individual client for a significant portion of our revenues may give that client a certain degree of pricing
leverage against us when negotiating contracts and terms of service.



In addition, a number
of factors, including the following, other than our performance could cause the loss of or reduction in business or revenues from
a client and these factors are not predictable:



| | • | our need to devote time and resources to training, professional development and other activities that cannot be billed to our
clients.
| | - | --------------------------------------------------------------------------------------------------------------------------------------

| | • | the business or financial condition of that client or the economy generally;
| | - | ----------------------------------------------------------------------------

| | • | a change in strategic priorities by that client, resulting in a reduced level of spending on technology services;
| | - | -----------------------------------------------------------------------------------------------------------------

| | • | a demand for price reductions by that client; and
| | - | -------------------------------------------------

| | • | a decision by that client to move work in-house or to one or several of our competitors.
| | - | ----------------------------------------------------------------------------------------



The loss or diminution
in business from any of our major clients could have a material adverse effect on our revenues and results of operations.



Our revenues, margins, results of
operations and financial condition may be materially adversely affected if general economic conditions in the United States, Europe
or the global economy worsen.



We derive a significant
portion of our revenues from clients located in the United States and, to a lesser extent, Europe. The technology services industry
is particularly sensitive to the economic environment, and tends to decline during general economic downturns. If the U.S. or European
economies weaken or slow, pricing for our services may be depressed and our clients may reduce or postpone their technology spending
significantly, which may, in turn, lower the demand for our services and negatively affect our revenues and profitability.



The new U.S. administration
has called for changes to domestic and foreign policy, including but not limited to changes to existing trade agreements, import
and export regulations, immigration, tariffs and customs duties, tax regulations, environmental regulations and other areas that
become subject to significant changes. We cannot predict the impact, if any, the policies adopted by the new U.S. administration
will have on our business. Such policies, should they occur, could result in general business interruptions, delays from difficulties
in obtaining export licenses for certain technology, tariffs and other barriers and restrictions, longer payment cycles, increased
taxes, restrictions on the repatriation of funds and the burdens of complying with a variety of foreign laws, any of which could
ultimately have a material adverse effect on our business.



The ongoing financial
crisis in Europe (including concerns that certain European countries may default in payments due on their national debt) and the
resulting economic uncertainty could adversely impact our operating results unless and until economic conditions in Europe improve
and the prospect of national debt defaults in Europe decline. To the extent that these adverse economic conditions continue or
worsen, they will likely have a negative effect on our business. In addition, if the U.K.’s recent referendum to exit from
the E.U., known as Brexit, is implemented, its effects on us will depend on the resulting agreements regarding trade and travel
made between the United Kingdom and European Union.



If we are unable to
successfully anticipate changing economic and political conditions affecting the markets in which we operate, we may be unable
to effectively plan for or respond to those changes, and our results of operations could be adversely affected.



12







We face intense competition from
technology and IT services providers, and an increase in competition, our inability to compete successfully, pricing pressures
or loss of market share could materially adversely affect our revenues, results of operations and financial condition.



The market for technology
and IT services is intensely competitive, highly fragmented and subject to rapid change and evolving industry standards and we
expect competition to intensify. We believe that the principal competitive factors that we face are the ability to innovate; technical
expertise and industry knowledge; end-to-end solution offerings; reputation and track record for high-quality and on-time delivery
of work; effective employee recruiting; training and retention; responsiveness to clients’ business needs; scale; financial
stability; and price.



We face competition
primarily from large global consulting and outsourcing firms, digital agencies and design firms, traditional technology outsourcing
providers, and the in-house product development departments of our clients and potential clients. Many of our competitors have
substantially greater financial, technical and marketing resources and greater name recognition than we do. As a result, they may
be able to compete more aggressively on pricing or devote greater resources to the development and promotion of technology and
IT services. Companies based in some emerging markets also present significant price competition due to their competitive cost
structures and tax advantages.



In addition, there
are relatively few barriers to entry into our markets and we have faced, and expect to continue to face, competition from new technology
services providers. Further, there is a risk that our clients may elect to increase their internal resources to satisfy their services
needs as opposed to relying on a third-party vendor, such as our company. The technology services industry is also undergoing consolidation,
which may result in increased competition in our target markets in the United States and Europe from larger firms that may have
substantially greater financial, marketing or technical resources, may be able to respond more quickly to new technologies or processes
and changes in client demands, and may be able to devote greater resources to the development, promotion and sale of their services
than we can. Increased competition could also result in price reductions, reduced operating margins and loss of our market share.
We cannot assure you that we will be able to compete successfully with existing or new competitors or that competitive pressures
will not materially adversely affect our business, results of operations and financial condition.



Our business depends on a strong
brand and corporate reputation, and if we are not able to maintain and enhance our brand, our ability to expand our client base
will be impaired and our business and operating results will be adversely affected.



Since many of our specific
client engagements involve highly tailored solutions, our corporate reputation is a significant factor in our clients’ and
prospective clients’ determination of whether to engage us. We believe the Globant brand name and our reputation are important
corporate assets that help distinguish our services from those of our competitors and also contribute to our efforts to recruit
and retain talented IT professionals. However, our corporate reputation is susceptible to damage by actions or statements made
by current or former employees or clients, competitors, vendors, adversaries in legal proceedings and government regulators, as
well as members of the investment community and the media. There is a risk that negative information about our company, even if
based on false rumor or misunderstanding, could adversely affect our business. In particular, damage to our reputation could be
difficult and time-consuming to repair, could make potential or existing clients reluctant to select us for new engagements, resulting
in a loss of business, and could adversely affect our recruitment and retention efforts. Damage to our reputation could also reduce
the value and effectiveness of our Globant brand name and could reduce investor confidence in us and result in a decline in the
price of our common shares.



We are seeking to expand our presence
in the United States, which entails significant expenses and deployment of employees on-site with our clients. If we are unable
to manage our operational expansion into the United States, it may adversely affect our business, results of operations and prospects.



A key element of Globant’s
strategy is to expand our delivery footprint, including by increasing the number of employees that are deployed onsite at our clients
or near client locations. In particular, we intend to focus our recruitment efforts on the United States. Client demands, the availability
of high-quality technical and operational personnel at attractive compensation rates, regulatory environments and other pertinent
factors may vary significantly by region and our experience in the markets in which we currently operate may not be applicable
to other regions. As a result, we may not be able to leverage our experience to expand our delivery footprint effectively into
our target markets in the United States. If we are unable to manage our expansion efforts effectively, if our expansion plans take
longer to implement than expected or if our costs for these efforts exceed our expectations, our business, results of operations
and prospects could be materially adversely affected.



If a significant number of our Globers
were to join unions, our labor costs and our business could be negatively affected.



As of December 31,
2016, we had 68 Globers, 60 working at our delivery center located in Rosario, Argentina, who are covered by a collective bargaining
agreement with the Federación Argentina de Empleados de Comercio y Servicios (“FAECYS”), which is renewed
on an annual basis. In addition, our primary Argentine subsidiary is defending a lawsuit filed by FAECYS in which FAECYS is demanding
the application of its collective labor agreement to unspecified categories of employees of that subsidiary. According to FAECYS’s
claim, our principal Argentine subsidiary would have been required to withhold and transfer to FAECYS an amount equal to 0.5% of
the gross monthly salaries of that subsidiary’s payroll from October 2006 to October 2011. Furthermore, FAECYS’ claim
may be increased to cover withholdings from October 2006 through the date of a future judgment. Several Argentine technology companies
are facing similar lawsuits filed by FAECYS which have been decided in favor of both the companies and FAECYS. Under Argentine
law, judicial decisions only apply to the particular case at hand. There is no stare decisis and courts’ decisions
are not binding on lower courts even in the same jurisdiction although they may be used as guidelines on other similar cases. See
“Financial Information — Consolidated Statements and Other Financial Information — Legal
Proceedings” and the notes to our consolidated financial statements. If a significant additional number of our Globers were
to join unions, our labor costs and our business could be negatively affected.



13







Our revenues are dependent on a limited
number of industries, and any decrease in demand for technology services in these industries could reduce our revenues and adversely
affect our results of operations.



A substantial portion
of our clients are concentrated in the following industries: media and entertainment; travel and hospitality; banks, financial
services and insurance; and, technology and telecommunications which industries, in the aggregate, constituted 75.0%, 72.6% and
70.0% of our total revenues for the years ended December 31, 2016, 2015 and 2014, respectively. Our business growth largely
depends on continued demand for our services from clients in these industries and other industries that we may target in the future,
as well as on trends in these industries to purchase technology services or to move such services in-house.



A downturn in any of
these or our targeted industries, a slowdown or reversal of the trend to spend on technology services in any of these industries
could result in a decrease in the demand for our services and materially adversely affect our revenues, financial condition and
results of operations. For example, a worsening of economic conditions in the media and entertainment industry and significant
consolidation in that industry may reduce the demand for our services and negatively affect our revenues and profitability.



Other developments
in the industries in which we operate may also lead to a decline in the demand for our services in these industries, and we may
not be able to successfully anticipate and prepare for any such changes. For example, consolidation in any of these industries
or acquisitions, particularly involving our clients, may adversely affect our business. Our clients may experience rapid changes
in their prospects, substantial price competition and pressure on their profitability. This, in turn, may result in increasing
pressure on us from clients in these key industries to lower our prices, which could adversely affect our revenues, results of
operations and financial condition.



We have a relatively short operating
history and operate in a rapidly evolving industry, which makes it difficult to evaluate our future prospects, may increase the
risk that we will not continue to be successful and, accordingly, increases the risk of your investment.



Our company was founded
in 2003 and, therefore, has a relatively short operating history. In addition, the technology services industry itself is continuously
evolving. Competition, fueled by rapidly changing consumer demands and constant technological developments, renders the technology
services industry one in which success and performance metrics are difficult to predict and measure. Because services and technologies
are rapidly evolving and each company within the industry can vary greatly in terms of the services it provides, its business model,
and its results of operations, it can be difficult to predict how any company’s services, including ours, will be received
in the market. While enterprises have been willing to devote significant resources to incorporate emerging technologies and related
market trends into their business models, enterprises may not continue to spend any significant portion of their budgets on our
services in the future. Neither our past financial performance nor the past financial performance of any other company in the technology
services industry is indicative of how our company will fare financially in the future. Our future profits may vary substantially
from those of other companies, and those we have achieved in the past, making investment in our company risky and speculative.
If our clients’ demand for our services declines, as a result of economic conditions, market factors or shifts in the technology
industry, our business would suffer and our results of operations and financial condition would be adversely affected.



We are investing substantial cash
in new facilities and physical infrastructure, and our profitability and cash flows could be reduced if our business does not grow
proportionately.



We have made and continue
to make significant contractual commitments related to capital expenditures on construction or expansion of our delivery centers.
We may encounter cost overruns or project delays in connection with opening new facilities. These expansions will likely increase
our fixed costs and if we are unable to grow our business and revenues proportionately, our profitability and cash flows may be
negatively affected.



14







If we cause disruptions in our clients’
businesses or provide inadequate service, our clients may have claims for substantial damages against us, which could cause us
to lose clients, have a negative effect on our corporate reputation and adversely affect our results of operations.



If our Globers make
errors in the course of delivering services to our clients or fail to consistently meet service requirements of a client, these
errors or failures could disrupt the client’s business, which could result in a reduction in our revenues or a claim for
substantial damages against us. In addition, a failure or inability to meet a contractual requirement could seriously damage our
corporate reputation and limit our ability to attract new business.



The services we provide
are often critical to our clients’ businesses. Certain of our client contracts require us to comply with security obligations
including maintaining network security and backup data, ensuring our network is virus-free, maintaining business continuity planning
procedures, and verifying the integrity of employees that work with our clients by conducting background checks. Any failure in
a client’s system or breach of security relating to the services we provide to the client could damage our reputation or
result in a claim for substantial damages against us. Any significant failure of our equipment or systems, or any major disruption
to basic infrastructure like power and telecommunications in the locations in which we operate, could impede our ability to provide
services to our clients, have a negative impact on our reputation, cause us to lose clients, and adversely affect our results of
operations.



Under our client contracts,
our liability for breach of our obligations is in some cases limited pursuant to the terms of the contract. Such limitations may
be unenforceable or otherwise may not protect us from liability for damages. In addition, certain liabilities, such as claims of
third parties for which we may be required to indemnify our clients, are generally not limited under our contracts. The successful
assertion of one or more large claims against us in amounts greater than those covered by our current insurance policies could
materially adversely affect our business, financial condition and results of operations. Even if such assertions against us are
unsuccessful, we may incur reputational harm and substantial legal fees.



We may face losses or reputational
damage if our software solutions turn out to contain undetected software defects.



A significant amount
of our business involves developing software solutions for our clients as part of our provision of technology services. We are
required to make certain representations and warranties to our clients regarding the quality and functionality of our software.
Any undetected software defects could result in liability to our clients under certain contracts as well as losses resulting from
any litigation initiated by clients due to any losses sustained as a result of the defects. Any such liability or losses could
have an adverse effect on our financial condition as well as on our reputation with our clients and in the technology services
market in general.



Our client relationships, revenues,
results of operations and financial condition may be adversely affected if we experience disruptions in our Internet infrastructure,
telecommunications or IT systems.



Disruptions in telecommunications,
system failures, Internet infrastructure or computer virus attacks could damage our reputation and harm our ability to deliver
services to our clients, which could result in client dissatisfaction and a loss of business and related reduction of our revenues.
We may not be able to consistently maintain active voice and data communications between our various global operations and with
our clients due to disruptions in telecommunication networks and power supply, system failures or computer virus attacks. Any significant
failure in our ability to communicate could result in a disruption in business, which could hinder our performance and our ability
to complete projects on time. Such failure to perform on client contracts could have a material adverse effect on our business,
results of operations and financial condition.



If our computer system is or becomes
vulnerable to security breaches, or if any of our employees misappropriates data, we may face reputational damage, lose clients
and revenues, or incur losses.



We often have access
to or are required to collect and store confidential client and customer data. Many of our client contracts do not limit our potential
liability for breaches of confidentiality. If any person, including any of our Globers or former Globers, penetrates our network
security or misappropriates data or code that belongs to us, our clients, or our clients’ customers, we could be subject
to significant liability from our clients or from our clients’ customers for breaching contractual confidentiality provisions
or privacy laws.



Unauthorized disclosure
of sensitive or confidential client and customer data, whether through breach of our computer systems, systems failure, loss or
theft of confidential information or intellectual property belonging to our clients or our clients’ customers, or otherwise,
could damage our reputation, cause us to lose clients and revenues, and result in financial and other potential losses by us.



15







Our business, results of operations
and financial condition may be adversely affected by the various conflicting and/or onerous legal and regulatory requirements imposed
on us by the countries where we operate.



Since we provide services
to clients throughout the world, we are subject to numerous, and sometimes conflicting, legal requirements on matters as diverse
as import/export controls, content requirements, trade restrictions, tariffs, taxation, sanctions, government affairs, anti-bribery,
whistle blowing, internal and disclosure control obligations, data protection and privacy and labor relations. Our failure to comply
with these regulations in the conduct of our business could result in fines, penalties, criminal sanctions against us or our officers,
disgorgement of profits, prohibitions on doing business and adverse impact on our reputation. Our failure to comply with these
regulations in connection with the performance of our obligations to our clients could also result in liability for monetary damages,
fines and/or criminal prosecution, unfavorable publicity, restrictions on our ability to process information and allegations by
our clients that we have not performed our contractual obligations. Due to the varying degree of development of the legal systems
of the countries in which we operate, local laws might be insufficient to defend us and preserve our rights.



Due to our operating
in a number of countries in Latin America, the United States, Europe and India, we are also subject to risks relating to compliance
with a variety of national and local laws including multiple tax regimes, labor laws, employee health safety and wages and benefits
laws. We may, from time to time, be subject to litigation or administrative actions resulting from claims against us by current
or former Globers individually or as part of class actions, including claims of wrongful terminations, discrimination, misclassification
or other violations of labor law or other alleged conduct. We may also, from time to time, be subject to litigation resulting from
claims against us by third parties, including claims of breach of noncompete and confidentiality provisions of our employees’
former employment agreements with such third parties. Our failure to comply with applicable regulatory requirements could have
a material adverse effect on our business, results of operations and financial condition.



We may not be able to prevent unauthorized
use of our intellectual property and our intellectual property rights may not be adequate to protect our business, competitive
position, results of operations and financial condition.



Our success depends
in part on certain methodologies, practices, tools and technical expertise our company utilizes in designing, developing, implementing
and maintaining applications and other proprietary intellectual capital. In order to protect our rights in this intellectual capital,
we rely upon a combination of nondisclosure and other contractual arrangements as well as trade secret, patent, copyright and trademark
laws. We also generally enter into confidentiality agreements with our employees, consultants, clients and potential clients and
limit access to and distribution of our proprietary information.



We hold several trademarks
and intend to submit additional U.S. federal and foreign trademark applications for developments relating to additional service
offerings in the future. We cannot assure you that we will be successful in maintaining existing or obtaining future intellectual
property rights or registrations. There can be no assurance that the laws, rules, regulations and treaties in the countries in
which we operate in effect now or in the future or the contractual and other protective measures we take are adequate to protect
us from misappropriation or unauthorized use of our intellectual capital or that such laws, rules, regulations and treaties will
not change.



We cannot assure you
that we will be able to detect unauthorized use of our intellectual property and take appropriate steps to enforce our rights or
that any such steps will be successful. We cannot assure you that we have taken all necessary steps to enforce our intellectual
property rights in every jurisdiction in which we operate and we cannot assure you that the intellectual property laws of any jurisdiction
in which we operate are adequate to protect our interest or that any favorable judgment obtained by us with respect thereto will
be enforced in the courts. Misappropriation by third parties of, or other failure to protect, our intellectual property, including
the costs of enforcing our intellectual property rights, could have a material adverse effect on our business, competitive position,
results of operations and financial condition.



If we incur any liability for a violation
of the intellectual property rights of others, our reputation, business, financial condition and prospects may be adversely affected.



Our success largely
depends on our ability to use and develop our technology, tools, code, methodologies and services without infringing the intellectual
property rights of third parties, including patents, copyrights, trade secrets and trademarks. We may be subject to litigation
involving claims of patent infringement or violation of other intellectual property rights of third parties. We typically indemnify
clients who purchase our services and solutions against potential infringement of intellectual property rights, which subjects
us to the risk of indemnification claims. These claims may require us to initiate or defend protracted and costly litigation on
behalf of our clients, regardless of the merits of these claims and are often not subject to liability limits or exclusion of consequential,
indirect or punitive damages. If any of these claims succeed, we may be forced to pay damages on behalf of our clients, redesign
or cease offering our allegedly infringing services or solutions, or obtain licenses for the intellectual property such services
or solutions allegedly infringe. If we cannot obtain all necessary licenses on commercially reasonable terms, our clients may stop
using our services or solutions.



16







Further, our current
and former Globers could challenge our exclusive rights to the software they have developed in the course of their employment.
In certain countries in which we operate, an employer is deemed to own the copyright work created by its employees during the course,
and within the scope, of their employment, but the employer may be required to satisfy additional legal requirements in order to
make further use and dispose of such works. While we believe that we have complied with all such requirements, and have fulfilled
all requirements necessary to acquire all rights in software developed by our independent contractors, these requirements are often
ambiguously defined and enforced. As a result, we cannot assure you that we would be successful in defending against any claim
by our current or former Globers or independent contractors challenging our exclusive rights over the use and transfer of works
those Globers or independent contractors created or requesting additional compensation for such works.



We are subject to additional
risks as a result of our recent and possible future acquisitions and the hiring of new employees who may misappropriate intellectual
property from their former employers. The developers of the technology that we have acquired or may acquire may not have appropriately
created, maintained or enforced intellectual property rights in such technology. Indemnification and other rights under acquisition
documents may be limited in term and scope and may therefore provide little or no protection from these risks. Parties making infringement
claims may be able to obtain an injunction to prevent us from delivering our services or using technology involving the allegedly
infringing intellectual property. Intellectual property litigation is expensive and time-consuming and could divert management’s
attention from our business. A successful infringement claim against us, whether with or without merit, could, among others things,
require us to pay substantial damages, develop substitute non-infringing technology, or rebrand our name or enter into royalty
or license agreements that may not be available on acceptable terms, if at all, and would require us to cease making, licensing
or using products that have infringed a third party’s intellectual property rights. Protracted litigation could also result
in existing or potential clients deferring or limiting their purchase or use of our software product development services or solutions
until resolution of such litigation, or could require us to indemnify our clients against infringement claims in certain instances.
Any intellectual property claim or litigation, whether we ultimately win or lose, could damage our reputation and materially adversely
affect our business, financial condition and results of operations.



We may not be able to recognize revenues
in the period in which our services are performed and the costs of those services are incurred, which may cause our margins to
fluctuate.



We perform our services
primarily under time-and-materials contracts (where our materials costs consist of travel and out-of-pocket expenses) and, to a
lesser extent, fixed-price contracts. All revenues are recognized pursuant to applicable accounting standards.



We recognize revenues
when realized or realizable and earned, which is when the following criteria are met: persuasive evidence of an arrangement exists,
delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured. If there is uncertainty
about the project completion or receipt of payment for the services, revenues are deferred until the uncertainty is sufficiently
resolved.



We recognize revenues
from fixed-price contracts based on the percentage of completion method. In instances where final acceptance of the product, system
or solution is specified by the client, revenues are deferred until all acceptance criteria have been met. In the absence of a
sufficient basis to measure progress towards completion, revenues are recognized upon receipt of final acceptance from the client.



Uncertainty about the
project completion or receipt of payment for our services or our failure to meet all the acceptance criteria, or otherwise meet
a client’s expectations, may result in our having to record the cost related to the performance of services in the period
that services were rendered, but delay the timing of revenue recognition to a future period in which all acceptance criteria have
been met, which may cause our margins to fluctuate.



Our cash flows and results of operations
may be adversely affected if we are unable to collect on billed and unbilled receivables from clients.



Our business depends
on our ability to successfully obtain payment from our clients of the amounts they owe us for work performed. We evaluate the financial
condition of our clients and usually bill and collect on relatively short cycles. We maintain provisions against receivables. Actual
losses on client balances could differ from those that we currently anticipate and, as a result, we may need to adjust our provisions.
We cannot assure you that we will accurately assess the creditworthiness of our clients. Macroeconomic conditions, such as a potential
credit crisis in the global financial system, could also result in financial difficulties for our clients, including limited access
to the credit markets, insolvency or bankruptcy. Such conditions could cause clients to delay payment, request modifications of
their payment terms, or default on their payment obligations to us, all of which could increase our receivables balance. Timely
collection of fees for client services also depends on our ability to complete our contractual commitments and subsequently bill
for and collect our contractual service fees. If we are unable to meet our contractual obligations, we might experience delays
in the collection of or be unable to collect our client balances, which could adversely affect our results of operations and cash
flows. In addition, if we experience an increase in the time required to bill and collect for our services, our cash flows could
be adversely affected, which could affect our ability to make necessary investments and, therefore, our results of operations.



17







If we are faced with immigration
or work permit restrictions in any country where we currently have personnel onsite at a client location or would like to expand
our delivery footprint, then our business, results of operations and financial condition may be adversely affected.



A key part of Globant’s
strategy is to expand our delivery footprint, including by increasing the number of employees that are deployed onsite at our clients
or near client locations. Therefore, we must comply with the immigration, work permit and visa laws and regulations of the countries
in which we operate or plan to operate. Our future inability to obtain or renew sufficient work permits and/or visas due to the
impact of these regulations, including any changes to immigration, work permit and visa regulations in jurisdictions such as the
United States and Europe, could have a material adverse effect on our business, results of operations and financial condition.
See “– Legal proceedings”.



If we are unable to maintain favorable
pricing terms with current or new suppliers, our results of operations would be adversely affected.



We rely to a limited
extent on suppliers of goods and services. In some cases, we have contracts with such parties guaranteeing us favorable pricing
terms. We cannot guarantee our ability to maintain such pricing terms beyond the date that pricing terms are fixed pursuant to
a written agreement. Furthermore, should economic circumstances change, such that suppliers find it beneficial to change or attempt
to renegotiate such pricing terms in their favor, we cannot assure you that we would be able to withstand an increase or achieve
a favorable outcome in any such negotiation. Any change in our pricing terms would increase our costs and expenses, which would
have an adverse effect on our results of operations.



If our current insurance coverage
is or becomes insufficient to protect against losses incurred, our business, results of operations and financial condition may
be adversely affected.



We provide technology
services that are integral to our clients’ businesses. If we were to default in the provision of any contractually agreed-upon
services, our clients could suffer significant damages and make claims upon us for those damages. Although we believe that we have
adequate processes in place to protect against defaults in the provisions of services, errors and omissions may occur. We currently
carry errors and omissions liability coverage, of $7.5 million per event and $15 million in the aggregate, for all of the services
we provide. To the extent client damages are deemed recoverable against us in amounts substantially in excess of our insurance
coverage, or if our claims for insurance coverage are denied by our insurance carriers for any reason including, but not limited
to a client’s failure to provide insurance carrier-required documentation or a client’s failure to follow insurance
carrier-required claim settlement procedures, there could be a material adverse effect on our business, results of operations and
financial condition.



Strategic acquisitions to complement
and expand our business have been and will likely remain an important part of our competitive strategy. If we fail to acquire companies
whose prospects, when combined with our company, would increase our value, or if we acquire and fail to efficiently integrate such
other companies, then our business, results of operations, and financial condition may be adversely affected.



We have expanded, and
may continue to expand, our operations through strategically targeted acquisitions focused on deepening our relationships with
key clients, extending our technological capacities including services over platforms, broadening our service offering and expanding
the geographic footprint of our delivery centers, including beyond Latin America. We completed two acquisitions in 2008, one in
2011, two in 2012, one in 2013, one in 2014, two in 2015 and three in 2016. Financing of any future acquisition could require the
incurrence of indebtedness, the issuance of equity or a combination of both. There can be no assurance that we will be able to
identify, acquire or profitably manage additional businesses or successfully integrate any acquired businesses without substantial
expense, delays or other operational or financial risks and problems. Furthermore, acquisitions may involve a number of special
risks, including diversion of management’s attention, failure to retain key acquired personnel, unanticipated events or legal
liabilities and amortization of acquired intangible assets. In addition, any client satisfaction or performance problems within
an acquired business could have a material adverse impact on our company’s corporate reputation and brand. We cannot assure
you that any acquired businesses would achieve anticipated revenues and earnings. Any failure to manage our acquisition strategy
successfully could have a material adverse effect on our business, results of operations and financial condition.



We have incurred significant share-based
compensation expense in the past, and may in the future continue to incur share-based compensation expense, which could adversely
impact our profits or the trading price of our common shares.



On July 3, 2014, our
board of directors and shareholders approved and adopted the 2014 Equity Incentive Plan, which was amended by our board of directors
on May 9, 2016 to increase the number of common shares that may be issued as stock awards from 1,666,667 to up to 3,666,667.



18







From the adoption of
the plan until the date of this annual report we have granted to members of our senior management and certain other employees 30,000
stock awards, as well as options to purchase 2,220,847 common shares. Most of the options were granted with a vesting period of
four years, 25% of the options becoming exercisable on each anniversary of the grant date. The remaining options were granted with
a vesting period agreed with those employees. Share-based compensation expense for awards of equity instruments is determined based
on the fair value of the awards at the grant date. Upon exercise of the option, each employee share option converts into one common
share of Globant. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to
dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiration (ten
years after the grant date).



For the years ended
December 31, 2016, 2015 and 2014, we recorded $3.6, $2.4 and $0.6 million of share-based compensation expense related to these
share option agreements, respectively.



The expenses associated
with share-based compensation may reduce the attractiveness of issuing equity awards under our equity incentive plan. However,
if we do not grant equity awards, or if we reduce the number of equity awards we grant, we may not be able to attract and retain
key personnel. If we grant more equity awards to attract and retain key personnel, the expenses associated with such additional
equity awards could materially adversely affect our results of operations and the trading price of our common shares.



Our ability to expand our business
and procure new contracts or enter into beneficial business arrangements could be affected to the extent we enter into agreements
with clients containing noncompetition clauses.



Some of our services
agreements restrict our ability to perform similar services for certain of our clients' competitors under specific circumstances.
We may in the future enter into additional agreements with clients that restrict our ability to accept assignments from, or render
similar services to, those clients’ customers, require us to obtain our clients’ prior written consent to provide services
to their customers or restrict our ability to compete with our clients, or bid for or accept any assignment for which those clients
are bidding or negotiating. These restrictions may hamper our ability to compete for and provide services to other clients in a
specific industry in which we have expertise and could materially adversely affect our business, financial condition and results
of operations.



Risks Related to Operating in Latin America and Argentina



Our largest
operating subsidiary is based in Argentina and we have subsidiaries in Chile, Colombia, Uruguay, Peru, Mexico and Brazil. There
are significant risks to operating in those countries that should be carefully considered before making an investment decision.



Latin America



Latin America has experienced adverse
economic conditions that may impact our business, financial condition and results of operations.



Our business is dependent
to a certain extent upon the economic conditions prevalent in Argentina as well as the other Latin American countries in which
we operate, such as Chile, Colombia, Uruguay, Peru, Mexico and Brazil. Latin American countries have historically experienced uneven
periods of economic growth, as well as recession, periods of high inflation and economic instability. Currently, as a consequence
of adverse economic conditions in global markets and diminishing commodity prices, the economic growth rates of the economies of
many Latin American countries have slowed and some have entered mild recessions. Adverse economic conditions in any of these countries
could have a material adverse effect on our business, financial condition and results of operations.



Latin American governments have exercised
and continue to exercise significant influence over the economies of the countries where we operate, which could adversely affect
our business, financial condition, results of operations and prospects.



Historically, governments
in Latin America have frequently intervened in the economies of their respective countries and have occasionally made significant
changes in policy and regulations. Governmental actions to control inflation and other policies and regulations have often involved,
among others, price controls, currency devaluations, capital controls and tariffs. Our business, financial condition, results of
operations and prospects may be adversely affected by:



| | • | changes in government policies or regulations, including such factors as exchange rates and exchange control policies;
| | - | ----------------------------------------------------------------------------------------------------------------------

| | • | inflation rates;
| | - | ----------------



19







| | • | interest rates;
| | - | ---------------

| | • | tariff and inflation control policies;
| | - | --------------------------------------

| | • | price control policies;
| | - | -----------------------

| | • | liquidity of domestic capital and lending markets;
| | - | --------------------------------------------------

| | • | electricity rationing;
| | - | ----------------------

| | • | tax policies, royalty and tax increases and retroactive tax claims; and
| | - | -----------------------------------------------------------------------

| | • | other political, diplomatic, social and economic developments in or affecting the countries where we operate.
| | - | -------------------------------------------------------------------------------------------------------------



Inflation, and government measures
to curb inflation in Latin America, may adversely affect the economies in the countries where we operate in Latin America, our
business and results of operations.



Some of the countries
in which we operate in Latin America have experienced, or are currently experiencing, high rates of inflation. Although inflation
rates in many of these countries have been relatively low in the recent past, we cannot assure you that this trend will continue.
The measures taken by the governments of these countries to control inflation have often included maintaining a tight monetary
policy with high interest rates, thereby restricting the availability of credit and retarding economic growth. Inflation, measures
to combat inflation and public speculation about possible additional actions have also contributed significantly to economic uncertainty
in many of these countries and to heightened volatility in their securities markets. Periods of higher inflation may also slow
the growth rate of local economies. Inflation is also likely to increase some of our costs and expenses, which we may not be able
to fully pass on to our clients, which could adversely affect our operating margins and operating income.



We face the risk of political and
economic crises, instability, terrorism, civil strife, expropriation and other risks of doing business in Latin America, which
could adversely affect our business, financial condition and results of operations.



We conduct our operations
primarily in Latin America. Economic and political developments in Latin America, including future economic changes or crises (such
as inflation, currency devaluation or recession), government deadlock, political instability, terrorism, civil strife, changes
in laws and regulations, restrictions on the repatriation of dividends or profits, expropriation or nationalization of property,
restrictions on currency convertibility, volatility of the foreign exchange market and exchange controls could impact our operations
or the market value of our common shares and have a material adverse effect on our business, financial condition and results of
operations.



Argentina



Our business, results of operations
and financial condition may be adversely affected by fluctuations in currency exchange rates (most notably between the U.S. dollar
and the Argentine peso).



We conduct a substantial
portion of our operations outside the United States, and our businesses may be impacted by significant fluctuations in foreign
currency exchange rates. Our consolidated financial statements and those of most of our subsidiaries are presented in U.S. dollars,
whereas some of our subsidiaries’ operations are performed in local currencies. Therefore, the resulting exchange differences
arising from the translation to our presentation currency are recognized in the finance gain or expense item or as a separate component
of equity depending on the functional currency for each subsidiary. Fluctuations in exchange rates relative to the U.S. dollar
could impair the comparability of our results from period to period and could have a material adverse effect on our results of
operations and financial condition.



In addition, our results
of operations and financial condition are particularly sensitive to changes in the Argentine peso/U.S. dollar exchange rate because
a significant part of our operations are conducted in Argentina and therefore our costs are incurred, for the most-part, in Argentine
pesos, while the substantial portion of our revenues are generated outside of Argentina in U.S. dollars. Consequently, appreciation
of the U.S. dollar relative to the Argentine peso, to the extent not offset by inflation in Argentina, could result in favorable
variations in our operating margins and, conversely, depreciation of the U.S. dollar relative to the Argentine peso could impact
our operating margins negatively.



In recent years, the
Argentine peso has suffered significant devaluations against the U.S. dollar and has continued to devaluate against the U.S. dollar.
As a result of this economic instability, Argentina’s foreign debt rating has been downgraded on multiple occasions based
upon concerns regarding economic conditions and rising fears of increased inflationary pressures. This uncertainty may also adversely
impact Argentina’s ability to attract capital.



The increasing level
of inflation in Argentina has generated pressure for further depreciation of the Argentine peso. After several years of relatively
moderate variations in the nominal exchange, the Argentine peso depreciated against the U.S. dollar by 14.4% in 2012, 32.5% in
2013, 31.2% in 2014, 52.1% in 2015 and 21.9% in 2016, based on the official exchange rates published by the Argentine Central Bank.



20







The significant restrictions
on the purchase of foreign currency beginning in late 2011 gave rise to the development of an implied rate of exchange, as reflected
in the quotations of Argentine securities that trade in foreign markets, compared to the corresponding quotations in the local
markets in Argentine pesos. See “— Item 4.B - Business Overview — Regulatory Overview — Foreign Exchange
Controls — Argentina.” Most foreign exchange restrictions have been lifted since December 2015 and, as a result, the
gap between the official rate and the implied rate derived from securities transactions has substantially decreased compared to
the previous years. However, the implied rate of exchange may increase or decrease in the future. We cannot predict future fluctuations
in the Argentine peso/U.S. dollar exchange rate. As a result, fluctuations in the Argentine peso against the U.S. dollar may have
a material impact on the value of an investment in our common shares. Because a significant part of our operations are located
in Argentina, large variations in the comparative value of the Argentine peso and the U.S. dollar may adversely affect our business.



Despite the positive
effects of the depreciation of the Argentine peso on the competitiveness of certain sectors of the Argentine economy, including
our business, it has also had a negative impact on the financial condition of many Argentine businesses and individuals. The devaluation
of the Argentine peso has had a negative impact on the ability of certain Argentine businesses to honor their foreign currency-denominated
debt, and has also led to very high inflation initially and significantly reduced real wages. The devaluation has also negatively
impacted businesses whose success is dependent on domestic market demand, and adversely affected the Argentine government’s
ability to honor its foreign debt obligations. If the Argentine peso is significantly devalued, the Argentine economy and our business
could be adversely affected.



A significant appreciation
of the Argentine peso against the U.S. dollar could also adversely affect the Argentine economy as well as our business. Our results
of operations are sensitive to changes in the Argentine peso/U.S. dollar exchange rate because the majority of our operations are
conducted in Argentina and therefore our costs are incurred, for the most-part, in Argentine pesos. In the short term, a significant
appreciation of the Argentine peso against the U.S. dollar would adversely affect exports and the desire of foreign companies to
purchase services from Argentina. Our business is dependent to a certain extent on maintaining our labor and other costs competitive
with those of companies located in other regions around the world from which technology and IT services may be purchased by clients
in the United States and Europe. We periodically evaluate the need for hedging strategies with our board of directors, including
the use of such instruments to mitigate the effect of foreign exchange rate fluctuations. During the years ended December 31,
2016 and 2015, our Argentine operating subsidiaries, Sistemas Globales S.A. and IAFH Global S.A., entered into foreign exchange
forward contracts to reduce their risk of exposure to fluctuations in foreign currency. We may in the future, as circumstances
warrant, decide to enter into derivative transactions to hedge our exposure to the Argentine peso/U.S. dollar exchange rate. If
we do not hedge such exposure or we do not do so effectively, an appreciation of the Argentine peso against the U.S. dollar may
raise our costs, which would increase the prices of our services to our customers, which, in turn, could adversely affect our business,
financial condition and results of operations.



Government intervention in the Argentine
economy could adversely affect the economy and our results of operations or financial condition.



During recent years,
the Argentine government has increased its level of intervention in the Argentine economy, including through the implementation
of expropriation policies or nationalizations.



For example, in April
2012, the Argentine government provided for the nationalization of YPF S.A., the main Argentine oil company. In February 2014,
the Argentine government and Repsol, from whom YPF was expropriated, announced that they had reached agreement on the terms of
the compensation payable to Repsol for the expropriation of the YPF shares, which agreement settled the claim filed by Repsol with
International Centre for Settlement of Investment Disputes (the “ICSID”). Such compensation amounted to US$5 billion,
payable in the form of Argentine sovereign bonds with various maturities.



There are other examples
of government intervention. In December 2012 and August 2013, the Argentine Congress established new regulations relating to domestic
capital markets. Such regulations generally provide for increased intervention in the capital markets by the government, authorizing,
for example, the Comisión Nacional de Valores (“CNV”) to appoint observers with the ability to veto the
decisions of the board of directors of companies admitted to the public offering regime under certain circumstances and suspend
the board of directors for a period of up to 180 days. In November, 2016, the Argentine executive branch sent a bill to the Argentine
Congress  to reform the current Capital Markets Law No. 26,831 which, among other changes, proposes the abrogation of this
power granted to the CNV and generally seeks to modernize the entire regulatory framework applicable to the Argentine capital market,
incorporating current international practices to contribute to its development. However, as of the date of this annual report,
such bill has not yet been passed.



21







Expropriations and
other interventions by the Argentine government such as the one relating to YPF can have an adverse impact on the level of foreign
investment in Argentina, the access of Argentine companies to the international capital markets and Argentina’s commercial
and diplomatic relations with other countries and, consequently, could adversely affect our business, financial condition and results
of operations.



The impact of the recent congressional
and presidential elections on the future economic and political environment of Argentina is uncertain.



Argentine
presidential, congressional, municipal and state government elections were held in October 2015. Presidential elections were
won by the opposing political party, led by Mauricio Macri. The president of Argentina and the Argentine Congress each have
considerable power to determine governmental policies and actions that relate to the Argentine economy and, consequently,
affect our results of operations or financial condition. The new administration, in office since December 10, 2015, has
announced and adopted several significant economic and policy reforms:



| | • | Foreign Exchange Reforms: The new Argentine administration has introduced substantial changes
to the foreign exchange restrictions reverting most of the measures adopted since 2011, thus providing greater flexibility and
access to the foreign exchange market. On August 8, 2016, the Argentine Central Bank issued Communication “A” 6037,
which substantially modified the applicable foreign exchange regulations and eliminated the access restrictions to the Argentine
Single Free Foreign Exchange Market (Mercado Único y Libre de Cambios, or “FX Market” or "MULC").
In addition, on December 30, 2016, the Argentine Central Bank issued Communication “A” 6137, pursuant to which the
mandatory repatriation and exchange of funds received from the export of services into Pesos through the FX Market was eliminated.
See “Item 4.B — Business overview — Regulatory Overview — Foreign Exchange Controls — Argentina”.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Foreign Trade Reforms: The new Argentine administration eliminated or reduced export duties
on several agricultural products and eliminated export duties on most industrial and mining products.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | National Institute of Statistics and Census (Instituto Nacional de Estadísticas
y Censos, or “INDEC”) Information Reforms: On January 8, 2016, based on the determination that the INDEC
has failed to produce reliable statistical information, particularly with respect to the the Consumer Price Index (“CPI”),
Gross Domestic Product (“GDP”), poverty and foreign trade data, the new Argentine administration declared the
national statistical system and the INDEC in a state of administrative emergency through December 31, 2016. As a result, the INDEC
ceased publishing certain key statistical data until a rearrangement of its technical and administrative structure is finalized.
In June 2016, the INDEC resumed its publication of the CPI. As of the date of this annual report, the INDEC has begun publishing
certain revised data, including GDP, foreign trade and balance of payment statistics, although it remains in a state of administrative
emergency.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Financial Policy. The new Argentine administration has settled the majority of outstanding
claims with holdout creditors and has issued sovereign bonds in the international capital markets. See “—Argentina’s
ability to obtain financing from international markets may be limited, which may in turn impair its ability to implement reforms
and public policies and foster economic growth and could impact the ability of Argentine companies to obtain financing outside
of Argentina.”
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Electrical System State of Emergency: The Argentine administration declared a state of emergency
with respect to the national electrical system, which will remain effective until December 31, 2017. Under this state of emergency,
the Argentine government will be permitted to take actions designed to guarantee the supply of electricity. In this context, subsidy
policies were reexamined and new electricity tariffs went into effect with varying increases depending on geographical location
and consumption levels. In addition, through Resolution No. 31/2016 of the Ministry of Energy and Mining, the government announced
the elimination of certain natural gas subsidies and adjustments to natural gas rated.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



We can offer no assurances
or predictions as to the impact that these policies or any future polices implemented by the new Argentine administration will
have on the Argentine economy as a whole or on our business, results of operation or financial condition, in particular. Moreover,
there is uncertainty as to which other measures announced during the presidential campaign will be actually implemented and when.
Some of the measures proposed by the new Argentine administration may also generate political and social opposition, which may
in turn prevent the new government from adopting such measures as proposed. In addition, political parties opposed to the new government
retained a majority of the seats in the Argentine Congress in the recent elections, which will require the new government to seek
political support from the opposition for its economic proposals and creates further uncertainty in the ability of the new government
to pass these or other measures.



22







Argentina’s upcoming
mid-term elections, scheduled to take place in October 2017, will renew half the seats in the country’s Chamber of Deputies
(lower house) and a third of the seats in the Senate (upper house), as well as two provincial governor posts. While it is unlikely
that the government coalition will overcome its current minority status in Congress, a weak performance in October may debilitate
Macri’s political capital going forward and his ability to implement some of the proposed measures, as well as invigorate
political and social opposition.



Our results of operations may be
adversely affected by high and possibly increasing inflation in Argentina.



In the past, inflation
has materially undermined the Argentine economy and the government’s ability to create conditions that would permit stable
growth. High inflation may also undermine Argentina’s foreign competitiveness in international markets and adversely affect
economic activity and employment, as well as our business and results of operation. In particular, the margin on our services is
impacted by the increase in our costs in providing those services, which is influenced by wage inflation in Argentina, as well
as other factors.



According to data published
by the INDEC, the CPI increased 23.9% in 2014 and 11.9% as of October 2015 (for the first nine months of year 2015). In November
2015, the INDEC suspended the publication of the CPI. According to the most recent publicly available information based on data
from the Province of San Luis, the CPI grew by 31.6% in 2015 and by 31.4% in 2016. According to the most recent publicly available
information based on data from the City of Buenos Aires, the CPI grew by 29.6% in 2015 and by 41.0% in 2016. After implementing
certain methodological reforms and adjusting certain macroeconomic statistics based on these reforms, in June 2016 the INDEC resumed
its publication of the CPI. According to the INDEC, Argentina’s rate of inflation for May, June, July, August, September,
October, November and December 2016 was 4.2%, 3.2%, 2.2%, 0.2%, 1.3%, 2.6%, 1.8% and 1.4%, respectively, based on the CPI. Private
estimates, on average, refer to annual rates of inflation substantially in excess of those published by the INDEC. For example,
opposition lawmakers in Argentina reported an inflation rate of 41%, 25.0% and 38.5% for the years ended December 31, 2016,
2015 and 2014, respectively.



Uncertainty surrounding
future inflation rates may have an adverse impact for Argentina in the long-term credit market.



The INDEC implemented
certain methodological reforms and adjusted certain indexes based on these reforms. The lack of accuracy in the INDEC’s indexes
could result in a further decrease in confidence in Argentina’s economy, which could, in turn, have an adverse effect on
our ability to access the international credit markets at market rates to finance our operations and growth. See “—The
credibility of several Argentine economic indexes has been called into question, which may lead to a lack of confidence in the
Argentine economy and may in turn limit our ability to access the credit and capital markets."



Inflation rates could
escalate, and there is uncertainty regarding the effects that the measures taken, or that may be taken, by the Argentine government
to control inflation could have. If inflation remains high or continues to increase, Argentina’s economy may be negatively
impacted and our results of operations could be materially affected.



The credibility of several Argentine
economic indexes has been called into question, which may lead to a lack of confidence in the Argentine economy and may in turn
limit our ability to access the credit and capital markets.



Since 2007, the inflation
index has been extensively discussed in the Argentine economy. The intervention of the former Argentine government in the INDEC
in 2007 and the change in the way the inflation index was measured have resulted in disagreements between the former Argentine
government and private consultants as to the actual annual inflation rate. The former Argentine government imposed fines on private
consultants reporting inflation rates higher than the INDEC data. As a result, private consultants typically shared their data
with Argentine lawmakers who opposed the previous government, who released such data from time to time. This could result in a
further decrease in confidence in Argentina’s economy.



Reports published by
the International Monetary Fund (“IMF”) in the past state that the IMF staff uses alternative measures of inflation
to monitor macroeconomic conditions, including data produced by private sources, which have shown considerably higher inflation
rates than those published by the INDEC since 2007. The IMF has also faulted Argentina for not taking sufficient remedial measures
to address the quality of its official data, including inflation and GDP data, as required under the Articles of Agreement of the
IMF.



In February 2014, the
INDEC released a new inflation index, known as National Urban Consumer Price Index (Índice de Precios al Consumidor Nacional
Urbano) that measured the prices of goods across the country and replaces the previous index that only measured inflation in
the urban sprawl of the City of Buenos Aires. Pursuant to these calculations, such new consumer price index rose 23.9% in 2014
and 11.9% during the ten-month period ended October 31, 2015. Even though the new methodology brought inflation statistics closer
to those estimated by private sources, material differences between recent official inflation data and private estimates remained
during 2015.



23







However, during December
2015 and January 2016, the new government declared the national statistical system and the INDEC to be in a state of administrative
emergency through December 31, 2016. Accordingly, the new head of the INDEC announced the temporary suspension of the publication
of official data of prices, poverty, unemployment and GDP until the completion of a full review of INDEC’s policies. Shortly
thereafter, the new administration released an alternative CPI index based on data from the City of Buenos Aires and the Province
of San Luis. The INDEC resumed its publication of the CPI in June 2016, after implementing certain methodological reforms and adjusting
certain macroeconomic statistics on the basis of those reforms. The INDEC also revised GDP data from 2004 through 2015. Among other
adjustments, in calculating GDP for 2004, the INDEC made changes to the composition of GDP that resulted in a negative adjustment
of approximately 12% for that year. To calculate real GDP for subsequent years based on the revised 2004 GDP, the INDEC used deflators
that are consistent with its revised methodology to calculate inflation. By previously understating inflation, the INDEC had overstated
economic growth in real terms. The adjustments made by the INDEC lead to a determination of real GDP growth of 48.6% for the period
of 2004 to 2015, as opposed to 65% growth in real terms for the same period resulting from the information used prior to June 2016.
Despite these reforms, uncertainty remains as to whether official data and measurement procedures sufficiently reflect inflation
in Argentina, and what effect these reforms will have on the Argentine economy.



As of the date of this
annual report, the impact that these measures and any future measures taken by the new administration with respect to the INDEC
will have on the Argentine economy and investors’ perception of the country cannot be predicted.



Argentina’s ability to obtain
financing from international markets may be limited, which may in turn impair its ability to implement reforms and public policies
and foster economic growth and could impact the ability of Argentine companies to obtain financing outside of Argentina.



Argentina’s 2001
sovereign default and its failure to fully restructure its sovereign debt and negotiate with the holdout creditors has limited
and may continue to limit Argentina’s ability to access international financing. In 2005, Argentina completed the restructuring
of a substantial portion of its indebtedness and settled all of its debt with the IMF. Additionally, in June 2010, Argentina completed
the restructuring of a significant portion of the defaulted bonds that were not exchanged in the 2005 restructuring. As a result
of debt exchanges carried out in 2005 and 2010, Argentina restructured approximately 93% of its defaulted debt that was eligible
for restructuring. However, holdout bondholders that declined to participate in the restructuring, filed lawsuits against Argentina
in several countries, including the United States. Since late 2012, rulings from courts in the United States favorable to holdout
bondholders aggravated investors’ concerns regarding investment in the country.



In November 2012, the
United States District Court for the Southern District of New York in re: “NML Capital, Ltd. v. Republic of Argentina”,
ratified and amended the injunction order issued in February 2012, which held that Argentina violated the pari passu clause
with respect to the bondholders that had not participated in the sovereign debt restructuring in 2005 and 2010. Pursuant to such
ruling, Argentina was required to pay 100% of the amounts due to the plaintiffs, simultaneously with the payment of the amounts
due on the next maturity date of the bonds to the bondholders who participated in the debt restructuring. In June 2014, the U.S.
Supreme Court denied Argentina’s petition for a writ of certiorari of the U.S. Second Circuit Court of Appeals’
ruling affirming the U.S. District Court’s judgment. Later that month, the U.S. District Court ruled that funds deposited
with the Bank of New York Mellon, the trustee which manages bond payments for Argentina's bonds issued in the 2005 and 2010 debt
restructuring, should not be delivered to the holders of restructured debt in the absence of a prior agreement with the holdout
bondholders (the plaintiffs in this case). In June 2015, the U.S. District Court granted partial summary judgment to a group of
“me-too” plaintiffs in 36 separate lawsuits, finding that, consistent with the previous ruling of such court, Argentina
violated the pari passu clause in the bonds issued to the “me-too” bondholders.



In February 2016, the
new Argentine administration entered into settlement agreements with certain holdout bondholders to settle these claims, which
were subject to the approval of the Argentine Congress and the lifting of the pari passu injunctions. In March 2016, after
the U.S. District Court agreed to vacate the pari passu injunctions subject to certain conditions, the Argentine Congress
ratified these settlement agreements through Law No. 27,249 and repealed the provisions of the so called Lock Law No. 26,017 and
the Sovereign Payment Law No. 26,984, which prohibited Argentina from offering holdout bondholders more favorable terms than those
offered in the 2005 and 2010 debt restructuring. In recent months, the Argentine National Government has reached settlement agreements
with holders of a significant portion of the defaulted bonds and has repaid the majority of the holdout creditors with the proceeds
of a US$16.5 billion international offering of 3-year, 5-year, 10-year and 30-year bonds on April 22, 2016. Although the size of
the claims involved has decreased significantly, litigation initiated by bondholders that have not accepted Argentina’s settlement
offer continues in several jurisdictions.



Additionally, foreign
shareholders of several Argentine companies have filed claims with the ICSID alleging that the emergency measures adopted by the
Argentine National Government since the crisis in 2001 and 2002 differ from the just and equal treatment standards set forth in
several bilateral investment treaties to which Argentina is a party. ICSID has ruled against Argentina with respect to many of
these claims.



24







Litigation involving
holdout creditors, claims with ICSID and other claims against the Argentine National Government, resulted and may result in material
judgments against the government, lead to attachments of or injunctions relating to Argentina’s assets, or could cause Argentina
to default under its other obligations, and such events may prevent Argentina from obtaining favorable terms or interest rates
when accessing international capital markets or from accessing international financing at all. Our ability to obtain U.S. dollar-denominated
financing has been adversely impacted by these factors. During 2014, 2015 and 2016, it became increasingly difficult for Argentine
companies to obtain financing in U.S. dollars, and loans in the local currency carried significantly higher interest rates. The
termination of the injunctions issued by the United States courts preventing bondholders from receiving their interest payments
on the bonds issued pursuant to the 2005 and 2010 exchange offers, and the related subsequent events, have paved the way for the
Argentine National Government to regain access to the international capital markets. Nonetheless, Argentina’s ability to
obtain international or multilateral private financing or direct foreign investment may be limited, which may in turn impair its
ability to implement reforms and public policies to foster economic growth. In addition, Argentina’s ongoing litigation with
the remaining holdout creditors as well as ICSID and other claims against the Argentine National Government, or any future defaults
of its financial obligations, may prevent us from accessing the international capital markets or cause the terms of any such transactions
less favorable than those provided to companies in other countries in the region, potentially impacting our financial condition.



Lack of access to international
or domestic financial markets could affect the projected capital expenditures for our operations in Argentina, which, in turn,
may have an adverse effect on the results of our operations and on the market price of our common shares.



A continued decline in the global
prices of Argentina’s main commodity exports could have an adverse effect on Argentina’s economic growth.



High commodity prices
have contributed significantly to the increase in Argentine exports since 2002 as well as in governmental revenues from export
taxes. However, relying on the export of certain commodities, such as soy, has made the Argentine economy more vulnerable to fluctuations
in the prices of commodities. Since the beginning of 2015, international commodity prices of Argentina’s primary commodity
exports have declined, which has had an adverse effect on Argentina’s economic growth. If international commodity prices
continue to decline, the Argentine economy could be adversely affected. In addition, adverse weather conditions can affect the
production of commodities by the agricultural sector, which account for a significant portion of Argentina’s export revenues.



These circumstances
would have a negative impact on the levels of government revenues, available foreign exchange and the government’s ability
to service its sovereign debt, and could either generate recessionary or inflationary pressures, depending on the government’s
reaction. Either of these results would adversely impact Argentina’s economic growth and, therefore, our financial condition
and results of operations.



Argentine exchange controls and restrictions
on capital inflows and outflows have limited, and may continue to limit, the availability of international credit and access to
capital markets, which could have a material adverse effect on our financial condition and business.



In 2001 and 2002, Argentina
imposed exchange controls and transfer restrictions substantially limiting the ability of enterprises to retain or obtain foreign
currency or make payments abroad. Although some of these restrictions were subsequently eased, in June 2005, the Argentine government
issued Decree No. 616/2005, which established new controls on capital inflows that could result in reduced availability of international
credit, including the requirement, subject to certain exceptions, that 30% of all funds remitted to Argentina remain deposited
in a domestic financial institution for 365 days in a non-interest bearing account. In addition, since the second half of 2011,
the Argentine government increased certain controls on the incurrence of foreign currency-denominated indebtedness, the acquisition
of foreign currency and foreign assets by local residents. For example, the Argentine Central Bank adopted regulations that (i)
shortened the period for a borrower to convert foreign currency-denominated indebtedness into Argentine pesos, (ii) shortened a
borrower’s window of access to the local foreign exchange market in connection with a prepayment of scheduled interest payments
in respect of foreign currency-denominated indebtedness and (iii) suspended the ability of local residents to access the local
exchange market for the acquisition of foreign currency.



In December 2015, the
new Argentine administration lifted several exchange control restrictions, and in August 2016, the Argentine Central Bank issued
new regulations which repealed most of the restrictions for the purchase of foreign currency and the inflow and outflow of funds
from Argentina, providing greater flexibility and access to the foreign exchange market. See “Information on the Company — Business
Overview — Foreign Exchange Controls”.



Notwithstanding the
measures adopted by the new Argentine administration, which lifted virtually all exchange and capital controls (except for the
obligation of Argentine exporters of goods to repatriate to the FX Market foreign currency proceeds from exportation transactions,
such as receivables relating to the exportation of goods, which shall also be settled through the FX Market), the Argentine government
may impose or increase exchange controls or transfer restrictions in the future in response to capital flight or a significant
depreciation of the Argentine peso. Additional controls could have a negative effect on the ability of Argentine entities to access
the international credit or capital markets, the Argentine economy and our financial condition and business.



25







The imposition in the future of restrictions
on transfers of foreign currency and the repatriation of capital from Argentina may impair our ability to receive dividends and
distributions from, and the proceeds of any sale of, our assets in Argentina.



Beginning in December
2001, the Argentine government implemented a number of monetary and foreign exchange control measures that included restrictions
on the free disposition of funds deposited with banks and on the transfer of funds abroad without prior approval by the Argentine
Central Bank, most of which have been lifted. See “Information on the Company — Business Overview —
Foreign Exchange Controls”.



Although the transfer
of funds abroad by local companies in order to pay annual dividends only to foreign shareholders does not require formal approval
by the Argentine Central Bank, in the past, the decrease in availability of U.S. dollars in Argentina has led the Argentine government
to impose informal restrictions on certain local companies and individuals for purchasing foreign currency for the purpose of making
payments abroad, such as dividends, capital reductions, and payment for importation of goods and services.



Although the new Argentine
administration has lifted most of the foreign exchange restrictions providing greater flexibility and access to the foreign exchange
market, the imposition of future exchange controls could impair or prevent the conversion of anticipated dividends, distributions,
or the proceeds from any sale of equity holdings in Argentina, as the case may be, from Argentine pesos into U.S. dollars and the
remittance of the U.S. dollars abroad. These restrictions and controls could interfere with the ability of our Argentine subsidiaries
to make distributions in U.S. dollars to us and thus our ability to pay dividends in the future. The domestic revenues of our Argentine
subsidiaries (excluding intercompany revenues to other Globant subsidiaries, which are eliminated in consolidation) were $10.2
million in 2016, $7.6 million in 2015 and $4.2 million in 2014, representing 3.2%, 3.0% and 2.1% of our annual consolidated revenues,
respectively.



The Argentine government
could adopt restrictive measures in the future. If that were the case, a foreign shareholder, such as ourselves, may be prevented
from converting the Argentine pesos it receives in Argentina into U.S. dollars. If the exchange rate fluctuates significantly during
a time when we cannot convert the foreign currency, we may lose some or all of the value of the dividend distribution or sale proceeds.



These restrictions
and requirements could adversely affect our financial condition and the results of our operations, or the market price of our common
shares.



The imposition in the future of regulations
on proceeds from the export of services collected outside of Argentina for services rendered to non-Argentine residents or of export
duties and controls could have an adverse effect on us.



In December 30, 2016,
by means of Communication “A” 6137, the Argentine Central Bank eliminated the requirement to repatriate and exchange
funds obtained from the exportation of services into pesos through the FX Market. Such requirement remains applicable only for
exported services included in the FOB (free on board) and/or CIF (cost insurance and freight) value of exported goods (which is
not applicable to the types of services exported by us). Consequently, we are not required to repatriate or exchange the foreign
currency proceeds received from services rendered to non-Argentine residents outside of Argentina (which are proceeds from our
exportations held in off-shore accounts, such as the collections of services fees in U.S. dollars). Additionally, the applicable
regulations do not prohibit or regulate the receipt of in-kind payments by an exporter.



However, in the past,
Argentine law (including Communication “A” 5264 of the Argentine Central Bank, as amended), required Argentine residents
to transfer the foreign currency proceeds received for services rendered to non-Argentine residents into a local account with a
domestic financial institution and to convert those proceeds into Argentine pesos through the FX Market. Argentine law does not
require exporters of services to be paid only in foreign currency. During 2013, our U.S. subsidiary agreed to make payment for
a portion of the services provided by our Argentine subsidiaries by delivery of U.S. dollar-denominated BODEN purchased in the
U.S. debt markets (in U.S. dollars). The BODEN were then delivered to our Argentine subsidiaries as payment for a portion of the
services rendered and, after being held by our Argentine subsidiaries for between, on average, 10 to 30 days, were sold in the
Argentine market for Argentine pesos. Because the fair value of the BODEN based on the quoted Argentine peso price in the Argentine
markets during the year ended December 31, 2013 was higher than the quoted U.S. dollar price for the BODEN in the U.S. debt markets
(in U.S. dollars) converted at the official exchange rate prevailing in Argentina (which is the rate used to convert transactions
in foreign currency into our Argentine subsidiaries’ functional currency), we recognized a gain when remeasuring the fair
value (expressed in Argentine pesos) of the BODEN into U.S. dollars at the official exchange rate prevailing in Argentina.



26







During the years ended
December 31, 2016, 2015 and 2014, we did not participate in any BODEN transactions in connection with payment by our U.S. subsidiary
for services provided by our Argentine subsidiaries. If in the future we decide to resume those transactions, we cannot assure
you that the Argentine government will not restrict exporters from receiving in-kind payment, require them to repatriate those
payments received through the FX Market, or make any other legislative, judicial, or administrative changes or interpretations,
any of which could have a material adverse effect on our business, results of operations and financial condition.



Transactions with bonds acquired
as proceeds from the capitalization of our Argentine subsidiaries increase our exposure to fluctuations in the value of the Argentine
peso, which, in turn, could have an adverse effect on our operations and the market price of our common shares. The imposition
in the future of regulations on proceeds collected outside Argentina for capitalization of our Argentine subsidiaries could also
have an adverse effect on us.



During the years ended
December 31, 2015 and 2014, our Argentine subsidiaries, through cash received from capital contributions, acquired Argentine
sovereign bonds, including BODEN and Bonos Argentinos (“BONAR”), in the U.S. market denominated in U.S. dollars.



After acquiring these
bonds and after holding them for a certain period of time, our Argentine subsidiaries sold those bonds in the Argentine market.
The fair value of these bonds in the Argentine market (in Argentine pesos) during the years ended December 31, 2015 and 2014
was higher than its quoted price in the U.S. market (in U.S dollars) converted at the official exchange rate prevailing in Argentina,
which is the rate used to convert these transactions in foreign currency into our Argentine subsidiaries’ functional currency,
thus, as a result, we recognized a gain when remeasuring the fair value of the bonds in Argentine pesos into U.S. dollars at the
official exchange rate prevailing in Argentina.



We cannot assure you
that the quoted price of the BODEN and/or BONAR in Argentine pesos in the Argentine markets will be higher than the quoted price
in the U.S. debt markets in U.S. dollars converted at the official exchange rate prevailing in Argentina.



During the year ended
December 31, 2016, we did not engage in the above described transactions. Although, as of the date of this annual report,
we are not obliged to settle proceeds received from capitalizations abroad through the FX Market, if in the future we decide to
make additional capital contributions to our Argentine subsidiaries, we cannot assure you that the Argentine government will not
require Argentine companies to repatriate such proceeds through the FX Market, or make any other legislative, judicial, or administrative
changes or interpretations, any of which could have a material adverse effect on our business, results of operations and financial
condition. See note 3.18 to our audited consolidated financial statements, “Operating and Financial Review and Prospects — Results
of Operations — 2016 Compared to 2015”, “Operating and Financial Review and Prospects — Results
of Operations — 2015 Compared to 2014” and “Certain Income Statement Line Items — Gain
on Transaction with Bonds.”



The Argentine government may order
salary increases to be paid to employees in the private sector, which could increase our operating costs and adversely affect our
results of operations.



In the past, the Argentine
government has passed laws, regulations and decrees requiring companies in the private sector to increase wages and provide specified
benefits to employees, and may do so again in the future. Argentine employers, both in the public and private sectors, have experienced
significant pressure from their employees and labor organizations to increase wages and to provide additional employee benefits.
Due to the high levels of inflation, employees and labor organizations are demanding significant wage increases. In August 2012,
the Argentine government established a 25% increase in minimum monthly salary to 2,875 Argentine pesos, effective as of February
2013. The Argentine government increased the minimum salary to 3,300 Argentine pesos in August 2013, to 3,600 Argentine pesos in
January 2014, to 4,400 Argentine pesos in September 2014, to 4,716 Argentine pesos in January 2015, to 5,588 Argentine pesos in
August 2015, to 6,060 Argentine pesos in January 2016, to 6,810 Argentine pesos in June 2016 and 7,560 Argentine pesos in September
2016. Recently, the INDEC published data regarding the evolution of salaries in the private and public sectors, which reflects
approximately 32,91% and 32,58% salary increase in the private and public sectors, respectively, for the period from November 2015
through December 2016.



Due to high levels
of inflation and full employment in the high tech industry, we expect to raise salaries in line with the market. During the year
ended December 31, 2016, labor unions agreed with employers ́ associations on annual salary increases between 27% and 37%.
If future salary increases in the Argentine peso exceed the pace of the devaluation of the Argentine peso, such salary increases
could have a material and adverse effect on our expenses and business, results of operations and financial condition and, thus,
on the trading prices for our common shares.



27







Our operating cash flows may be adversely
affected if there is a delay in obtaining reimbursement of value-added tax credits from AFIP.



In 2016, our Argentine
operating subsidiary IAFH Global S.A. has recognized an aggregate of $5.7 million in value-added tax credits. These tax credits
may be monetized by way of cash reimbursement from AFIP. Obtaining this cash reimbursement requires submission of a written request
to AFIP, which is subject to its approval. In the event that AFIP delays its approval of the request for reimbursement of these
value-added tax credits, our ability to monetize the value of those credits would be delayed, which could adversely affect the
timing of our cash flows from operations.



Changes in Argentine tax laws may
adversely affect the results of our operations, financial condition and cash flows.



In 2012, the
Argentine government terminated the application of the treaties for the avoidance of double taxation that were in force with the
Republic of Chile and Spain. As a result of the termination of the double taxation treaties in force with Spain and the Republic
of Chile, as well as the decision to end the provisional application of the double taxation treaty in force with Switzerland, the
exemption from the personal assets tax that was available pursuant to those treaties for shares and other equity interests in local
companies owned by Chilean, Spanish or Swiss residents are no longer applicable after each of the corresponding dates of termination.
New double taxation treaties with Chile, Switzerland and Spain do not include a similar exemption. A new treaty with Spain entered
into force on December 23, 2013 and applied retroactively from January 1, 2013. This treaty replaces the previous double taxation
treaty between Argentina and Spain that was terminated on July 16, 2012. According to the new treaty, the tax applicable on dividends
distributed by our Argentine Subsidiaries to the Spanish Holdco, in excess of their cumulative taxable income (so called "Equalization
Tax") could be limited to10% on the gross amount of dividends distributed and income tax withholding on financial interest
could be limited to 12%.



On March 20, 2014, Argentina and Switzerland
executed a double taxation treaty that entered into force on November 27, 2015.



On May 15, 2015, Argentina
and Chile signed a new treaty to avoid double taxation. On September 7, 2016, the Argentine Congress approved the aforementioned
treaty, which was published in the Argentine government's official gazette on September 30, 2016 and became effective on January
1, 2017.



On September 23, 2013,
Argentine Law No. 26,893 amending the income tax law was enacted. According to the amendments, the distribution of dividends by
Argentine companies were subject to withholding tax at a rate of 10% unless dividends are distributed to Argentine corporate entities,
and the sale, exchange or disposition of shares and other securities not trading in, or listed on, capital markets and securities
exchanges is subject to withholding tax at a rate of 13.5% over the gross amount or 15% over the net amount when gains are recognized
by any Argentine resident individual or foreign beneficiary. However, a procedure has not been enacted to calculate the 15% over
the net amount, thus, in practice, the 13.5% rate is normally applied.



On July 22, 2016, Argentina
published Law No. 27,260 in the Argentine government's official gazette, which makes significant changes to the Argentine tax laws
and establishes new tax regimes. The law was enacted on July 21, 2016. Under this law, the Argentine Government established the
“Voluntary and extraordinary disclosure regime of national and foreign currency holding and other assets, within Argentina
and abroad” (Tax Amnesty) and a moratorium for tax, social security and customs obligations.



Additionally the 10%
withholding established by Law No. 26,893 that was applied by companies on the distribution of dividends and profits was abrogated
and compliant taxpayer obtained the exemption from personal assets tax payable by Argentine resident companies as a substitute
taxpayer on the participation held by their shareholders. The exemption is applicable until December 31, 2019.



Exposure to multiple provincial and
municipal legislation and regulations could adversely affect our business or results of operations.



Argentina is a federal
country with 23 provinces and one autonomous city (City of Buenos Aires), each of which, under the Argentine national constitution,
has full power to enact legislation concerning taxes and other matters. Likewise, within each province, municipal governments have
broad powers to regulate such matters. Due to the fact that our delivery centers are located in multiple provinces, we are also
subject to multiple provincial and municipal legislation and regulations. Although we have not experienced any material adverse
effects from this, future developments in provincial and municipal legislation concerning taxes, provincial regulations or other
matters may adversely affect our business or results of operations.



28







Risks Related to Ownership of Our Common Shares



The price of our common shares may
be highly volatile.



The market price of
our common shares may be volatile and may be influenced by many factors, some of which are beyond our control, including:



| | • | the failure of financial analysts to cover our common shares or changes in financial estimates by analysts;
| | - | -----------------------------------------------------------------------------------------------------------

| | • | actual or anticipated variations in our operating results;
| | - | ----------------------------------------------------------

| | • | changes in financial estimates by financial analysts, or any failure by us to meet or exceed any of these estimates, or changes
in the recommendations of any financial analysts that elect to follow our common shares or the shares of our competitors;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | announcements by us or our competitors of significant contracts or acquisitions;
| | - | --------------------------------------------------------------------------------

| | • | future sales of our common shares; and
| | - | --------------------------------------

| | • | investor perceptions of us and the industries in which we operate.
| | - | ------------------------------------------------------------------



In addition, the equity
markets in general have experienced substantial price and volume fluctuations that have often been unrelated or disproportionate
to the operating performance of particular companies affected. These broad market and industry factors may materially harm the
market price of our common shares, regardless of our operating performance. In the past, following periods of volatility in the
market price of certain companies’ securities, securities class action litigation has been instituted against these companies.
This litigation, if instituted against us, could adversely affect our financial condition or results of operations.



Holders of our common shares may
experience losses due to increased volatility in the U.S. capital markets.



The U.S. capital markets
have recently experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of
equity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance
or results of operations of those companies. These broad market fluctuations, as well as general economic, political and market
conditions such as recessions, interest rate changes or international currency fluctuations, as well as volatility in international
capital markets, may cause the market price of our common shares to decline.



In addition, on August
5, 2011, Standard & Poor's Ratings Services (“S&P”) lowered the long-term sovereign credit rating of the U.S.
government debt obligations from AAA to AA+. On November 28, 2011, Fitch Ratings downgraded its U.S. Government rating outlook
to negative and stated that a downgrade of the U.S. sovereign credit rating would occur without a credible plan in place by 2013
to reduce the U.S. Government's deficit. These actions initially have had an adverse effect on capital markets in the United States
and elsewhere, contributing to volatility and decreases in prices of many securities trading on the U.S. national exchanges, such
as the NYSE. Further downgrades to the U.S. Government's sovereign credit rating by any rating agency, as well as negative changes
to the perceived creditworthiness of U.S. Government-related obligations, could have a material adverse impact on financial markets
and economic conditions in the United States and worldwide. Any volatility in the capital markets in the United States or in other
developed countries, whether resulting from a downgrade of the sovereign credit rating of U.S. debt obligations or otherwise, may
have an adverse effect on the price of our common shares.



We may be classified by the Internal
Revenue Service as a “passive foreign investment company” (a “PFIC”), which may result in adverse tax consequences
for U.S. investors.



We believe that we
will not be a PFIC for U.S. federal income tax purposes for our current taxable year and do not expect to become one in the foreseeable
future. However, because PFIC status depends upon the composition of our income and assets and the market value of our assets (including,
among others, less than 25% owned equity investments) from time to time, there can be no assurance that we will not be considered
a PFIC for any taxable year. Because we have valued goodwill based on the market value of our equity for purposes of taxation,
a decrease in the price of our common shares may also result in us becoming a PFIC. The composition of our income and our assets
will also be affected by how, and how quickly, we spend the cash. Under circumstances where the cash is not deployed for active
purposes, our risk of becoming a PFIC may increase. If we were treated as a PFIC for any taxable year during which a U.S. investor
held common shares, certain adverse tax consequences could apply to such U.S. investor. See “Additional Information — Taxation — U.S.
Federal Income Tax Considerations — Passive foreign investment company rules.”



We may need additional capital and
we may not be able to obtain it.



We believe that our
existing cash and cash equivalents and cash flows from operations will be sufficient to meet our anticipated cash needs for at
least the next 12 months. We may, however, require additional cash resources due to changed business conditions or other future
developments, including any investments or acquisitions we may decide to pursue. If these resources are insufficient to satisfy
our cash requirements, we may seek to sell additional equity or debt securities or obtain another credit facility. The sale of
additional equity securities could result in dilution to our shareholders. The incurrence of indebtedness would result in increased
debt service obligations and could require us to agree to operating and financing covenants that would restrict our operations.



29







Our ability to obtain
additional capital on acceptable terms is subject to a variety of uncertainties, including:



| | • | investors’ perception of, and demand for, securities of technology services companies;
| | - | --------------------------------------------------------------------------------------

| | • | conditions of the U.S. capital markets and other capital markets in which we may seek to raise funds;
| | - | -----------------------------------------------------------------------------------------------------

| | • | our future results of operations and financial condition;
| | - | ---------------------------------------------------------

| | • | government regulation of foreign investment in the United States, Europe, and Latin America; and
| | - | ------------------------------------------------------------------------------------------------

| | • | global economic, political and other conditions in jurisdictions in which we do business.
| | - | -----------------------------------------------------------------------------------------



Concentration of ownership among
our existing executive officers, directors and principal shareholders may prevent new investors from influencing significant corporate
decisions or adversely affect the trading price of our common shares.



As of March 20, 2017,
our directors and executive officers, entities affiliated with them and greater than 5% shareholders, beneficially own approximately
58.98% of our outstanding common shares, of which 1.17% represents common shares subject to options currently exercisable and options
exercisable within 60 days of March 20, 2017. As a result, these shareholders continue to have substantial control over us and
be able to exercise significant influence over all matters requiring shareholder approval, including the election of directors
and approval of significant corporate transactions, and will have significant influence over our management and policies. This
concentration of influence could be disadvantageous to other shareholders with interests different from those of our officers,
directors and principal shareholders. For example, our officers, directors and principal shareholders could delay or prevent an
acquisition or merger even if the transaction would benefit other shareholders. In addition, this significant concentration of
share ownership may adversely affect the trading price of our common shares because investors often perceive disadvantages in owning
shares in companies with principal shareholders.



Our business and results of operations
may be adversely affected by the increased strain on our resources from complying with the reporting, disclosure, and other requirements
applicable to public companies in the United States promulgated by the U.S. government, NYSE or other relevant regulatory authority.



Compliance with existing,
new and changing corporate governance and public disclosure requirements adds uncertainty to our compliance policies and increases
our costs of compliance. Changing laws, regulations and standards include those relating to accounting, corporate governance and
public disclosure, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Sarbanes-Oxley Act of 2002, new
SEC regulations and NYSE listing guidelines. These laws, regulations and guidelines may lack specificity and are subject to varying
interpretations. Their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies.
In particular, our efforts to comply with certain sections of Section 404 of the Sarbanes-Oxley Act of 2002 (“Section 404”)
and the related regulations regarding required assessment of internal controls over financial reporting and our external auditor’s
audit of that assessment requires the commitment of significant financial and managerial resources. Testing and maintaining internal
controls can divert our management’s attention from other matters that are important to the operation of our business. We
also expect the regulations to increase our legal and financial compliance costs, make it more difficult to attract and retain
qualified officers and members of our board of directors, particularly to serve on our audit committee, and make some activities
more difficult, time consuming and costly.



Existing, new and changing
corporate governance and public disclosure requirements could result in continuing uncertainty regarding compliance matters and
higher costs of compliance as a result of ongoing revisions to such governance standards. Our efforts to comply with evolving laws,
regulations and standards have resulted in, and are likely to continue to result in, increased general and administrative expenses
and a diversion of management time and attention from revenue-generating activities to compliance activities. In addition, new
laws, regulations and standards regarding corporate governance may make it more difficult for our company to obtain director and
officer liability insurance. Further, our board members and senior management could face an increased risk of personal liability
in connection with their performance of duties. As a result, we may face difficulties attracting and retaining qualified board
members and senior management, which could harm our business. If we fail to comply with new or changed laws or regulations and
standards differ, our business and reputation may be harmed.



Failure to establish and maintain
effective internal controls in accordance with Section 404 could have a material adverse effect on our business and common share
price.



As a public company,
we are required to document and test our internal control procedures in order to satisfy the requirements of Section 404, which
will require management assessments and certifications of the effectiveness of our internal control over financial reporting. During
the course of our testing, we may identify deficiencies that we may not be able to remedy in time to meet our deadline for compliance
with Section 404. We may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting
in accordance with Section 404. In addition, our independent registered public accounting firm is required to report on the effectiveness
of our internal control over financial reporting but may not be able or willing to issue an unqualified report. If we conclude
that our internal control over financial reporting is not effective, we cannot be certain as to the timing of remediation actions
and testing or their effect on our operations because there is presently no precedent available by which to measure compliance
adequacy.



30







If we are unable to
conclude that we have effective internal control over financial reporting, our independent auditors are unable to provide us with
an unqualified report as required by Section 404, or we are required to restate our financial statements, we may fail to meet our
public reporting obligations and investors could lose confidence in our reported financial information, which could have a negative
effect on the trading price of our common shares.



Our exemption as a “foreign
private issuer” from certain rules under the U.S. securities laws may result in less information about us being available
to investors than for U.S. companies, which may result in our common shares being less attractive to investors.



As a “foreign
private issuer” in the United States, we are exempt from certain rules under the U.S. securities laws and are permitted to
file less information with the SEC than U.S. companies. As a “foreign private issuer,” we are exempt from certain rules
under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), that impose certain disclosure obligations
and procedural requirements for proxy solicitations under Section 14 of the Exchange Act. In addition, our officers, directors
and principal shareholders are exempt from the reporting and “short-swing” profit recovery provisions of Section 16
of the Exchange Act and the rules under the Exchange Act with respect to their purchases and sales of our common shares. Moreover,
we are not required to file periodic reports and financial statements with the SEC as frequently or as promptly as companies that
are not foreign private issuers whose securities are registered under the Exchange Act. In addition, we are not required to comply
with Regulation FD, which restricts the selective disclosure of material information. As a result, our shareholders may not have
access to information they may deem important, which may result in our common shares being less attractive to investors.



We do not plan to declare dividends,
and our ability to do so will be affected by restrictions under Luxembourg law.



We have not declared
dividends in the past and do not anticipate paying any dividends on our common shares in the foreseeable future. In addition, both
our articles of association and the Luxembourg law of August 10, 1915 on commercial companies as amended from time to time ( loi
du 10 août 1915 sur les sociétés commerciales telle que modifiée ) (“Luxembourg Corporate
Law”) require a general meeting of shareholders to approve any dividend distribution except as set forth below.



Our ability to declare
dividends under Luxembourg law is subject to the availability of distributable earnings or available reserves, including share
premium. Moreover, if we declare dividends in the future, we may not be able to pay them more frequently than annually. As permitted
by Luxembourg Corporate Law, our articles of association authorize the declaration of dividends more frequently than annually by
our board of directors in the form of interim dividends so long as the amount of such interim dividends does not exceed total net
income made since the end of the last financial year for which the annual accounts have been approved, plus any net income carried
forward and sums drawn from reserves available for this purpose, less the aggregate of the prior year’s accumulated losses,
the amounts to be set aside for the reserves required by law or by our articles of association for the prior year, and the estimated
tax due on such earnings.



We are a holding company and depend
on the ability of our subsidiaries to distribute funds to us in order to satisfy our financial obligations and to make dividend
payments, which they may not be able to do.



We are a holding company
and our subsidiaries conduct all of our operations. We have no relevant assets other than the equity interests in our subsidiaries.
As a result, our ability to make dividend payments depends on our subsidiaries and their ability to distribute funds to us. The
ability of a subsidiary to make these distributions could be affected by covenants in our or their financing agreements or by the
law of their respective jurisdictions of incorporation. If we are unable to obtain funds from our subsidiaries, we will be unable
to distribute dividends. We do not intend to seek to obtain funds from other sources to pay dividends. See “— Risks
Related to Operating in Latin America and Argentina — Argentina — The imposition in the future of restrictions
on transfers of foreign currency and the repatriation of capital from Argentina may impair our ability to receive dividends and
distributions from, and the proceeds of any sale of, our assets in Argentina.”



31







Our shareholders may have more difficulty
protecting their interests than they would as shareholders of a U.S. corporation, which could adversely impact trading in our common
shares and our ability to conduct equity financings.



Our corporate affairs
are governed by our articles of association and the laws of Luxembourg, including the laws governing joint stock companies. The
rights of our shareholders and the responsibilities of our directors and officers under Luxembourg law are different from those
applicable to a corporation incorporated in the United States. There may be less publicly available information about us than is
regularly published by or about U.S. issuers. In addition, Luxembourg law governing the securities of Luxembourg companies may
not be as extensive as those in effect in the United States, and Luxembourg law and regulations in respect of corporate governance
matters might not be as protective of minority shareholders as state corporation laws in the United States. Therefore, our shareholders
may have more difficulty in protecting their interests in connection with actions taken by our directors and officers or our principal
shareholders than they would as shareholders of a corporation incorporated in the United States.



Neither our articles
of association nor Luxembourg law provides for appraisal rights for dissenting shareholders in certain extraordinary corporate
transactions that may otherwise be available to shareholders under certain U.S. state laws. As a result of these differences, our
shareholders may have more difficulty protecting their interests than they would as shareholders of a U.S. issuer.



Holders of our common shares may
not be able to exercise their pre-emptive subscription rights and may suffer dilution of their shareholding in the event of future
common share issuances.



Under Luxembourg Corporate
Law, our shareholders benefit from a pre-emptive subscription right on the issuance of common shares for cash consideration. However,
in accordance with Luxembourg law, our articles of association authorize our board of directors to suppress, waive or limit any
pre-emptive subscription rights of shareholders provided by Luxembourg law to the extent our board deems such suppression, waiver
or limitation advisable for any issuance or issuances of common shares within the scope of our authorized share capital. Such common
shares may be issued above, at or below market value as well as by way of incorporation of available reserves (including a premium).
This authorization is valid from the date of the publication in the Luxembourg official gazette (Mémorial C Recueil des
Sociétés et Associations) of the decision of the extraordinary general meeting of shareholders held on May 6,
2016, which publication occurred on July 21, 2016, and ends on July 21, 2021. In addition, a shareholder may not be able to exercise
the shareholder’s pre-emptive right on a timely basis or at all, unless the shareholder complies with Luxembourg Corporate
Law and applicable laws in the jurisdiction in which the shareholder is resident, particularly in the United States. As a result,
the shareholding of such shareholders may be materially diluted in the event common shares are issued in the future. Moreover,
in the case of an increase in capital by a contribution in kind, no pre-emptive rights of the existing shareholders exist.



We are organized under the laws of
the Grand Duchy of Luxembourg and it may be difficult for you to obtain or enforce judgments or bring original actions against
us or our executive officers and directors in the United States.



We are organized under
the laws of the Grand Duchy of Luxembourg. The majority of our assets are located outside the United States. Furthermore, the majority
of our directors and officers and some experts named in this annual report reside outside the United States and a substantial portion
of their assets are located outside the United States. Investors may not be able to effect service of process within the United
States upon us or these persons or to enforce judgments obtained against us or these persons in U.S. courts, including judgments
in actions predicated upon the civil liability provisions of the U.S. federal securities laws. Likewise, it may also be difficult
for an investor to enforce in U.S. courts judgments obtained against us or these persons in courts located in jurisdictions outside
the United States, including judgments predicated upon the civil liability provisions of the U.S. federal securities laws. It may
also be difficult for an investor to bring an original action in a Luxembourg court predicated upon the civil liability provisions
of the U.S. federal securities laws against us or these persons. Furthermore, Luxembourg law does not recognize a shareholder’s
right to bring a derivative action on behalf of the company except in limited cases.



As there is no treaty
in force on the reciprocal recognition and enforcement of judgments in civil and commercial matters between the United States and
the Grand Duchy of Luxembourg, courts in Luxembourg will not automatically recognize and enforce a final judgment rendered by a
U.S. court. A valid judgment in civil or commercial matters obtained from a court of competent jurisdiction in the United States
may be entered and enforced through a court of competent jurisdiction in Luxembourg, subject to compliance with the enforcement
procedures (exequatur). The enforceability in Luxembourg courts of judgments rendered by U.S. courts will be subject prior
any enforcement in Luxembourg to the procedure and the conditions set forth in the Luxembourg procedural code, which conditions
may include the following as of the date of this annual report (which may change):



| | • | the judgment of the U.S. court is final and enforceable (exécutoire) in the United States;
| | - | ------------------------------------------------------------------------------------------

| | • | the U.S. court had jurisdiction over the subject matter leading to the judgment (that is, its jurisdiction was in compliance
both with Luxembourg private international law rules and with the applicable domestic U.S. federal or state jurisdictional rules);
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | the U.S. court has applied to the dispute the substantive law that would have been applied by Luxembourg courts;
| | - | ----------------------------------------------------------------------------------------------------------------

| | • | the judgment was granted following proceedings where the counterparty had the opportunity to appear
and, if it appeared, to present a defense, and the decision of the foreign court must not have been obtained by fraud, but in compliance
with the rights of the defendant;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | the U.S. court has acted in accordance with its own procedural laws;
| | - | --------------------------------------------------------------------



32







| | • | the judgment of the U.S. court does not contravene Luxembourg international public policy; and
| | - | ----------------------------------------------------------------------------------------------

| | • | the U.S. court proceedings were not of a criminal or tax nature.
| | - | ----------------------------------------------------------------



Under our articles
of association and also pursuant to separate indemnification agreements, we indemnify our directors for and hold them harmless
against all claims, actions, suits or proceedings brought against them, subject to limited exceptions. The rights and obligations
among or between us and any of our current or former directors and officers are generally governed by the laws of the Grand Duchy
of Luxembourg and subject to the jurisdiction of the Luxembourg courts, unless such rights or obligations do not relate to or arise
out of their capacities listed above. Although there is doubt as to whether U.S. courts would enforce such provision in an action
brought in the United States under U.S. federal or state securities laws, such provision could make enforcing judgments obtained
outside Luxembourg more difficult to enforce against our assets in Luxembourg or jurisdictions that would apply Luxembourg law.



Luxembourg insolvency laws may offer
our shareholders less protection than they would have under U.S. insolvency laws.



As a company organized
under the laws of the Grand Duchy of Luxembourg and with its registered office in Luxembourg, we are subject to Luxembourg insolvency
laws in the event any insolvency proceedings are initiated against us including, among other things, Council Regulation (EC) No.
1346/2000 of May 29, 2000 on insolvency proceedings. Should courts in another European country determine that the insolvency laws
of that country apply to us in accordance with and subject to such EU regulations, the courts in that country could have jurisdiction
over the insolvency proceedings initiated against us Insolvency laws in Luxembourg or the relevant other European country, if any,
may offer our shareholders less protection than they would have under U.S. insolvency laws and make it more difficult for them
to recover the amount they could expect to recover in a liquidation under U.S. insolvency laws.



33







ITEM 4. INFORMATION ON THE COMPANY



A. History and Development of the Company



Globant is a Luxembourg
société anonyme (a joint stock company). The company’s legal name is “Globant S.A.” We were
founded in 2003 by Martín Migoya, our Chairman and Chief Executive Officer, Guibert Englebienne, our Chief Technology Officer,
Martín Umaran, our Chief of Staff, and Nestor Nocetti, our Executive Vice President of Corporate Affairs. Our founders’
vision was to create a company, starting in Latin America that would dream and build digital journeys that matter to millions of
users, while also generating world-class career opportunities for IT professionals, not just in metropolitan areas but also in
outlying cities and countries.



Since our inception,
we have benefited from strong organic growth and have built a blue chip client base comprised of leading global companies. Over
that same period, we have expanded our network of locations from one to 35. In addition, we have garnered several awards and recognition
from organizations such as Endeavor, the IDC MarketScape, Global Services, the International Association of Outsourcing Professionals,
and Fast Company, and we have been the subject of business-school case studies on entrepreneurship at the Massachusetts Institute
of Technology, Harvard University and Stanford University in conjunction with the World Economic Forum.



In 2006, we started
working with Google. We were chosen due to our cultural affinity and innovation. While our growth has largely been organic, since
2008 we have made twelve complementary acquisitions. Our acquisition strategy is focused on deepening our relationship with key
clients, extending our technology capabilities, broadening our service offering and expanding the geographic footprint of our delivery
centers, including beyond Latin America.



Globant’s growth
has been primarily organic. We expect to continue with this strategy to maintain and reinforce our culture. At the same time,
during the life of the company, we have made a number of small, strategic acquisitions.



In 2008, we acquired
Accendra, a Buenos Aires-based provider of software development services, in order to deepen our relationship with Microsoft and
broaden our technology expertise to include Sharepoint and other Microsoft technologies. That same year we also acquired Openware,
a company specializing in security management based in Rosario, Argentina.



In 2011, we acquired
Nextive. The Nextive acquisition expanded our geographic presence in the United States and enhanced our U.S. engagement and delivery
management team as well as our ability to provide comprehensive solutions in mobile technologies.



In 2012, we acquired
TerraForum, an innovation consulting and software development firm in Brazil. The acquisition of TerraForum allows us to expand
into one of the largest economies in the world and to broaden our services to our clients, strengthening our position as a leader
in the creation of innovative software products.



In August 2013, we
acquired 22.75% of Dynaflows S.A. In October 2015, we obtained the control over Dynaflows through acquiring an additional number
of shares. This additional acquisition allowed us to broaden our Services over Platforms strategy.



In October 2013, we
acquired a majority stake in the Huddle Group, a company specializing in the media and entertainment industries, with operations
in Argentina, Chile and the United States. We acquired the remaining 13.75% minority stake in Huddle Investment in October 2014.



In July 2014, we closed
the initial public offering of our common shares in the United States.



In October 2014, we
acquired 100% of the capital stock of BlueStar Holdings.



In April 2015, we closed
a follow-on secondary offering of our common shares in the United States through which certain selling shareholders sold 3,994,390
common shares previously held by them. In July 2015, we closed another follow-on secondary offering in the United States through
which certain selling shareholders sold 4,025,000 common shares previously held by them.



In May 2015, we acquired
Clarice which allowed us to establish our presence in India.



Also, in 2015, we launched
new Studios to complement our offerings, including one focused on Cognitive Computing, and we incorporated a complementary approach
to build digital journeys fast and in an innovative manner though: our service-over-platform offering.



34







During 2016 we introduced
a new model that intends to reshape our go-to-market strategy to scale our company in the coming years, called 50 Squared. The
main goal of this new approach is to focus our team in the top 50 high potential accounts that have the capacity to grow exponentially
over time. To do so, we have appointed our most senior people from Sales, Technology and Operations to lead these teams and take
our company to the next level. This account focus has become the most important pillar of our go-to-market strategy and every account
within Globant now has the goal to become part of this program.



In May 2016, we acquired
We Are London Limited (“WAE UK”) and We Are Experience, Inc. (“WAE US”) (jointly, WAE UK and WAE US are
“WAE”). The purpose of these acquisitions was related to the benefit of expected synergies, revenue growth, future
market development and the assembled workforce of WAE.



In August 2016, we
applied to the Luxembourg Stock Exchange for listing on the Official List of the Luxembourg Stock Exchange (“Lux SE”)
and for the admission to trading on its regulated market of our common shares. Our shares began trading on the Lux SE on August
11, 2016.



In November 2016, we
entered into a stock purchase agreement with 3Cinteractive corp. (“3C”) to purchase the 100% of the capital stock of
Difier, a Uruguayan company. At the same time, we signed a consulting services agreement to provide software development services
to 3C for a term of four years.



During the same month,
we acquired 100% of L4 Mobile, LLC (“L4”). The purpose of this acquisition was related to strengthening our leading
position in the digital services space and expanding our capabilities in the United States.



On February 28, 2017,
we acquired 100% of the shares of Ratio Cypress, LLC (“Ratio”), a limited liability company organized and existing
under the laws of the State of Washington in the United States. Ratio offers design, development and quality assurance services
necessary to build and manage robust digital products and video streaming solutions for major media companies.



Corporate Information



Our head corporate
offices are located at 37A, avenue J.F. Kennedy, L-1855 Luxembourg and our telephone number is + 352 20 30 15 96. We maintain a
website at http://www.globant.com. Our website and the information accessible through it are not incorporated into this
annual report.



B. Business overview



Overview



We are a digitally
native technology services company. We dream and build digital journeys that matter to millions of users. We are the place where
engineering, innovation and design meet scale. We help our clients transform their businesses through digital. Our principal operating
subsidiary is based in Buenos Aires, Argentina. For the year ended December 31, 2016, 80.8% of our revenues were generated
by clients in North America, 9.7% in Latin America, 0.4% in Asia and 9.1% in Europe, including many leading global companies.



Since the volcano-like
explosion of new technologies, a new way to connect with consumers started to arise. It’s a way that is not driven by pushing
messages through traditional channels like TV or radio, or just transacting online with users via platforms. It’s about making
them become part of a digital journeys that starts long before the consumer needs to interact with the brand. These kinds of ecosystems
exceed the creation of a website, an app or even a unified omnichannel experience. They are relevant in every touch point and creates
an emotional connection with users. We are talking about building memorable experiences that are personalized, time sensitive,
and context and location aware.



We seek to deliver
the optimal blend of engineering, design, and innovation to harness the potential of emerging technologies for our clients. While
engineering is central to information technology, only by combining strong engineering capabilities with creativity and agility
can we deliver innovative solutions that enhance end-user experiences while meeting our clients’ business needs.



We take a dive into
our customers industry, culture, challenges and goals in order to understand their business.The harmonious integration between
future trends and existing IT, infrastructure, services and applications is a critical enabler of any Digital Transformation process.



35







Our Globers are our
most valuable asset. As of December 31, 2016, we had 5,631 Globers and 35 locations across 27 cities in Argentina, Uruguay,
Chile, Colombia, Brazil, Mexico, Peru, Europe and the United States, supported by four client management locations in the United
States, and one client management location in each of United Kingdom, Colombia, Uruguay, Argentina and Brazil. Our reputation for
cutting-edge work for global blue chip clients and our footprint across the world provide us with the ability to attract and retain
well-educated and talented professionals. We are culturally similar to our clients and we function in multiple time zones. We believe
that these characteristics have helped us build solid relationships with our clients in the United States and Europe and facilitate
a high degree of client collaboration.



For the year ended
December 31, 2016, 80.8%, 10.1% and 9.1% of our revenues were generated by clients in North America, Latin America and Asia,
and Europe, respectively. Our clients include companies such as Google, Electronic Arts, Southwest Airlines Co. and Walt Disney
Parks and Resorts Online, each of which was among our top ten clients by revenues for at least one Studio in the year ended December 31,
2016. 91.7% of our revenues for 2016 were attributable to repeat clients who had used our services in the prior year. We believe
our success in building our attractive client base in the most sophisticated and competitive markets for IT services demonstrates
the superior value proposition of our offering and the quality of our execution as well as our culture of innovation and entrepreneurial
spirit.



Our revenues increased
from $199.6 million for 2014 to $322.9 million for 2016, representing a Compound Annual Growth Rate ("CAGR") of 27.2%
over the two-year period. Our revenues for 2016 increased by 27.2% to $322.9 million, from $253.8 million for 2015. Our net income
for 2016 was $35.9 million, compared to a net income of $31.6 million for 2015. The $4.3 million increase in net income from 2015
to 2016 was primarily driven by strong revenue growth and improved operating margins during the year. In 2014, 2015 and 2016, we
made several acquisitions to enhance our strategic capabilities, none of which contributed a material amount to our revenues in
the year the acquisition was made. See “Information on the Company — History and Development of the Company.”



Our Industry



Over the last several
years, a number of technologies have emerged to revolutionize the way end users interact with technology, reshape businesses and
change the competitive landscapes for organizations. The proliferation and accelerated adoption of technologies like artificial
intelligence, machine learning, virtual reality, cloud computing and related market trends including the focus on omnirelevant
experiences, automation of processes and the consumerization of information technology are leading this transformation.



In this new environment,
companies’ customers, employees, partners, and stakeholders have become voracious users of technology with high expectations.
These users move fast from place to place and are keen to interact with their digital ecosystem anywhere and anytime, in a painless,
fast, relevant, and unrestricted way. They demand personalized, seamless and frictionless experiences that will simplify their
lives.



We believe that these
changes are resulting in a paradigm shift in the technology services industry and are creating a demand for service providers that
possess a deep understanding of how to create digital journeys that leverage the following emerging technologies and related market
trends:



Tech Trends



| | • | Artificial Intelligence (AI), Deep Learning and Machine Learningencompasse a set of technologies
that have advanced exponentially in recent years, blurring the line between fantasy and reality and creating an unparalleled market
opportunity for whomever can bring the technology to eager consumers.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Cloud everything. Cloud computing is a model for consuming and delivering business and consumer
products and services, using Internet-based computing, storage and connectivity technology to house content distributed to an increasing
variety of devices. This trend foster the development of new applications and devices that can access cloud-based software.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Natural Language processing (NLP)allows more apps to be controlled by voice, reshaping
the way companies think their user experiences, and pushing the no interface approach. This also allows more apps to control connected
about homes as well functionality on our cars.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Virtual Reality and Augmented Realityexperiences will be expanded to involve more sensors,
going from a visual and sound experience to include touch, smell - covering most of our senses. These technologies have started
and will continue to be used by more industries, ranging from entertainment to healthcare.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Blockchaintechnology has been used in finance for some time. A blockchain is a distributed
database in which information are listed sequentially in “blocks.” This helps prevent the tampering of data and promises
increased trust and less business friction by offering transparent access to the chain. Several industries including gaming, music
distribution, title registry, and identity verification, are already starting to leverage this technology in initiatives that are
likely to see the light during 2018.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



36







| | • | Big data & fast datarefers to the proliferation of data that enterprises are experiencing
is driving demand for enhanced business analytics to enable them to identify patterns instantly, gain deeper insights into their
customers and operations, and make better decisions.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Market Trends



| | • | Omnirelevant experiencesare now the focus of companies when planning their digital transformations.
Focusing on relevance and quality of user interaction over quantity of touch points is at the heart of an effective digital strategy.
This requires consumer-centric thinking from the outset. It means being aware of the moments that impact their customer and taking
action throughout their digital journey while taking into consideration five key elements: harmony, familiar security, contextual
content, sensory and surprise.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Emotional engagementis at the center of the discussion. Consumers are interested in having
trusting relationships with brands and these require emotional intimacy at every step of the journey. Personalization, as an example,
triggers a sense of familiarity making the user feel individualized while transacting through a system.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Automationcontinues to be in surge as many industries create technology to handle repetitive
tasks. This is affecting traditional production tasks as well as digital ones such as for marketing and analysis purposes. For
example, the use of machine learning allows for anomalies to be detected without the need of human intervention. Companies will
continue to find ways to improve efficiency by automating their processes.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Consumerization of Information Technologyincreases as consumers continue to adopt emerging
technologies into their personal lives, and come to expect the same experience, communication and features from business applications.
Employees and enterprises are leveraging tools that originated in the consumer world to communicate, collaborate and share knowledge
in the workplace, as well as with clients.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Chat and business botsare software programs that include AI components to interact with
people over messaging apps. They have been used for practical purposes such as customer service or information acquisition, but
businesses are beginning to see that they can be leveraged to incite conversations that deliver personalized and meaningful content
to their customers at scale.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Our Approach



At Globant, we dream
and build digital journeys that matter to millions of users. These kinds of digital journeys exceed the creation of a website,
an app or even a unified omnichannel experience. It involves the creation of a deeper relationship with the users by delivering
memorable experiences that are personalized, time sensitive, and context and location aware. It's what we call an omnirelevant
experience.



To create digital journeys,
we bring together engineering, innovation, and design by implementing an ecosystem composed of two pillars:



Stay Relevant: Our thought
leaders help our customers stay relevant within their industries by creating and publishing researches, organizing SME gatherings,
and participating in webinars and conferences, among other initiatives.

Build to Discover: We believe that the optimal digital journey will not be discovered in the beginning, it will be discovered
in the making. To create digital journeys, we start building the products so that we can receive feedback in a rapid way to then
readapt and evolve. This model allows us to solve problems, frictions in the experience, one at a time, and then, from real feedback,
tie “solutions” together as moments in a journey. Each iteration would refine the moments and strengthen the overall
results. This approach means that our Build process is so interlaced with our Discover process, that it feels like one, where tactical
execution and strategic design thinking meet every day. We learn and adapt as we build the experiences, that's why the two activities
are interlaced and simultaneous. Build to Discover boosts our client’s software development capabilities, at the same time
as designing the next generation of customer and employee experience. We do this by leveraging 3 key pillars: our Studios, Agile
Pods Model and Services over Platforms.



37







Studios:



Our Studio
model is an effective way of organizing our company, fostering creativity and innovation while allowing us to build, enhance and
consolidate expertise in emerging technologies. Each Studio has specific domain knowledge and delivers tailored solutions focused
on specific technology challenges. This method of delivery is the foundation of our services offering and of our success. Our Studios
allow us to create capacity in every emerging technology. The Studios are: Consumer Experience; Gaming; Big Data; Quality Engineering;
Enterprise Consumerization; UX Design; Mobile; Cloud Ops; Wearables & Internet of Things; Continuous Evolution; Digital Content
and Cognitive Computing. Our Studio model allows us to optimize our expertise in emerging technologies and related market trends
for our clients across a variety of industries.



Service Over Platforms:



Services
over Platforms (“SoP”) is a new concept for the services industry that aims to help us deliver digital journeys in
more rapid manner. SoP stands between two main traditional offerings: Software as a Service (“SaaS”) companies and
IT service providers. SaaS offers software products that can be used fast and easily by its customers, but it lacks the power of
customization, so users have to adapt to it instead of the software evolving to adjust to their needs. IT service providers have
the ability to produce a fully customized product, but does not leverage many platforms to propel their growth.



Within SoP,
we provide specific platforms as a starting point, and then customize them to the specific need of the customers using our services
force. We price this service in the same way SaaS companies do: cost per transaction, cost per user or cost per month according
to each platform.



Agile Pods Methodology:



At Globant,
we provide a unique software product design and development model, known as the Agile Pod model. Agile Pods align between business
and technology teams, driven by a culture of self-regulated teamwork and collaboration across skills, partners and country borders.



Leveraged
across divisions, Agile Pods are dedicated to mature emerging technologies and market trends, and provide a constant influx of
mature talent and solutions that create intellectual property for our clients. They are self-organized teams that work to meet
creative and production goals, make technology decisions and reduce risk. These teams are fully responsible for creating solutions,
building and sustaining features, products or platforms.



In addition,
savings are delivered to clients due to sustained productivity boosts as Agile Pods begin to operate at a higher maturity level.
We ensure consistency, accountability, and replicability by having Agile Pods follow a well defined set of maturity criteria. Maturity
models describe stages of growth and development towards increased maturity, quality, velocity, and autonomy. Each level acts as
a foundation for the next and lays out a path for learning and growth. As Agile Pods evolve, they are equipped with the understanding
and tools to accomplish goals more effectively.



Associated
metrics guide improvement efforts and generate quantitative and qualitative insights to inform iterative design and planning decisions.



Culture



Our culture is the
foundation that supports and facilitates our distinctive approach. It can best be described as entrepreneurial, flexible, and team-oriented,
and is built on three main motivational pillars and six core values.



Our motivational pillars
are: Autonomy, Mastery and Purpose. Through Autonomy, we empower our Globers to take ownership of their client projects,
professional development and careers. Mastery is about constant improvement, aiming for excellence and exceeding expectations.
Finally, we believe that only by sharing a common Purpose will build a company for the long term that breaks from the status
quo, is recognized as a leader in the delivery of innovative software solutions and creates value for our stakeholders.



Globant’s core
values are:



| | • | Act Ethically – We know that the only way to become the greatest professionals is
to be the best people. We believe in doing business in an ethical manner and know our achievements go hand- in-hand with the responsibility
to improve our society.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Think Big – We strongly believe that we can build a world-class company that provides
Globers with a global career path. Our work is based on constant challenges and growth.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Constantly Innovate – We confront every “impossible” - breaking paradigms is what helps us create
superior work.
| | - | ----------------------------------------------------------------------------------------------------------------



38







| | • | Aim for Excellence in Your Work – Because we love our jobs, we want to be the best
at them. We know that problems we face now will reappear in future projects so we try to solve the obstacles that affect us today.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Be a Team Player – We encourage Globers to get to know their colleagues and to support
one another. Together, we are going to improve our profession, company and countries. We operate as one team whether it’s
solving a problem or celebrating excellent results. We also all have the right to be heard and respected.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Have Fun – Most of the time, the passion, dedication and love we invest in our lives
is devoted to our profession. As Globers, we believe in finding pleasure in our daily tasks, creating a pleasant work atmosphere
and building friendships among colleagues.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In order to encourage
Globers to live and work by these values, we launched StarMeUp, which allows Globers to recognize peers for an achievement or behavior
that exemplifies one or more of our core values.



Consistent with our
motivational pillars and core values, we have designed our workspaces to be enjoyable and stimulating spaces that are conducive
to social and professional interaction. Our locations include, among others, brainstorming rooms, music rooms and “chill-out”
rooms. We also organize activities throughout the year, such as sports tournaments, outings, celebrations, and other events that
help foster our culture. We believe that we have been successful in building a work environment that fosters creativity, innovation
and collaborative thinking, as well as enabling our Globers to tap into their intrinsic motivation for the benefit of our company
and our clients.



Innovation



Innovation is at the
heart of our culture, so it is critical that each and every one of our Globers be an innovator. In addition to offering a flexible
and collaborative work environment, we also actively seek to build the capabilities required to sustain innovation through several
ongoing processes and initiatives including:



| | • | Ideation sessions — At the outset of a client project, we frequently crowdsource ideas
by organizing an ideation session to solve our client’s needs. We typically open ideation sessions to all Globers to maximize
idea generation and capture the technology expertise found in each of our Studios. We believe that our ideation sessions help break
down silos, facilitate the sharing of knowledge and insights, and stimulate innovative thinking.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Globant Labs — To help Globers stay ahead of the technology curve, we provide them
with the freedom to explore and test new ideas and technologies in our Globant Labs — such as robotics, bioinformatics, virtual
worlds, tangible interfaces and augmented reality that could eventually be useful to our existing and prospective clients.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Think Big Sessions — We encourage Globers to participate in flip-thinking events.
These are open gatherings on topics related to creativity, innovation and technology to which we invite thought leaders from the
sciences, the arts, industry and technology. We believe flip-thinking contributes to our Globers’ ability to think intuitively
and creatively when solving problems.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Hackathons are events to which we invite programmers, designers and engineers from Globant
and outside Globant, to collaborate intensively on a technology challenge. Our hackathons are typically focused on a particular
programming language, software technology or practice. Hackathons provide attendees the opportunity to learn, try out new ideas
and collaborate with other people in a highly energized, idea-generative environment.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Premier League — Our Premier League is an elite team of Globers, whose mission is
to foster innovation by cross-pollinating their deep knowledge of emerging technologies and related market trends across our Studios
and among our Globers. Our Premier League is comprised of our senior-most subject matter experts who are recognized as “gurus”
in their respective domains of expertise. Approximately one percent of our Globers are members of our Premier League.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Finally, we believe
that working across several different domains on a variety of technologies for sophisticated and demanding clients keeps our Globers
open-minded and gives them the flexibility needed to create new possibilities and transform ideas into everyday technology.



Competitive Strengths



We believe the following
strengths differentiate Globant and create the foundation for continued rapid growth in revenues and profitability:



39







Ability to dream and build digital
journeys that matter to millions of users



Since the volcano-like
explosion of new technologies, a new way to connect with consumers started to arise. It’s a way that is not driven by pushing
messages through traditional channels like TV or radio, or just transacting online with users via platforms. It’s about making
them become part of a digital journeys that starts long before the consumer needs to interact with the brand. These kinds of ecosystems
exceed the creation of a website, an app or even a unified omnichannel experience. They are relevant in every touch point and creates
an emotional connection with users. We are talking about building memorable experiences that are personalized, time sensitive,
and context and location aware.



At Globant, we dream
and build digital journeys that matter to millions of users. These kinds of digital journeys exceed the creation of a website,
an app or even a unified omnichannel experience. It involves the creation of a deeper relationship with the users by delivering
memorable experiences that are personalized, time sensitive, and context and location aware. It's what we call an omnirelevant
experience.



We seek to deliver
the optimal blend of engineering, design, and innovation to harness the potential of emerging technologies for our clients. While
engineering is central to information technology, only by combining strong engineering capabilities with creativity and agility
can we deliver innovative solutions that enhance end-user experiences while meeting our clients’ business needs.



We take a dive into
our customers industry, culture, challenges and goals in order to understand their business.The harmonious integration between
future trends and existing IT, infrastructure, services and applications is a critical enabler of any Digital Transformation process.



Deep domain expertise in emerging
technologies and related market trends



We have developed strong
core competencies in emerging technologies and practices such as mobility, social media, big data, cognitive computing, wearables,
Internet of Things and cloud computing. We have a deep understanding of market trends, including the focus on omnirelevant experiences,
automation of processes, user experience, wearables, Internet of Things, Cognitive Computing and open collaboration. Our areas
of expertise are organized in Studios, which we believe provide us with a strong competitive advantage and allow us to leverage
prior experiences to deliver superior software solutions to clients.



Long-term relationships with blue
chip clients



We have built a roster
of blue chip clients such as Google, Electronic Arts, Southwest Airlines Co. and Walt Disney Parks and Resorts Online, many of
which themselves are at the forefront of emerging technologies. In particular, we have been working with Disney and Electronic
Arts for more than seven and nine years, respectively. We believe that our success in developing these client relationships reflects
the innovative and high value-added services that we provide along with our ability to positively impact our clients’ business.
Our relationships with these enterprises provides us with an opportunity to access large IT, research and development and marketing
budgets. These relationships have driven our growth and have enabled us to engage with new clients.



Global delivery with access to deep
talent pool



As of December 31,
2016, we provided our services through a network of 35 offices in 27 cities throughout twelve countries. Our delivery locations
are in Buenos Aires, Tandil, Rosario, Tucumán, Mendoza, Córdoba, Resistencia, Bahía Blanca, Mar del Plata
and La Plata in Argentina; Montevideo, Uruguay; Bogotá and Medellín, Colombia; São Paulo, Brazil; Mexico City,
Mexico; Lima, Peru; Santiago, Chile; Pune and Bangalore, India; Madrid, Spain; London, UK; and San Francisco, New York and Seattle
in the United States. We also have client management locations in the United States (Boston, New York, Orlando and San Francisco),
Brazil (São Paulo), Colombia (Bogotá), Uruguay (Montevideo), Argentina (Buenos Aires) and the United Kingdom (London).
The main administrative offices of our principal subsidiary (which also include a delivery center) are located in Buenos Aires.
All of our facilities (with the exceptions of Tucumán and Bahía Blanca) are leased. We also have two offices under
construction in Buenos Aires and La Plata.



Latin America has an
abundant talent pool of individuals skilled in IT. Over 300,000 engineering and technology students have graduated annually from
2010 – 2014 from universities in Latin America and the Caribbean region according to The Science and Technology Indicator
Network (Red de Indicadores de Ciencia y Tecnología), a research organization that tracks science and technology
indicators in the region. Latin America’s talent pool (including Mexico, Brazil, Argentina, Colombia and Uruguay) is composed
of approximately 1,000,000 professionals according to SmartPlanet and NearshoreAmericas. Our highly skilled Globers come from leading
universities in the regions where our delivery centers are located. Among our surveyed Globers, approximately 95.0% have obtained
a university degree or are enrolled in a university while they are employed by our company, approximately 3.2% have obtained a
graduate level degree, and many have specialized industry credentials or licensing, including in Systems Engineering, Electronic
Engineering, Computer Science, Information Systems Administration, Business Administration and Graphic and Web Design. Our time
zone and cultural similarity have helped us build solid relationships with our clients in the United States and Europe and differentiate
us on projects that require a high degree of client collaboration.



40







A key element of our
strategy is to expand our delivery footprint, including increasing the number of employees that are deployed onsite at our clients
or near client locations. In particular, we intend to focus our recruitment efforts on the United States. We will continue to focus
on expanding our delivery footprint both within and outside Latin America to gain access to additional pools of talent to effectively
meet the demands of our clients and to increase the number of Globers that are deployed onsite at our clients or near client locations.



Highly experienced management team



Our management team
is comprised of seasoned industry professionals with global experience. Our management sets the vision and strategic direction
for Globant and drives our growth and entrepreneurial culture. On average, the members of our senior management team have 18 years
of experience in the technology industry giving them a comprehensive understanding of the industry as well as insight into emerging
technologies and practices and opportunities for strategic expansion.



Strategy



We seek to be a leading
provider of software that appeals and connects emotionally with millions of consumers. The key elements of Globant’s strategy
for achieving this objective are as follows:



Grow revenue with existing and new
clients



We will continue to
focus on delivering innovative and high value-added solutions that drive revenues for our clients, thereby deepening our relationships
and leading to additional revenue opportunities with them. We will continue to target new clients by leveraging our engineering,
design and innovation capabilities and our deep understanding of emerging technologies. We will focus on building our brand in
order to further penetrate our existing and target markets where there is a strong demand for our knowledge and services.



Remain at the forefront of innovation
and emerging technologies



We believe our Studios
have been highly effective in enabling us to deliver innovative software solutions that leverage our deep domain expertise in emerging
technologies and related market trends. As new technologies emerge and as market trends change, we will continue to add Studios
to remain at the forefront of innovation, to address new competencies that help us stay at the leading-edge of emerging technologies,
and to enable us to enter new markets and capture additional business opportunities.



Attract, train and retain top quality
talent



We place a high priority
on recruiting, training, and retaining employees, which we believe is integral to our continued ability to meet the challenges
of the most complex software development assignments. In doing so, we seek to decentralize our delivery centers by opening centers
in locations that may not have developed IT services markets but can provide professionals with the caliber of technical training
and experience that we seek. Globant offers highly attractive career opportunities to individuals who might otherwise have had
to relocate to larger IT markets. We will continue to develop our scalable human capital platform by implementing resource planning
and staffing systems and by attracting, training and developing high-quality professionals, strengthen our relationships with leading
universities in different countries, and help universities better prepare graduates for work in our industry. We have agreements
to teach, provide internships, and interact on various initiatives with the several universities in Argentina, Colombia, Uruguay,
Mexico, Brazil and India.



Selectively pursue strategic acquisitions



Building on our track
record of successfully acquiring and integrating complementary companies, we will continue to selectively pursue strategic acquisition
opportunities that deepen our relationship with key clients, extend our technology capabilities, broaden our service offerings
and expand the geographic footprint of our delivery centers, including beyond Latin America, in order to enhance our ability to
serve our clients. Our acquisitions of WAE in May 2016, Difier and L4 in November 2016, illustrate our commitment to this strategy.



41







Our Services



To create digital journeys,
we bring together engineering, innovation, and design by implementing an ecosystem composed of two pillars:



Stay Relevant: Our thought
leaders help our customers stay relevant within their industries by creating and publishing researches, organizing SME gatherings,
and participating in webinars and conferences, among other initiatives.

Build to Discover: We believe that the optimal digital journey will not be discovered in the beginning, it will be discovered
in the making. To create digital journeys, we start building the products so that we can receive feedback in a rapid way to then
readapt and evolve. This model allows us to solve problems, frictions in the experience, one at a time, and then, from real feedback,
tie “solutions” together as moments in a journey. Each iteration would refine the moments and strengthen the overall
results. This approach means that our Build process is so interlaced with our Discover process, that it feels like one, where tactical
execution and strategic design thinking meet every day. We learn and adapt as we build the experiences, that's why the two activities
are interlaced and simultaneous. Build to Discover boosts our client’s software development capabilities, at the same time
as designing the next generation of customer and employee experience. We do this by leveraging three key pillars: our Studios,
Agile Pods Model and Services over Platforms.



| | · | Studios: Our Studios are deep pockets of expertise created in order to foster creativity
and innovation by focusing on a specific domain of knowledge.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Agile Pods: Agile Pods are cross-functional and multidisciplinary teams that bring together
design and engineering in order to deliver the right products. Pods are measured according to four variables: innovation, velocity,
quality, and autonomy. We encourage pods to mature over time to become more aligned with our customers’ needs.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Services Over Platforms: Our experience building software products allowed us to put together
a set of platforms designed to help create digital journeys in an agile and innovative manner. These products have the flexibility
to adapt to the client’s needs as we provide microservices to compliment them.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Studios



Our approach to create
software that appeals and connects emotionally with millions of consumers, revolves around our Studios as compared to traditional
IT services companies that are primarily organized around industry verticals. We believe our Studio model is an effective way of
organizing our company into smaller operating units, fostering creativity and innovation while allowing us to build, enhance and
consolidate expertise in emerging technologies. Each Studio has specific domain knowledge and delivers tailored solutions focused
on specific technology challenges. This method of delivery is the foundation of our services offering and, we believe, of our success.



Our Studios are as
follows:



| | • | Consumer Experience
| | - | -------------------

| | • | Gaming
| | - | ------

| | • | Big Data
| | - | --------

| | • | Quality Engineering
| | - | -------------------

| | • | Enterprise Consumerization
| | - | --------------------------

| | • | UX Design
| | - | ---------

| | • | Mobile
| | - | ------

| | • | Cloud Ops
| | - | ---------

| | • | Wearables & Internet of Things
| | - | ------------------------------

| | • | Continuous Evolution
| | - | --------------------

| | • | Digital Content
| | - | ---------------

| | • | Cognitive Computing
| | - | -------------------



As technology continues
to evolve, we will evolve by adding new Studios and areas of expertise allowing us to enter new markets and capitalize on emerging
technologies and related market trends.



42







Each of our technology-specialized
Studios serves a broad set of industries. The Globers for each Studio include engineers, architects, artists and designers, business
analysts, quality control analysts, marketing professionals, and project managers. The permanent members of a Studio maintain and
enhance that Studio’s core knowledge over time, while the Globers who rotate through that Studio help cross-pollinate knowledge
and best practices across our other Studios.



Consumer Experience



The online consumer
experience has become critical to the success of most businesses today. Companies must engage and retain the most demanding online
users.



We create innovative,
scalable and appealing internet-based solutions that enhance the end-user’s online experience. By combining our engineering
capabilities with our experience in innovation and architecture design, we are able to produce scalable and appealing business-to-consumer
online destinations for global audiences, enabling end-users to both interact and transact better, faster and more intuitively.



Our API Management
provides a platform for the digital representation of the company and our Seamless Digital Journey practice provides the strategy
and technology needed to help companies deliver a seamless multi-platform experience. We assure security, performance, scalability,
and availability by integrating our suite of e-commerce solutions as needed.



The portfolio of services
we provide through our Consumer Experience Studio is focused on the integrated delivery of:



| | • | API management;
| | - | ---------------

| | ◦ | E-commerce solutions; and
| | - | -------------------------

| | ◦ | Seamless Digital Journey.
| | - | -------------------------



Gaming



Our Gaming Studio focuses
on bringing interactive experiences to life. Through the use of storytelling mechanics, state of the art graphics, and game design
we craft gaming worlds that are immersive and alive. We specialize in co-development for the AAA gaming industry, contributing
in the design and development of world-class games, along with social and digital platforms that function across consoles, PCs,
the web and mobile channels. In addition, we use our experience in gaming to help clients outside the industry adopt gamification
tools and drivers in order to increase adoption, retention and conversion of their software tools, and streamline their processes
by creating better user experiences.



Through early prototyping, game design,
balancing, concept art, asset creation, 3D art and engineering, our teams are experts in bringing a vision to life, be it on a
next generation console, a PC, a mobile device or a browser.



The portfolio of services we provide through
our Gaming Studio includes:

| | • | Co-Development for AAA games;
| | - | -----------------------------

| | • | Full SKU Game engineering;
| | - | --------------------------

| | • | Graphics Engineering;
| | - | ---------------------

| | • | eSports platforms;
| | - | ------------------

| | • | VR/AR development;
| | - | ------------------

| | • | Gaming experience; and
| | - | ----------------------

| | • | Digital platform services.
| | - | --------------------------



Big Data



Our Big Data Studio
provides our clients with a competitive advantage by using technology to unlock the true value of data to create meaningful, actionable
and timely business insights.



In our Big Data Studio,
we break down internal data silos that have different data structures, velocities and volumes, and enriching that data with external
sources, creating a scalable Enterprise Data Platform that will arise as the single version of the truth, democratizing the data
and fostering organizational changes that will lead towards a data-driven culture.



Our Data Engineers
combine data, business processes and state-of-the-art IT tools and algorithms that enables businesses to engage in a deeper, interactive
and more meaningful conversation with their data, using visual discovery techniques to reveal hidden patterns and trends and obtain
relevant and useful business insights for decision-making purposes.



43







The portfolio of services we provide through our Big Data Studio
includes:

| | • | Data integration;
| | - | -----------------

| | • | Data architecture;
| | - | ------------------

| | • | Scalable platforms;
| | - | -------------------

| | • | Blockchain;
| | - | -----------

| | • | Data visualization; and
| | - | -----------------------

| | • | Data science.
| | - | -------------



Quality Engineering



Our Quality Engineering
Studio provides a comprehensive suite of innovative testing services that ensure software applications achieve the highest standards
and meet the needs of end users. The Quality Engineering Studio nurtures our Agile Develop model by implementing embedded testing
in Agile teams, thus enabling rapid quality verifications that help minimize time to market.



We provide comprehensive
testing and test automation strategies with proven experience on distributed teams. Our flexible working model easily adapts to
different customers’ methodologies and engagements.



The portfolio of services
we provide through our Quality Engineering Studio includes:

| | • | Testing center;
| | - | ---------------

| | • | Test automation;
| | - | ----------------

| | • | Mobile testing; and
| | - | -------------------

| | • | Load & performance testing.
| | - | ---------------------------



Enterprise Consumerization



Our Enterprise Consumerization
Studio designs and builds enterprise solutions that enable organizations to focus on their employees as individual consumers. We
help provide new innovative experiences to workers to enable them to achieve the company's’ business objectives.



Employees interact
with innovative technology as part of their everyday life and they expect their enterprise ecosystem to follow the same trends.
We provide robust solutions that increase adoption and productivity, create competitive advantage, foster innovation, and bring
agility to enterprise. Our Studio is in charge of bringing new technologies to the enterprise environment while taking care of
the user experience and usability. We create products and platforms that would help our customers’ employees gain access
to essential information, increase collaboration and improve processes.



The portfolio of services
we provide through our Enterprise Consumerization Studio includes:

| | • | Enterprise operations;
| | - | ----------------------

| | • | Collaboration solutions;
| | - | ------------------------

| | • | Force.com & Cloud development; and
| | - | ----------------------------------

| | • | Talent management.
| | - | ------------------



UX Design



Our UX Design Studio
provides design methodologies and creative services that empower our clients to create digital products that engage with their
users in new relevant ways. This Studio focuses on the observation of user behavior, usability, brand design and strategic design.
We create solid relevant solutions that appeal to both users and businesses.



The portfolio of services
we provide through our UX Design Studio includes:

| | • | Service design;
| | - | ---------------

| | • | User experience design;
| | - | -----------------------

| | • | Industrial design; and
| | - | ----------------------

| | • | Visual design.
| | - | --------------



44







Mobile



Our Mobile Studio develops
mobile product lines or mobility extensions for web-based products, using the latest tools and frameworks on all native platforms.
From the inception of our clients’ concept for a mobile product, we help them establish and improve their presence in the
mobile space. Our approach blends product managers, user experience designers, highly skilled developers and trained business analysts
to build software solutions tailored to each mobile platform, using agile development methodologies to deliver products in this
rapidly evolving market.



The portfolio of services
we provide through our Mobile Studio includes:

| | • | Native development;
| | - | -------------------

| | • | Product development; and
| | - | ------------------------

| | • | Enterprise mobility.
| | - | --------------------



Cloud Ops



Our Cloud Studio combines
cloud technologies, Continuous Integration and Continuous Delivery's practices and our other capabilities to enable new and more
efficient way of doing business.



Cloud and DevOps are
independent strategies from each other, but work mutually to reinforce and deliver business value strategies. Cloud and DevOps
have evolved in response to three fundamental transformations:



The portfolio of services
we provide through our Cloud Ops Studio includes:

| | • | Cloud;
| | - | ------

| | • | DevOps;
| | - | -------

| | • | Managed Services for Cloud and DevOps
| | - | -------------------------------------



Wearables and Internet of Things



At the intersection
of electronics, programming, and industrial design, our Wearables & Internet of Things Studio brings to life technology solutions
for connected lifestyle.



Thanks to the steady
advances in microelectronics, digital fabrication and cloud computing technology, everyday objects are becoming connected and “smart.”
Our Studio defines how these objects will interact between each other and with our customers in order to make our lives better.
With the products developed in this Studio, we are able to gather information about behavior, activities and sensor collected data,
and then process all that information to develop new products and services.



Our practices include:

| | • | Wearable application usability and design
| | - | -----------------------------------------

| | • | Hardware integration
| | - | --------------------

| | • | Data design and management
| | - | --------------------------

| | • | Native wearable and embedded development.
| | - | -----------------------------------------



We created the first
fast prototyping laboratory in which our customers test new devices and products. This program directly involves our customers
in every aspect of the hardware development, from proof of concepts, including small scale production and large scale production,
through partnerships.



Continuous Evolution



Our Continuous Evolution
Studio focuses on evolving existing applications, helping our clients to improve the value of their software over time. The Studio
helps our customers stay aligned to new business needs and market trends by continuously improving their software solutions.



Every piece of software
is initially designed to meet a specific business need, but those needs are not static. Software evolution is key to improving
value over time. Our Continuous Evolution Studio works to include new trends and technologies into existing products in order to
foster permanent engagement. The Studio’s expertise in software evolution gives it the ability to support almost any kind
of application after the initial implementation is complete. The team ensures quality and efficiency while also bringing innovation,
optimization, performance improvement, and constant evolution to the products.



| | • | Software evolution;
| | - | -------------------

| | • | Software archeology; and
| | - | ------------------------

| | • | IT service management.
| | - | ----------------------



45







Digital Content



Our Digital Content
Studio focuses on developing digital online strategies through the creation of original and customized products and solutions.
We empower our clients’ businesses by taking care of the complete lifecycle of their digital journey and helping them promote
their brands through digital media. From the development of user-friendly, easy-to-use, and appealing content management systems
to the inception and implementation of go-to-market digital strategies. We rely on a multi-channel approach to provide an integrated
experience.



The portfolio of services
we provide through our Digital Content Studio includes:

| | • | Content management systems;
| | - | ---------------------------

| | • | E-learning solutions;
| | - | ---------------------

| | • | Digital marketing services; and
| | - | -------------------------------

| | • | Video content production.
| | - | -------------------------



Cognitive Computing



Cognitive Computing
aims to provide a more meaningful Journey to our customers’ end users by leveraging the science about cognitive (how information
and knowledge is developed in the brain) and emotional aspects of the person with the increased capacity of machines to learn,
discover and understand complex patterns. This Journey is centered around the most scarce resource of our time, attention.



The portfolio of services we provide through
our Cognitive Computing Studio includes:

| | • | Maximum emotional engagementthrough identity resonance: Adapting the Journey for a frictionless
and emotionally engaged experience.
| | - | -----------------------------------------------------------------------------------------------------------------------------------

| | • | Minimum cognitive burden:Aid a person in decision-making by understanding the useful information
- and clearing the noise.
| | - | --------------------------------------------------------------------------------------------------------------------------

| | • | Minimize decision fatigue:Provide an as-good-as-a-human decision process (contextual, adaptive,
etc.) to delegate low-value-added decisions or alert when a critical decision is needed.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Integrated Journeys, and Adaptive and Context aware:Integrate the technified human approach
to other areas of expertise (studios), and develop tools or frameworks for context aware cues, predicting interests and behaviors,
automating actions, suggesting actions or prioritizing relevant information.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Cognitive facilitation.Improve client interactions and adapt content to be processed more
easily in order to provide a streamlined and pleasant user experience.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Strengthen communication considering wider aspects of communicative actions and meta-communication.
| | - | ---------------------------------------------------------------------------------------------------



Services over Platforms



Currently, our portfolio of Services over
Platforms includes:



I AM AT



It is a digital journey
mobile platform that combines social media, gaming strategies, mobile technologies, Big Data and other inputs to augment the experiences
before, during and after a mobile interaction with the consumer. This product offers organizations the possibility to create a
mobile experience for their users in a rapid way. It leverages the power of big data; takes advantage of gamification tools; delivers
personalized experiences in real time; promotes motivation and collaboration between users, and generates a stronger and more emotional
tie with the brand.



StarMeUp



This platform contributes
to the creation of an internal digital journey for companies’ employees. We believe that in order to be successful, a company
shouldn’t think only about their end users. They need to nurture their inner culture and teams, promoting collaboration,
unifying the vision and sharing goals, in order to work together towards the same dream.



46







Starmeup addresses
this challenge by introducing a new way to motivate and inspire collaborators, enabling a real time space to interact with peers.
The main goal is to help spread the key values of each company culture in a collaborative and crowdsourcing way, encouraging peer
recognition, sharing teams’ successes, and enhancing spontaneity. StarmeUp integrates different features in a gamified platform.
Among the platform’s features, users are able to:



| | • | Reward colleagues by attributing stars according to different company values. It means that the
tool allows to publicly acknowledge who is making a difference.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Recognize peers’ expertise by giving skill stars when they stand out in a technical ability.
| | - | --------------------------------------------------------------------------------------------

| | • | Find the best employees with the right skills in order to ensure your company's success
| | - | ---------------------------------------------------------------------------------------



Our Delivery Model



As of December 31,
2016, we provided our services through a network of 35 delivery centers in 27 cities throughout twelve countries. Our delivery
locations are in Buenos Aires, Tandil, Rosario, Tucumán, Mendoza, Córdoba, Resistencia, Bahía Blanca, Mar
del Plata and La Plata in Argentina; Montevideo, Uruguay; Bogotá and Medellín, Colombia; São Paulo, Brazil;
Mexico City, Mexico; Lima, Peru; Santiago, Chile; Pune and Bangalore, India; Madrid, Spain; London, UK; and San Francisco, New
York and Seattle in the United States. We also have client management locations in the United States (Boston, New York, Orlando
and San Francisco), Brazil (São Paulo), Colombia (Bogotá), Uruguay (Montevideo), Argentina (Buenos Aires) and the
United Kingdom (London). The main administrative offices of our principal subsidiary (which also include a delivery center) are
located in Buenos Aires. All of our facilities (with the exceptions of Tucumán and Bahía Blanca) are leased. We also
have two offices under construction in Buenos Aires and La Plata. Our cultural affinity with our clients enables increased interaction
that creates close client relationships, increased responsiveness and more efficient delivery of our solutions. As we grow and
expand our organization, we will continue diversifying our footprint by expanding into additional locations globally.



We believe our presence
in many countries creates a key competitive advantage by allowing us to benefit from the abundance of high-quality talent in the
region, cultural similarities and geographic proximity to our clients.



Availability of High-Quality Talent



We believe that Latin
America has emerged as an attractive geographic region from which to deliver a combination of engineering, design, and innovation
capabilities for enterprises seeking to leverage emerging technologies. Latin America has an abundant skilled IT talent pool. According
to the Science and Technology Indicator Network (Red de Indicadores de Ciencia y Tecnologia), over 300,000 engineering and technology
students have graduated annually from 2010 – 2014 from universities in Latin America and the Caribbean region. Latin America’s
talent pool (including Mexico, Brazil, Argentina, Colombia and Uruguay) is composed of approximately 1,000,000 professionals according
to different sources, such as SmartPlanet and Nearshore Americas. This labor pool remains relatively untapped compared to other
regions such as the United States, Central and Eastern Europe and China. The region’s professionals possess a breadth of
skills that is optimally suited for providing technology services at competitive rates. Moreover, Argentina and Brazil have been
in the top ten of the Gunn Report’s Global Index of Creative Excellence in Advertising for the last 16 years. In addition,
institutions of higher education in the region offer rigorous academic programs to develop professionals with technical expertise
who are competitive on a global scale. Furthermore, Latin America has a significant number of individuals who speak multiple languages,
including English, Spanish, Portuguese, Italian, German and French, providing a distinct advantage in delivering engineering, design
and innovation services to key markets in the United States and Europe.



India offers significant
graduate talent. According to the Strategic Review 2013 of The National Association of Software and Services Companies (NASSCOM),
the Indian IT-BPM Industry currently employs about 3 million directly and about 9 million, indirectly. In terms of students, more
than 5 million graduates pass out every year, and almost 15% of these graduates are considered employable by Tier 1/Tier 2 companies.



Government Support and Incentives



Software companies
with operations in Argentina benefit from the Software Promotion Law. Originally enacted in 2004 and extended in 2011 for another
five years until 2019, the Software Promotion Law established a number of incentives to promote Argentine enterprises engaged in
the design, development and production of software. These incentives include:



| | • | a ten-year fiscal stability benefit, pursuant to which a company’s aggregate national tax
liability will not be increased from the date it is accepted into the program until the expiration of that ten-year period;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



47







| | • | a 60% reduction of a company’s corporate income tax liability during each fiscal period (as
applied to income from promoted software activities);
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------

| | • | a non-transferable tax credit for up to 70% of certain employer-paid social security taxes made
annually, which may be offset against value-added tax liabilities. In 2011, the Software Promotion Law was amended to permit the
tax credit to be applied to reduce corporate income tax liability by a percentage not greater than the company’s declared
percentage of exports; and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | an exclusion from any restriction on import payments related to hardware and IT components.
| | - | -------------------------------------------------------------------------------------------



Since 2006, when they
were notified by the Argentine government of their inclusion in the promotion regime, our Argentine operating subsidiaries, Sistemas
Globales S.A. and IAFH Global S.A., have benefited from a 60% reduction in their corporate income tax rate and a tax credit against
value-added tax liability of 70% of amounts paid annually for certain social security taxes under the Software Promotion Law as
originally enacted in 2004. See “— Regulatory Overview — Argentine Taxation — Software Promotion Law”,
“Risk Factors — Risks Related to Our Business and Industry — If the current effective income tax rate payable
by us in any country in which we operate is increased or if we lose any country-specific tax benefits, then our financial condition
and results of operations may be adversely affected” and “Operating and Financial Review and Prospects — Operating
Results — Certain Income Statement Line Items — Income Tax Expense.”



Our subsidiary in Uruguay,
Sistemas Globales Uruguay S.A., which is situated in a tax-free zone, benefits from a 0% income tax rate and an exemption from
value-added tax.



Additionally,
services provided by Difier are exempted from income tax in Uruguay. The exemption applies to software development services as
long as they are exported and utilized abroad.



In India, under the
Special Economic Zones Act of 2005, the services provided by export-oriented companies within Special Economic Zones (each
a "SEZ") are eligible for a deduction of 100% of the profits or gains derived from the export of services for the first
five years from the financial year in which the company commenced the provision of services and 50% of such profits or gains for
the five years thereafter. Companies must meet the conditions under Section 10AA of Income Tax Act to be eligible for the
benefit.  Other tax benefits are also available for registered SEZ companies. Our Indian subsidiary is subject to corporate
income tax at the rate of 34.61%, including surcharges. We expect our Indian subsidiary to apply for registration in
the SEZ in 2017. If the Indian government changes its policies after our Indian subsidiary obtains registration in the SEZ,
our business, results of operations and financial condition may be adversely affected. With the growth of our business in the SEZ,
our Indian subsidiary may be required to compute its tax liability under Minimum Alternate Tax ("MAT") in future years
as its tax liability under the general tax provisions may be lower compared to MAT liability.



Methodologies and Tools



Effectively delivering
the innovative software solutions that we offer requires highly evolved methodologies and tools. Since inception, we have invested
significant resources into developing a proprietary suite of internal applications and tools to assist us in developing solutions
for our clients and manage all aspects of our delivery process. These applications and tools are designed to promote transparency,
and knowledge-sharing, enhance coordination and cooperation, reduce risks such as security breaches and cost overruns, and provide
control as well as visibility across all stages of the project lifecycle, for both our clients and us. Our key methodologies and
tools are described below.



Agile Development Methodologies



At Globant, we provide
a unique software product design and development model, known as the Agile Pod model. Agile Pods align between business and technology
teams, driven by a culture of self-regulated teamwork and collaboration across skills, partners and country borders.



Leveraged across divisions,
Agile Pods are dedicated to mature emerging technologies and market trends, and provide a constant influx of mature talent and
solutions that create intellectual property for our clients. They are self-organized teams that work to meet creative and production
goals, make technology decisions and reduce risk. These teams are fully responsible for creating solutions, building and sustaining
features, products or platforms.



In addition, savings
are delivered to clients due to sustained productivity boosts as Agile Pods begin to operate at a higher maturity level. We ensure
consistency, accountability, and replicability by having Agile Pods follow a well defined set of maturity criteria. Maturity models
describe stages of growth and development towards increased maturity, quality, velocity, and autonomy. Each level acts as a foundation
for the next and lays out a path for learning and growth. As Agile Pods evolve, they are equipped with the understanding and tools
to accomplish goals more effectively.



48







Associated metrics
guide improvement efforts and generate quantitative and qualitative insights to inform iterative design and planning decisions.



Quality Management System



Globant has developed
and implemented a quality management system in order to document our best business practices, satisfy the requirements and expectations
of our clients and improve the management of our projects. We believe that continuous process improvement produces better software
solutions, which enhances our clients’ satisfaction and adds value to their business.



Globant’s quality
management system is certified under the requirements of the international standard ISO 9001:2015, the CMMI Maturity Level 3 process
areas (which indicates that processes are well characterized and understood, and are described in company standards, procedures,
tools and methods) and PMI by implementing the following practices:



| | • | Assuring that quality objectives of the organization are fulfilled;
| | - | -------------------------------------------------------------------

| | • | Defining standard processes, assets and guidelines to be followed by our project teams from the
earliest stages of the project life cycle;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------

| | • | Continuously evaluating the status of processes in order to identify process improvements or define new processes if needed;
| | - | ----------------------------------------------------------------------------------------------------------------------------

| | • | Objectively verifying adherence of services and activities to organizational processes, standards and requirements;
| | - | -------------------------------------------------------------------------------------------------------------------

| | • | Providing support and training regarding the quality management system to all employees to achieve
a culture that embraces quality standards;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------

| | • | Informing related groups and individuals about tasks and results related to quality control improvement;
| | - | --------------------------------------------------------------------------------------------------------

| | • | Raising issues not resolvable within the project to upper management for resolution; and
| | - | ----------------------------------------------------------------------------------------

| | • | Periodically gathering and analyzing feedback from our clients regarding our services to learn
when we have met expectations and where there is room for improvement.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------



Since 2013, Globant
certified ISO 27001, a standard that provides a model for establishing, implementing, operating, monitoring, reviewing, maintaining,
and improving an information security management system (ISMS). The process of certifying ISO 27001 ensures that ISMS is under
explicit management control. In 2016, we migrated successfully to the ISO 27001:2013



Glow



In order to manage
our talent base, we have developed a proprietary software application called Glow. Glow is the central repository for all information
relating to our Globers, including academic credentials, industry and technology expertise, work experience, past and pending project
assignments, career aspirations, and performance assessments, among others. Every Glober can access Glow and regularly update his
or her technical skills.



We use Glow as a management
tool to match open positions on Studio projects with available Globers, which allows us to staff project teams rapidly and with
the optimal blend of industry, technology and project experience, while also achieving efficient utilization of our resources.
We believe, based on management’s experience in the industry, that we are one of few companies in our industry to employ
such a tool for this purpose. Accordingly, we believe Glow provides us with a significant competitive advantage.



Nails



Nails is a framework
that we use to facilitate the rapid development of .NET applications. .NET is a software framework developed by Microsoft for applications
that run primarily on Microsoft Windows. We intend to make our Nails framework freely available to the open source community under
the Apache Software License 2.0.



Our Nails framework
provides Globers with the following advantages in developing .NET applications



| | • | Rapid initiation of a new application: Traditionally, a typical software development project would
require between 40 to 120 calendar hours before producing a functional application. With Nails, the execution time can often be
reduced to less than half an hour.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Lower startup time: A new developer can usually initiate a Nails-based application in less than 15 minutes.
| | - | -----------------------------------------------------------------------------------------------------------



49







| | • | Use of modular architecture: Nails-based product development will typically result in a modular
application, where concepts are properly abstracted and encapsulated. Modular architecture will usually lower development costs
by letting developers focus on a single aspect of the application at a time allowing developers to be more productive, because
they do not have to consider all aspects of an application at the same time.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Clients



At Globant, we focus
on delivering innovative and high value-added solutions that drive revenues and brand awareness for our clients. We believe that
our approach deepens our relationships and leads to additional revenue opportunities. We also target new clients by showcasing
our engineering, design and innovation capabilities along with our deep understanding of digital journeys, emerging technologies
and related market trends.



Our clients include
primarily medium- to large-sized companies based in the United States, Europe, Asia and Latin America operating in a broad range
of industries including Media and Entertainment, Professional Services, Technology and Telecommunications, Travel and Hospitality,
Banks, Financial Services and Insurance, and Consumer, Retail and Manufacturing. We believe clients choose us based on our ability
to understand their business and help them drive revenues, as well as our innovative and high value-added business proposals, tailored
Studio-based solutions, and our reputation for high quality execution. We have been able to grow with and retain our clients by
merging their industry knowledge with our expertise in the latest market trends to deliver tangible business value.



We typically enter
into a master services agreement (or MSA) with our clients, which provides a framework for services and a statement of work to
define the scope, timing, pricing terms and performance criteria of each individual engagement under the MSA. We generate 47% of
our revenue from long-term contracts with terms greater than 24 months.



During 2016, 2015 and
2014, our ten largest clients based on revenues accounted for 46.5%, 46.7% and 43.9% of our revenues, respectively. Our top client
for the years ended December 31, 2016, 2015 and 2014, Southwest Airlines Co. in 2016 and Walt Disney Parks and Resorts Online
in 2015 and 2014, accounted for 9.7%, 12.3% and 8.7% of our revenues, respectively. Some of our major clients in 2016 included
Google, Electronic Arts, Southwest Airlines Co. and Walt Disney Parks and Resorts Online, each of which was among our top ten clients
by revenues for at least one Studio.



The following table
sets forth the amount and percentage of our revenues for the years presented by client location:



|                        |  | Year ended December 31,            |        
|----------------------- |  | ---------------------------------- | -------
|                        |  | 2016                               |        
|                        |  | (in thousands, except percentages) |        
|By Geography            |  |                                    |        
|North America           |  | $                                  | 260,923
|Europe                  |  |                                    | 29,306 
|Asia                    |  |                                    | 1,265  
|Latin America and other |  |                                    | 31,362 
|Revenues                |  | $                                  | 322,856



The following table
shows the distribution of our clients by revenues for the years presented:



|                       |  | Year ended December 31, |    
|---------------------- |  | ----------------------- | ---
|                       |  | 2016                    |    
|                       |  |                         |    
|Over $5 Million        |  |                         | 11 
|$1 - $5 Million        |  |                         | 49 
|$0.5 - $1 Million      |  |                         | 41 
|$0.1 - $0.5 Million    |  |                         | 88 
|Less than $0.1 Million |  |                         | 151
|Total Clients          |  |                         | 340



50







Sales and Marketing



Our growth strategy
is based on four pillars: (i) leveraging our broad expertise; (ii) growing within existing clients; (iii) acquiring new clients;
and (iv) pursuing strategic acquisitions. Our expertise and Studio approach help us expand the portfolio and practices we offer
to our clients. Our acquisitions are pursued with the aim of fulfilling strategic goals, such as growing into a new geography (e.g.,
Nextive, TerraForum, BlueStar Peru, Clarice) or the expansion of specializations (e.g. Accendra, Openware, Huddle, Dynaflows, WAE,
L4, Difier).



Under our multi-pronged,
integrated sales and marketing strategy, our senior management, sales executives, sales managers, account managers and engagement
managers work collaboratively to target, acquire and retain new clients and expand our work for existing clients. Our sales and
marketing team, currently comprised of 71 sales personnel and 13 marketing personnel, has broad geographic coverage with commercial
offices located in Buenos Aires, Bogotá, Montevideo, São Paulo, London, Madrid, Boston, New York and San Francisco.



Beyond leveraging our
broad expertise, our sales strategy is driven by three fundamentals: retain, develop and acquire (“RDA”). The retention
(“R”) component is focused on maintaining our wallet share with existing accounts through flawless execution on our
engagements. The development (“D”) component emphasizes developing existing client relationships by significantly expanding
our wallet share and capturing business from our competitors. The acquisition (“A”) component targets new client accounts.
Through our RDA strategy, as well as marketing and branding events, we are able to acquire new or expand existing engagements in
our large and growing addressable market.



New Clients



We seek to create relationships
with strategic clients through existing client referrals or through our multi-tiered approach. Our approach begins by identifying
industries and geographic locations with solid growth potential. Once potential clients are identified, we seek to engage the market-facing
management personnel of those companies instead of their IT divisions, which allows us to get a better understanding of the prospect’s
business model before engaging with its IT personnel. The focus on an enterprise’s revenue drivers allows us to highlight
the value of our services in meeting our client’s business needs, thereby differentiating us.



Our account sales teams
are made up of sales executives and sales managers, and follow specific guidelines for managing opportunities when contacting potential
new clients. Before a sales team approaches a prospective client, we gather significant intelligence and insight into the client’s
potential needs, creating a specific value proposition for discussion during the engagement process. Additional opportunities resulting
from the planned targeted engagement are gathered and tracked. Once an appropriate opportunity has been identified and confirmed
with the client, our sales team performs account and competition mapping and enlists internal industry and subject matter experts
as well as pre-sales engineers from all of the participating Studios. We then generate proposals to present to and negotiate with
the client. Once we have secured the engagement, our sales executives work closely with the Globant leadership team, partners and
subject matter experts from our Studios to ensure that we exceed our new client’s expectations.



From time to time,
we use ideation sessions and discovery engagements in our pre-sales process. During the discovery engagements we meet with clients
to discuss their goals and develop creative solutions. The discovery engagement sessions help us discover our clients’ main
objectives, even if those objectives are not explicitly stated. These sessions are critical in helping us to offer solutions that
will adapt to our clients’ needs and wishes. This allows us to showcase our expertise in emerging technologies to the prospective
client while also allowing us to generate a significant number of possible future client opportunities.



Existing Clients



Once we have established
the client relationship, we are focused on driving future growth through increased client loyalty and retention. We leverage our
historical successes with existing clients and our relationships with our clients’ key decision-makers to cross-sell additional
services, thereby expanding the scope of our engagements to other departments within our clients’ organizations. We seek
to increase our revenues from existing clients through our account managers, technical directors, program managers, leadership
team, Studio partners, and subject matter experts.



In 2016, we introduced
a new model that intends to reshape our go-to-market strategy to scale our company in the coming years, called 50 Squared. The
main goal of this new approach is to focus our team on the top 50 high potential accounts that have the capacity to grow exponentially
over time. To do so, we have appointed our most senior people from Sales, Technology and Operations to lead these teams . This
account focus has become the most important pillar of our go-to-market strategy and every account within Globant now has the goal
to become part of this program.



51







We have also implemented
a customer development incentive program, which currently consists of more than 400 employees, that is designed to improve revenues
and margins.



We undertake periodic
reviews to identify existing clients that we believe are of strategic importance based on, among other things, the amount of revenue
we generate from the client, as well as the growth potential and brand recognition that the client provides.



Marketing



We believe that our
reputation as a premium provider of digital journeys generates additional business for us from inbound requests, referrals and
requests for proposals. In addition, we engage in a number of initiatives that foster our brand and promote our expertise. We work
to develop initiatives to help our customers stay relevant within their industries by creating and publishing research, organizing
SME gatherings, and participating in webinars and conferences, among other initiatives.



As of December 31,
2016, we had 13 professionals in our marketing department, Stay Relevant, based in Argentina and the United States. This team promotes
Globant’s brand through a variety of channels, including the following:



| | • | Relevant content: Our Stay Relevant team produces client and industry research with the
intention of sharing information on business drivers from trusted sources, highlighting upcoming industry trends, and enabling
strategic thinking.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Thought Leadership and events: Our Stay Relevant team organizes and participates in technology-
and innovation-focused events in the United States, the United Kingdom and Latin America to enhance our position with respect to
vanguard technologies and trends. Participation includes webinars, mobile road shows and breakfast discussions with our “gurus.”
In November 2016, we organized Con.Verge, our second conference centered around the future of design and technology. In addition,
members of our management team have been featured as speakers at events such as South by Southwest, Latam Tech Forum, WPP DAB,
Ecommerce Day, IoT Emerge, Adobe Summit, Acquia Engage, EY Strategic Growth Forum, Council of the Americas, Wharton Latin America
Conference, Agile Business Conference, CSO Summit, Innotribe, and at universities such as the Massachusetts Institute of Technology,
Stanford University, New York University and the University of California, Los Angeles.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Playground: Our "Playground" is an innovative space where our digital journeys
are showcased in real time. Guests can explore, touch, play and discover insights about each journey. It also delivers an atmosphere
to build ideas, transforming them into prototypes that can be explored.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Awareness: Our marketing strategy includes brand positioning through targeted news coverage
in print media and trade publications in the United States and Latin America, such as Bloomberg, Dow Jones, the New York Times,
TechCrunch, and Nearshore Americas. We also benefit from coverage of our company in reports prepared by industry analysts, such
as Gartner, IDC and HFS Research, McKinsey & Company and other third-party industry observers. Finally, our company has been
the subject of case studies on entrepreneurship by business schools at universities such as Stanford University, Massachusetts
Institute of Technology and Harvard University.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Competition



The markets in which
we compete are changing rapidly. We face competition from both global IT services providers as well as those based in the United
States. We believe that the principal competitive factors in our business include: the ability to innovate; technical expertise
and industry knowledge; end-to-end solution offerings; reputation and track record for high-quality and on-time delivery of work;
effective employee recruiting; training and retention; responsiveness to clients’ business needs; scale; financial stability;
and price.



We face competition
primarily from:



| | • | large global consulting and outsourcing firms, such as Accenture, Sapient, Thoughtworks and Epam;
| | - | -------------------------------------------------------------------------------------------------

| | • | digital agencies and design firms such as SapientRazorfish, RGA and Ideo;
| | - | -------------------------------------------------------------------------

| | • | traditional technology outsourcing IT services providers, such as Cognizant Technology Solutions,
EPAM Systems, GlobalLogic, Aricent, Infosys Technologies, Mindtree HCL, Tata and Wipro and Luxoft; and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | in-house product development departments of our clients and potential clients.
| | - | ------------------------------------------------------------------------------



52







We believe that our
focus on creating software that appeals and connect emotionally with millions of consumers positions us well to compete effectively
in the future. However, some of our present and potential competitors may have substantially greater financial, marketing or technical
resources; may be able to respond more quickly to emerging technologies or processes and changes in client demands; may be able
to devote greater resources towards the development, promotion and sale of their services than we can; and may make strategic acquisitions
or establish cooperative relationships among themselves or with third parties that increase their ability to address the needs
of our clients.



Corporate and Social Responsibility



We believe corporate
and social responsibility, or CSR, is an important extension of our founders’ original vision of creating a company, that
is a leader in the delivery of innovative software solutions for global customers, while also generating world-class career opportunities
for IT professionals not just in metropolitan areas but also outlying cities within countries in the region. Our signature CSR
program is TesteAR, an initiative we launched six years ago that seeks to increase employment opportunities for disadvantaged youth
in our surrounding communities ranging from 18 to 25 years old by training them in manual software testing.



Intellectual Property



Our intellectual property
rights are important to our business. We rely on a combination of intellectual property laws, trade secrets, confidentiality procedures
and contractual provisions to protect the investment we make in research and development. We require our employees, independent
contractors, vendors and clients to enter into written confidentiality agreements upon the commencement of their relationships
with us.



We customarily enter
into nondisclosure agreements with our clients with respect to the use of their software systems and platforms. Our clients usually
own the intellectual property in the software solutions we deliver. Furthermore, we usually grant a perpetual, worldwide, royalty-free,
nonexclusive, transferable and non-revocable license to our clients to use our preexisting intellectual property, but only to the
extent necessary in order to use the software solutions we deliver.



We have developed a
number of proprietary internal tools that we use to manage our projects, build applications in specific software technologies,
and assess software vulnerability. These tools include Glow, Nails, and our Service Over Platorms (SoP).



Our registered intellectual
property consists of the trademark “Globant” (which is registered in twelve jurisdictions, including the United States
and Argentina), certain other trademarks related to our service offerings and products, and one software patent granted in the
United States in favor of our United States subsidiary L4 Mobile, LLC. We do not believe that any individual registered intellectual
property right, other than our rights in our name and logo, is material to our business.



Facilities and Infrastructure



As of December 31,
2016, we provided our services through a network of 35 offices in 27 cities throughout twelve countries. Our delivery locations
are in Buenos Aires, Tandil, Rosario, Tucumán, Mendoza, Córdoba, Resistencia, Bahía Blanca, Mar del Plata
and La Plata in Argentina; Montevideo, Uruguay; Bogotá and Medellín, Colombia; São Paulo, Brazil; Mexico City,
Mexico; Lima, Peru; Santiago, Chile; Pune and Bangalore, India; Madrid, Spain; London, UK; and San Francisco, New York and Seattle
in the United States. We also have client management locations in the United States (Boston, New York, Orlando and San Francisco),
Brazil (São Paulo), Colombia (Bogotá), Uruguay (Montevideo), Argentina (Buenos Aires) and the United Kingdom (London).
The main administrative offices of our principal subsidiary (which also include a delivery center) are located in Buenos Aires.
All of our facilities (with the exceptions of Tucumán and Bahía Blanca) are leased. We also have two offices under
construction in Buenos Aires and La Plata.



The table below breaks
down our locations by country and city and provides the aggregate square footage of our locations in each city as of December 31,
2016.



53







|Country       |  | City          |  | Number of Offices |  | Square Feet |        
|------------- |  | ------------- |  | ----------------- |  | ----------- | -------
|Argentina     |  | Bahía Blanca  |  | 1                 |  |             | 6,986  
|Argentina     |  | Buenos Aires  |  | 3                 |  |             | 111,191
|Argentina     |  | Córdoba       |  | 2                 |  |             | 41,290 
|Argentina     |  | La Plata      |  | 1                 |  |             | 15,597 
|Argentina     |  | Mar del Plata |  | 1                 |  |             | 20,451 
|Argentina     |  | Mendoza       |  | 1                 |  |             | 3,229  
|Argentina     |  | Resistencia   |  | 1                 |  |             | 9,688  
|Argentina     |  | Rosario       |  | 2                 |  |             | 22,497 
|Argentina     |  | Tandil        |  | 2                 |  |             | 11,765 
|Argentina     |  | Tucumán       |  | 1                 |  |             | 21,689 
|Brazil        |  | Sao Paulo     |  | 1                 |  |             | 7,804  
|Chile         |  | Santiago      |  | 1                 |  |             | 8,245  
|Colombia      |  | Bogotá        |  | 2                 |  |             | 36,199 
|Colombia      |  | Medellín      |  | 1                 |  |             | 33,626 
|India         |  | Bangalore     |  | 1                 |  |             | 4,844  
|India         |  | Pune          |  | 2                 |  |             | 99,448 
|UK            |  | London        |  | 1                 |  |             | 2,756  
|Mexico        |  | Mexico City   |  | 1                 |  |             | 44,444 
|Peru          |  | Lima          |  | 1                 |  |             | 7,535  
|Spain         |  | Madrid        |  | 1                 |  |             | 6,986  
|United States |  | Boston        |  | 1                 |  |             | 124    
|United States |  | New York      |  | 2                 |  |             | 6,168  
|United States |  | San Francisco |  | 1                 |  |             | 4,844  
|United States |  | Seattle       |  | 1                 |  |             | 10,630 
|United States |  | Orlando       |  | 1                 |  |             | 140    
|Luxembourg    |  | Luxembourg    |  | 1                 |  |             | 150    
|Uruguay       |  | Montevideo    |  | 1                 |  |             | 26,974 
|Total         |  |               |  | 35                |  |             | 565,300



Regulatory Overview



Due to the industry
and geographic diversity of our operations and services, our operations are subject to a variety of rules and regulations, and
several Latin America countries, the United States, Europe and India federal and state agencies regulate various aspects of our
business. See “Risk Factors — Risks Relating to Our Business and Industry — Our business
results of operations and financial condition may be adversely affected by the various conflicting and/or onerous legal and regulatory
requirements imposed on us by the countries where we operate”. If we are not in compliance with applicable legal requirements,
we may be subject to civil or criminal penalties and other remedial measures, which could adversely affect our business, financial
condition and results of operations.”



We benefit from certain
tax incentives promulgated by the Argentine and Uruguayan governments. See “— Our Delivery Model — Government
Support and Incentives.”



Argentine Taxation



The following is a
summary of the material Argentine tax considerations relating to our operations in Argentina and it is based upon laws, regulations,
decrees, rulings, income tax conventions (treaties), administrative practice and judicial decisions in effect as of the date of
this annual report. Legislative, judicial or administrative changes or interpretations may, however, be forthcoming. Any such changes
or interpretations could affect the tax consequences to us, possibly on a retroactive basis, and could alter or modify the statements
and conclusions set forth herein. This summary does not purport to be a legal opinion or to address all tax aspects that may be
relevant to our operations in Argentina.



54







Software Promotion Law



The Software Promotion
Law sets forth a promotion regime for the software industry that remains in effect until December 31, 2019. On September 16, 2013,
the Argentine government published Regulatory Decree No. 1315/2013, which governs the implementation of the Software Promotion
Law.



Additionally, Resolution
No 177/2010 established that audits, verifications, inspections, controls and evaluations related to the regime of Law No. 25,922,
will be supported by the beneficiaries by paying a monthly and annual fee of 7% calculated on the amount of tax benefits.



Pursuant to Section
2 of the Software Promotion Law, Argentine-incorporated companies whose activities are the creation, design, development, production,
implementation or adjustment (upgrade) of developed software systems and their associated documents (in accordance with Section
4 of the Software Promotion Law) may participate in the benefits contemplated by this regime provided they meet at least two of
the following requirements: (i) proven expenses in software research and development activities; (ii) proven existence of a known
quality standard applicable to the products or software processes, or the performance of activities in order to obtain such known
standard recognition; or (iii) export of software (as defined in Section 5 of the Software Promotion Law).



As per Section 3 of
the Software Promotion Law, Argentine-incorporated companies will be considered beneficiaries of the regime as from the effective
date of their registration in the National Registry of Software Producers. Beneficiaries of the promotion regime will benefit from:



| | • | Fiscal stability throughout the period that the promotion regime is in force (i.e., through December
31, 2019 as per Section 1 of the Software Promotion Law). In accordance with Section 7 of the Software Promotion Law, fiscal stability
means the right to maintain the aggregate federal tax rate in effect at the time of the beneficiary’s registration in the
National Registry of Software Producers through December 31, 2019. Such stability does not comprise import or export duties nor
export refunds (Section 7 of Regulatory Decree No. 1315/2013). The aggregate federal tax burden included under the fiscal stability
benefit is that burden existing on the date of the beneficiary’s registration before the applicable registry, in accordance
with laws and regulations in force by that time.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Convertion up to 70% of certain monthly social security tax (contribution) payments into a tax
credit (Section 8 of the Software Promotion Law) during the first year following the beneficiary’s registration in the National
Registry of Software Producers. After the first year, such percentage will be determined annually by the competent authorities
for each beneficiary, depending on the beneficiary’s degree of compliance with the regime’s requirements (Section 9
of Regulatory Decree No. 1315/2013). This tax credit may not be transferred to third parties. The tax credit can be used to offset
the beneficiary’s income tax liability only up to certain percentage, determined by the ratio of annual software and computer
services exports and the aggregate annual sales resulting from promoted activities declared by the beneficiary (Section 8 of the
Software Promotion Law).
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Non applicability of any value-added tax withholding or collection regimes (Section 8 bis of the
Software Promotion Law).
| | - | -------------------------------------------------------------------------------------------------------------------------

| | • | A 60% reduction in the total amount of corporate income tax as applied to income from the activities
of creation, design, development, production, implementation or adjustment (upgrade) of developed software systems and their associated
documents pursuant to Section 4 of the Software Promotion Law) due in each fiscal year beginning after the date of the beneficiary’s
registration in the National Registry of Software Producers (Section 9 of the Software Promotion Law, Regulatory Decree No. 1315/2013
and General Resolution No. 3,597). This benefit will be applicable both to Argentine-source and non-Argentine-source income, in
the terms set forth by the application authority, but it would not be applicable to foreign source income obtained by permanent
establishments held abroad by Argentine residents (Section 13 of Regulatory Decree No. 1315/2013).
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Imports of software products by the beneficiaries are excluded from any kind of present or future
restriction on the currency transfers matching the payments for such imports, provided the imported goods are necessary for the
software production activities (Section 12 of the Software Promotion Law).
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In the event the company
does not have a known quality standard applicable to the products or software processes, as per Section 10 of the Software Promotion
Law, it will have a three-year period as from its accreditation, to obtain the known standard recognition. Failure to obtain such
recognition within such period will subject the company to the sanctions set forth in Section 20 of the Software Promotion Law,
which range from temporary suspension to exclusion from the promotion regime and the obligation to return all benefits obtained,
as well as permanent prohibition to apply for registration in the National Registry of Software Producers.



Argentine Ministry
of Economy approved our subsidiaries as beneficiaries of the Software Promotion Law as following: (i) on October 10, 2006: IAFH
Global S.A.; (ii) in January 2006: Huddle Gorup S.A. and (iii) on April 13, 2007: Sistemas Globales S.A.. As a result, these subsidiaries
have enjoyed fiscal stability in their federal tax burden as in effect at the time they were notified of their inclusion in the
promotion regime.



55







The Software Promotion
Law was modified during 2011 through Law No. 26,692. Even though all benefits awarded under the Software Promotion Law as originally
enacted in 2004 remained in effect, pursuant to Section 10 bis of the Software Promotion Law, IAFH Global S.A., Sistemas Globales
and Huddle Group S.A. were obliged to reapply for registration in the National Registry of Software Producers by July 8, 2014 in
order to obtain the benefits established in the Software Promotion Law as described above.



Regulatory Decree No.
1315/2013 introduced additional implementing rules, including, among other matters, further clarifications to qualify for the promotion
regime and specific requirements to be met in order to remain registered in the National Registry of Software Producers during
the years after such registration has taken place. These requirements include, among others, minimum annual revenue, minimum percentage
of employees involved in the promoted activities, minimum aggregate amount spent in salaries paid to employees involved in the
promoted activities, minimum research and development expenses and the filing of evidence of software-related services exports.
In addition, Regulatory Decree No. 1315/2013 states that the 60% reduction in corporate income tax provided under the Software
Promotion Law shall only become effective as of the beginning of the fiscal year after the date on which the applicant is accepted
for registration in the National Registry of Software Producers. The implementing regulation also provides that upon the formal
approval of an applicant’s registration in the National Registry of Software Producers, any promotional benefits previously
granted to such person under the Software Promotion Law as originally enacted in 2004 shall be extinguished. Finally, Regulatory
Decree No. 1315/2013 delegates authority to the Secretary of Industry and AFIP to adopt “complementary and clarifying”
regulations in furtherance of the implementation of the Software Promotion Law.



On March 11, 2014,
AFIP issued General Resolution No. 3,597, which provides that, as a further prerequisite to participation in the Software Promotion
Law, exporters of software and related services must register in a newly established Special Registry of Exporters of Services
(Registro Especial de Exportadores de Servicios). In addition, General Resolution No. 3,597 states that any tax credits
generated under the Software Promotion Law by a participant in the Software Promotion Law will only be valid until September 17,
2014.



Accordingly with the
new regulation in force, on March 14, May 21 and May 28, 2014, our Argentine subsidiaries Huddle Group S.A., IAFH Global S.A. and
Sistemas Globales S.A., respectively, applied and were accepted for registration in the Special Registry of Exporters of Services.



On June 25, 2014, our
Argentine subsidiaries Huddle Group S.A., IAFH Global S.A. and Sistemas Globales S.A. applied for registration in the National
Registry of Software Producers and were accepted with rulings from the Secretary and Subsecretary of Industry approving the registration
as follows: (i) On March 18, 2016 to Sistemas Globales S.A. and (ii) On April 13, 2015, to Huddle Group S.A and IAFH Global S.A.
In each case, the ruling made the effective date of registration retroactive to September 18, 2014 and provided that the benefits
enjoyed under the Software Promotion Law as originally enacted were not extinguished until the ruling goes into effect (which have
occurred upon its date of publication in the Argentine government’s official gazette on before mentioned dates).



On May 7, 2015, we
applied to the Subsecretary of Industry for deregistration of Huddle Group S.A. from the National Registry of Software Producers,
as the subsidiary had discontinued activities since January 1, 2015. Consequently, Huddle Group S.A. is subject to a 35% corporate
income tax rate since January 1, 2015.



Income Tax



The Argentine Income
Tax Law No. 20,628, as amended (“ITL”), establishes a federal tax on the worldwide income of Argentine resident individuals,
legal entities incorporated in Argentina and Argentine branches of foreign entities. The income tax is currently levied at 35%
of taxable net income obtained in Argentina or abroad. As per the ITL, income taxes paid abroad for the conduct of foreign activities
may be recognized as a tax credit up to the limit of the increase in the income tax liability derived from the recognition of income
obtained abroad. The amount of income subject to tax is calculated according to the regulations of the ITL. Losses incurred during
any fiscal year may be carried forward and set off against taxable income obtained during the following five fiscal years. Foreign
resident individuals and foreign resident legal entities without a permanent establishment are taxed exclusively on their Argentine
source income.



Law No. 26,893 (the
“ITL Amendment Law”), published in the Argentine government's official gazette on and effective as of September 23,
2013, modified the ITL. According to the ITL Amendment Law, income derived from the sale, exchange or other disposition of shares
of Argentine corporations by non-Argentine residents would be subject to income tax. Non-Argentine residents will have the option
of choosing between applying a 13.5% effective income tax rate over the gross amount or a 15% effective income tax rate over the
net amount derived from the transaction.



56







Individual Argentine
residents would be exempt on the income derived from the sale of shares to the extent such participations are publicly traded and/or
are authorized for its public offer.



Payments from Argentina
to foreign residents representing an Argentine source of income (i.e., royalties, interest, etc.) are generally subject to income
tax withholding levied at different rates depending on the type of payment. Pursuant to the ITL, cross-border royalty payments
are generally subject to withholding at a rate of 28%, or 21% if technology not available in Argentina is involved; in both cases
the relevant agreement must be registered before INPI. Payments related to software licenses are in general subject to a 31.5%
tax withholding rate. In addition, interest payments are generally subject to withholding at a rate of 15.05% if the lender is
a bank or financial institution controlled by the respective central bank or similar authority, located in jurisdictions (i) other
than those considered as tax havens by Argentine law, or (ii) that have executed exchange information agreements with Argentina,
and do not allow, among others, banking or stock market secrecy pursuant to their domestic law, and 35% in all other cases. These
rates may be reduced by application of a tax treaty for the avoidance of double taxation between Argentina and the receiving country.



Argentina and Spain
executed a Double Tax Treaty that entered into force on December 23, 2013. Such treaty replaces the previous double taxation treaty
between Argentina and Spain that was terminated on July 16, 2012 and applies retroactively from January 1, 2013.



On March 20, 2014,
Argentina and Switzerland executed a new double taxation treaty. The treaty between Argentina and Switzerland was first approved
by Argentina. Switzerland subsequently approved it in October 28, 2015. The double-taxation treaty entered into force on November
27, 2015.



Thus, interest payments,
royalty payments and the distribution of dividends from Argentina to Switzerland, and Spain will be subject to the withholding
rates set forth in the corresponding double taxation treaty.



On May 15, 2015, Argentina
and Chile signed a new treaty to avoid double taxation. On September 7, 2016, the Argentine Congress approved the aforementioned
treaty, which was published in the Argentine government's official gazette on September 30, 2016 and became effective on January
1, 2017. This treaty replaces the previous double taxation treaty between Argentina and Chile that was terminated on July 13, 2012.



On December 27, 2016
the Argentine government's official gazette published Law No. 27,346 that introduce important amendments to the Income Tax Law.
The Law creates a new tax levied on “USD Futures Market Trades” to be applied one-time only on the profits obtained
by any person. Thus, gross income derived from “positive price differences” arising from the buying or selling of USD
Futures Market Trades will be taxed at a 15% tax rate.



Tax on Presumed Minimum Income



This tax applies to
assets of Argentine companies. The tax is only applicable if the total value of the assets is above 200,000 Argentine pesos at
the end of the company’s fiscal year, and is levied at a rate of 1% on the total value of such assets. The amount of the
tax paid on presumed minimum income is allowed as a credit toward income tax. Furthermore, to the extent that this tax cannot be
credited against normal corporate income tax, it may be carried forward as a credit for the following ten years. Shares and other
capital participations in the stock capital of entities subject to the minimum presumed income tax are exempted from the tax on
presumed income.



Law No 27,260, published
in the Argentine government's official gazette on July 22, 2016, eliminates the Minimum Assumed Income Tax for fiscal years beginning
on January 1, 2019.



Value-Added Tax



The value-added tax
applies to the sale of goods, the provision of services and importation of goods. Under certain circumstances, services rendered
outside of Argentina, which are effectively used or exploited in Argentina, are deemed to be rendered in Argentina and, therefore,
subject to value-added tax. The current value-added tax general rate is 21%. Certain sales and imports of goods, such as computers
and other hardware, are, however, subject to value-added tax at a lower tax rate of 10.5%. The sale of the shares held in Argentine
or foreign companies is not subject to value-added tax.



Law No. 27,346 published
in the Argentine government's official gazette on December 27, 2016, modifies the value-added tax law and creates the figure of
substitute taxpayer for the payment of the tax corresponding to foreign residents who render services in Argentina.



57







Substitute taxpayers will assess and pay
for value-added tax corresponding to the act, even in the cases in which it is impossible to withhold that tax from the foreign
resident. Also, the tax paid will be considered as a tax credit if in favor of the substitute taxpayer.



Tax on Debits and Credits in Bank
Accounts



This tax applies to
debits and credits from and to Argentine bank accounts and to other transactions that, due to their special nature and characteristics,
are similar or could be used in lieu of a bank account. There are certain limited exceptions to the application of this tax. The
general tax rate is 0.6% applicable on each debit and/or credit; however there are increased rates of 1.2% and reduced rates of
0.075%. Taxpayers subject to this tax at the 0.6% and 1.2% rates are authorized to a tax credit of the tax paid (a 34% credit of
the tax paid on credits levied at the 0.6% tax rate, and a 17% credit of the tax paid on transactions levied at the 1.2% tax rate)
against the income tax and minimum presumed income tax. The remaining amount is deductible for income tax purposes.



Personal Assets Tax



Argentine companies
are required to pay the personal assets tax corresponding to Argentine resident individuals, foreign individuals and foreign entities
for holding shares and other capital participations in such company as of December 31 of each year. The applicable tax rate until
December 31, 2015 was 0.5% and, from January 1, 2016, the applicable rate is 0.25% (modification introduced by Law No 27,260).
The tax is levied on the equity value (valor patrimonial proporcional) stated in the latest financial statements. Pursuant to the
Argentine Personal Assets Tax Law, an Argentine company is entitled to seek reimbursement of such tax paid from the applicable
foreign shareholders, including by withholding and/or foreclosing on the shares, or by withholding dividends.



As a result of
the terminations of the double taxation treaties in force with Spain and the Republic of Chile, as well as the decision to end
the provisional application of the double taxation treaty in force with Switzerland, the exemption from the personal assets tax
that was available pursuant to those treaties for shares and other equity interests in local companies owned by Chilean, Spanish
or Swiss residents will no longer be applicable after each of the corresponding dates of termination. New double taxation treaties
with these countries do not include such an exemption.



Law No. 27,260 introduced
benefits for compliant taxpayers that include the exemption of personal assets tax until 2019. Our Argentine subsidiaries Huddle
Group S.A., IAFH Global S.A., Sistemas Globales S.A., Dynaflows S.A. and Globers Travel S.A., applied to and were accepted by the
AFIP to be eligible of the exemption of personal assets tax in December, 2016 and January, 2017.



Tax on Dividends



Dividends distributions
are not subject to income tax withholding apart from the application of the so-called “equalization tax,” which applies
if the dividends distributed exceed the net accumulated taxable income of the distributing corporation. On July 22, 2016, Argentina
published Law No. 27,260 in the Argentine government's official gazette, by which the existing 10% income tax withholding on dividends
distributions was abrogated.



Turnover Tax



Turnover tax is a local
tax levied on gross income. Each of the provinces and the City of Buenos Aires apply different tax rates. The tax is levied on
the amount of gross income resulting from business activities carried on within the respective provincial jurisdictions. The provinces
have signed an agreement to avoid the double taxation of activities performed in more than one province (Convenio Multilateral
del 18 de agosto de 1977). Under this agreement, gross income is allocated between the different provinces applying a formula
based on income obtained and expenses incurred in each province. In the Province of Buenos Aires, we have received an exemption
from the payment of the turnover tax for the period from 2011 through April 13, 2017 for Sistemas Globales S.A. and through December
31, 2019 for IAFH Global S.A.. Sistemas Globales S.A. is renewing the exemption during March, 2017.



Provincial Tax Advance Payment Regimes
Applicable to Local Bank Accounts



Certain provincial
tax authorities have established advance payment regimes regarding the turnover tax that are, in general, applicable to credits
generated in bank accounts opened with financial institutions governed by the Argentine Financial Institutions Law. These regimes
apply to local tax payers which are included in a list distributed — usually on a monthly basis — by
the provincial tax authorities to the financial institutions aforementioned.



58







Tax rates applicable
depend on the regulations issued by each provincial tax authority, in a range that, currently, could amount up to 5%. For tax payers
subject to these advance payment regimes, any payment applicable qualifies as an advance payment of the turnover tax.



Stamp Tax



Stamp tax is a local
tax that is levied based on the formal execution of public or private instruments. Documents subject to stamp tax include, among
others, all types of contracts, notarial deeds and promissory notes. Each province and the City of Buenos Aires has its own stamp
tax legislation. Stamp tax rates vary according to the jurisdiction and agreement involved. In general, stamp tax rates vary from
1% to 4% and are applied based on the economic value of the instrument. In the Province of Buenos Aires, we have received an exemption
from the stamp tax for one of our subsidiaries, IAFH Global S.A., since 2011.



Free Good Transmission Tax



The Province of Buenos
Aires established this tax in 2009. According to Law 14,200, all debts accrued up to December 31, 2010 have been exempted from
this tax. This tax is levied on any wealth increases resulting from free good or asset transmission (i.e. a donation, inheritance,
etc.), provided the beneficiary (individual or company) is domiciled in the Province of Buenos Aires or the goods or assets are
located in the Province of Buenos Aires. Moreover, according to this tax, shares and other securities representing capital stock,
an equity interest or the equivalent which, at the time of transmission, are located in another jurisdiction (i.e., not in the
Province of Buenos Aires) or were issued by entities or companies domiciled in another jurisdiction, are deemed to be situated
in the Province of Buenos Aires in proportion to the assets that such entities or companies have in the Province of Buenos Aires.
This tax will only be applicable if the benefit obtained by the individual or the company exceeds 78,000 Argentine pesos. In the
case of parents, children and spouses, the threshold amount is increased up to 325,000 Argentine pesos. The tax rates are progressive
and vary from 4% to 21.925%. The Province of Entre Ríos has enacted a tax that is similar to Law 14,200 described above.



The tax may become
applicable in the event that our Argentine subsidiaries, Huddle Group S.A., IAFH Global S.A. and Sistemas Globales S.A., receive
any free transmission of goods or assets located within the Province of Buenos Aires or the Province of Entre Ríos. If either
of the subsidiaries changes its domicile to the Province of Buenos Aires or to the Province of Entre Ríos, the tax will
be levied upon any free transmission of goods or assets received by that subsidiary, wherever the goods or assets are located.



Municipal Taxes



Municipalities may
establish certain municipal taxes, provided they are not analogous with the national taxes, and they match an effective and individualized
service provisioned by the local government. It should be noted that in many cases, the taxable income considered for the municipal
tax will be the same as that for the turnover tax, though limited to the amount that belongs to the province where the municipality
is located as per the agreement to avoid double taxation (Convenio Multilateral del 18 de agosto de 1977).



Information Regime



General Resolution
3293/2012 of the Argentine Federal Tax Authority sets forth the obligation to report (through the website of the Argentine Federal
Tax Authority) the total or partial (gratuitous or onerous) transfer and/or assignment of:



| | • | securities, shares, participations or equivalents in the capital of non-publicly traded Argentine
companies (and certain other non-publicly traded Argentine entities) whether the buyer and/or the purchaser is a foreign or an
Argentine resident;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | securities, shares, participations or equivalents in the capital of non-publicly traded foreign
companies if the transaction is performed by Argentine individuals or Argentine undivided estates; and
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | listed securities issued by Argentine or foreign residents in case the transaction results in the change of control of the
company.
| | - | -----------------------------------------------------------------------------------------------------------------------------------



This obligation must
be complied with concurrently by seller, purchaser and by the target company whose assets are being transferred. Also, the obligation
applies to the notary public (if a notary public participates in the transaction). If the transaction is between a foreign seller
and a foreign buyer, then according to guidance provided by AFIP, they are not obliged to comply with this information regime.
The obligation remains for the local company and notary public.



The transaction must
generally be reported within ten business days after the date of the transaction.



59







Related Parties’ Registry



Pursuant to General
Resolution No. 3,572, AFIP created: (i) a related parties’ registry (Registro de Sujetos Vinculados) and (ii) an information
regime concerning transactions in the domestic market among related parties (Régimen informativo de operaciones en el
mercado interno — Sujetos Vinculados).



Notwithstanding that
AFIP General Resolution No. 3,572 that became effective on January 3, 2014, the registration and information obligations provided
therein shall be considered duly complied with by the following parties within the following terms:



| | • | on or before April 1, 2014: national major tax-payers (Grandes Contribuyentes Nacionales)
for obligations due on or before March 31, 2014; and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------

| | • | on or before July 1, 2014: all other national parties for obligations due on or before June 30, 2014.
| | - | -----------------------------------------------------------------------------------------------------



Information Regime Concerning Transactions
in the Domestic Market Among Related Parties



Unlike the related
parties’ registry (which applies to transactions among related parties located in Argentina and abroad), the transactions’
information regime is applicable to transactions between related parties located in Argentina.



Incoming Funds from Low or No Tax
Jurisdictions



According to the legal
presumption under Article 18.1 of Law No.11,683 and its amendments, incoming funds from jurisdictions with low or no taxation are
deemed an unjustified increase in net worth for the Argentine party, regardless of the nature of the operation involved. Unjustified
increases in net worth are subject to the following taxes:



(a) income tax at a
35% rate on 110% of the amount of the transfer; and



(b) value added tax
at a 21% rate on 110% of the amount of the transfer.



The Argentine tax resident
may rebut such legal presumption by proving before the Argentine Tax Authority that the funds arise from activities effectively
performed by the Argentine taxpayer or a third party in such jurisdictions, or that such funds have been previously declared.



Through Decree 589/2013,
Argentina modified the rule related to the list of low or no taxation jurisdictions, stating that all references to low or no taxation
jurisdictions shall be deemed as referring to “non-cooperative countries for purposes of fiscal transparency.” Cooperative
countries for purposes of fiscal transparency are those countries, territories, jurisdictions or special regimes that execute with
the Argentine government a double tax agreement with a wide exchange of information clause or an exchange of information agreement.
Jurisdictions that initiate negotiations to enter into one of the previously mentioned agreements would also be considered as “cooperative.”
Decree 589/2013 entitles the Argentine Tax Authority to publish the list of the cooperative countries for fiscal transparency purposes,
which shall be published (and updated) on its web site. The National Tax Authority issued the list containing the jurisdictions
that are considered cooperative. As of the date of this annual report, such list includes the following jurisdictions: Albania,
Germany, Andorra, Anguilla, Saudi Arabia, Armenia, Aruba, Australia, Austria, Azerbaijan, Bahamas, Barbados, Belarus, Belgium,
Belize, Bermuda, Bolivia, Brazil, Bulgaria, the Cayman Islands, Canada, Cameroon, Czech Republic, Chile, Cyprus, China, Vatican
City, Colombia, South Korea, Costa Rica, Croatia, Cuba, Curaçao, Denmark, Ecuador, El Salvador, Arab Emirates, Slovakia,
Slovenia, Spain, United States, Estonia, Faroe Islands, Philippines, Finland, France, Gabon, Georgia, Ghana, Gibraltar, Greece,
Greenland, Guatemala, Guernsey, Honduras, Hong Kong, Hungary, India, Indonesia, Ireland, Isle of Man, Iceland, Italy, Jamaica,
Israel, Japan, Jersey, Kazakhstan, Kenya, Latvia, Liechtenstein, Lithuania, Luxembourg, Macao, Macedonia, Malta, Morocco, Mauritius,
Mexico, Moldova, Monaco, Montserrat, Nigeria, Niue, Norway, New Zealand, Panama, the Netherlands, Paraguay, Peru, Poland, Portugal,
the United Kingdom, the Dominican Republic, Romania, Russia, San Marino, Saint Maarten, Senegal, Singapore, Seychelles, Serbia,
South Africa, Sweden, Switzerland, Tunisia, Turks and Caicos Islands, Turkmenistan, Turkey, Ukraine, Uganda, Uruguay, Venezuela,
and British Virgin Islands.



As of the date of this
annual report, we are not liable for this tax.



Foreign Exchange Controls



The following is a
summary of the material foreign exchange control considerations relating to our operations in Argentina, and it is based upon laws,
regulations, decrees, rulings, administrative practice and judicial decisions in effect as of the date of this annual report. Legislative,
judicial or administrative changes or interpretations may, however, be forthcoming. Any such changes or interpretations could affect
us and could alter or modify the statements and conclusions set forth herein. This summary does not purport to be a legal opinion
or to address all foreign exchange controls aspects that may be relevant to our operations in Argentina.



60







Argentina



On January 6, 2002,
the Argentine Congress enacted Law No. 25,561 (as amended and supplemented, the “Argentine Public Emergency Law”),
formally ending the regime of the Convertibility Law, abandoning over ten years of U.S. dollar-peso parity. With the enactment
of the Argentine Public Emergency Law, Argentina declared a state of public emergency in terms of social, economic, administrative,
financial and exchange rate conditions, and the Argentine executive branch was vested with the power to establish a system to determine
the exchange rate between the peso and foreign currencies and to enact foreign exchange regulations. In February 2002, the Argentine
executive branch issued Decree No. 260/2002 which established (i) a single free foreign exchange market FX Market in which all
foreign exchange transactions were to be settled, and (ii) that foreign exchange transactions are to be consummated at an exchange
rate that is freely settled, subject to the requirements and regulations imposed by the Argentine Central Bank. Even when the Argentine
peso was allowed to float freely against other currencies, the Argentine Central Bank has the power to intervene in the exchange
rate market by buying and selling foreign currency for its own account, a practice in which it engaged in, and in which it may
continue to engage in, on a regular basis.



In June 2005, through
the issuance of Decree No. 616/2005, the Argentine government established a number of foreign exchange restrictions and regulations
on inflows and outflows of funds to be settled through the local FX Market. With the tightening of exchange controls beginning
in late 2011, in particular with the introduction of measures that allowed limited access to foreign currency by private companies
and individuals (such as requiring an authorization of tax authorities to access the foreign currency exchange market), the implied
exchange rate, as reflected in the quotations for Argentine securities in foreign markets, compared to the corresponding quotations
in the local market, increased significantly over the official exchange rate. Within such measures, the Argentine government restricted
certain local companies from obtaining access to the FX Market for the purpose of making payments abroad, such as dividends (including
capital reductions) and payment for importation of services and goods. In particular, during the last few years, the Argentine
Central Bank exercised a de facto prior approval power for certain foreign exchange transactions otherwise authorized to
be carried out under the applicable regulations by means of regulating the amount of foreign currency available to financial institutions
to conduct such transactions.



Most foreign exchange
restrictions and restrictions on transfer of funds into and out of Argentina that had been enacted since 2011, were lifted by the
Macri administration by December 2015, reestablishing Argentine residents’ rights to purchase and remit outside of Argentina
foreign currency with no maximum amount and without specific allocation or prior approval.



In December 2015, in
line with the economic reforms implemented by the new administration, the Argentine Ministry of Treasury issued Resolution No.
3/2015 which eliminated the requirement to maintain a registered, non-transferable and non-interest bearing deposit by reducing
the amount of the deposit from 30% to 0%. Consequently, such deposit is no longer applicable to, among other transactions, foreign
financial debts, inflows of funds of non-residents and repatriations by residents. In addition, pursuant to Resolution No. 1-E/2017
dated January 5, 2017, the minimum period of 120 calendar days, imposed by Resolution No. 3/2015, for the proceeds received from
any new financial indebtedness (incurred by residents and granted by foreign creditors) as well as portfolio investments of non-residents
had to be kept in Argentina, was reduced to zero. The Argentine Ministry of Treasury is entitled to modify the percentage of and
period that funds must be kept in Argentina when a change in the macroeconomic situation so requires.



In addition, on August
6, 2016, the Argentine Central Bank issued Communication “A” 6037, which repealed most of the restrictions to purchase
currency and those relating to the inflow and outflow of funds into and from Argentina (except for the obligation of Argentine
exporters of goods and services to repatriate to the FX Market foreign currency proceeds from exportation transactions, such as
receivables relating to the exportation of goods, which shall also be settled through the FX Market).



The following is a
description of the main aspects of the Argentine Central Bank’s regulations relating to the inflows and outflows of funds
into and from Argentina:



Inflows



Pursuant to Communication
“A” 5265 issued by the Argentine Central Bank, any financial debts incurred with foreign creditors by both the non-financial
and financial private sector had to be settled through the FX Market. This requirement was eliminated by Communication “A”
6037, which abrogated Communication “A” 5850, dated December 17, 2015, allowing Argentine borrowers to keep proceeds
outside of Argentina and eliminated the requirement to repatriate and exchange proceeds into pesos when repaying debts through
the MULC.



61







Pursuant to Resolution
No. 1-E/2017, the minimum period of 120 calendar days, imposed by Resolution No. 3/2015, that proceeds received from foreign financial
debt had to be kept in Argentina was reduced to zero.



Outflows



Communication “A”
6037 abrogated Communication “A” 5264 and partially abrogated Communication “A” 5265, together with their
amendments and supplementary regulations, specifically Communications “A” 5850, 5890 and 6011; which regulated, among
others, the requirements to access the FX Market to pay principal and interest services of foreign debts.



Currently, access to
the FX Market to pay interest accrued from the disbursement of funds is subject to verification by the relevant financial entities
that the borrower accessing the MULC has duly filed, as applicable, the statement of debt required by Communication “A”
3602, as amended from time to time, or the statement of direct investments provided by Communication “A” 4237, as amended
from time to time.



Pursuant to Resolution
No. 1-E/2017, the minimum period of 120 calendar days, imposed by Resolution No. 3/2015, that proceeds from financial external
indebtedness had to be kept in Argentina, was reduced to zero, notwithstanding whether or not the debt is repaid through the FX
Market. Additionally, access to the FX Market for payment of principal is subject to verification by the relevant financial entity
that the borrower has duly filed the statement of debt required by Communication “A” 3602, as amended from time to
time.



Communication “A” 6137



Communication “A”
6137, issued by the Argentine Central Bank on December 30, 2016, eliminated the requirement to repatriate and exchange funds obtained
from the exportation of services into Argentine pesos through the FX Market. Such requirement remains applicable only for exported
services included in the FOB (free on board) and/or CIF (cost insurance and freight) value of exported goods (which is not applicable
to the types of services exported by the company). Consequently, we are not required to repatriate or exchange the foreign currency
proceeds received from services rendered to non-Argentine residents outside of Argentina (which are proceeds from our exportations
held in off-shore accounts, such as the collections of services fees in U.S. dollars).



For additional information
regarding all current foreign exchange restrictions and exchange control regulations in Argentina, investors should consult their
legal advisors and read the applicable rules mentioned herein, as well as any amendments and complementary regulations, which are
available at the Argentine Ministry of Treasury’s website: www.economia.gob.ar, or the Argentine Central Bank’s
website: www.bcra.gob.ar.



Colombia



Under Colombian foreign
exchange regulations, payments in foreign currency related to certain foreign exchange transactions must be conducted through the
commercial exchange market, by means of an authorized financial intermediary, and declaring the payment to the Colombian Central
Bank. This mechanism applies to payments in connection with, among others, imports and exports of goods, foreign loans and related
financing costs, investment of foreign capital and the remittances of profits thereon, investment in foreign securities and assets
and endorsements and guarantees in foreign currency. Transactions through the commercial exchange market are made at market rates
freely negotiated with the authorized intermediaries.



In addition, the Colombian
Central Bank may intervene in the foreign exchange market at its own discretion at any time and may, under certain circumstances,
take actions that limit the availability of foreign currency to private sector companies. Notwithstanding the foregoing, the Colombian
Central Bank has never taken such action since the present foreign exchange regime was implemented in 1991.



India



The prevailing foreign
exchange laws in India require Indian residents to repatriate all foreign currency earnings to India to control the exchange of
foreign currency. More specifically, Section 8 of the Foreign Exchange Management Act, 1999, requires an Indian company to take
all reasonable steps to realize and repatriate into India all foreign currency earned by the company outside India, within such
time periods and in the manner specified by the Reserve Bank of India (the “RBI”). The RBI has promulgated guidelines
that require Indian companies to realize and repatriate such foreign currency back to India, including by way of remittance into
a foreign currency account such as an Exchange Earners Foreign Currency (“EEFC”) account maintained with an authorized
dealer in India. Remittance into an EEFC account is subject to the condition that the sum total of the accruals in the account
during a calendar month should be converted into rupees on or before the last day of the succeeding calendar month, after adjusting
for utilization of the balances for approved purposes or forward commitments.



62







C. Organizational Structure



On December 10, 2012,
we incorporated our company, Globant S.A., as a société anonyme under the laws of the Grand Duchy of Luxembourg,
as the holding company for our business. Prior to the incorporation in Luxembourg, our company was incorporated in Spain as a sociedad
anónima, which we refer to as “Globant Spain.” As a result of the incorporation of our company in Luxembourg
and certain related share transfers and other transactions, Globant Spain, which we refer to as “Spain Holdco,” became
a wholly-owned subsidiary of our company.



The following chart
reflects our organization structure, including our principal shareholders and our principal subsidiaries, as of March 20,
2017. See “Major Shareholders and Related Party Transactions — Major Shareholders” for more information
about our principal shareholders and note 2.2 to our audited consolidated financial statements for more information about our consolidated
subsidiaries.







Seasonality



See “Operating
and Financial Review and Prospects — Operating Results — Factors Affecting Our Results of Operations.”



D. Property, Plant and Equipment



See “—Business
Overview.”



ITEM 4A. UNRESOLVED STAFF COMMENTS



Not applicable.



ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS



You should read the
following discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financial
statements and related notes included elsewhere in this annual report. Our consolidated financial statements have been prepared
in accordance with IFRS. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results
and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result
of various factors, including those set forth under “Key Information—Risk Factors” and elsewhere in this annual
report.



63







Overview



At Globant, we are experts
in creating digital journeys. A successful digital journey is composed of different software products including mobile apps, web
apps, sensors and other hardware appliances orchestrated by a smart backend that uses big data and fast data, and that connects
to all of our client’s system. This approach creates a deep understanding of each end user and assists our clients in creating
customized responses for each end user.



We provide our services
through a network of 35 locations in Argentina, Uruguay, Chile, Colombia, Brazil, Mexico, India, Peru, Europe and the United States,
supported by three client management locations in the United States, and one client management location in each of the United Kingdom,
Colombia, Uruguay, Argentina and Brazil. Our reputation for cutting-edge work for global blue chip clients and our footprint across
Latin America provide us with the ability to attract and retain well-educated and talented professionals in the region. We are
culturally similar to our clients and we function in similar time zones. We believe that these characteristics have helped us build
solid relationships with our clients in the United States and Europe and facilitate a high degree of client collaboration.



For the year ended
December 31, 2016, 80.8%, 10.1% and 9.1% of our revenues were generated by clients in North America, Latin America and Asia,
and Europe, respectively. In 2015, 83.7%, 11.0% and 5.3% of our revenues were generated by clients in North America, Latin America
and Asia, and Europe, respectively. Our clients include companies such as Google, Electronic Arts, Southwest Airlines Co. and Walt
Disney Parks and Resorts Online, each of which was among our top ten clients by revenues for at least one Studio in 2016.



Our revenues increased
from $199.6 million for 2014 to $322.9 million for 2016, representing a CAGR of 27.2% over the two-year period. Our revenues for
2016 increased by 27.2%% to $322.9 million, from $253.8 million for 2015. Our net income for 2016 was $35.9 million, compared to
a net income of $31.6 million for 2015. The $4.3 million increase in net income from 2015 to 2016 was primarily driven by strong
revenue growth and improved operating margins during the year. In 2014, 2015 and 2016, we made several acquisitions to enhance
our strategic capabilities, none of which contributed a material amount to our revenues in the year the acquisition was made. See
“Information on the Company — History and Development of the Company.”



We were founded in
2003 and since our inception, we have benefited from strong organic growth and have built a blue chip client base comprised of
leading global companies. Over that same period, we have expanded our network of offices from one to 35. We benefited from the
support of Riverwood Capital and FTV Capital, which have provided equity capital to support our strategic expansion and growth.
In January 2012, Endeavor Global, Inc., an organization devoted to selecting, mentoring and accelerating high-impact entrepreneurs
around the world, invested in our company. And, more recently, in December 2012, one of the largest marketing communications networks
in the advertising industry, WPP plc, through its wholly owned subsidiary, WPP, became a shareholder of our company.



In 2006, we started
working with Google. We were chosen due to our cultural affinity and innovation. While our growth has largely been organic, since
2008 we have made twelve complementary acquisitions. Our acquisition strategy is focused on deepening our relationship with key
clients, extending our technology capabilities, broadening our service offering and expanding the geographic footprint of our delivery
centers, including beyond Latin America.



Globant’s growth
has been primarily organic. We expect to continue with this strategy to maintain and reinforce our culture. At the same time,
during the life of the company, we have made a number of small, strategic acquisitions.



In 2008, we acquired
Accendra, a Buenos Aires-based provider of software development services, in order to deepen our relationship with Microsoft and
broaden our technology expertise to include Sharepoint and other Microsoft technologies. That same year we also acquired Openware,
a company specializing in security management based in Rosario, Argentina.



In 2011, we acquired
Nextive. The Nextive acquisition expanded our geographic presence in the United States and enhanced our U.S. engagement and delivery
management team as well as our ability to provide comprehensive solutions in mobile technologies.



In 2012, we acquired
TerraForum, an innovation consulting and software development firm in Brazil. The acquisition of TerraForum allows us to expand
into one of the largest economies in the world and to broaden our services to our clients, strengthening our position as a leader
in the creation of innovative software products.



64







In August 2013, we
acquired 22.75% of Dynaflows S.A. In October 2015, we obtained the control over Dynaflows through acquiring an additional number
of shares. This additional acquisition allowed us to broaden our Services over Platforms strategy.



In October 2013, we
acquired a majority stake in the Huddle Group, a company specializing in the media and entertainment industries, with operations
in Argentina, Chile and the United States. We acquired the remaining 13.75% minority stake in Huddle Investment in October 2014.



In July 2014, we closed
the initial public offering of our common shares in the United States.



In October 2014, we
acquired 100% of the capital stock of BlueStar Holdings.



In April 2015, we closed
a follow-on secondary offering of our common shares in the United States through which certain selling shareholders sold 3,994,390
common shares previously held by them. In July 2015, we closed another follow-on secondary offering in the United States through
which certain selling shareholders sold 4,025,000 common shares previously held by them.



In May 2015, we acquired
Clarice which allowed us to establish our presence in India.



Also, in 2015, we launched
new Studios to complement our offerings, including one focused on Cognitive Computing, and we incorporated a complementary approach
to build digital journeys fast and in an innovative manner though: our service-over-platform offering.



During 2016 we introduced
a new model that intends to reshape our go-to-market strategy to scale our company in the coming years, called 50 Squared. The
main goal of this new approach is to focus our team in the top 50 high potential accounts that have the capacity to grow exponentially
over time. To do so, we have appointed our most senior people from Sales, Technology and Operations to lead these teams and take
our company to the next level. This account focus has become the most important pillar of our go-to-market strategy and every account
within Globant now has the goal to become part of this program.



In May 2016, we acquired
WAE. The purpose of these acquisitions was related to the benefit of expected synergies, revenue growth, future market development
and the assembled workforce of WAE.



In August 2016, we
applied to the Luxembourg Stock Exchange for listing on the Official List of the Lux SE and for the admission to trading on its
regulated market of our common shares. Our shares began trading on the Lux SE on August 11, 2016.



In November 2016, we
entered into a stock purchase agreement with 3C to purchase the 100% of the capital stock of Difier. At the same time, we signed
a consulting services agreement to provide software development services to 3C for a term of four years.



During the same month,
we acquired 100% of L4 Mobile, LLC (“L4”). The purpose of this acquisition was related to strengthening our leading
position in the digital services space and expanding our capabilities in the United States.



On February 28,
2017, we acquired 100% of the shares of Ratio Cypress, LLC (“Ratio”), a limited liability company organized and existing
under the laws of the State of Washington in the United States. Ratio offers design, development and quality assurance services
necessary to build and manage robust digital products and video streaming solutions for major media companies.



A. Operating Results



Factors Affecting Our Results of Operations



In the last few years,
the technology industry has undergone a significant transformation due to the proliferation and accelerated adoption of several
emerging technologies, including social media, mobility, cloud computing and big & fast data, and related market trends, including
enhanced user experience, personalization technology, gamification, consumerization of IT, wearables, internet of things and open
collaboration. These technologies are empowering end users and are compelling enterprises to engage and collaborate with end-users
in new and powerful ways. We believe that these changes are resulting in a paradigm shift in the technology services industry and
are creating demand for service providers that possess a deep understanding of these emerging technologies and related market trends.



We believe that the
most significant factors affecting our results of operations include:



| | • | market demand for integrated engineering, design and innovation technology services relating to
emerging technologies and related market trends;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------



65







| | • | economic conditions in the industries and countries in which our clients operate and their impact
on our clients’ spending on technology services;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------

| | • | our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends;
| | - | -------------------------------------------------------------------------------------------------------------------

| | • | expansion of our service offerings and success in cross-selling new services to our clients;
| | - | --------------------------------------------------------------------------------------------

| | • | our ability to obtain new clients, increase penetration levels with our existing clients and continue
to add value for our existing clients so as to create long-term relationships;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | the availability of, and our ability to attract, retain and efficiently utilize, skilled IT professionals
in Latin America and the United States;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------

| | • | operating costs in countries where we operate, particularly in Argentina where most of our employees are based;
| | - | ---------------------------------------------------------------------------------------------------------------

| | • | capital expenditures related to the opening of new delivery centers and client management locations
and improvement of existing offices;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------

| | • | our ability to increase our presence onsite at client locations;
| | - | ----------------------------------------------------------------

| | • | the effect of wage inflation in countries where we operate and the variability in foreign exchange
rates, especially relative changes in exchange rates between the U.S. dollar and the Argentine peso, Uruguayan peso, Mexican peso,
Colombian peso and Indian rupees; and
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | our ability to identify, integrate and effectively manage businesses that we may acquire.
| | - | -----------------------------------------------------------------------------------------



Our results of operations
in any given period are directly affected by the following additional company-specific factors:



| | • | Pricing of and margin on our services and revenue mix. For time-and-materials contracts, the hourly
rates we charge for our Globers are a key factor impacting our gross profit margins and profitability. Hourly rates vary by complexity
of the project and the mix of staffing. The margin on our services is impacted by the increase in our costs in providing those
services, which is influenced by wage inflation and other factors. As a client relationship matures and deepens, we seek to maximize
our revenues and profitability by expanding the scope of services offered to that client and winning higher profit margin assignments.
During the three-year period ended December 31, 2016, we increased our revenues attributable to sales of higher profit margin
technology solutions (primarily through our Mobile, Enterprise Consumerization, UX Design and Gaming Studios). This shift in revenue
mix enabled us to achieve an adjusted gross profit margin percentage of 42.3%, 38.9% and 41.0% for the years ended December 31,
2016, 2015 and 2014, respectively, which are consistent with our targeted adjusted gross profit margin percentage in the medium
term.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Our ability to deepen and expand the portfolio of services we offer through our Studios while maintaining
our high standard of quality. The breadth and depth of the services we offer through our Studios impacts our ability to grow revenues
from new and existing clients. Through research and development, targeted hiring and strategic acquisitions, we have invested in
broadening and deepening the domains of expertise of our Studios. Our future growth and success depend significantly on our ability
to maintain the expertise of each of our Studios and to continue to innovate and to anticipate the needs of our clients and rapidly
develop and maintain the expertise of each of our Studios, including relevant domain knowledge and technological capabilities required
to meet those client needs, while maintaining our high standard of quality.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Recruitment, retention and management of IT professionals. Our ability to recruit, retain and manage
our IT professionals will have an effect on our gross profit margin and our results of operations. Our IT professional headcount
was 5,219 as of December 31, 2016, 4,613 at December 31, 2015 and 3,424 at December 31, 2014. We manage employee
headcount and utilization based on ongoing assessments of our project pipeline and requirements for professional capabilities.
An unanticipated termination of a significant project could cause us to experience lower employee utilization resulting from a
higher than expected number of idle IT professionals. Our ability to effectively utilize our employees is typically improved by
longer-term client relationships due to increased predictability of client needs over the course of the relationships.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Evolution of client base. In recent years, as we have expanded significantly in the technology
services industry; we have diversified our client base and reduced client concentration. In addition, consistent with our business
focus on pursuing clients and markets with higher profit margins, we have increased our revenues from North American and, in some
periods, European, clients, while reducing our revenues from Latin American and other clients. Revenues attributable to our top
ten clients increased by 35.1% from 2014 to 2015 and 26.8% from 2015 to 2016. Over the same period, we have increased our revenues
from existing clients by expanding the scope and size of our engagements. The number of clients that each accounted for over $5.0
million of our annual revenues amounted to eleven in 2016, ten in 2015 and ten in 2014, and the number of clients that each accounted
for at least $1.0 million of our annual revenues increased to 60 in 2016, from 51 in 2015 and 46 in 2014.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



66







| | • | Investments in our delivery platform. We have grown our network of locations to 35 at December 31,
2016, located in 27 cities throughout twelve countries (Buenos Aires, Tandil, Rosario, Tucumán, Mendoza, Córdoba,
Resistencia, Bahía Blanca, Mar del Plata and La Plata in Argentina; Montevideo, Uruguay; Bogotá and Medellín,
Colombia; São Paulo, Brazil; Mexico City, Mexico; Lima, Peru; Santiago, Chile; Pune and Bangalore, India; Madrid, Spain;
London, UK; and San Francisco, New York and Seattle in the United States). We also have client management locations in the United
States (Boston, New York, Orlando and San Francisco), Brazil (São Paulo), Colombia (Bogotá), Uruguay (Montevideo),
Argentina (Buenos Aires) and the United Kingdom (London) that are close to the main offices of key clients. Our integrated global
delivery platform allows us to deliver our services through a blend of onsite and offsite methods. We have pursued a decentralization
strategy in building our network of delivery centers, recognizing the benefits of expanding into other cities in Argentina and
other countries in Latin America, including the ability to attract and retain highly skilled IT professionals in increasing scale.
Our ability to effectively utilize our robust delivery platform will significantly affect our results of operations in the future.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Seasonality. Our business is seasonal and as a result, our revenues and profitability fluctuate
from quarter to quarter. Our revenues tend to be higher in the third and fourth quarters of each year compared to the first and
second quarters of each year due to seasonal factors. During the first quarter of each year, which includes summer months in the
southern hemisphere, there is a general slowdown in business activities and a reduced number of working days for our IT professionals
based in Argentina, Uruguay, Brazil, Peru, Chile and Colombia, which results in fewer hours being billed on client projects and
therefore lower revenues being recognized on those projects. In addition, some of the reduction in the number of working days for
our IT professionals in the first or second quarter of the year is due to the Easter holiday. Depending on whether the Easter holiday
falls in March or April of a given year, the effect on our revenues and profitability due to the Easter holiday can appear either
in the first or second quarter of that year. Finally, we implement annual salary increases in the second and fourth quarters of
each year. Our revenues are traditionally higher, and our margins tend to increase, in the third and fourth quarters of each year,
when utilization of our IT professionals is at its highest levels.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Net effect of inflation in Argentina and variability in the U.S. dollar and Argentine peso exchange
rate. Because a substantial portion of our operations is conducted from Argentina, our results of operations are subject to the
net effect of inflation in Argentina and the variability in exchange rate between the U.S. dollar and the Argentine peso. The impact
of inflation on our salary costs, or wage inflation, and thus on our statement of profit or loss and other comprehensive income
varies depending on the fluctuation in exchange rates between the Argentine peso and the U.S. dollar. In an environment where the
Argentine peso is weakening against the U.S. dollar, our functional currency in which a substantial portion of our revenues are
denominated, the impact of wage inflation on our results of operations will decrease, whereas in an environment where the Argentine
peso is strengthening against the U.S. dollar, the impact of wage inflation will increase. During the year ended December 31,
2016, the Argentine peso experienced a 21.9% devaluation from 13.01 Argentine pesos per U.S. dollar to 15.85 Argentine pesos per
U.S. dollar and INDEC reported from May to December an inflation rate of 16.9% while private estimates, on average, refer to annual
rate of inflation of 41%. The combination of this devaluation and the inflation rate is not expected to have a significant impact
on our revenues because a substantial portion of our sales are denominated in U.S. dollars. The devaluation, net of the impact
of the inflation rate in the same period, has resulted in an improvement in our operating costs, as our operating costs are primarily
denominated in Argentine pesos. See “Quantitative and Qualitative Disclosures about Market Risk — Foreign Exchange
Risk” and “Quantitative and Qualitative Disclosures about Market Risk — Wage Inflation Risk.”
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Our results of operations are
expected to benefit from government policies and regulations designed to foster the software industry in Argentina, primarily under
the Software Promotion Law. For further discussion of the Software Promotion Law, see “Business Overview  — Our
Delivery Model — Government Support and Incentives.”



Certain Income Statement Line Items



Revenues



Revenues are derived
primarily from providing technology services to our clients, which are medium- to large-sized companies based in the United States,
Europe and Latin America. For the year ended December 31, 2016, revenues increased by 27.2% to $322.9 million from $253.8
million for the year ended December 31, 2015. For the year ended December 31, 2015, revenues increased by 27.2% to $253.8
million from $199.6 million for the year ended December 31, 2014. Between 2014 and 2016, we experienced rapid growth in demand
for our services and significantly expanded our business.



We perform our services
primarily under time-and-material contracts (where materials costs consist of travel and out-of-pocket expenses) and, to a lesser
extent, fixed-price contracts. Revenues from our time-and-material contracts represented 92.1%, 96.2% and 90.0% of total revenues
for the years ended December 31, 2016, 2015 and 2014, respectively. Revenues from our fixed-price contracts represented 7.9%,
3.7% and 9.3% of total revenues for the years ended December 31, 2016, 2015 and 2014, respectively. The remaining portion
of our revenues in each year was derived from other types of contracts.



67







We discuss below the
breakdown of our revenues by client location, industry vertical and client concentration. Revenues consist of technology services
revenues net of reimbursable expenses, which primarily include travel and out-of-pocket costs that are billable to clients.



Revenues by Client Location



Our revenues are sourced
from three main geographic markets: North America (primarily the United States), Europe (primarily Spain and the United Kingdom)
and Latin America (primarily Argentina and Chile). We present our revenues by client location based on the location of the specific
client site that we serve, irrespective of the location of the headquarters of the client or the location of the delivery center
where the work is performed. For the year ended December 31, 2016, we had 340 clients.



The following table
sets forth revenues by client location by amount and as a percentage of our revenues for the years indicated:



|                        |  | Year ended December 31,            |        
|----------------------- |  | ---------------------------------- | -------
|                        |  | 2016                               |        
|                        |  | (in thousands, except percentages) |        
|By Geography            |  |                                    |        
|North America           |  | $                                  | 260,923
|Europe                  |  |                                    | 29,306 
|Asia                    |  |                                    | 1,265  
|Latin America and other |  |                                    | 31,362 
|Revenues                |  | $                                  | 322,856



Revenues by Industry Vertical



We are a provider of
technology services to enterprises in a range of industry verticals including media and entertainment, professional services, technology
and telecommunications, travel and hospitality, banks, financial services and insurance and consumer, retail and manufacturing,
among others. The following table sets forth our revenues by industry vertical by amount and as a percentage of our revenues for
the periods indicated:



|                                        |  | Year ended December 31,            |        
|--------------------------------------- |  | ---------------------------------- | -------
|                                        |  | 2016                               |        
|                                        |  | (in thousands, except percentages) |        
|                                        |  |                                    |        
|By Industry Vertical                    |  |                                    |        
|Media and Entertainment                 |  | $                                  | 67,912 
|Travel & Hospitality                    |  |                                    | 63,414 
|Banks, Financial Services and Insurance |  |                                    | 59,786 
|Technology & Telecommunications         |  |                                    | 51,378 
|Professional Services                   |  |                                    | 42,286 
|Consumer, Retail & Manufacturing        |  |                                    | 28,710 
|Other Verticals                         |  |                                    | 9,370  
|Total                                   |  | $                                  | 322,856



Revenues by Client Concentration



We have increased our
revenues by expanding the scope and size of our engagements, and we have grown our key client base primarily through our business
development efforts and referrals from our existing clients.



68







The following table
sets forth revenues contributed by our largest client, top five clients and top ten clients by amount and as a percentage of our
revenues for the years indicated:



|                     |  | Year ended December 31,            |        
|-------------------- |  | ---------------------------------- | -------
|                     |  | 2016                               |        
|                     |  | (in thousands, except percentages) |        
|Client concentration |  |                                    |        
|Top client           |  | $                                  | 31,249 
|Top five clients     |  |                                    | 108,831
|Top ten clients      |  |                                    | 150,217
|Top twenty clients   |  |                                    | 193,057



Our top ten customers
for the year ended December 31, 2016 have been working with us for, on average, six years.



Our focus on delivering
quality to our clients is reflected in the fact that existing clients from 2015 and 2014 contributed 91.7% and 80.2% of our revenues
in 2016, respectively. Our existing clients from 2014 contributed 92.3% of our revenues in 2015. As evidence of the increase in
scope of engagement within our client base, the number of clients that each accounted for over $5.0 million of our annual revenues
increased (eleven in 2016, ten in 2015 and ten in 2014) and the number of clients that each accounted for at least $1.0 million
of our annual revenues increased to sixty in 2016, fifty-one in 2015 and forty-six in 2014. The following table shows the distribution
of our clients by revenues for the year presented:



|                       |  | Year ended December 31, |    
|---------------------- |  | ----------------------- | ---
|                       |  | 2016                    |    
|                       |  |                         |    
|Over $5 Million        |  |                         | 11 
|$1 - $5 Million        |  |                         | 49 
|$0.5 - $1 Million      |  |                         | 41 
|$0.1 - $0.5 Million    |  |                         | 88 
|Less than $0.1 Million |  |                         | 151
|Total Clients          |  |                         | 340



The volume of work
we perform for specific clients is likely to vary from year to year, as we are typically not any client’s exclusive external
technology services provider, and a major client in one year may not contribute the same amount or percentage of our revenues in
any subsequent year.



Operating Expenses



Cost of Revenues



The principal components
of our cost of revenues are salaries and non-reimbursable travel costs related to the provision of services. Included in salaries
are base salary, incentive-based compensation, employee benefits costs and social security taxes. Salaries of our IT professionals
are allocated to cost of revenues regardless of whether they are actually performing services during a given period. Up to 70%
of the amounts paid by our Argentine subsidiaries for certain social security taxes in respect of base and incentive compensation
of our IT professionals is credited back to those subsidiaries under the Software Promotion Law, reducing the effective cost of
social security taxes from approximately 19.0% to approximately 10.0% of the base and incentive compensation on which those contributions
are calculated. For further discussion of the Software Promotion Law, see “— Income Tax Expense” below and
note 3.7.1.1 to our audited consolidated financial statements for the year ended December 31, 2016.



Also included in cost
of revenues is the portion of depreciation and amortization expense attributable to the portion of our property and equipment and
intangible assets utilized in the delivery of services to our clients.



Our cost of revenues
has increased since 2012 in line with the growth in our revenues and reflects the expansion of our operations in Argentina, Uruguay,
Colombia, Peru, Mexico, India and the United States primarily due to increases in salary costs, an increase in the number of our
IT professionals and the opening of new delivery centers. We expect that as our revenues grow, our cost of revenues will increase.
Our goal is to increase revenue per head and thereby increase our gross profit margin.



69







Selling, General and Administrative
Expenses



Selling, general and
administrative expenses represent expenses associated with promoting and selling our services and include such items as salary
of our senior management, administrative personnel and sales and marketing personnel (including commissions in the case of sales
and marketing personnel), occupancy costs, legal and other professional services expenses, Argentine transaction taxes and travel
costs. The credit of up to 70% for certain social security taxes paid by our Argentine subsidiaries that is provided under the
Software Promotion Law as described under “— Cost of Revenues” above also extends to payments of such social
security taxes in respect of salaries of personnel included in our selling, general and administrative expenses, reducing the effective
cost of social security taxes as described above.



Also included in selling,
general, and administrative expenses is the portion of depreciation and amortization expense attributable to the portion of our
property and equipment and intangible assets utilized in our sales and administration functions.



Our selling, general
and administrative expenses have increased primarily as a result of our expanding operations and the build-out of our senior and
mid-level management teams to support our growth . We expect our selling, general and administrative expenses to continue to increase
in absolute terms as our business expands. However, as a result of our management and infrastructure investments, we believe our
platform is capable of supporting the expansion of our business without a proportionate increase in our selling, general and administrative
expenses, resulting in gains in operating leverage.



Depreciation and Amortization Expense
(included in “Cost of Revenues” and “Selling, General and Administrative Expenses”)



Depreciation and amortization
expense consists primarily of depreciation of our property and equipment (primarily leasehold improvements, servers and other equipment)
and, to a lesser extent, amortization of our intangible assets, (mainly software licenses, acquired intangible assets and internal
developments). We expect that depreciation and amortization expense will continue to increase as we open more delivery centers
and client management locations.



Impairment of Tax Credits, Net of
Recoveries



Impairment of tax credits,
net of recoveries represents an allowance for impairment of tax credits for estimated losses resulting from substantial doubt about
the recoverability of our Software Promotion Law tax credits. This allowance was determined by estimating future uses of this credit
against value-added tax positions. During the year ended December 31, 2015 and 2014, we recorded gains of $1.8 million and
$1.5 million, respectively, related to the partial reversal of the allowance for impairment of tax credits after considering new
facts and circumstances that occurred during these years. As of December 31, 2015, the remaining allowance for impairment
of tax credits was offset against the carrying value of related Software Promotion Law tax credits. During the year ended December 31,
2016, no further allowance was recorded.



Gain on Transaction with Bonds



Proceeds Received from Capital Contributions



During the year ended
December 31, 2015 and 2014, our Argentine subsidiaries, with cash proceeds from capital contributions, acquired U.S. dollar-denominated
BODEN and BONAR in the U.S. debt markets (in U.S. dollars). BONAR are a form of Argentine sovereign bond with characteristics identical
to BODEN. The capital contributions during the years ended December 31, 2015 and 2014 were related to capital expenditures
incurred by our Argentine subsidiaries to establish delivery centers in Bahía Blanca, Mar del Plata and Tucumán,
open a new recruiting center in Buenos Aires, make initial payments for a new building agreed with Inversiones y Representaciones
S.A. (IRSA) and finance working capital requirements. The BODEN and BONAR trade both in the U.S. and Argentine markets. We
consider the Argentine market to be the principal market for these bonds.



After holding the BODEN
and BONAR for a certain period of time, our Argentine subsidiaries sold the BODEN and BONAR in the Argentine market. Because the
fair value of the BODEN and BONAR in the Argentine markets, converted at the U.S. dollar official exchange rate prevailing in Argentina
(which is the rate used to convert transactions in foreign currencies into our Argentine subsidiaries’ functional currency,
which is the U.S. dollar), during the years ended December 31, 2015 and 2014 was higher than the quoted U.S. dollar price
for the BODEN and BONAR in the U.S. markets, we recognized a gain when remeasuring the fair value of the BODEN and BONAR (expressed
in Argentine pesos) into U.S. dollars at the official exchange rate prevailing in Argentina.



70







The rate of exchange
between the Argentine peso and the U.S. dollar may increase or decrease in the future. We cannot predict future fluctuations in
the exchange rate of the Argentine peso against the U.S. dollar. In addition, legislative, judicial or administrative changes or
interpretations may be forthcoming, which could also affect the exchange rate. Accordingly, our gains reported on transactions
with BODEN and BONAR during the years ended December 31, 2015 and 2014 are not necessarily indicative of the results that
may be expected for any future period. If in the future there is a gap between the quoted price of BODEN and BONAR in the Argentine
markets (in Argentine pesos) and their quoted price in U.S. markets (in U.S. dollars) as converted at the official exchange rate
prevailing in Argentina, our Argentine subsidiaries may acquire, with cash proceeds from capital contributions, U.S. dollar-denominated
BODEN and BONAR in the U.S. debt markets (in U.S. dollars).



Finance Income



Finance income consists
of foreign exchange gain on monetary assets, liabilities denominated in currencies other than the U.S. dollar and interest gains
on time deposits, short-term securities issued by the Argentine Central Bank (Letras del Banco Central), foreign exchange
forward contracts and mutual funds.



Finance Expense



Finance expense consists
of interest expense on borrowings, loss arising for foreign exchange forward contracts and other investments, foreign exchange
loss and other interests.



Income Tax Expense



As a global company,
we are required to provide for corporate income taxes in each of the jurisdictions in which we operate. We have secured special
tax benefits in Argentina and Uruguay, as described below. As a result, our income tax expense is low in comparison to profit before
income tax expense due to the benefit related to profit before income tax expense earned in those lower tax jurisdictions. Changes
in the geographic mix, income tax regulations or estimated level of annual pre-tax income can also affect our overall effective
income tax rate. As our operations outside of Argentina and Uruguay grow, it is likely that our effective tax rate will increase.



Under the Software
Promotion Law, Argentine companies that are engaged in the design, development and production of software benefit from a 60% reduction
in the corporate income tax rate and a tax credit of up to 70% of amounts paid for certain social security taxes that can be applied
to offset certain national tax liabilities. When originally enacted in 2004, the Software Promotion Law only permitted this tax
credit to be offset against liability for value-added taxes. In 2011, the Software Promotion Law was amended to permit the tax
credit to be offset as well against corporate income tax liabilities up to a percentage not higher than the taxpayer’s declared
percentage of exports (subject to the issuance of implementing regulations), and to extend the reduction in corporate income tax
rate and the tax credit regime through 2019. On September 16, 2013, the Argentine Government published Regulatory Decree No. 1315/2013,
which governs the implementation of the Software Promotion Law. Regulatory Decree No. 1315/2013 introduced specific requirements
to qualify for the tax benefits contemplated by the Software Promotion Law. In particular, Regulatory Decree No. 1315/2013 provides
that from September 17, 2014 through December 31, 2019 only those companies that are accepted for registration in the National
Registry of Software Producers maintained by the Secretary of Industry will be entitled to participate in the benefits of the Software
Promotion Law. On June 25, 2014, our Argentine subsidiaries Huddle Group S.A., IAFH Global S.A. and Sistemas Globales S.A. applied
for registration in the National Registry of Software Producers.



On March 26, 2015,
the Secretary and Subsecretary of Industry issued rulings approving the registration in the National Registry of Software Producers
of Sistemas Globales S.A. and IAFH Global S.A. On April 17, 2015, the Secretary and Subsecretary of Industry issued rulings approving
the registration in the National Registry of Software Producers of Huddle Group S.A. In each case, the ruling made the effective
date of registration retroactive to September 18, 2014 and provided that the benefits enjoyed under the Software Promotion Law
as originally enacted were not extinguished until the ruling goes into effect (which have occurred upon its date of publication
in the Argentine government’s official gazette on before mentioned dates).



On May 7, 2015, the
Company applied to the Subsecretary of Industry for deregistration of Huddle Group S.A. from the National Registry of Software
Producers, as the subsidiary had discontinued activities since January 1, 2015. Consequently, Huddle Group S.A. is subject to a
35% corporate income tax rate since January 1, 2015.



The operations of the
Argentine subsidiaries are our most significant source of profit before income tax.



Our subsidiary in Uruguay,
which is domiciled in a tax-free zone, benefits from a 0% income tax rate and an exemption from value-added tax. The subsidiary
located outside the tax-free zone has an exemption from income tax and value-added tax applicable to the exports of software development
services.



Until December 31,
2016, our subsidiary in Colombia was subject to federal corporate income tax at a rate of 25% and taxation of its Contribución
Empresarial para la Equidad (CREE) at a rate of 9% plus a surcharge of 6% calculated on net income before income tax. Law No
1,819, which became effective on January 1, 2017, increased the federal corporate income tax rate in Colombia to 40% in 2017, 37%
in 2018 and 33% in 2019. On January 1, 2017, the tax on CREE and its associated surcharge were eliminated.



71







The Company’s
U.S. subsidiaries Globant LLC and L4 Mobile LLC are subject to U.S. federal income tax at the rate of 34%. For tax purposes, L4
Mobile LLC is considered a partnership which elected to be a disregarded entity. The profit of L4 Mobile LLC will pass directly
through the business to Globant LLC and will be taxed on Globant LLC's income tax return.



Our subsidiaries in
England are subject to corporate income tax at the rate of 20%, which will be reduced to 19% beginning on April 1, 2017.



On September 29, 2014,
Law No. 20,780 was published in the Chilean government's official gazette. This law introduced significant changes to the Chilean
taxation system and strengthened the powers of the Chilean tax authority to control and prevent tax avoidance. Effective January
1, 2017, Law No. 20,780 created two different corporate tax regimes: the Attributed Income Regime (Sistema de Renta Atribuida)
and the Semi-Integrated Regime (Sistema Parcialmente Integrado)​. Under the Attributed Income Regime, shareholders
are taxed on an accrual basis, with a rate of 25% imposed at the operating entity level, plus an additional withholding income
tax of 35% for nonresident shareholders. Under this regime, profits are attributed to the shareholders, irrespective of whether
a distribution is actually made. Under the Semi-Integrated Regime, shareholders are taxed on a cash basis (when profits are distributed),
at a rate of 25.5% for 2017 and 27% for 2018, imposed at the operating entity level, plus an additional withholding income tax
of 35% when profits are actually distributed. Under this regime, the corporate rate is creditable against the 35% withholding income
tax, but 35% of such credit is required to be paid to the Chilean Treasury, so, in practice, only 65% of the corporate rate is
creditable. However, investors from countries with which Chile has signed the Double Tax Treaty as of January 1, 2017 would
be entitled to use the 100% of the foreign tax credit, even if at that time the agreement was not yet in force. Under such circumstances,
the full tax credit would be applicable until December 31, 2019 if at that time the relevant tax treaty had not yet entered into
force. The Semi-Integrated Regime applies to Sistemas Globales Chile. Due to its shareholders being domiciled in Spain, 100% of
the income tax will be creditable by them. Sistemas Globales Chile was subject to a corporate income tax rate of 24% during the
year ended December 31, 2016. Beginning on January 1, 2017, the corporate income tax rate applicable to Sistemas Globales Chile
will increase to 25.5%



Our subsidiary in Brazil
is subject to a corporate income tax rate of 24% plus an additional 10% if its pre-tax income is higher than 120,000 reais. As
of December 31, 2016, our Brazilian subsidiary had a tax loss carryforward of 1.2 million. The tax loss carryforward will not expire,
and our Brazilian subsidiary may utilize it to offset up to 30% of its taxable income in each carryforward year.



On December​
31,​ 2014, Peru enacted Law ​No ​30​.​296, which made several changes to the Peruvian tax
regime​. Among other changes, the law decreases corporate income tax​ rates, effective January ​1,
​2015,​ ​as follows: Fiscal Year 2015 and 2016, 28%, ​Fiscal Year 2017 and 2018, 27%, Fiscal Year
2019, 26%. The Peruvian Congress on October 6, 2016, issued Law No. 30​.​506, which provides the Peruvian government
the power to legislate regarding matters affecting economic growth, formal compliance, and national security for a 90-day period.
Pursuant to the power granted, the Peruvian government​ issued Legislative Decree No. 1261​ on December 10, 2016
that increases the corporate income tax rate, effective January 1, 2017. ​Because of the Decree, corporate income tax ​r​ate​
for Fiscal Year​ 2015​ and ​2016​ is​ 28% ​and for Fiscal Year ​2017 ​onwards
will be 29.5%​.​



Our subsidiary in Mexico
is subject to corporate income tax at the rate of 30%.



Our subsidiary in India
is subject to corporate income tax at the rate of 34.61%. In addition, all Indian profits, including those generated within
SEZs, are subject to the MAT at a rate of approximately 21.34%, including surcharges. We expect our Indian subsidiary to
apply for registration in the SEZ in 2017.



Results of Operations



The following table
sets forth a summary of our consolidated results of operations by amount and as a percentage of our revenues for the periods indicated.
This information should be read together with our audited consolidated financial statements and related notes included elsewhere
in this annual report. The operating results in any period are not necessarily indicative of the results that may be expected for
any future period.



72







|                                                                          |  | Year ended December 31,            |         
|------------------------------------------------------------------------- |  | ---------------------------------- | --------
|                                                                          |  | 2016                               |         
|                                                                          |  | (in thousands, except percentages) |         
|Consolidated Statements of profit or loss and other comprehensive income: |  |                                    |         
|Revenues (1)                                                              |  | $                                  | 322,856 
|Cost of revenues (2)                                                      |  |                                    | (191,395
|Gross profit                                                              |  |                                    | 131,461 
|Selling, general and administrative expenses(3)                           |  |                                    | (81,889 
|Impairment of tax credits, net of recoveries                              |  |                                    | —       
|Profit from operations                                                    |  |                                    | 49,572  
|Gain on transactions with bonds (4)                                       |  |                                    | —       
|Finance income                                                            |  |                                    | 16,215  
|Finance expense                                                           |  |                                    | (19,227 
|Finance (expense) income, net (5)                                         |  |                                    | (3,012  
|Other income and expenses, net (6)                                        |  |                                    | 3,629   
|Profit before income tax                                                  |  |                                    | 50,189  
|Income tax (7)                                                            |  |                                    | (14,327 
|Net income for the year                                                   |  | $                                  | 35,862  



| | (1) | Includes transactions with related parties of $6,462, $6,655 and $7,681 for the years ended December 31,
2016, 2015 and 2014, respectively.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Includes depreciation and amortization expense of $4,281, $4,441 and $3,813 for the years ended
December 31, 2016, 2015 and 2014, respectively. Also includes share based compensation for $917, $735 and $35 for the years
ended December 31, 2016, 2015 and 2014, respectively.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | Includes depreciation and amortization expense of $6,637, $4,860 and $4,221 for the years ended
December 31, 2016, 2015 and 2014, respectively. Also includes share based compensation of $2,703, $1,647 and $582 for the
years ended December 31, 2016, 2015 and 2014, respectively.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | Includes gain on transactions with bonds of $19,102, and $12,629 acquired with funds from capitalizations
received by our Argentine subsidiaries for the years ended December 31, 2015 and 2014, respectively. See note 3.18 to our
audited consolidated financial statements.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5) | Includes foreign exchange loss, net, of $8,620, $10,136 and $2,946 for the years ended December 31,
2016, 2015 and 2014, respectively.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------

| | (6) | Includes a gain of $418 on the remeasurement of contingent consideration related to the acquisition
of Clarice, a gain of $2,981 related to the remeasurement of the fair value of the call and put option over our non-controlling
interest in Dynaflows, and a gain of $225 related to the bargain business combination of Difier for the year ended December 31,
2016. See notes 23, 27.10.1 and 27.10.2 to our audit consolidated financial statements, respectively. Includes a gain related to
the valuation at fair value of our 22.7% share interest held in Dynaflows of $625 for the year ended December 31, 2015. Includes
a gain related to the bargain business combination of Bluestar Peru of $472 for the year ended December 31, 2014. See note
23 to our audited consolidated financial statements.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (7) | Includes deferred tax gains of $730 and $1,102 for the years ended December 31, 2016 and 2015,
respectively, and a deferred tax charge of $370 for the year ended December 31, 2014.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



2016 Compared to
2015



Revenues



Revenues were $322.9
million for 2016, representing an increase of $69.1 million, or 27.2%, from $253.8 million for 2015.



Revenues from North
America increased by $48.5 million, or 22.8%, to $260.9 million for 2016 from $212.4 million for 2015. Revenues from Latin America
and other countries increased by $4.9 million, or 18.5%, to $31.4 million for 2016 from $26.5
million for 2015. Revenues from Europe increased by $15.8 million, or 117.0%, to $29.3 million for 2016 from $13.5 million for
2015. Revenues from Asia decreased by $0.1 million, or 7.1%, to $1.3 million for 2016 from $1.4 million for 2015.



73







Revenues from technology
and telecommunications clients decreased by $0.4 million, or 0.8%, to $51.4 for 2016 from $51.8 for 2015. The decrease in revenues
from clients in this industry vertical was primarily attributable to lower demand in gaming, consumer experience services and the
cross-selling capabilities of our Studios. Revenues from media and entertainment clients increased by $6.1 million, or 9.9%, to
$67.9 for 2016 from $61.8 for 2015. The increase in revenues from clients in this industry vertical was primarily attributable
to a higher demand for our gaming solutions, mobile applications, and consumer experience practices. Revenues from professional
services clients increased by $5.8 million, or 15.9%, to $42.3 for 2016 from $36.5 for 2015. The increase in revenues from clients
in this industry vertical was primarily attributable to growth in demand for services related to enterprise consumerization, digital
content and consumer experience solutions. Revenues from consumer, retail and manufacturing clients decreased by $0.1 million,
or 0.3%, to $28.7 million for 2016 from $28.8 million for 2015. The decrease in revenues from clients in this industry vertical
was primarily attributable to lower demand for services related to mobile applications, testing services, user experience and social
practices, supported by the cross-selling capabilities of our Studios. Revenues from banks, financial services and insurance clients
increased by $27.8 million, or 86.9%, to $59.8 for 2016 from $32.0 for 2015. The increase in revenues from clients in this industry
vertical was primarily attributable to higher demand for services related to high performance, analytics, cloud and mobile. Revenues
from travel and hospitality clients increased by $24.5 million, or 63.0%, to $63.4 for 2016 from $38.9 for 2015. This increase
is primarily attributable to large increase in demand for consumer experience and automated testing services. Revenues from clients
in other verticals increased by $5.4 million, or 135.0%, to $9.4 for 2016 from $4.0 for 2015.



Revenues from our top
ten clients in 2016 increased by $31.7 million, or 26.8%, to $150.2 million from revenues of $118.5 million in 2015, reflecting
our ability to increase the scope of our engagement with our main customers. Revenues from our largest client for 2015, Walt Disney
Parks and Resorts Online, decreased by $0.1 million, or 0.3%, to $31.0 million for 2016 from $31.1 million for 2015. Revenues from
our largest client for 2016, Southwest Airlines Co., increased by $16.6 million, or 113.7%, to $31.2 million from $14.6 million
for 2015.



Cost of Revenues



Cost of revenues was
$191.4 million for 2016, representing an increase of $31.1 million, or 19.4%, from $160.3 million for 2015. The increase was primarily
attributable to the net addition of 606 IT professionals since December 31, 2015, an increase of 13.1%, to satisfy growing
demand for our services, which translated into an increase in salaries. Cost of revenues as a percentage of revenues decreased
to 59.3% for 2016 from 63.2% for 2015. The decrease was primarily attributable to the lower variation in exchange rate lag with
respect to actual salary increases in nominal Argentine pesos during 2016.



Salaries, employee
benefits, social security taxes and share based compensation, the main component of cost of revenues, increased by $30.4 million,
or 20.7% to $177.4 million for 2016 from $147.0 million for 2015. Salaries, employee benefits and social security taxes include
a $0.9 million share-based compensation expense in 2016 and $0.7 million share-based compensation expense in 2015.



Depreciation and amortization
expense included in the cost of revenues decreased by $0.1 million, or 2.3%, to $4.3 million for 2016 from $4.4 million for 2015.



Travel and housing
decreased by $0.1 million, or 1.5%, to $6.6 million for 2016 from $6.7 million for 2015. The decrease was primarily attributable
to efficiencies in the allocation of employees to projects.



Selling, General and Administrative
Expenses



Selling, general and
administrative expense was $81.9 million for 2016, representing an increase of $10.3 million from $71.6 million for 2015. The increase
was primarily attributable to $3.7 million increase in salaries, employee benefits, social security taxes and share based compensation
related to the addition of a number of senior sales executives in our main market, the United States; a $1.7 million increase in
depreciation and amortization expense; a $2.9 million increase in office and rental expenses as a result of new delivery centers;
and a $1.7 million increase in Travel and housing. The increases in office expenses, rental expenses and depreciation and amortization
expense were related to the opening of our new delivery centers. In addition, there was a $0.1 million increase in professional
fees including audit and other professional services. Allowances for doubtful accounts increased by $0.6 million. Selling, general
and administrative expenses as a percentage of revenues decreased to 25.4% for 2016 from 28.2% for 2015. Share-based compensation
expense within selling, general and administrative expenses accounted for $2.7 million, or 0.8%, as a percentage of revenues for
2016, and $1.6 million, or 0.6%, as a percentage of revenues for 2015.



74







Impairment of Tax Credits, Net of Recoveries



During 2016, we did
not record any impairment of tax credits, compared to a gain of $1.8 million for 2015. As of December 31, 2015, the remaining
allowance for impairment of tax credits was offset against the carrying value of related Software Promotion Law tax credits.



Gain on Transactions with Bonds



Gain on transactions
with bonds was zero for 2016 compared to $19.1 million for 2015 due to the fact that we did not engage in these types of transactions
during 2016.



Finance Income



Finance income for
2016 was $16.2 million compared to $27.6 million for 2015, resulting primarily from foreign exchange gains of $6.2 million as compared
to $9.2 million in 2015 and gains from short-term investments, primarily related to forward contracts, of $9.9 million as compared
to $18.4 million in 2015.



Finance Expense



Finance expense decreased
to $19.2 million for 2016 from $21.0 million for 2015, primarily reflecting a foreign exchange loss of $14.8 million mainly related
to the impact of the weakening of the Argentine peso against the U.S. dollar on our Argentine peso-denominated monetary assets,
a loss of $3.0 million arising from held-for-trading investments and interest expense of $0.8 million. Other financial expenses
totaled $0.6 million.



Other Income and Expenses, Net



Other income and expenses,
net increased to a gain of $3.6 million for 2016 from a gain of $0.6 million for 2015. Our 2016 gain includes a gain of $0.4 million
on the remeasurement of contingent consideration related to the acquisition of Clarice (see note 27.10.1 of our consolidated financial
statements), a gain of $3.0 million related to the remeasurement at fair value of the call and put option over our non-controlling
interest in Dynaflows and a gain of $0.2 million related to the bargain business combination of Difier (see note 27.10.2, of our
consolidated financial statements).



Income Tax



Income tax expense
amounted to $14.3 million for 2016, a decrease of $4.1 million from a $18.4 million income tax expense for 2015. The decrease in
income tax expense was attributable to lower gain related to Argentine forward contracts and the reduced impact of the devaluation
of the Argentine peso. Our effective tax rate (calculated as income tax gain or expense divided by the profit before income tax)
decreased to 28.5% for 2016 from 36.8% for 2015, principally driven by the decrease in the taxable foreign exchange gain from the
devaluation of Argentine pesos.



Net Income for the Year



As a result of the
foregoing, we had a net income of $35.9 million for 2016, compared to $31.6 million for 2015.



2015 Compared
to 2014



Revenues



Revenues were $253.8
million for 2015, representing an increase of $54.2 million, or 27.2%, from $199.6 million for 2014.



Revenues from North
America increased by $49.3 million, or 30.2%, to $212.4 million for 2015 from $163.1 million for 2014. Revenues from Latin America
and other countries increased by $1.7 million, or 6.9%, to $26.5 million for 2015 from $24.8
million for 2014. Revenues from Europe increased by $1.8 million, or 15.4%, to $13.5 million for 2015 from $11.7 million for 2014.
Revenues from Asia amounted to $1.4 million in 2015.



75







Revenues from technology
and telecommunications clients increased by $4.9 million, or 10.4%, to $51.8 million for 2015 from $46.9 million for 2014. The
increase in revenues from clients in this industry vertical was primarily attributable to gaming, consumer experience services
and the cross-selling capabilities of our Studios. Revenues from media and entertainment clients increased by $16.8 million, or
37.3%, to $61.8 million for 2015 from $45.0 million for 2014. The increase in revenues from clients in this industry vertical was
primarily attributable to a higher demand for our gaming solutions, mobile applications, and consumer experience practices. Revenues
from professional services clients increased by $3.7 million, or 11.3%, to $36.5 million for 2015 from $32.8 million for 2014.
The increase in revenues from clients in this industry vertical was primarily attributable to growth in demand for services related
to enterprise consumerization, digital content and consumer experience solutions. Revenues from consumer, retail and manufacturing
clients increased by $3.1 million, or 12.1%, to $28.8 million for 2015 from $25.7 million for 2014. The increase in revenues from
clients in this industry vertical was primarily attributable to growth in demand for services related to mobile applications, testing
services, user experience and social practices, supported by the cross-selling capabilities of our Studios. Revenues from banks,
financial services and insurance clients increased by $6.8 million, or 27.0%, to $32.0 million for 2015 from $25.2 million for
2014. The increase in revenues from clients in this industry vertical was primarily attributable to growth in demand for services
related to high performance, analytics, cloud and mobile. Revenues from travel and hospitality clients increased by $16.4 million,
or 72.9%, to $38.9 million for 2015 from $22.5 million for 2014. This increase is primarily attributable to large increase in demand
for consumer experience and automated testing services. Revenues from clients in other verticals increased by $2.5 million, or
166.7%, to $4.0 million for 2015 from $1.5 million for 2014.



Revenues from our top
ten clients in 2015 increased by $30.8 million, or 35.1%, to $118.5 million from revenues of $87.7 million in 2014, reflecting
our ability to increase the scope of our engagement with our main customers. Revenues from our largest client for 2015, Walt Disney
Parks and Resorts Online, increased by $13.6 million, or 77.7%, to $31.1 million for 2015 from $17.5 million for 2014.



Cost of Revenues



Cost of revenues was
$160.3 million for 2015, representing an increase of $38.6 million, or 31.7%, from $121.7 million for 2014. The increase was primarily
attributable to the net addition of 1,189 IT professionals since December 31, 2014, an increase of 34.7%, to satisfy growing
demand for our services, which translated into an increase in salaries and travel expenses. Cost of revenues as a percentage of
revenues increased to 63.2% for 2015 from 61.0% for 2014. The increase was primarily attributable to the exchange rate lag with
respect to actual salary increases in nominal Argentine pesos during 2015, increasing our average cost per employee during the
year ended December 31, 2015, and also driven by the growth in our IT ́s professional ́s headcount.



Salaries, employee
benefits, social security taxes and share based compensation, the main component of cost of revenues, increased by $39.5 million,
or 36.7% to $147.0 million for 2015 from $107.5 million for 2014. Salaries, employee benefits and social security taxes include
a $0.7 million share-based compensation expense in 2015 and $0.04 million share-based compensation expense in 2014.



Depreciation and amortization
expense included in the cost of revenues increased by $0.6 million, or 15.8%, to $4.4 million for 2015 from $3.8 million for 2014.
The increase was primarily attributable to an increase in software licenses acquired in 2015 related to the delivery of our services.



Travel and housing
decreased by $1.4 million, or 17.3%, to $6.7 million for 2015 from $8.1 million for 2014. The decrease was primarily attributable
to efficiencies in the allocation of employees to projects.



Selling, General and Administrative
Expenses



Selling, general and
administrative expense was $71.6 million for 2015, representing an increase of $14.3 million from $57.3 million for 2014. The increase
was primarily attributable to a $9.6 million increase in salaries, employee benefits, social security taxes and share based compensation
related to the addition of a number of senior sales executives in our main market, the United States; a $0.7 million increase in
depreciation and amortization expense; a $2.7 million increase in office and rental expenses as a result of new delivery centers.
The increases in office expenses, rental expenses and depreciation and amortization expense were related to the opening of the
new delivery centers. In addition, there was a $0.4 million increase in professional fees including audit and other professional
services. Allowances for doubtful accounts increased by $0.1 million. Selling, general and administrative expenses as a percentage
of revenues decreased to 28.2% for 2015 from 28.7% for 2014. Share-based compensation expense within selling, general and administrative
expenses accounted for $1.6 million, or 0.6%, as a percentage of revenues for 2015, and $0.6 million, or 0.3%, as a percentage
of revenues for 2014.



Impairment of Tax Credits, Net of Recoveries



Impairment of tax credits,
net of recoveries, increased by $0.3 million from $1.8 million for 2015 compared to a gain of $1.5 million for 2014. This increase
is attributable to the recovery of a portion of a portion of the Software Promotion Law credit.



Gain on Transactions with Bonds



Gain on transactions
with bonds increased by $6.5 million to $19.1 million for 2015 compared to $12.6 million for 2014. This increase is explained by
two factors: (i) an increase in the amount of money transacted in bonds and (ii) a increase in the spread between the implied exchange
rate when comparing U.S. dollar-denominated bonds purchased in the U.S. debt markets (in U.S. dollars) and the fair value of those
same bonds in the Argentine debt markets (in Argentine pesos).



76







Finance Income



Finance income for
2015 was $27.6 million compared to $10.3 million for 2014, resulting primarily from foreign exchange gains of $9.2 million as compared
to $6.4 million in 2014 and investment gains of $18.4 million as compared to $3.8 million in 2014.



Finance Expense



Finance expense increased
to $21.0 million for 2015 from $11.2 million for 2014, primarily reflecting a foreign exchange loss of $19.3 million mainly related
to the impact of the weakening of the Argentine peso against the U.S. dollar on our Argentine peso-denominated monetary assets,
and interest expense of $1.0 million. Other financial expenses totaled $0.7 million.



Other Income and Expenses, Net



Other income and expenses,
net decreased to a gain of $0.6 million for 2015 from a gain of $0.4 million for 2014. Our 2015 gain was primarily related to the
valuation at fair value of the 22.7% share interest in Dynaflows. Our 2014 gain was primarily attributable to the business combination
of BlueStar Peru.



Income Tax



Income tax expense
amounted to $18.4 million for 2015, an increase of $9.5 million from a $8.9 million income tax expense for 2014. The increase in
income tax expense was attributable to higher profit before income tax in the subsidiaries where we operate and the impact of the
devaluation of the Argentine peso. Our effective tax rate (calculated as income tax gain or expense divided by the profit before
income tax) increased to 36.8% for 2015 from 26.1% for 2014, principally driven by the increase in the taxable foreign exchange
gain from the devaluation of Argentine pesos.



Net Income for the Year



As a result of the
foregoing, we had a net income of $31.6 million for 2015, compared to $25.3 million for 2014.



B. Liquidity and Capital Resources



Liquidity and Capital Resources



Capital Resources



Our primary sources
of liquidity are cash flows from operating activities. In July 2014, we raised $40.5 million in our initial public offering, net
of underwriting fees and expenses. For the year 2016, we derived 89.9% of our revenues from clients in North America and Europe
pursuant to contracts that are entered into by our subsidiaries located in the United States and the United Kingdom.



Our primary cash needs
are for capital expenditures (consisting of additions to property and equipment and to intangible assets) and working capital.
From time to time we also require cash to fund acquisitions of businesses.



Our primary working
capital requirements are to finance our payroll-related liabilities during the period from delivery of our services through invoicing
and collection of trade receivables from clients.



We incur capital expenditures
to open new delivery centers, for improvements to existing delivery centers, for infrastructure-related investments and to acquire
software licenses.



We will continue to
invest in our subsidiaries. In the event of any repatriation of funds or declaration of dividends from our subsidiaries, there
will be a tax effect because dividends from certain foreign subsidiaries are subject to taxes.



77







The following table
sets forth our historical capital expenditures for the years ended December 31, 2016, 2015 and 2014:



|                     |  | Year ended December 31, |       
|-------------------- |  | ----------------------- | ------
|                     |  | 2016(***)               |       
|                     |  | (In thousands)          |       
|Capital expenditures |  | $                       | 21,856



| | * | Excludes impact of Bluestar Peru acquisition.
| | - | ---------------------------------------------

| | ** | Excludes impact of Clarice and Dynaflows acquisitions
| | -- | -----------------------------------------------------

| | *** | Excludes impact of WAE, Difier and L4 acquisitions
| | --- | --------------------------------------------------



Investments



During 2014, we invested
$12.0 million in capital expenditures, primarily for the final payments related to the acquisitions of delivery centers in Bahía
Blanca, La Plata, Mar del Plata and Tucumán. We also invested in new delivery centers in Mexico City, Mar del Plata in Argentina,
Bogotá in Colombia and client management location in New York in the United States.



During 2015, we invested
$16.9 million in capital expenditures, primarily in setting up our delivery centers in Mexico City, Mexico, Pune, India, Buenos
Aires, Argentina and Medellin, Colombia. We also invested in the acquisition of land in Tandil, Argentina, where we plan to build
a new facility to consolidate our regional delivery centers.



During 2016, we invested
$21.9 million in capital expenditures, primarily to establish our delivery centers in Mexico City, Mexico, Pune, India and Bogota,
Colombia.



Acquisitions



On October 10, 2014,
we acquired 100% of the capital stock of BlueStar Holdings. The aggregate purchase price under the stock purchase agreement amounted
to $1.4 million, equal to the net working capital of BlueStar Holdings as of the acquisition date.



On May 14, 2015, we
acquired Clarice, an innovation consulting and software development firm in India, for an aggregate purchase price of up to $20.2
million, $10.9 million of which is payable on a deferred basis and subject to reduction upon the occurrence of certain events relating,
among other things, to Clarice’ gross revenue and gross profit for the following three years.



On May 23, 2016 we
acquired WAE, a a service design consultancy, specializing in three distinct but complementary service offerings (Research, Strategy
and Creative) for an aggregate purchase price of $19.9 million, of which $11.4 million is payable on a deferred basis and subject
to reduction upon the occurrence of certain events relating to, among other things, WAE’s gross revenue and gross profit
for the following two years.



On November 14, 2016,
we entered into a stock purchase agreement with 3C to purchase 100% of the capital stock of Difier for an aggregate purchase price
of $0.025 million. Difier is engaged in the business of providing information technology support services to 3C, which has been
and remains the only customer of Difier.



On November 14, 2016,
we acquired 100% of shares of L4 Mobile, LLC (“L4”). L4 offers the digital product consulting, design, development
and quality assurance services necessary to build and manage robust digital products. The aggregate purchase price amounted to
$20.4 million, of which $9.4 million is payable on a deferred basis and subject to reduction upon the occurrence of certain events
relating, among other things, to WAE’ gross revenue and gross profit for the following two years.



As of December 31,
2016, we had cash and cash equivalents and investments of $59.9 million.



78







Cash Flows



The following table
summarizes our cash flows from operating, investing and financing activities for the periods indicated:



|                                                             |  | For the year ended December 31, |        
|------------------------------------------------------------ |  | ------------------------------- | -------
|                                                             |  | 2016                            |        
|                                                             |  |                                 |        
|Net cash provided by (used in) operating activities          |  |                                 | 31,480 
|                                                             |  |                                 |        
|Net cash (used in) provided by investing activities          |  |                                 | (27,999
|                                                             |  |                                 |        
|Net cash provided by financing activities                    |  |                                 | 7,699  
|                                                             |  |                                 |        
|Effect of exchange rate changes on cash and cash equivalents |  |                                 | 2,632  
|                                                             |  |                                 |        
|Cash and cash equivalents at beginning of the year           |  |                                 | 36,720 
|Cash and cash equivalents at end of the year                 |  |                                 | 50,532 
|Net increase in cash and cash equivalents at end of the year |  |                                 | 13,812 



Operating Activities



Net cash provided by
operating activities consists primarily of profits before taxes adjusted for non-cash items, including depreciation and amortization
expense, and the effect of working capital changes.



Net cash provided by
operating activities was $31.5 million for the year ended December 31, 2016 as compared to net cash used in operating activities
of $5.3 million for the year ended December 31, 2015. This increase of $36.8 million in net cash provided by operating activities
was primarily attributable to a $29.6 million increase in profit before income tax expense adjusted for non-cash-items, a $4.9
million increase in working capital and a $2.3 million decrease in income tax payments.



Changes in working
capital in the year ended December 31, 2016 consisted primarily of a $5.8 million increase in trade receivables, a $17.1 million
increase in other receivables, a $1.2 million decrease in trade payables, and a $1.8 decrease in tax liabilities, partially offset
by a $3.3 million increase in payroll and social security taxes payable. The $5.8 million increase in trade receivables reflects
our revenue growth. The $17.1 million increase in other receivables was mainly related to the increase in Software Promotion Regime
credit. Payroll and social security taxes payable increased to $30.3 million as of December 31, 2016 from $25.6 million as
of December 31, 2015, primarily as a result of the growth in our headcount in line with our expansion.



Net cash used in operating
activities was $5.3 million for the year ended December 31, 2015, as compared to net cash provided by operating activities
of $14.3 million for the year ended December 31, 2014. This decrease of $19.6 in net cash provided by operating activities
was primarily attributable to $5.6 million increase in profit before income tax expenses adjusted for non-cash items, a $25.6 million
decrease in working capital and $0.4 million decrease in income taxes paid.



Changes in working
capital in the year ended December 31, 2015 consisted primarily of a $6.5 million increase in trade receivables, a $32.1 million
increase in other receivables, primarily offset by a $6.9 million increase in payroll and social security taxes payable, and a
$1.4 million increase in trade payables. The $6.5 million increase in trade receivables reflects our revenue growth. The $32.1
million increase in other receivables was mainly related to advance payments to IRSA (see note 20 of the consolidated financial
statements included in this annual report). Payroll and social security taxes payable increased to $25.6 million as of December 31,
2015 from $21.0 million as of December 31, 2014, primarily as a result of the growth in our headcount in line with our expansion.



Investing Activities



Net cash of $28.0 million
was used in investing activities for the year ended December 31, 2016 as compared to $5.5 million of net cash provided by
investing activities during the year ended December 31, 2015. During the year ended December 31, 2016, we invested in
mutual funds and sovereign bonds, which generated a cash flow of $20.4 million, and we also invested $24.0 million in fixed and
intangible assets and $23.3 million in acquisition-related transactions, and we lost proceeds of $1.1 million from forward contracts.



Net cash of $5.5 million
was provided by investing activities for the year ended December 31, 2015, as compared to net cash used of $23.7 million for
the year ended December 31, 2014. During the year ended December 31, 2015, we invested in mutual funds and sovereign
bonds, which generated a cash flow of $27.4 million, $17.7 million in fixed and intangible assets and $11.3 million in acquisition-related
transactions, and we received proceeds of $7.2 million from forward contracts.



79







Financing Activities



Net cash of $7.7 million
was provided by financing activities for the year ended December 31, 2016, as compared to $2.0 million of net cash provided
by financing activities for the year ended December 31, 2015. During the year ended December 31, 2016, we received $1.9
million for the issuance of shares under our share-based compensation plan and $6.4 proceeds from subscription agreement and paid
borrowing for $0.5 million.



Net cash of $2.0 million
was provided by financing activities during the year ended December 31, 2015 as compared to $28.5 million provided by financing
activities in the year ended December 31, 2014. During the year ended December 31, 2015, we received $2.2 million from
the issuance of shares under our share-based compensation plan and paid borrowing for $0.5 million.



Future Capital Requirements



We believe that our
existing cash and cash equivalents and cash flows from operations will be sufficient to meet our anticipated cash needs for at
least the next 12 months. In addition, as of December 31, 2016, IAFH Global S.A. had recognized an aggregate of $5.7 million
in value-added tax credits. We expect to monetize the value of those value-added tax credits by way of cash reimbursement from
AFIP during 2017.



Our ability to generate
cash is subject to our performance, general economic conditions, industry trends and other factors. If our cash and cash equivalents
and operating cash flow are insufficient to fund our future activities and requirements, we may need to raise additional funds
through public or private equity or debt financing. If we issue equity securities in order to raise additional funds, substantial
dilution to existing shareholders may occur. If we raise cash through the issuance of indebtedness, we may be subject to additional
contractual restrictions on our business. We cannot assure you that we would be able to raise additional funds on favorable terms
or at all.



Restrictions on Distribution of Dividends
by Certain Subsidiaries



The ability of certain
of our subsidiaries to pay dividends to us is subject to their having satisfied requirements under local law to set aside a portion
of their net income in each year to legal reserves, as described below.



In accordance with
Argentine and Uruguayan companies law, our subsidiaries incorporated in Argentina and in Uruguay must set aside at least 5% of
their net income (determined on the basis of their statutory accounts) in each year to legal reserves, until such reserves equal
20% of their respective issued share capital. As of December 31, 2016, required legal reserves at our Argentine subsidiaries
amounted to $0.9 million and had been set aside as of that date. As of that date, our Uruguayan subsidiary had set aside a legal
reserve of $0.04 million, which was fully constituted.



Argentina Law No. 27,260,
published on July 22, 2016 in the Argentine government's official gazette, eliminated the 10% withholding tax on distributions.
Therefore, distributions to our Spanish holding company from our Argentine subsidiaries are not subject to Argentine withholding
tax.



In accordance with
Brazilian law, 5% of the net profit of our Brazilian subsidiary must be allocated to form a legal reserve, which may not exceed
20% of its capital. Our Brazilian subsidiary may refrain from allocating resources to the legal reserve during any fiscal year
in which the balance of such reserve exceeds 30% of its capital. Our Brazilian subsidiary did not have a legal reserve as of December 31,
2016.



In accordance with
Colombian companies law, our Colombian subsidiary must set aside at least 10% of its net income (determined on the basis of its
statutory accounts) in each year to legal reserves, until such reserves equal 50% of its issued share capital. As of December 31,
2016, its legal reserves amounted to $0.0004 million and were fully set aside.



Colombia Law No 1,819,
published on December 29, 2016, introduced a withholding tax of 5% on dividend distributions to non-resident. This new fiscal obligation
is not applicable to our shareholder due to the tax treaty agreement between Colombia and Spain, entered in force on October 28,
2008.



In accordance with
Spanish companies law, our Spanish subsidiary, Globant S.A., must set aside at least 10% of its net income (determined on the basis
of its statutory accounts) in each year to legal reserves, until such reserves equal 20% of its issued share capital. As of December 31,
2016, no reserves had been set aside.



In accordance with
Mexican law, our Mexican subsidiary must set aside at least 5% of its net income for each year to a legal reserve, until such reserve
equals 20% of its issued share capital. As of December 31, 2016, no reserves had been set aside.



80







In accordance with
Peruvian law, our Peruvian subsidiary must set aside at least 10% of its net income for each year to a legal reserve, until such
reserve equals 20% of its issued share capital. As of December 31, 2016, no reserves had been set aside.



In accordance with
Chilean law, our Chilean subsidiary is not obliged to appropriate any fixed amount of profit to a legal reserve. As of December 31,
2016, there is no legal reserve constituted.



In accordance with
Indian law, our Indian subsidiary must set off all losses incurred by it (including carried over losses from the previous financial
year) and make a provision for depreciation (including depreciation for the previous year if it was not already provided for) against
the profits earned by it prior to declaring any dividends. Since the declaration of dividends under Indian law is discretionary,
our Indian subsidiary is not required to allocate a specific portion of its annual profits to a designated legal reserve for purposes
of declaring dividends. As of December 31, 2016, the legal reserve amounted to 0.02 million for our Indian subsidiary.



In addition, with respect
to our Argentine subsidiaries, although the transfer of funds abroad by local companies in order to pay annual dividends to foreign
shareholders does not require formal approval by the Argentine Central Bank, in the past, the decrease in availability of U.S.
Dollars in Argentina had led the Argentine government to impose informal restrictions on local companies and individuals for purchasing
foreign currency for the purpose of making payments abroad, such as dividends. Even when the new Argentine administration has lifted
most of the foreign exchange restrictions providing greater flexibility and access to the foreign exchange market, the imposition
of future exchange restrictions could impair or prevent the conversion of anticipated dividends or distributions payable to us
by those subsidiaries from Argentine pesos into U.S. dollars. For further information on these exchange controls, see “Risk
Factors — Risks Related to Operating in Latin America and Argentina — Argentina — The
imposition in the future of restrictions on transfers of foreign currency and the repatriation of capital from Argentina may impair
our ability to receive dividends and distributions from, and the proceeds of any sale of, our assets in Argentina.” and “Information
on the Company — Business Overview — Regulatory Overview — Foreign Exchange Controls.”



Equity Compensation Arrangements



On July 3, 2014, our
board of directors and shareholders approved and adopted the 2014 Equity Incentive Plan, which was amended by our board of directors
on May 9, 2016 to increase the number of common shares that may be issued as stock awards from 1,666,667 to 3,666,667.



Under the terms of
our 2014 Equity Incentive Plan, from its adoption until the date of this annual report, we have granted to members of our senior
management and certain other employees 30,000 stock awards, as well as options to purchase 2,220,847 common shares. Most of the
options under the plan were granted with a vesting period of four years, 25% of the options becoming exercisable on each anniversary
of the grant date. Share-based compensation expense for awards of equity instruments is determined based on the fair value of the
awards at the grant date. Upon exercise of the option, each employee share option converts into one common share of Globant. No
amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting
rights. Options may be exercised at any time from the date of vesting to the date of their expiration (ten years after the grant
date).



Share-based compensation
expense for awards of equity instruments to employees is determined based on the grant-date fair value of the awards. Fair value
is calculated using the Black-Scholes option pricing model.



There were 1,724,614 outstanding stock options as of December 31, 2014, 1,933,239 outstanding stock options
as of December 31, 2015 and 2,658,595 outstanding stock options as December 31, 2016. For 2016, 2015 and 2014, we recorded
$3.6 million, $2.4 million and $0.6 million of share-based compensation expense related to these share option agreements, respectively.



Critical Accounting Policies and Estimates



We prepare our consolidated
financial statements in accordance with IFRS, which require us to make judgments, estimates and assumptions about (i) the reported
amounts of assets and liabilities, (ii) disclosure of contingent assets and liabilities at the end of each reporting period and
(iii) the reported amounts of revenues and expenses during each reporting period. We evaluate these estimates and assumptions based
on historical experience, knowledge and assessment of current business and other conditions, and expectations regarding the future
based on available information and reasonable assumptions, which together form a basis for making judgments about matters not readily
apparent from other sources.



The estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate
is revised if the revision affects only that year or in the year of the revision and future years if the revision affects both
current and future years. Since the use of estimates is an integral component of the financial reporting process, actual results
could differ from those estimates.



81







Some of our accounting
policies require higher degrees of judgment than others in their application. When reviewing our consolidated financial statements,
you should consider (i) our selection of critical accounting policies, (ii) the judgment and other uncertainties affecting the
application of such policies and (iii) the sensitivity of reported results to changes in conditions and assumptions. We consider
the policies discussed below to be critical to an understanding of our consolidated financial statements as their application places
significant demands on the judgment of our management.



An accounting policy
is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly
uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the
accounting estimates that are reasonably likely to occur periodically, could materially impact our consolidated financial statements.
We believe that the following critical accounting policies are the most sensitive and require more significant estimates and assumptions
used in the preparation of our consolidated financial statements. You should read the following descriptions of critical accounting
policies, judgments and estimates in conjunction with our consolidated financial statements and other disclosures included in this
annual report.



Revenue Recognition



We generate revenues
primarily from the provision of software development services. We recognize revenues when realized or realizable and earned, which
is when the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is
fixed or determinable; and collectability is reasonably assured. If there is uncertainty about the project completion or receipt
of payment for the services, revenues are deferred until the uncertainty is sufficiently resolved.



Recognition of revenues
under fixed-price contracts involves significant judgment in the estimation process including factors relating to the assumptions,
risks and uncertainties inherent with the application of the percentage of completion method of accounting affecting the amounts
of revenues and related expenses reported in our consolidated financial statements. Under this method, total contract revenue during
the term of an agreement is recognized on the basis of the percentage that each contract’s total labor cost to date bears
to the total expected labor cost. This method is followed where reasonably dependable estimates of revenues and costs can be made.
A number of internal and external factors can affect our estimates, including labor hours and specification and testing requirement
changes.



Revisions to our estimates
may result in increases or decreases to revenues and income and are reflected in our consolidated financial statements in the periods
in which they are first identified. If our estimates indicate that a contract loss will be incurred, a loss provision is recorded
in the period in which the loss first becomes probable and reasonably estimable. Contract losses are determined to be the amount
by which the estimated costs of the contract exceed the estimated total revenues that will be generated by the contract and are
included in cost of revenues in our consolidated statement of income and other comprehensive income.



Goodwill



Goodwill is measured
as the excess of the cost of an acquisition over the sum of the amounts assigned to tangible and intangible assets acquired less
liabilities assumed. The determination of the fair value of tangible and intangible assets involves certain judgments and estimates.
These judgments can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the
appropriate weighted average cost of capital.



We evaluate goodwill
for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. When determining
the fair value of our cash generation unit, we utilize the income approach using discounted cash flow. The income approach considers
various assumptions including increase in headcount, headcount utilization rate and revenue per employee, income tax rates and
discount rates. We considered the following assumptions as of December 31, 2016: projected cash flows for the following five years,
the average growth rate considered was 24.2% and the rate used to discount cash flows was 14.11%.



Any adverse changes
in key assumptions about the businesses and its prospects or an adverse change in market conditions may cause a change in the estimation
of fair value and could result in an impairment charge. Based upon our evaluation of goodwill, no impairments were recognized during
2016, 2015 and 2014.



82







Income Taxes



Determining the consolidated
provision for income tax expense, deferred income tax assets and liabilities, involves significant judgment. The provision for
income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated
future tax consequences in each of the jurisdictions where we operate of temporary differences between the financial statement
carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rates
would result in either increases or decreases in the provision for income taxes in the period of changes.



The carrying amount
of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow the benefit of part or all of the deferred tax assets to be utilized.
This assessment requires judgments, estimates, and assumptions by our management. In evaluating our ability to utilize deferred
tax assets, we consider all available positive and negative evidence, including the level of historical taxable income and projections
for future taxable income over the periods in which the deferred tax assets are recoverable. Our judgments regarding future taxable
income are based on expectations of market conditions and other facts and circumstances. Any adverse change to the underlying facts
or our estimates and assumptions could require that we reduce the carrying amount of its net deferred tax assets.



Share-based compensation plan



Under our share-based
compensation plan for employees is measured based on fair value of our shares at the grant date and recognized as compensation
expense on a straight-line basis over the requisite service period, with a corresponding impact reflected in additional paid-in
capital.



Determining the fair
value of the share-based awards at the grant date requires judgment. We calculated the fair value of each option award on the grant
date using the Black-Scholes option pricing model. The Black-Scholes model requires the input of highly subjective assumptions,
including the fair value of our shares, expected volatility, expected term, risk-free interest rate and dividend yield.



Fair value of the
shares: For 2014 Equity Incentive Plan, the fair value of the shares is based on the quoted market price of our shares at the
grant date. For 2012 Equity Incentive Plan, as our shares were not publicly traded the fair value was determined using the market
approach technique based on the value per share of private placements. We had gone in the past through a series of private placements
in which new shares have been issued. We understood that the price paid for those new shares was a fair value of those shares at
the time of the placement. In January 2012, Globant S.A.U. (Spain) had a capital contribution from a new shareholder, which included
cash plus share options granted to the new shareholder, therefore, we considered that amount to reflect the fair value of their
shares. The fair value of the shares related to this private placement resulted from the following formula: cash minus fair value
of share options granted to new shareholder divided by number of newly issued shares. The fair value of the share options granted
to the new shareholder was determined using the same variables and methodologies as the share options granted to the employees.
After our reorganization in December 2012, shares of Globant S.A (Luxembourg) were sold by existing shareholders in a private placement
to WPP. The fair value of the shares related to this private placement results from the total amount paid by WPP to the existing
shareholders.



Expected volatility:
As we do not have sufficient trading history for the purpose of valuating the share options, the expected volatility for our shares
was estimated by taking the average historic price volatility of the NASDAQ 100 Telecommunication Index.



Expected term:
The expected life of options represents the period of time the granted options are expected to be outstanding.



Risk free rate:
The risk-free rate for periods within the contractual life of the option is based on the U.S. Federal Treasury yield curve with
maturities similar to the expected term of the options.



Dividend yield:
We have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. Consequently,
we used an expected dividend yield of zero.



Call option over non-controlling
interest



As of December 31,
2016 and 2015, we held a call option to acquire the remaining outstanding 33.27% interest in Dynaflows S.A., which could be exercised
from October 22, 2020 until October 21, 2021. We calculated the fair value of this option using the Black-Scholes option model.
The Black-Scholes model requires the input of highly subjective assumptions, including the expected volatility, maturity, risk-free
interest rate, value of the underlying asset and dividend yield.



Expected volatility:
We have considered annualized volatility as multiples of EBITDA and revenue of publicly traded companies in the technology business
in the U.S., Europe and Asia since 2008.



83







Maturity: The
combination between the call and put options (explained in note 23 to the Consolidated Financial Statements included in this annual
report) implied that, assuming no liquidity restrictions at the moment that the option was exercisable and considering that both
parties wanted to maximize their benefits, we would acquire the minority shareholders shares at the date that this option was exercisable.
Therefore, we have assumed that the maturity date of call option is October 22, 2020.



Risk free rate:
The risk-free rate for periods within the contractual life of the option was based on BONAR with a quote in the U.S. market with
maturities similar to the expected term of the option.



Value of the underlying
assets: We considered a multiple of EBITDA and revenue resulting from the implied multiple in Dynaflows adjusted by the lack
of control.



Dividend yield:
We did not presently plan to pay cash dividends in the foreseeable future. Consequently, we used an expected dividend yield of
zero.



Recoverability of internally generated
intangible asset



During the year, we
considered the recoverability of the internally generated intangible asset that is included in our consolidated financial statements
as of December 31, 2016 and 2015 with a carrying amount of $3,904 and $2,497, respectively.



During the year ended
December 31, 2016, we conducted a detailed sensitivity analysis, in which we considered revenue from customers and internal usage.
Based on our analysis, we believe that the carrying amount of the asset will be recovered in full. We will continue to closely
monitor the recoverability of the asset, and adjustments may be made in future periods if market activity indicates that such adjustments
are appropriate.



Fair value measurement and valuation
processes



Certain assets and
liabilities are measured at fair value for financial reporting purposes.



In estimating the fair
value of an asset or a liability, we use market-observable data to the extent it is available. Where Level 1 inputs are not available,
we engage third party qualified valuers to perform the valuation. Information about the valuation techniques and inputs used in
determining the fair value of various assets and liabilities are disclosed in note 27.9 to the Consolidated Financial Statements
included in this annual report.



Useful lives of property and equipment
and intangible assets



We review the estimated
useful lives of property and equipment and intangible assets at the end of each reporting period. We determined that the useful
lives of the assets included as property and equipment and intangible assets are in accordance with their expected lives.



Provision for contingencies



Provisions are recognized
when we have a present obligation (legal or constructive) as a result of a past event, it is probable that we will be required
to settle the obligation, and a reliable estimate can be made of the amount of the obligation.



The amount recognized
as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting
period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash
flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect
of the time value of money is material).



When some or all of
the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized
as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.



Allowance for Doubtful Accounts



We maintain an allowance
for doubtful accounts for estimated losses resulting from the inability of our clients to make required payments. The allowance
for doubtful accounts is determined by evaluating the relative credit-worthiness of each client, historical collections experience
and other information, including the aging of the receivables. As of December 31, 2016, our allowance for doubtful accounts
represented less than 0.2% of our net revenues. If the financial condition of our clients were to deteriorate, resulting in an
impairment of their ability to make payments, additional allowances may be required.



84







Application of New and Revised International Financial Reporting
Standards



New accounting pronouncements



The Company has not applied the following
new and revised IFRSs that have been issued but are not yet mandatorily effective:



|IFRS 9                              | Financial Instruments1                                    
|----------------------------------- | ----------------------------------------------------------
|IFRS 15                             | Revenue from contracts with customer1                     
|Amendment to IFRS 15                | Revenue from contracts with customer1                     
|IFRS 16                             | Leases2                                                   
|Amendments to IFRS 10 and IAS 28    | Sale or Contribution of Assets between an Investor and its
|                                    | Associate or Joint Venture3                               
|Amendment to IAS 12                 | Recognition of Deferred Tax Assets for Unrealised Losses4 
|Amendment to IAS 7                  | Financial reporting disclosure4                           
|Amendments to IFRS 2                | Share-based payments1                                     
|Amendments to IFRS 1, 12 and IAS 28 | Annual improvements 2014 -2016 Cycle1- 4                  
|IFRIC 22                            | Foreign Currency Transactions and Advance Consideration1  



1 Effective for annual periods beginning
on or after January 1, 2018. Early adoption is permitted.

2 Effective for annual periods beginning
on or after January 1, 2019. Early adoption is permitted if IFRS 15 has also been applied.

3 Effective date deferred indefinitely.

4 Effective for annual periods beginning
on or after January 1, 2017. Early adoption is permitted.



| | • | In November 2009, the International Accounting Standards Board (IASB) issued IFRS 9, which introduced
new requirements for the classification and measurement of financial assets. IFRS 9 was subsequently amended in October 2010 to
include requirements for the classification and measurement of financial liabilities and for derecognition, and in November 2013
to include the new requirements for general hedge accounting. On July 24, 2014, the IASB published the final version of IFRS 9
'Financial Instruments'. IFRS 9, as revised in July 2014, introduces a new expected credit loss impairment model. The expected
credit loss model requires an entity to account for expected credit losses and changes in those expected credit losses at each
reporting date to reflect changes in credit risk since initial recognition. In other words, it is no longer necessary for a credit
event to have occurred before credit losses are recognised. Also limited changes to the classification and measurement requirements
for financial assets by introducing a ‘fair value through other comprehensive income’ (FVTOCI) measurement category
for certain simple debt instruments.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Based on the analysis of the Company’s
financial assets and financial liabilities as of December 31, 2016 on the basis of the facts and circumstances that exists at that
date, the directors of the Company have performed a preliminary assessment of the impact of IFRS 9 to the Company’s consolidated
financial statements as follows:



| | • | Classification and measurement: all financial assets and financial liabilities will continue to
be measured on the same bases as is currently adopted under IAS 39.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Impairment: no financial assets are measured at amortized cost.
| | - | ---------------------------------------------------------------

| | • | Hedge accounting: the management of the Company does not anticipate that the application of the
IFRS 9 Hedge accounting requirements will have a material impact on the Company’s consolidated financial statements.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



It should be noted that the above
assessment were made base on an analysis of the Company’s financial assets and financial liabilities as of December 31, 2016
on the bases of the facts and circumstances that existed at that date. As facts and circumstances may change during the period
leading up to the initial date of application of IFRS 9, which is expected to be January 1, 2018 as the Company does not intend
to early apply the standard, the assessment of the potential impact is subject to change.This new standard is effective for periods
beginning on or after January 1, 2018.



| | • | On May 28, 2014 the IASB published its new revenue Standard, IFRS 15 “Revenue from Contracts
with Customers”. IFRS 15 provides a single comprehensive model for entities to use in accounting for revenue arising from
contracts with customers. IFRS 15 will supersede the current revenue recognition guidance including IAS 18 Revenue, IAS 11 Construction
Contracts and the related interpretations when it becomes effective. The core principle of IFRS 15 is that an entity should recognise
revenue to depict the transfer or promised goods or services to customers in an amount that reflects the consideration to which
the entity expects to be entitled in exchange for those goods or services. Specifically, the standard introduces a five-step approach
to revenue recognition:
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



85







| | • | Step 1: Identify the contract with the customer
| | - | -----------------------------------------------

| | • | Step 2: Identify the performance obligations in the contract
| | - | ------------------------------------------------------------

| | • | Step 3: Determine the transaction price
| | - | ---------------------------------------

| | • | Step 4: Allocate the transaction price to the performance obligations in the contracts
| | - | --------------------------------------------------------------------------------------

| | • | Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
| | - | -------------------------------------------------------------------------------------



On April 12, 2016 the IASB has
published amendments with clarifications to IFRS 15 'Revenue from Contracts with Customers'. The amendments address the following
topics: identifying performance obligations, principal versus agent considerations, and licensing, and provide some transition
relief for modified contracts and completed contracts.



Under IFRS 15, an entity recognises
revenue when or as performance obligation is satisfied, i.e. when control of the goods or services underlying the particular performance
obligation is transferred to the customer. Far more prescriptive guidance has been added in IFRS 15 to deal with specific scenarios.
Furthermore, extensive disclosures are required by IFRS 15. The new standard is effective for annual periods beginning on or after
January 1, 2018. Early adoption is permitted. The standard permits a modified retrospective approach for the adoption. Under this
approach entities will recognize transitional adjustments in retained earnings on the date of initial application (e.g. January
1, 2017), i.e. without restating the comparative period. They will only need to apply the new rules to contracts that are not completed
as of the date of initial application. The Management do not intend to early apply the standard and intend to use the modified
retrospective method upon adoption.



The Company has completed an initial
impact assessment of the new standard by completing a survey of all businesses identifying the likely impact of IFRS 15. This was
a tailored questionnaire based on the known impacts of the new standard on technology services companies. Management is still in
the process of assessing the full impact of the application of IFRS 15 on the Company ́s consolidated financial statements
and it is not practicable to provide a reasonable financial estimate of the effect until the management complete the detail review,
including, but not limited to, variable consideration contracts and performance obligations where multiple services are provided
in individual contracts.



| | • | On January 13, 2016, the IASB issued the IFRS 16 which specifies how an IFRS reporter will recognize,
measure, present and disclose leases. The standard provides a single lessee accounting model, with the distinction between operating
and finance leases removed, requiring lessees to recognize assets and liabilities for all leases unless the lease term is 12 months
or less or the underlying asset has a low value to be accounted for by simply recognizing an expense, typically straight line,
over the lease term. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting
substantially unchanged from its predecessor, IAS 17. IFRS 16 supersedes IAS 17 and related interpretations. Furthermore, extensive
disclosures are required by IFRS 16. As of December 31, 2016, the Group has non–cancellable operating lease commitment of
$30,628 for office space and office equipment. IAS 17 does not require the recognition of any right-of-use or liability for future
payments for these leases; instead, certain information is disclosed as operating lease commitment in note 26. If these arrangements
meet the definition of a lease under IFRS 16, the Company will recognize a right–of–use asset and a liability in respect
of them unless they qualify of a low value or short–term leases upon the application of IFRS 16. In contrast, for finance
leases where the Company is a lessee, the Company will recognize an asset and a related finance lease liability for the lease arrangement.
Management are currently assessing its potential impact of the application of IFRS 16. It is not practicable to provide a reasonable
estimate of the financial effect on the amounts recognized in the Company ́s consolidated financial statements until the management
complete the review. The standard is effective for annual periods beginning on or after January 1, 2019, with earlier application
being permitted if IFRS 15 has also been applied. The Company has not opted for early application.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | On September 11, 2014, the IASB issued amendments to IFRS 10 and IAS 28. These amendments clarify
the treatment of the sale or contribution of assets from an investor to its associate or joint venture, as follows:
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | require full recognition in the investor's financial statements of gains and losses arising on
the sale or contribution of assets that constitute a business (as defined in IFRS 3 Business Combinations);
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | require the partial recognition of gains and losses where the assets do not constitute a business,
i.e. a gain or loss is recognised only to the extent of the unrelated investors’ interests in that associate or joint venture.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



These requirements apply regardless
of the legal form of the transaction, e.g. whether the sale or contribution of assets occurs by an investor transferring shares
in any subsidiary that holds the assets (resulting in loss of control of the subsidiary), or by the direct sale of the assets themselves.
On December 17, 2015 the IASB issued an amendment that defers the effective date of the September 2014 amendments to these
standards indefinitely until the research project on the equity method has been concluded. Earlier application of the September
2014 amendments continues to be permitted.



86







| | • | On January 19, 2016, the IASB issued the amendment IAS 12 Income Taxes to clarify the following aspects:
| | - | --------------------------------------------------------------------------------------------------------

| | ◦ | Unrealised losses on debt instruments measured at fair value and measured at cost for tax purposes
give rise to a deductible temporary difference regardless of whether the debt instrument's holder expects to recover the carrying
amount of the debt instrument by sale or by use.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | The carrying amount of an asset does not limit the estimation of probable future taxable profits.
| | - | -------------------------------------------------------------------------------------------------

| | ◦ | Estimates for future taxable profits exclude tax deductions resulting from the reversal of deductible
temporary differences.
| | - | ----------------------------------------------------------------------------------------------------------------------------

| | ◦ | An entity assesses a deferred tax asset in combination with other deferred tax assets. Where tax
law restricts the utilisation of tax losses, an entity would assess a deferred tax asset in combination with other deferred tax
assets of the same type.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The management of the
Company does not anticipate that the application of these amendments will have a material impact on the Group's consolidated
financial statements. The amendment is effective for annual periods beginning on or after January 1, 2017, with earlier
application being permitted.



| | • | On January 29, 2016, the IASB published amendments to IAS 7 as part of its disclosure initiative
(i.e., projects to improve the effectiveness of financial reporting disclosures). The objective of the amendments is to clarify
IAS 7 to improve information provided to financial statement users about an entity’s financing activities. The amendments
require that an entity disclose, to the extent necessary to meet the disclosure objective, the following changes in liabilities
arising from financing activities:
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | changes from financing cash flows;
| | - | ----------------------------------

| | ◦ | changes arising from obtaining or losing control of subsidiaries
or other businesses;
| | - | -------------------------------------------------------------------------------------

| | ◦ | the effect of changes in foreign exchange rates;
| | - | ------------------------------------------------

| | ◦ | changes in fair values; and
| | - | ---------------------------

| | ◦ | other changes.
| | - | --------------



The IASB defines liabilities arising
from financing activities as liabilities “for which cash flows were, or future cash flows will be, classified in the statement
of cash flows as cash flows from financing activities.” The amendments indicate that the new disclosure requirements also
apply to changes in financial assets that meet this definition. The amendments state that one way to meet the new disclosure requirements
is to provide “a reconciliation between the opening and closing balances in the statement of financial position for liabilities
arising from financing activities. The directors of the Company do not anticipate that the application of these amendments will
have a material impact on the Group's consolidated financial statements. The amendments are effective for annual periods beginning
on or after January 1, 2017. Earlier application is permitted.



| | • | On June 20, 2016, the IASB issued amendments to IFRS 2 (share-based payments). The amendments clarify
the accounting for cash-settled share-based payment transactions that include a performance condition, the classification of share-based
payment transactions with net settlement features, and the accounting for modifications of share-based payment transactions from
cash-settled to equity-settled. The directors of the Company do not anticipate that the application of these amendments will have
a material impact on the Group's consolidated financial statements. The amendments are effective prospectively for annual periods
beginning on or after January 1, 2018. Early adoption is permitted.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | On December 8, 2016, the IASB issued amendments to the following standards as result of the IASB's
annual improvements 2014-2016 project:
| | - | -----------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | IFRS 1 (First time adoption of International Financial Reporting Standards): Deletes the short-term
exemptions in paragraphs E3–E7 because they have now served their intended purpose.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | IFRS 12 (Disclosure of interests in other entities): Clarifies the scope of the standard by specifying
that the disclosure requirements in the standard, except for those in paragraphs B10–B16, apply to an entity’s interests
listed in paragraph 5 that are classified as held for sale, as held for distribution or as discontinued operations in accordance
with IFRS 5 (Non-current assets held for sale and discontinued operations).
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | IAS 28 (Investments in associates and joint ventures):
Clarifies that the election to measure at fair value through profit or loss an investment in an associate or a joint venture that
is held by an entity that is a venture capital organisation, or other qualifying entity, is available for each investment in an
associate or joint venture on an investment-by- investment basis, upon initial recognition.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The management of the Company
does not anticipate that the application of these amendments will have a material impact on the Group's consolidated financial
statements. The amendments to IFRS 1 and IAS 28 are effective for annual periods beginning on or after January 1, 2018 and
the amendment to IFRS 12 for annual periods beginning on or after January 1, 2017. Early adoption is permitted.



| | • | On December 8, 2016, the IASB published IFRIC 22, which was developed by the IFRS Interpretations
Committee to clarify the accounting for transactions that include the receipt or payment of advance consideration in a foreign
currency. The interpretation is being issued to reduce diversity in practice related to the exchange rate used when an entity reports
transactions that are denominated in a foreign currency in accordance with IAS 21 in circumstances in which consideration is received
or paid before the related asset, expense, or income is recognized.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



87







The interpretations are effective
prospectively for annual periods beginning on or after January 1, 2018. Early adoption is permitted.



The management of the Company
does not anticipate that the application of these amendments will have a material impact on the Group's Financial Statements.



C. Research and Development, Patents and Licenses, etc.



See “Business
Overview — Intellectual Property.”



D. Trend Information



See “— Operating
Results — Factors Affecting Our Results of Operations.”



E. Off-Balance Sheet Arrangements



As of and for the three
years ended December 31, 2016, we were not party to any off-balance sheet arrangements.



F. Tabular Disclosure of Contractual Obligations



Set forth below is
information concerning our fixed and determinable contractual obligations as of December 31, 2016 and the effect such obligations
are expected to have on our liquidity and cash flows.



|                                  |  | Payments due by period (in thousands) |       
|--------------------------------- |  | ------------------------------------- | ------
|                                  |  | Total                                 |       
|Borrowings                        |  | $                                     | 156   
|Interest to be paid on borrowings |  |                                       | 12    
|Operating lease obligations(1)    |  |                                       | 30,628
|Other financial liabilities(2)    |  |                                       | 31,826
|Total                             |  | $                                     | 62,622



| | (1) | Includes rental obligations and other lease obligations.
| | --- | --------------------------------------------------------

| | (2) | Relates to Huddle acquisition, Clarice, Dynaflows, WAE and L4. See note 23 to our audited consolidated financial statements.
| | --- | ----------------------------------------------------------------------------------------------------------------------------



G. Safe harbor



This annual report
contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange
Act and as defined in the Private Securities Litigation Reform Act of 1995. See “Cautionary Statements Regarding Forward-Looking
Statements.”



88







ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES



A. Directors and Senior Management



Directors



The table below sets
forth information concerning our directors as of March 20, 2017.



|Name                       |  | Position                                          |  | Age |  | Date ofAppointment |  | Current TermExpiringat Annual Meeting ofShareholders to BeHeld in Year
|-------------------------- |  | ------------------------------------------------- |  | --- |  | ------------------ |  | ----------------------------------------------------------------------
|Martín Migoya              |  | Chairman of the Board and Chief Executive Officer |  | 49  |  | May 6, 2016        |  | 2018                                                                  
|Martín Gonzalo Umaran      |  | Director and Chief of Staff                       |  | 48  |  | July 15, 2014      |  | 2017                                                                  
|Guibert Andrés Englebienne |  | Director and Chief Technology Officer             |  | 50  |  | July 15, 2014      |  | 2017                                                                  
|Francisco Álvarez-Demalde  |  | Director                                          |  | 38  |  | May 4, 2015        |  | 2019                                                                  
|Mario Eduardo Vázquez      |  | Director                                          |  | 81  |  | May 6, 2016        |  | 2019                                                                  
|Philip A. Odeen            |  | Director                                          |  | 81  |  | May 4, 2015        |  | 2018                                                                  
|David J. Moore             |  | Director                                          |  | 64  |  | May 4, 2015        |  | 2018                                                                  
|Marcos Galperin            |  | Director                                          |  | 45  |  | May 6, 2016        |  | 2019                                                                  
|Timothy Mott               |  | Director                                          |  | 68  |  | May 6, 2016        |  | 2017                                                                  



Directors may be re-elected
for one or more further four-year terms. Directors appointed to fill vacancies remain in office until the next general meeting
of shareholders.



Globant S.A. was incorporated
in Luxembourg on December 10, 2012. References to the terms of service or appointment of our directors and senior management in
the following biographies include their service to our predecessor companies, which were organized in Spain.



Martín Migoya



Mr. Migoya has served
as Chairman of our board of directors and Chief Executive Officer since 2005. Prior to co-founding Globant, he worked as a trainee
and technology project coordinator at Repsol-YPF, a consultant at Origin BV Holland and a business development director at Tallion.
He founded our company together with Messrs. Englebienne, Nocetti and Umaran in 2003. Mr. Migoya is frequently invited to lecture
at various conventions and at universities like MIT and Harvard, and has been a judge at the Endeavor Entrepreneurs panel and at
La Red Innova. Mr. Migoya was selected as an Endeavor Entrepreneur in 2005 and won a Konex Award as one of the most innovative
entrepreneurs of 2008. He was selected as an Argentine Creative Individual of 2009 ( Círculo de Creativos de la Argentina
) and received the Security Award as one of the most distinguished Argentine businessmen of 2009. He also received in 2009 the
America Economía Magazine’s “Excellence Award”, which is given to entrepreneurs and executives that contribute
to the growth of Latin American businesses. In 2011, Latin Trade recognized Mr. Migoya as Emerging CEO of the Year. In 2013, Mr.
Migoya received the “Entrepreneur of the Year Award” from Ernst & Young. He is a member of the Young President’s
Organization and a board member of Endeavor Argentina. Mr. Migoya holds a degree in electronic engineering from Universidad
Nacional de La Plata (UNLP) and a master’s degree in business administration, from the Universidad del Centro de Estudios
Macroeconómicos de Argentina. We believe that Mr. Migoya is qualified to serve on our board of directors due to his
intimate familiarity with our company and the perspective, experience, and operational expertise in the technology services industry
that he has developed during his career and as our co-founder and Chief Executive Officer.



Martín Gonzalo Umaran



Mr. Umaran has served
as a member of our board of directors since 2012 as well as Chief of Staff since 2013. As Globant’s Chief of Staff, Mr. Umaran
is responsible for coordinating our back office activities, supporting executives in daily projects and acting as a liaison to
our senior management. He is also responsible for our mergers and acquisitions process and for strategic initiatives. From 2005
to 2012, he served as Globant’s Chief Operations Officer and Chief Corporate Business Officer, in charge of managing our
delivery teams and projects. Together with his three Globant co-founders, Mr. Umaran was selected as an Endeavor Entrepreneur in
2005. Mr. Umaran holds a degree in mechanical engineering from Universidad Nacional de La Plata (UNLP). We believe that
Mr. Umaran is qualified to serve on our board of directors due to his intimate familiarity with our company and his perspective,
experience, and operational expertise in the technology services industry that he has developed during his career as a co-founder
of our company.



89







Guibert Andrés Englebienne



Mr. Englebienne has
served as a member of our board of directors and as Chief Technology Officer since 2003. He is one of Globant’s co-founders.
Prior to co-founding Globant, Mr. Englebienne worked as a scientific researcher at IBM and, later, as head of technology for CallNow.com
Inc. As Globant’s Chief Technology Officer, Mr. Englebienne is the head of our Technology department and our Premier League,
an elite team of Globers whose mission is to foster innovation by cross-pollinating their deep knowledge of emerging technologies
and related market trends across our Studios and among our Globers. Together with his three Globant co-founders, Mr. Englebienne
was selected as an Endeavor Entrepreneur in 2005. In addition to his responsibilities at Globant, Mr. Englebienne is President
of Endeavor Argentina. In 2011, he was included in Globalization Today’s “Powerful 25” list. Mr. Englebienne
holds a bachelor’s degree in Computer Science and Software Engineering from the Universidad Nacional del Centro de la
Provincia de Buenos Aires in Argentina. We believe that Mr. Englebienne is qualified to serve on our board of directors due
to his intimate familiarity with our company and his perspective, experience, and operational expertise in the technology services
industry that he has developed during his career as a co-founder of our company.



Francisco Álvarez-Demalde



Mr. Álvarez-Demalde
has been a member of the board since 2007. He is a founder and general partner of Riverwood Capital, a leading growth-capital private
equity firm focused on the global technology industry, and one of the largest early investors in Globant. From 2005 to 2007, he
was an investment executive at Kohlberg Kravis Roberts & Co., where he focused on leveraged buyouts in the technology industry
and other sectors. Mr. Álvarez-Demalde was also an investment professional at Eton Park Capital Management and with Goldman
Sachs & Co. Mr. Álvarez-Demalde is a former and current director of several technology companies, including Alog Data
Centers do Brasil, CloudBlue Technologies, Inc., LAVCA, Navent, Netshoes, among several others. Mr. Álvarez-Demalde earned
a bachelor’s degree in economics from Universidad de San Andrés, Argentina, which included an exchange program
at the Wharton School at the University of Pennsylvania. We believe that Mr. Álvarez-Demalde is qualified to serve on our
board of directors due to his considerable business experience in the technology industry and his experience serving as a director
of other companies.



Mario Eduardo Vázquez



Mr. Vázquez
has served as a member of our board of directors and chairman of Globant’s audit committee since June 2012. From 2003 to
2006, he served as the Chief Executive Officer of Grupo Telefónica in Argentina. Mr. Vázquez worked in auditing
for Arthur Andersen for 33 years until his retirement in 1993, including 23 years as a partner and general director in many of
Globant’s markets, including Argentina, Chile, Uruguay, and Paraguay. As former partner and general director of Arthur Andersen,
Mr. Vázquez has significant experience with U.S. GAAP accounting and in assessing internal control over financial reporting.
Mr. Vázquez currently serves on the board of directors of MercadoLibre, Inc. Mr. Vázquez served as a member of the
board of directors of YPF, S.A. and as the president of the Audit Committee of YPF, S.A, until April 2012. He has also served as
a member of the board of directors of Telefónica Argentina S.A., Telefónica Holding Argentina S.A., Telefónica
Spain S.A., Banco Santander Rio S.A., Banco Supervielle Societe General S.A., and CMF Banco S.A., and as alternate member of the
board of directors of Telefónica de Chile S.A. Mr. Vázquez received a degree in public accounting from the Universidad
de Buenos Aires. We believe that Mr. Vázquez is qualified to serve on our board of directors due to his financial expertise
and his experience serving as a director of other companies.



Philip A. Odeen



Mr. Odeen has served
as a member of our board of directors since 2012. Mr. Odeen has also served as a director and proxy director of DRS Technologies,
Inc. since 2013. From 2009 to 2013, Mr. Odeen served as the chairman of the board of directors and lead independent director of
AES Corporation and as a director of AES Corporation from 2003 to 2013. From 2008 to 2013, Mr. Odeen served as the chairman of
the board of directors of Convergys Corporation and as a director of Convergys Corporation from 2000 to 2013. Mr. Odeen has served
as a director of QinetiQ North America, Inc. since 2006, Booz Allen Hamilton, Inc. since 2008 and ASC Signal Corporation since
2009. From 2006 to 2007, Mr. Odeen served as chairman of the board of directors of Avaya Corporation. He served on the board of
directors of Reynolds and Reynolds Company from 2000 to 2007, and as its chairman from 2006 to 2007. Mr. Odeen was a director of
Northrop Grumman from 2003 to 2008. Mr. Odeen retired as chairman and chief executive officer of TRW Inc. in December 2002. We
believe that Mr. Odeen is qualified to serve on our board due to his experience in leadership and guidance of public and private
companies as a result of his varied global business, governmental and non-profit and charitable organizational experience.



David J. Moore



Mr. Moore has served
as a member of our board since May 2015. He is the chairman of Xaxis and President of WPP Digital. He has over 35 years of experience
in media and technology. He founded and led 24/7 Media’s (now Xaxis) growth from start-up to a leader in digital marketing
and ad technology. 24/7 Media (TFSM) was listed on NASDAQ in 1998 and Mr. Moore led the company until it was sold to WPP in 2007.
He is a member of the Interactive Advertising Bureau’s (“IAB”) Board of Directors and Executive Committee. Previously
the IAB’s chairman from 2009 to 2011, Mr. Moore has been an active member since 2002. He also serves on the boards of DASL
and DTSI, which are both joint ventures with Dentsu in Japan and Korea and the board of directors of the Advertising Education
Foundation. We believe that Mr. Moore is qualified to serve on our board due to his experience in both private and public technology
companies as both an officer and director.



90







Marcos Galperin



Mr. Galperin has served
as a member of our board of directors since July 2014. He is a co-founder of Mercadolibre, Inc. and has served as its chairman,
president and chief executive officer since October 1999. Mr. Galperin is a board member of Endeavor Global, Inc., a non-profit
organization that is leading the global movement to catalyze long term economic growth by selecting, mentoring and accelerating
the best high impact entrepreneurs around the world. He is also a board member of the Stanford Graduate School of Business. Mr.
Galperin received a master’s degree in business administration from Stanford University and graduated with honors from the
Wharton School of the University of Pennsylvania. We believe that Mr. Galperin is qualified to serve on our board of directors
due to his comprehensive knowledge and experience in the technology industry and experience serving as a director of other companies.



Timothy Mott



Mr. Mott has served
as a member of our board of directors since June 2014. Mr. Mott has been an independent private investor since 1994. He has been
a director of Ruby Seven Studios since 2012 and the managing partner of Blue Farm Wines since 2013. From 2008 to 2013 he served
as executive chairman of Flixlab; he was executive chairman of All Covered from 2000 to 2010; and from 1990 to 2007 he served as
a director of Electronic Arts. Previously he co-founded Electronic Arts where he was a senior vice president from 1982 to 1990;
from 1990 – 1994 he was CEO/chairman of Macromedia; he served on the board of directors of Edmark from 1994 to
1996; and from 1994 to 1999 he was chairman of Audible. Mr. Mott has been a trustee of the California College of the Arts since
2004 and previously served on several other non-profit boards. Mr. Mott earned his bachelor of science degree (with honors) from
Manchester University in England. We believe that Mr. Mott is qualified to serve on our board due to his extensive business and
industry expertise in the technology sector, and his experience as a director and senior management of other technology companies.



Senior Management



Our group senior management
is made up of the following members:



|Name                       |  | Position                                   
|-------------------------- |  | -------------------------------------------
|Martín Migoya              |  | Chief Executive Officer                    
|Martín Gonzalo Umaran      |  | Chief of Staff                             
|Guillermo Marsicovetere    |  | Chief Operating Officer                    
|Guibert Andrés Englebienne |  | Chief Technology Officer (Global)          
|Nestor Nocetti             |  | Executive Vice President, Corporate Affairs
|Alejandro Scannapieco      |  | Chief Financial Officer                    
|Natalia Kanefsck           |  | Chief Accounting Officer                   
|Guillermo Willi            |  | Chief People Officer                       
|Gustavo Barreiro           |  | Chief Information Officer                  
|Patricio Pablo Rojo        |  | General Counsel                            
|Wanda Weigert              |  | Director of Communications & Marketing     
|Patricia Pomies            |  | Chief Delivery Officer                     



The business address
of our group senior management is c/o Sistemas Globales S.A., Ing. Butty 240, 9th floor, Laminar Plaza Tower, C1101 AFB,
Capital Federal, Argentina.



The following is the
biographical information of the members of our group senior management other than Messrs. Migoya, Umaran and Englebienne, whose
biographical information is set forth in “— Directors.”



Guillermo Marsicovetere



Mr. Marsicovetere has
been our Chief Operating Officer since July 2012. From 2007 to July 2012, Mr. Marsicovetere served as our Chief Business Officer.
From 1993 to 2007, he worked at Sun Microsystems where he held several management positions including Latin America Partner and
Sales Director, Southern Cone President and Managing Director, Sales Vice President of the United Kingdom and Ireland. As Globant’s
Chief Operating Officer, he is responsible for supervising Globant’s product delivery. Mr. Marsicovetere holds a law degree
from Universidad Central in Venezuela.



91







Nestor Nocetti



Mr. Nocetti, a co-founder
of our company, has been our Executive Vice President, Corporate Affairs since July 2012. Mr. Nocetti manages our external affairs,
including our relationships with government agencies, union, industry representatives and the media. Prior to that, he served as
our Vice President, Innovation Labs. Together with Messrs. Migoya, Englebienne, and Umaran, Mr. Nocetti was selected as an Endeavor
Entrepreneur in 2005. He holds a degree in electronic engineering from Universidad Nacional de La Plata (UNLP) and a certificate
in business management from the Business School (IAE) of Universidad Austral.



Alejandro Scannapieco



Mr. Scannapieco has
been our Chief Financial Officer since 2008. From 2002 to 2008, he worked as Chief Financial Officer at Microsoft South Cone, headquartered
in Buenos Aires, where he was responsible for the Finance & Accounting, Business Support and Procurement & Facilities divisions
for Microsoft in Argentina, Bolivia, Chile, Paraguay and Uruguay. Prior to 2002, Mr. Scannapieco worked as a senior financial analyst
at JPMorgan and a senior auditor at Ernst & Young. As our Chief Financial Officer, Mr. Scannapieco is in charge of corporate
finance and business support, including mergers and acquisitions, treasury, accounting and tax and delivery center expansions.
Mr. Scannapieco has a post-graduate degree in capital markets, a degree in public accounting and a bachelor’s degree in business
administration from the Pontificia Universidad Católica Argentina “Santa María de los Buenos Aires.”
He has also completed a post-graduate degree in finance from Torcuato Di Tella University.



Natalia Kanefsck



Ms. Kanefsck has been
our Chief Accounting Officer since January 2012. From 2007 to January 2012, she worked as a Regional Financial Controller at Bally
Technologies Inc. for the Latin American region based in Buenos Aires, where she was responsible for finance, treasury, accounting
and tax for Bally operations in Argentina, Chile, Colombia, Uruguay, Peru, Central America and Caribbean. From 2005 to June 2007,
she worked as Accounting Lead for the Mosaic Company based in Buenos Aires, where she was responsible for finance and accounting
for Mosaic Mexico. As our Chief Accounting Officer, Ms. Kanefsck is in charge of accounting, tax, external audit and reporting.
Ms. Kanefsck has a degree in public accounting from the Universidad de Buenos Aires and a post-graduate degree in business
administration from Centro de Estudios Macroeconomicos.



Guillermo Willi



Mr. Willi has been
our Chief People Officer since September 2011. From 2009 to 2011, he served as the Human Resources Director for Microsoft Argentina
and Uruguay, where he was in charge of leading Microsoft’s human resources policies, developing internal talent and maintaining
diversity and inclusion. Between 2007 and 2009, he was the Human Resources Director for Pampa Energia , and from 2002 to
2007 he served as the Human Resources Director for EDS Argentina and Chile. As Globant’s Chief People Officer, he is responsible
for overseeing the strategy for talent management and development, along with the creation of organizational capabilities and culture.
Mr. Willi has a bachelor’s degree in political science from the Universidad de Buenos Aires and has completed post-graduate
studies in management and human resources at Cornell University.



Gustavo Barreiro



Mr. Barreiro has been
our Chief Information Officer since July 2012. From 2010 to July 2012, Mr. Barreiro served as our Executive Vice President, Delivery,
managing our delivery partners, staffing, recruiting, project managers, and site managers. As Globant’s Chief Information
Officer, Mr. Barreiro is responsible for our infrastructure team (IT operations and information security), enterprise applications,
and IT services. He holds a bachelor’s degree in industrial engineering from the Universidad de Buenos Aires and a
master’s degree in business administration from the Instituto para el Desarollo Empresario Argentino (IDEA).



Patricio Pablo Rojo



Mr. Rojo has been our
General Counsel since May 2013. From 2002 to 2006 and from 2007 to 2013, he worked as a corporate and banking law associate at
the law firm of Marval, O’Farrell & Mairal. Between 2006 and 2007, he was an International Associate at the New York
office of Simpson Thacher & Bartlett LLP. Mr. Rojo has a law degree from the Pontificia Universidad Católica Argentina
“Santa María de los Buenos Aires” and has completed post-graduate studies in law and economics at Torcuato
Di Tella University.



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Wanda Weigert



Mrs. Weigert has been
our Director of Communications and Marketing since 2011. From 2007 to 2011, she served as a communications manager. She joined
Globant in 2005 and worked for two years in the Internet marketing department as a senior consultant. From 2002 to 2005, she worked
at Jota Group, a publishing house where she was responsible for the development of corporate communications tools for different
multinational customers. Mrs. Weigert created and supervises Globant’s communications department. As our communications director,
she coordinates Globant’s relationships with the press in Latin America, the United States and the United Kingdom. She is
also responsible for developing both our internal and external communications strategies. Mrs. Weigert holds a bachelor’s
degree in social communications from Universidad Austral and she completed her post-graduate studies in marketing at the
Pontificia Universidad Católica Argentina “Santa Maria de los Buenos Aires.”



Patricia Pomies



Mrs. Pomies has been
our Chief Delivery Officer since January 2017. In this role, Mrs. Pomies is in charge of our overall strategy related to quality
of service and delivery. Mrs. Pomies first joined our company in 2012 and was previously a director of Europe, Middle East and
Africa (EMEA) and on-line, insurance and travel (OIT), two of our main business units. As such, she was responsible for each unit's
business and operations, with particular focus on expanding the EU market. Mrs. Pomies was director at Educ.ar Portal from 2003
to 2013, a key initiative within Argentina’s Ministry of Education for principals, teachers, students and families to adopt
information and communication technologies in education. Additionally, she was responsible for content production and tracking
of "Equality Connect," a program directly supported by the President of Argentina to distribute more than 3.5 million
netbooks within the Argentine public education system. Mrs. Pomies has been a Professor of Social Communication at Maimonides University
and Assistant Professor of Communication Sciences at the University of Buenos Aires.



B. Compensation



Compensation of Board of Directors and Senior Management



The total fixed and
variable remuneration of our directors and senior management for the years ended December 31, 2016, 2015 and 2014 amounted
to $4.4 million, $4.2 million and $3.6 million, respectively.



We adopted an equity
incentive plan in connection with the completion of our initial public offering. See “— 2014 Equity Incentive Plan”.
From the adoption of this plan until the date of this annual report we granted to members of our senior management and certain
other employees 30,000 stock awards, as well as options to purchase 2,220,847 common shares at an exercise price equal to the fair
value of the awards at the grant date. In addition, we replaced our existing variable compensation arrangements with a new short-term
incentive plan providing for the payment of cash bonuses based on the achievement of certain financial and operating performance
measures.



2014 Equity Incentive Plan



On July 3, 2014, our
board of directors and shareholders approved and adopted our 2014 Equity Incentive Plan, which was amended by our board of directors
on May 9, 2016 to increase the number of common shares that may be issued as stock awards from 1,666,667 to up to 3,666,667. The
following description of the plan is qualified in its entirety by the full text of the plan, which has been filed with the SEC
as an exhibit to the registration statement previously filed in connection with our initial public offering and incorporated by
reference herein.



Purpose. We
believe that the plan will promote our long-term growth and profitability by (i) providing key people with incentives to improve
shareholder value and to contribute to our growth and financial success through their future services, and (ii) enabling us to
attract, retain and reward the best-available personnel.



Eligibility; Types
of Awards. Selected employees, officers, directors and other individuals providing bona fide services to us or any of our affiliates,
are eligible for awards under the plan. The administrator of the plan may also grant awards to individuals in connection with hiring,
recruiting or otherwise before the date the individual first performs services; however, those awards will not become vested or
exercisable before the date the individual first performs services. The plan provides for grants of stock options, stock appreciation
rights, restricted or unrestricted stock awards, restricted stock units, performance awards and other stock-based awards, or any
combination of the foregoing.



Common Shares Subject
to the Plan. The number of common shares that we may issue with respect to awards granted under the plan will not exceed an
aggregate of 3,666,667 common shares. This limit will be adjusted to reflect any stock dividends, split ups, recapitalizations,
mergers, consolidations, share exchanges, and similar transactions. If any award, or portion of an award, under the plan expires
or terminates unexercised, becomes unexercisable, is settled in cash without delivery of common shares, or is forfeited or otherwise
terminated or cancelled as to any common shares, the common shares subject to such award will thereafter be available for further
awards under the plan. Common shares used to pay the exercise price of an award or tax obligations will not be available again
for other awards under the plan.



93







Administration.
The plan is administered by our board of directors or a committee appointed by our board. The administrator has the full authority
and discretion to administer the plan and to take any action that is necessary or advisable in connection with the administration
of the plan, including without limitation the authority and discretion to interpret and construe any provision of the plan or any
agreement or other documents relating to the plan. The administrator’s determinations will be final and conclusive.



Awards. The
plan provides for grants of stock options, stock appreciation rights, restricted or unrestricted stock awards, restricted stock
units, performance awards and other stock-based awards.



Stock Options.
The plan allows the administrator to grant incentive stock options, as that term is defined in section 422 of the Internal Revenue
Code, or non-statutory stock options. Only our employees or employees of our subsidiaries may receive incentive stock option awards.
Options must have an exercise price that is at least equal to the fair market value of the underlying common shares on the date
of grant and not lower than the par value of the underlying common shares. The option holder may pay the exercise price in cash
or by check, by tendering common shares, by a combination of cash and common shares, or by any other means that the administrator
approves. The options have a maximum term of ten years; however, the options will expire earlier if the optionee’s service
relationship with the company terminates.



Stock Appreciation
Rights. The plan allows the administrator to grant awards of stock appreciation rights which entitle the holder to receive
a payment in cash, in common shares, or in a combination of both, having an aggregate value equal to the product of the excess
of the fair market value on the exercise date of the underlying common shares over the base price of the common shares specified
in the grant agreement, multiplied by the number of common shares specified in the award being exercised.



Stock Awards.
The plan allows the administrator to grant awards denominated in common shares or other securities, stock equivalent units or restricted
stock units, securities or debentures convertible into common shares or any combination of the foregoing, to eligible participants.
Awards denominated in stock equivalent units will be credited to a bookkeeping reserve account solely for accounting purposes.
The awards may be paid in cash, in common shares or in a combination of common shares or other securities and cash.



Performance Awards.
The plan allows the administrator to grant performance awards including those intended to constitute “qualified performance-based
compensation” within the meaning of Section 162(m) of the U.S. Internal Revenue Code. The administrator may establish performance
goals relating to any of the following, as it may apply to an individual, one or more business units, divisions or subsidiaries,
or on a company-wide basis, and in either absolute terms or relative to the performance of one or more comparable companies or
an index covering multiple companies: revenue; earnings before interest, taxes, depreciation and amortization (EBITDA); operating
income; pre- or after-tax income; cash flow; cash flow per share; net earnings; earnings per share; price-to-earnings ratio; return
on equity; return on invested capital; return on assets; growth in assets; share price performance; economic value added; total
shareholder return; improvement in or attainment of expense levels; improvement in or attainment of working capital levels; relative
performance to a group of companies comparable to the company, and strategic business criteria consisting of one or more objectives
based on the company’s meeting specified goals relating to revenue, market penetration, business expansion, costs or acquisitions
or divestitures. Performance targets may include minimum, maximum, intermediate and target levels of performance, with the size
of the performance-based stock award or the lapse of restrictions with respect thereto based on the level attained.



A performance target
may be stated as an absolute value or as a value determined relative to prior performance, one or more indexes, budget, one or
more peer group companies, any other standard selected by the administrator, or any combination thereof. The administrator shall
be authorized to make adjustments in the method of calculating attainment of performance measures and performance targets in recognition
of: (A) extraordinary or non-recurring items; (B) changes in tax laws; (C) changes in accounting policies; (D) charges related
to restructured or discontinued operations; (E) restatement of prior period financial results; and (F) any other unusual, non-recurring
gain or loss that is separately identified and quantified in our financial statements. Notwithstanding the foregoing, the administrator
may, in its sole discretion, modify the performance results upon which awards are based under the plan to offset any unintended
results arising from events not anticipated when the performance measures and performance targets were established.



Change in Control.
In the event of any transaction resulting in a “change in control” of Globant S.A. (as defined in the plan), outstanding
stock options and other awards that are payable in or convertible into our common shares will terminate upon the effective time
of the change in control unless provision is made in connection with the transaction for the continuation, assumption, or substitution
of the awards by the surviving or successor entity or its parent. In the event of such termination, the holders of stock options
and other awards under the plan will be permitted immediately before the change in control to exercise or convert all portions
of such stock options or awards that are exercisable or convertible or which become exercisable or convertible upon or prior to
the effective time of the change in control.



94







Notwithstanding the
foregoing, the vesting schedule of all of the outstanding stock options granted to certain senior executives will be accelerated
in the event of a transaction resulting in a change in control if (i) no provision is made in connection with the transaction for
the continuation or assumption of the relevant executive's outstanding options by, or for the substitution of the equivalent awards
of, the surviving or successor entity or a parent thereof, or (ii) the relevant executive is dismissed without cause within a two-year
period following the change in control.



Amendment and Termination.
No award will be granted under the plan after the close of business on the day before the tenth anniversary of the effective date
of the plan. Our board of directors may amend or terminate the plan at any time. Shareholder approval is required to reprice underwater
options.



Director Compensation



Independent members
of our board of directors receive cash compensation for their services as directors and reimbursement of reasonable and documented
costs and expenses incurred by them in connection with attending any meetings of our board of directors or any committees thereof.
Members of our senior management who are members of our board of directors (Messrs. Migoya, Umaran and Englebienne) have received
and will continue receiving cash compensation for their services as executive officers. See “— Compensation of Board
of Directors and Senior Management.”



In 2016, we paid an
aggregate of $287,500 in director fees to certain members of our board of directors who are considered independent.



Members of our senior
management who are members of our board of directors and the directors who continue to provide services to, or are affiliated with
WPP, will not receive compensation from us for their service on our board of directors. Accordingly, Messrs. Migoya, Umaran, Englebienne
and Moore will not receive compensation from us for their service on our board of directors. Only those directors who are considered
independent directors under the corporate governance rules of the NYSE will be eligible, subject to our shareholders’ approval,
to receive compensation from us for their service on our board of directors. Messrs. Galperin, Odeen, Álvarez-Demalde and
Vázquez and other independent directors will be paid annually a cash amount ranging between $50,000 and $100,000.



In 2016, we granted
options to purchase our common shares to Martin Migoya, Martin Umaran, Guibert Englebienne and Francisco Alvarez-Demalde in the
amounts of 120,000, 25,000, 40,000 and 27,000, respectively, vesting in equal parts over four years commencing on the first anniversary
of the date of each grant.



Benefits upon Termination of Employment



Neither we nor our
subsidiaries maintain any directors’ service contracts providing for benefits upon termination of service. On December 27,
2012, we entered into noncompetition agreements with our founders. Under such agreements, the founders agreed that during their
employment with our company, and for a period of two years from the termination of such employment, they will not directly or indirectly
perform any kind of activity or provide any service in other companies that provide the same kinds of services as those provided
by us. In consideration of these noncompetition covenants, the founders will receive compensation equal to 24 times the highest
monthly compensation paid to them during the 12-month period immediately preceding the date of termination of their employment.
This compensation will be paid in two equal installments.



In 2016, our compensation
committee approved an amendment to Martín Migoya's noncompetition agreement to increase his compensation to 36 times the
highest monthly compensation paid to him during the 12-month period immediately preceding the date of termination of his employment.
In addition, our compensation committee approved an amendment each founder's noncompetition agreement so that the compensation
calculation will include the proportional amount of any variable annual cash compensation payable to each founder, at target amounts,
and that each founder will be entitled to receive continued health coverage and life insurance after the termination of their employment
and for a period of 36 months in the case of Martín Migoya and 24 months for the other founders.



In addition, our compensation
committee approved the execution of a noncompetition agreement with Mr. Marsicovetere, our Chief Operating Officer, under substantially
similar terms and conditions to those applicable to those of Messrs. Umaran, Englebienne and Nocetti.



Pension, Retirement or Similar Benefits



We do not pay or set
aside any amounts for pension, retirement or other similar benefits for our officers or directors.



95







C. Board Practices



Globant S.A. is managed
by our board of directors which is vested with the broadest powers to take any actions necessary or useful to fulfill our corporate
purpose with the exception of actions reserved by law or our articles of association to the general meeting of shareholders. Our
articles of association provide that our board of directors must consist of at least seven members and no more than fifteen members.
Our board of directors meets as often as company interests require.



A majority of the members
of our board of directors present or represented at a board meeting constitutes a quorum, and resolutions are adopted by the simple
majority vote of our board members present or represented. In the case of a tie, the chairman of our board shall have the deciding
vote. Our board of directors may also make decisions by means of resolutions in writing signed by all directors.



Directors are elected
by the general meeting of shareholders, and appointed for a period of up to four years; provided, however, that directors are elected
on a staggered basis, with one-third of the directors being elected each year; and provided, further, that such term may be exceeded
by a period up to the annual general meeting held following the fourth anniversary of the appointment, and each director will hold
office until his or her successor is elected. The general shareholders’ meeting may remove one or more directors at any time,
without cause and without prior notice by a resolution passed by simple majority vote. If our board of directors has a vacancy,
such vacancy may be filled on a temporary basis by a person designated by the remaining members of our board of directors until
the next general meeting of shareholders, which will resolve on a permanent appointment. Any director shall be eligible for re-election
indefinitely.



Within the limits provided
for by law and our articles of association, our board of directors may delegate to one or more directors or to any one or more
persons, who need not be shareholders, acting alone or jointly, the daily management of Globant S.A. and the authority to represent
us in connection with such daily management. Our board of directors may also grant special powers to any person(s) acting alone
or jointly with others as agent of Globant S.A.



Our board of directors
may establish one or more committees, including without limitation, an audit committee, a corporate governance and nominating committee
and a compensation committee, and for which it shall, if one or more of such committees are set up, appoint the members, determine
the purpose, powers and authorities as well as the procedures and such other rules as may be applicable thereto.



No contract or other
transaction between us and any other company or firm shall be affected or invalidated by the fact that any one or more of our directors
or officers is interested in, or is a director, associate, officer, agent, adviser or employee of such other company or firm. Any
director or officer who serves as a director, officer or employee or otherwise of any company or firm with which we shall contract
or otherwise engage in business shall not, by reason of such affiliation with such other company or firm only, be prevented from
considering and voting or acting upon any matters with respect to such contract or other business.



Any director having
an interest in a transaction submitted for approval to our board of directors that conflicts with our interest, must inform our
board of directors thereof and to cause a record of his statement to be included in the minutes of the meeting. Such director may
not take part in these deliberations and may not vote on the relevant transaction. At the next general meeting, before any resolution
is put to a vote, a special report shall be made on any transactions in which any of the directors may have had an interest that
conflicts with our interest.



No shareholding qualification
for directors is required.



Any director and other
officer, past and present, is entitled to indemnification from us to the fullest extent permitted by law against liability and
all expenses reasonably incurred or paid by such director in connection with any claim, action, suit or proceeding in which he
is involved as a party or otherwise by virtue of his being or having been a director. We may purchase and maintain insurance for
any director or other officer against any such liability.



No indemnification
shall be provided against any liability to us or our shareholders by reason of willful misconduct, bad faith, gross negligence
or reckless disregard of the duties of a director or officer. No indemnification will be provided with respect to any matter as
to which the director or officer shall have been finally adjudicated to have acted in bad faith and not in our interest, nor will
indemnification be provided in the event of a settlement (unless approved by a court or our board of directors).



96







Board Committees



Our board of directors
has established an audit committee, a compensation committee and a corporate governance and nominating committee. Our board of
directors may from time to time establish other committees.



Audit Committee



Our audit committee
oversees our corporate accounting and financial reporting process. Among other matters, our audit committee:



| | • | is responsible for the appointment, compensation and retention of our independent auditors and
reviews and evaluates the auditors’ qualifications, independence and performance;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | oversees our auditors’ audit work and reviews and pre-approves all audit and non-audit services
that may be performed by them;
| | - | ------------------------------------------------------------------------------------------------------------------------------

| | • | reviews and approves the planned scope of our annual audit;
| | - | -----------------------------------------------------------

| | • | monitors the rotation of partners of the independent auditors on our engagement team as required by law;
| | - | --------------------------------------------------------------------------------------------------------

| | • | reviews our financial statements and discusses with management and our independent auditors the
results of the annual audit and the review of our quarterly financial statements;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | reviews our critical accounting policies and estimates;
| | - | -------------------------------------------------------

| | • | oversees the adequacy of our accounting and financial controls;
| | - | ---------------------------------------------------------------

| | • | annually reviews the audit committee charter and the committee’s performance;
| | - | -----------------------------------------------------------------------------

| | • | reviews and approves related-party transactions; and
| | - | ----------------------------------------------------

| | • | establishes and oversees procedures for the receipt, retention and treatment of complaints regarding
accounting, internal controls or auditing matters and oversees enforcement, compliance and remedial measures under our code of
conduct.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The current members
of our audit committee are Messrs. Mott, Odeen and Vázquez, with Mr. Vázquez serving as the chairman of our audit
committee and our audit committee financial expert as currently defined under applicable SEC rules. Each of Messrs. Vázquez,
Mott and Odeen satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance
rules of the NYSE as well us under Rule 10A-3 under the Exchange Act.



On May 13, 2014, our
board of directors adopted a written charter for our audit committee, which is available on our website at http://www.globant.com.



Compensation Committee



Our compensation committee
reviews, recommends and approves policy relating to compensation and benefits of our officers and directors, administers our common
shares option and benefit plans and reviews general policy relating to compensation and benefits. Duties of our compensation committee
include:



| | • | reviewing and approving corporate goals and objectives relevant to compensation of our directors,
chief executive officer and other members of senior management;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | evaluating the performance of the chief executive officer and other members of senior management
in light of those goals and objectives;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------

| | • | based on this evaluation, determining and approving the compensation of the chief executive officer
and other members of senior management;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------

| | • | administering the issuance of common shares options and other awards to members of senior management
and directors under our compensation plans; and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | • | reviewing and evaluating, at least annually, the performance of the compensation committee and
its members, including compliance of the compensation committee with its charter.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The current members
of our compensation committee are Mr. Vázquez, Odeen and Galperin, with Mr. Vázquez serving as chairman. Each of
Messrs. Vázquez, Odeen and Galperin satisfies the “independence” requirements within the meaning of Section
303A of the corporate governance rules of the NYSE.



Effective as of July
23, 2014, our board of directors adopted a written charter for our compensation committee, which is available on our website at
http://www.globant.com.



97







Corporate Governance and Nominating
Committee



Our corporate governance
and nominating committee identifies individuals qualified to become directors; recommends to our board of directors director nominees
for each election of directors; develops and recommends to our board of directors criteria for selecting qualified director candidates;
considers committee member qualifications, appointment and removal; recommends corporate governance guidelines applicable to us;
and provides oversight in the evaluation of our board of directors and each committee.



The current members
of our corporate governance and nominating committee are Mssrs. Galperin, Odeen and Vázquez, with Mr. Vázquez serving
as chairman. Each of Messrs. Galperin, Vázquez and Odeen satisfies the “independence” requirements within the
meaning of Section 303A of the corporate governance rules of the NYSE.



Effective as of July
23, 2014, our board of directors adopted a written charter for our corporate governance and nominating committee, which is available
on our website at www.globant.com.



D. Employees



Our Globers



People are one of Globant's
most valuable assets. Attracting and retaining the right employees is critical to the success of our business and is a key factor
in our ability to meet our client's needs and the growth of our client and revenue base.



As of December 31,
2016, 2015 and 2014, on a consolidated basis, we had 5,631, 5,041 and 3,775 employees, respectively.



As of December 31,
2016, we had 68 Globers, principally at our delivery center located in Rosario, Argentina, who are covered by a collective bargaining
agreement with FAECYS, which is renewed on an annual basis



The following tables
show our total number of full-time employees as of December 31, 2016 broken down by functional area and geographical location:



|                              |  | Number of employees |      
|----------------------------- |  | ------------------- | -----
|Technology                    |  |                     | 4,867
|Operations                    |  |                     | 352  
|Sales and Marketing           |  |                     | 82   
|Management and administration |  |                     | 330  
|Total                         |  |                     | 5,631





|               |  | Number of employees |      
|-------------- |  | ------------------- | -----
|Argentina      |  |                     | 2,746
|Brazil         |  |                     | 44   
|Colombia       |  |                     | 842  
|Chile          |  |                     | 101  
|United Kingdom |  |                     | 37   
|Uruguay        |  |                     | 477  
|United States  |  |                     | 437  
|Mexico         |  |                     | 371  
|Peru           |  |                     | 77   
|India          |  |                     | 469  
|Spain          |  |                     | 30   
|Total          |  |                     | 5,631



98







In 2007, we commenced
shifting from a Buenos Aires-centric delivery model to a distributed organization with locations across Argentina, Latin America
and Asia, and elsewhere. We believe that decentralizing our workforce and delivery centers improves our access to talent and could
mitigate the impact of IT professionals’ attrition on our business. Additionally, we provide employees with more choices
of where to work, which improves satisfaction and helps us retain our Globers. We continue to draw talent primarily from Latin
America and Asia’s abundant skilled talent base.



We believe our relations
with our employees are good and we have not experienced any significant labor disputes or work stoppages.



Recruitment and Retention



We seek employees who
embrace our “think big” core value and are motivated to be part of a leading company that delivers best-in-class innovative
software solutions to leading global companies. We hire highly qualified, experienced IT professionals and recruit students from
leading technical institutions in countries where our delivery centers are based, including: the University of Buenos Aires, the
Technological Institute of Buenos Aires, the National University of Córdoba and the National University of Tucumán
in Argentina; Universidad Estadual de São Paulo, Brazil; and ORT University in Montevideo, Uruguay. Of our employee
base, approximately 95.0% have obtained a university degree or are enrolled in a university while they are employed by our company,
approximately 3.2% have obtained a graduate level degree, and many have specialized industry credentials or licensing, including
in Systems Engineering, Electronic Engineering, Computer Science, Information Systems Administration, Business Administration and
Graphic and Web Design. Since our inception, we believe we have become a preferred employment option for IT university graduates
in the countries where we have operations. Our participation in a broad range of technology seminars and close involvement with
the institutions of higher education in our region help foster our profile among our target audience and contribute to our recruitment
efforts. Our de-centralization strategy has also yielded positive results by expanding and diversifying our sources of talent within
the region.



Employee retention
is one of our main priorities and a key driver of operational efficiency and productivity. We seek to retain top talent by providing
the opportunity to work on cutting-edge projects for world-class clients, a flexible work environment, training and development
programs, and non-traditional benefits. The total attrition rate among our Globers was 19.3%, 17.7% and 20.2% for the years ended
December 31, 2016, 2015 and 2014, respectively.



Training and Development



We dedicate significant
resources to the development and professional growth of our employees through training programs, career plans, mentoring, talent
assessment, succession planning and performance management.



In 2015, Globant Academy
was launched. Globant Academy is a continuous training program in which all of our training efforts are consolidated and formalized
within four distinct schools (Technology, Leadership, Institutional and Languages).



The Technology School
was created to promote science, technology, engineering, software development and design. The Leadership School is for self-development,
which facilitates training on social skills in order to become a successful leader. The Corporate School was created to educate
our employees about our internal processes and procedures.  The Language School is to support learning and practicing the
most popular languages in the industry.



Depending on the requirements
of the particular program, we employ various training methodologies such as e-learning, virtual learning, face-to-face and blended
learning.



We also utilize specific
programs to recruit, train and develop our employees. Bootcamps is a program to select, train and hire talented employees. Through
Our U-Growis a program to educate university students about technologies, processes and methodologies while they intern with
us. This program also serves as a recruitment source of junior-level employees.  Acamica is an e-learning platform
to provide technical training through in-person courses and videos.



Compensation



We offer our
Globers a compensation package consisting of salary and, for the top five percent of performers, an annual performance bonus.
Also, depending on the Glober’s position, they are eligible to participate in our short term incentive plan, which
includes a potential payment of an amount equivalent to up to three months of salary. Based on the Glober’s position, bonus
payments under the short term incentive plan are contingent on the accomplishment of key performance metrics included within
three categories of bonuses: (a) the Globant bonus, (b) a performance bonus and (c) a manager feedback bonus. The key
performance metrics are (i) our overall revenue and EBITDA for the Globant bonus, (ii) project/account revenue or
project/account gross margin, depending on the Glober’s role, for the performance bonus and (iii) several additional
metrics such as CSat, participation in mandatory trainings, process adherence metrics, and manager feedback amongst others,
for the management feedback bonus. We offer our key employees a long-term incentive program in the form of share-based
compensation.



99







We also offer several
non-traditional benefits including: subsidized company trips, flex-time policies, extended maternity and paternity leave, competitive
health plans, corporate discount programs, yoga classes, stretching classes,among others.



E. Share Ownership



Share Ownership



The total number of
shares of the company beneficially owned by our directors and executive officers, as of the date of this annual report, was 2,076,130
(includes common shares subject to options currently exercisable and options exercisable within 60 days of March 20, 2017), which
represents 5.88% of the total shares of the company. See table in “Major Shareholders and Related Party Transactions — Major
Shareholders.”



Share Options



See “— Compensation
— Compensation of Board of Directors and Senior Management — 2014 Equity Incentive Plan.”



100







ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS



A. Major Shareholders



The following table
sets forth information regarding beneficial ownership of our common shares as of March 20, 2017, by:



| | • | each of our directors and members of senior management individually;
| | - | --------------------------------------------------------------------

| | • | all directors and members of senior management as a group; and
| | - | --------------------------------------------------------------

| | • | each shareholder whom we know to own beneficially more than 5% of our common shares.
| | - | ------------------------------------------------------------------------------------



As of March 20,
2017, we had 34,869,819 issued and outstanding common shares. Beneficial ownership for the purposes of the following table is determined
in accordance with the rules and regulations of the SEC. These rules generally provide that a person is the beneficial owner of
securities if such person has or shares the power to vote or direct the voting thereof, or to dispose or direct the disposition
thereof, to receive the economic benefit of ownership of the securities, or has the right to acquire such powers within 60 days.
Common shares subject to options, warrants or other convertible or exercisable securities that are currently convertible or exercisable
or convertible or exercisable within 60 days of March 20, 2017 are deemed to be outstanding and beneficially owned by the
person holding such securities. Common shares issuable pursuant to share options or warrants are deemed outstanding for computing
the percentage ownership of the person holding such options or warrants but are not outstanding for computing the percentage of
any other person. To our knowledge, except as indicated in the footnotes to this table and pursuant to applicable community property
laws, the persons named in the table have sole voting and investment power with respect to all of our common shares. As of March 20,
2017, we had 123 holders of record in the United States with approximately 70.55 % of our issued and outstanding common shares.



|                                                |  | Number |           |  | Percent | 
|----------------------------------------------- |  | ------ | --------- |  | ------- | 
|Directors and Senior Management                 |  |        |           |  |         | 
|Francisco Álvarez-Demalde (1)                   |  |        | 3,175     |  |         | 
|Gustavo Barreiro(2)                             |  |        | 53,885    |  |         | 
|Guibert Englebienne(3)                          |  |        | 365,508   |  |         | 
|Marcos Galperin(4)                              |  |        | 22,170    |  |         | 
|Natalia Kanefsck(5)                             |  |        | 3,735     |  |         | 
|Guillermo Marsicovetere(6)                      |  |        | 39,465    |  |         | 
|Martín Migoya(7)                                |  |        | 402,633   |  |         | 
|Timothy Mott(8)                                 |  |        | 22,200    |  |         | 
|Nestor Nocetti(9)                               |  |        | 407,343   |  |         | 
|Philip A. Odeen(10)                             |  |        | 22,170    |  |         | 
|Patricio Pablo Rojo(11)                         |  |        | 81,249    |  |         | 
|Alejandro Scannapieco(12)                       |  |        | 60,122    |  |         | 
|Martín Umaran(13)                               |  |        | 512,161   |  |         | 
|Mario Vázquez(14)                               |  |        | 22,170    |  |         | 
|Guillermo Willi(15)                             |  |        | 47,102    |  |         | 
|David Moore                                     |  |        | -         |  |         | 
|Wanda Weigert(16)                               |  |        | 7,500     |  |         | 
|Patricia Pomies(17)                             |  |        | 3,542     |  |         | 
|All executive officers and directors as a group |  |        | 2,076,130 |  |         | 
|*Less than 1%                                   |  |        |           |  |         | 
|5% or More Shareholders:                        |  |        |           |  |         | 
|WPP Luxembourg Gamma Three S.á.r.l.(18)         |  |        | 6,687,548 |  |         | 
|Capital World Investors(19)                     |  |        | 3,778,613 |  |         | 
|GIC Private Limited(20)                         |  |        | 2,514,950 |  |         | 
|BlackRock, Inc.(21)                             |  |        | 1,800,418 |  |         | 
|JPMorgan Chase & Co.(22)                        |  |        | 2,200,137 |  |         | 
|Entities affiliated with Morgan Stanley(23)     |  |        | 1,751,560 |  |         | 



101







| | (1) | Represents 3,175 common shares held by NPI Group Family Limited Partnership, a family investment
vehicle controlled by Mr. Alvarez-Demalde, who indirectly holds shared voting and dispositive power over the 3,175 common shares
held by such company.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Includes 8,124 common shares issuable upon exercise of vested options.
| | --- | ----------------------------------------------------------------------

| | (3) | Includes 36,250 common shares issuable upon exercise of vested options.
| | --- | -----------------------------------------------------------------------

| | (4) | Represents 22,170 common shares issuable upon exercise of vested options.
| | --- | -------------------------------------------------------------------------

| | (5) | Represents 3,735 common shares issuable upon exercise of vested options.
| | --- | ------------------------------------------------------------------------

| | (6) | Includes 39,166 common shares issuable upon exercise of vested options.
| | --- | -----------------------------------------------------------------------

| | (7) | Includes 96,374 common shares issuable upon exercise of vested options and 207,040 common shares
held by a revocable trust formed under New Zealand law (the “Revocable Migoya Trust Shares”) formed by Mr. Migoya that
was established for the benefit of Mr. Migoya, his wife and certain charitable organizations. Subsequently, the trust transferred
its Revocable Migoya Trust Shares to a Uruguayan company wholly owned by the trust. New Zealand Trust Corporation Limited acts
as the independent trustee of the trust. Marcelo Cabrera Errandonea is the sole director of the Uruguayan company and holds voting
and dispositive power over the 207,040 common shares held by such company.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (8) | Includes 22,170 common shares issuable upon the exercise of vested options.
| | --- | ---------------------------------------------------------------------------

| | (9) | Includes 6,250 common shares issuable upon exercise of vested options and 272,770 common shares
held by a revocable trust formed under New Zealand law (the “Revocable Nocetti Trust Shares”) formed by Mr. Nocetti
that was established for the benefit of Mr. Nocetti, his wife and certain charitable organizations. Subsequently, the trust transferred
its Revocable Nocetti Trust Shares to a Uruguayan company wholly owned by the trust. New Zealand Trust Corporation Limited acts
as the independent trustee of the trust. Marcelo Cabrera Errandonea is the sole director of the Uruguayan company and holds voting
and dispositive power over the 212,770 common shares held by such company.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (10) | Represents 22,170 common shares issuable upon exercise of vested options.
| | ---- | -------------------------------------------------------------------------

| | (11) | Includes 51,249 common shares issuable upon exercise of vested options.
| | ---- | -----------------------------------------------------------------------

| | (12) | Includes 6,250 common shares issuable upon exercise of vested options.
| | ---- | ----------------------------------------------------------------------

| | (13) | Includes 30,000 common shares issuable upon exercise of vested options and 359,241 common shares
held by a revocable trust formed under New Zealand law (the “Revocable Umaran Trust Shares”) formed by Mr. Umaran that
was established for the benefit of Mr. Umaran, his wife and certain charitable organizations. Subsequently, the trust transferred
its Revocable Umaran Trust Shares to a Uruguayan company wholly owned by the trust. New Zealand Trust Corporation Limited acts
as the independent trustee of the trust. Marcelo Cabrera Errandonea is the sole director of the Uruguayan company and holds voting
and dispositive power over the 359,241 common shares held by such company.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (14) | Represents 22,170 common shares issuable upon the exercise of vested options.
| | ---- | -----------------------------------------------------------------------------

| | (15) | Includes 37,368 common shares issuable upon the exercise of vested options.
| | ---- | ---------------------------------------------------------------------------

| | (16) | Represents 7,500 common shares issuable upon the exercise of vested options.
| | ---- | ----------------------------------------------------------------------------

| | (17) | Represent 3,542 common shares issuable upon the exercise of vested options.
| | ---- | ---------------------------------------------------------------------------

| | (18) | The ultimate parent of WPP Luxembourg Gamma Three S.a r.l. is WPP plc, a company incorporated in
Jersey. Paul W.G. Richardson, Group Finance Director of WPP plc, holds voting and dispositive power over the 6,687,548 common shares
indirectly held by WPP plc.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (19) | Based on a Schedule 13G/A filed with the SEC on February 13, 2017. Capital World Investors, in
its capacity as an investment adviser in accordance with Rule 13d-1(b)(1)(ii)(E) of the Exchange Act and as a division of Capital
Research and Management Company, beneficially owns 3,778,613 of our common shares and has sole voting and dispositive power with
respect to all 3,778,613 shares.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (20) | Based on a Schedule 13G/A filed with the SEC on February 3, 2017. GIC Private Limited beneficially
owns 2,514,950 of our common shares and has sole and dispositive power with respect to 1,928,677 of such shares and shared voting
and dispositive power with respect to 586,273 of such shares.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (21) | Based on a Schedule 13G filed with the SEC on January 30, 2017. BlackRock, Inc., in its capacity
as a parent holding company under Rule 13d-1(b)(1)(ii)(G) of the Exchange Act, beneficially owns 1,800,418 of our common shares
and has sole voting power with respect to 1,766,471 of such shares and sole dispositive power with respect to all 1,800,418 shares.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (22) | Based on a Schedule 13G filed with the SEC on January 25, 2017. JPMorgan Chase & Co., in its
capacity as a parent holding company under Rule 13d-1(b)(1)(ii)(G) of the Exchange Act, beneficially owns 2,200,137 of our
common shares and has sole voting power with respect to 2,051,030 of such shares, shared voting and dispositive power with respect
to 5,707 of such shares and sole dispositive power with respect to 2,194,430 of such shares.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (23) | Based on a Schedule 13G filed jointly by Morgan Stanley and Morgan Stanley Investment Management Inc. ("MSIM")
with the SEC on February 10, 2017. Each of Morgan Stanley and MSIM beneficially own 1,751,560 of our common shares and has
sole voting power with respect to 1,427,173 of such shares, shared voting power with respect to 174 of such shares and sole dispositive
power with respect to all 1,751,560 shares. The securities being reported upon by Morgan Stanley, in its capacity as a parent
holding company under Rule 13d-1(b)(1)(ii)(G) of the Exchange Act, are owned, or may be deemed to be beneficially owned, by
MSIM, an investment adviser in accordance with Rule 13d-1(b)(1)(ii)(E) of the Exchange Act. MSIM is a wholly-owned subsidiary of Morgan
Stanley.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



102







B. Related Party Transactions



Registration Rights Agreement



On July 23, 2014, we
entered into a registration rights agreement with Messrs. Migoya, Umaran, Englebienne and Nocetti (collectively, the “Founders”),
Kajur International S.A. (“Kajur”), Mifery S.A. (“Mifery”), Gudmy S.A. (“Gudmy”), Noltur S.A.
(“Noltur”), Etmyl S.A. (“Etmyl”), Ewerzy S.A. (“Ewerzy”), Fudmy Corporation S.A. (“Fudmy”),
Gylcer International S.A. (together with Kajur, Mifery, Gudmy, Noltur, Etmyl, Ewerzy and Fudmy, the “Uruguayan Entities”),
Paldwick S.A., Riverwood Capital LLC, Riverwood Capital Partners (Parallel-B) L.P., Riverwood Capital Partners L.P. and Riverwood
Capital Partners (Parallel-A) (collectively, the “Riverwood Entities”) and the FTV Partnerships and WPP (collectively,
the “Registration Rights Holders”) and Endeavor Global, Inc. and Endeavor Catalyst Inc. The registration rights agreement
replaced the registration rights granted under the Shareholders Agreement and WPP’s joinder agreement. Under the registration
rights agreement, we are responsible, subject to certain exceptions, for the expenses of any offering of our common shares held
by the Registration Rights Holders other than underwriting fees, discounts and selling commissions. Additionally, under the registration
rights agreement we may not grant superior registration rights to any other person without the consent of the Registration Rights
Holders. The registration rights agreement contains customary indemnification provisions.



Demand Registration Rights



Under the registration
rights agreement each of (i) the Riverwood Entities (acting as a group), (ii) the FTV Partnerships (acting as a group), (iii) WPP
and (iv) the Founders and the Uruguayan Entities (acting as a group) and any two of (i) the Riverwood Entities, (ii) the FTV Partnerships,
(iii) WPP and (iv) the Founders and the Uruguayan Entities (acting as a group) may require us to effect a registration under the
Securities Act for the sale of their common shares of our company. We are therefore obliged to effect up to five such demand registrations
in total with respect to the common shares owned by such shareholders. However, we are not obliged to effect any such registration
when (1) the request for registration does not cover that number of common shares with an anticipated gross offering price of at
least $10.0 million, or (2) the amount of common shares to be sold in such registration represents more than 15% of our share capital.
If we have been advised by legal counsel that such registration would require a special audit or the disclosure of a material impending
transaction or other matter and our board of directors determines reasonably and in good faith that such disclosure would have
a material adverse effect on us, we have the right to defer such registration, not more than once in any 12-month period, for a
period of up to 90 days. We will not be required to effect a demand registration if we intend to effect a primary registration
of our securities within 60 days of receiving notice of a demand registration, provided that we file such intended registration
statement within the 60-day period. Additionally, we will not be required to effect a demand registration during the period beginning
with the date of filing of, and ending 120 days following the completion of, a primary registered offering of our securities, except
if any of the Registration Rights Holders had requested “piggyback” registration rights in connection with such offering.
In any such demand registration, the managing underwriter will be selected by the majority of the shareholders exercising the demand.



In February 2015, we
received a demand request from the Riverwood Entities and the FTV Partnerships. In April 2015 we closed
a secondary public offering of our common shares through which they and certain selling shareholders sold 3,994,390 common shares.
Subsequently, in June 2015, we received a second demand request from Riverwood Entities. In
July 2015, we closed the second secondary public offering of our common shares through
which they and certain other selling shareholders sold 4,025,000 common shares.



Shelf Registration Rights



We will use commercially
reasonable efforts to qualify and remain qualified to register securities pursuant to Form F-3, and each Registration Rights Holder
may make one written request that we register the offer and sale of their common shares on a shelf registration statement on Form
F-3 if we are eligible to file a registration statement on Form F-3 so long as the request covers at least that number of common
shares with an anticipated aggregate offering sale of at least $5,000,000.



Piggyback Registration Rights



If we propose to register
for sale to the public any of our securities, in connection with the public offering of such securities, the Registration Rights
Holders will be entitled to certain “piggyback” registration rights in connection with such public offering, allowing
them to include their common shares in such registration, subject to certain limitations. As a result, whenever we propose to file
a registration statement under the Securities Act, other than with respect to (1) a registration related to a company equity incentive
plan and (2) a registration related to the exchange of securities in certain corporate reorganizations or certain other transactions
or in other instances where a form is not available for registering securities for sale to the public, the Registration Rights
Holders will be entitled to written notice of the registration and will have the right, subject to limitations that the underwriters
may impose on the number of common shares included in the registration, to include their common shares in the registration.



103







Termination



As to each party to
the Registration Rights Agreement, the rights of such party thereunder terminate upon the earlier to occur of the fifth anniversary
of the date of the agreement or the date upon which the percentage of our total outstanding common shares held by such party ceases
to be at least one percent.



Tag-Along Agreement



On July 23, 2014, the
Founders, the Uruguayan Entities, Paldwick S.A., the Riverwood Entities, the FTV Partnerships, Endeavor Global, Inc. and Endeavor
Catalyst Inc. (collectively, the “Selling Shareholders”) entered into a tag-along agreement pursuant to which if, during
a period of four years as from the date our registration statement filed with the Securities and Exchange Commission was declared
effective, any of the Selling Shareholders proposes to make a transfer of our shares to any other Selling Shareholder or WPP, each
of (i) the Founders and the Uruguayan Entities (individually and/or acting as a group), (ii) the RW Entities (individually and/or
acting as a group), (iii) the FTV Partnerships (individually and/or acting as a group), and (v) Endeavor, shall have the right
to participate in such sale with respect to any shares held by them on a pro rata basis, and on the same terms and conditions and
the same total consideration, as those offered to the corresponding Selling Shareholder in the applicable transfer.



Other Related-Party Transactions



For a summary
of our revenue and expenses and receivables and payables with related parties, please see note 21 to our audited consolidated financial
statements.



Procedures for Related Party Transactions



On July 23, 2014, we
adopted a written code of business conduct and ethics for our company, which is publicly available on our website at www.globant.com.
The code of conduct and ethics was not in effect when we entered into the related party transactions discussed above. Under our
code of business conduct and ethics, our employees, officers and directors are discouraged from entering into any transaction that
may cause a conflict of interest for us. In addition, they must report any potential conflict of interest, including related party
transactions, to their managers or our corporate counsel who then will review and summarize the proposed transaction for our audit
committee. Pursuant to its charter, our audit committee is required to then approve any related-party transactions, including those
transactions involving our directors. In approving or rejecting such proposed transactions, the audit committee is required to
consider the relevant facts and circumstances available and deemed relevant to the audit committee, including the material terms
of the transactions, risks, benefits, costs, availability of other comparable services or products and, if applicable, the impact
on a director’s independence. Our audit committee will approve only those transactions that, in light of known circumstances,
are in, or are not inconsistent with, our best interests, as our audit committee determines in the good faith exercise of its discretion.



On November 5, 2015,
we adopted a related party transactions policy. This policy indicates, based on certain specific parameters, which transactions
should be submitted for approval by either our Audit Committee or our general counsel.



C. Interests of Experts and Counsel



Not applicable.



ITEM 8.  FINANCIAL INFORMATION



A. Consolidated statements and other financial information.



We have included the
Consolidated Financial Statements as part of this annual report. See Item 18, “Financial Statements.”



Legal Proceedings



In the ordinary course
of our business, we are subject to certain contingent liabilities with respect to existing potential claims, lawsuits and other
proceedings, including those involving tax and labor lawsuits and other matters. We accrue liabilities when it is probable that
future costs will be incurred and such cost can be reasonably estimated.



In Argentina, we are
engaged in several legal proceedings, including tax and labor lawsuits. In the opinion of our management, the ultimate disposition
of any threatened or pending matters, either individually or on a combined basis, will not have a material effect on our financial
condition, liquidity or results of operations.



104







On February 10, 2012,
Federacion Argentina de Empleados de Comercio y Servicios (‘‘FAECYS’’) filed a lawsuit against our Argentine
subsidiary, Sistemas Globales S.A., in which FAECYS is demanding the application of its collective labor agreement to the employees
of that subsidiary. According to FAECYS’s claim, Sistemas Globales should have withheld and transferred to FAECYS an amount
of 0.5% of the gross monthly salaries of Sistemas Globales’s employees from October 2006 through October 2011.



Although we believe
Sistemas Globales has meritorious defenses to this lawsuit, no assurance can be provided as to what the ultimate outcome of this
matter will be. In the opinion of our management and our legal advisors, an adverse outcome from this claim is not probable. Consequently,
no amount has been accrued at December 31, 2016. We estimate that the amount of possible loss as of the date of issuance of
these financial statements ranges between $0.7 and $0.8 million, including legal costs and expenses.



In December 2015, we
received a civil investigative demand from the U.S. Attorney's Office for the Northern District of Texas (the “US DOJ”)
for the production of records in connection with an investigation relating to alleged non-compliance with laws governing the application
for and use of B visas during the period January 1, 2009 through December 31, 2015 (the “Relevant Period”).



In order to avoid the
inconvenience and expense of litigation, we settled this matter by entering into a Settlement Agreement with the US DOJ (“Settlement
Agreement”) on March 15, 2017. Under the terms of the Settlement Agreement, we denied the US DOJ’s allegations and
all liability in connection with the conduct alleged by the US DOJ to have involved 21 employees from June 2010 through December
2012. Under the Settlement Agreement, we agreed, among other things, to pay an amount equal to $1.0 million. Of that amount, $500,000
is attributable to penalties connected to the above-described conduct and $500,000 is attributable to reimbursement of the US DOJ’s
investigative costs. In return, the US DOJ has agreed, among other things, to release us and/or our affiliates from any civil or
administrative monetary claim that the US DOJ has for the above-described conduct during the Relevant Period with respect to the
foreign nationals referenced in the Settlement Agreement, subject to customary exceptions.



Our U.S. subsidiary,
Globant LLC, is currently under examination by the Internal Revenue Service (“IRS”) regarding payroll and employment
taxes primarily in connection with services performed by employees of certain of our subsidiaries in the United States from 2013
to 2015. Such examination is currently in progress and, at this stage, we cannot make any predictions about the final outcome of
this matter.



As of December 31,
2016, we are a party in certain labor claims where the risk of loss is considered possible. The final resolution of these claims
is not likely to have a material effect on our financial position or on our results of operations.



Our U.S. subsidiary,
Globant LLC, was under examination for fiscal year 2012 by the IRS regarding transfer pricing matters and others related to the
activities performed by our subsidiaries in the United States. On August 31, 2016, the IRS issued a final outcome of the audit
which resulted in no adjustment to the originally reported profit of us on our 2012 income tax return.



During the year ended
December 31, 2016, some labor claims where the Company was involved came to final resolution and a utilization of the provision
for contingencies was recorded for an amount of 400.



Dividend Policy



We currently anticipate
that we will retain all available funds for use in the operation and expansion of our business, and do not anticipate paying any
dividends in the foreseeable future.



Under Luxembourg law,
at least 5% of our net income per year must be allocated to the creation of a legal reserve until such reserve has reached an amount
equal to 10% of our issued share capital. If the legal reserve subsequently falls below the 10% threshold, 5% of net income again
must be allocated toward the reserve until such reserve returns to the 10% threshold. If the legal reserve exceeds 10% of our issued
share capital, the legal reserve may be reduced. The legal reserve is not available for distribution.



We are a holding company
and have no material assets other than ownership of shares in Spain Holdco, and their direct and indirect ownership of our operating
subsidiaries. Spain Holdco is a holding entity with no material assets other than their direct and indirect ownership of shares
in our operating subsidiaries. If we were to distribute a dividend at some point in the future, we would cause the operating subsidiaries
to make distributions to Spain Holdco which in turn would make distributions to us in an amount sufficient to cover any such dividends.



105







B. Significant Changes



On February 28, 2017,
Globant LLC acquired 100% of shares of Ratio Cypress, LLC (“Ratio”), a limited liability company organized and existing
under the laws of the State of Washington, United States. Ratio offers design, development and quality assurance services necessary
to build and manage robust digital products and video streaming solutions for major media companies. Total headcount of Ratio was
45 employees with operations in United States. The purpose of the acquisition is related to the benefit of expected synergies,
revenue growth, future market development and the assembled workforce of Ratio. The aggregate purchase price was $10.8 million.



On January 26, 2016,
the Company signed a subscription agreement with Ignacio Moreno, Tomás Escobar, Gonzalo Orsi and Juan Badino (jointly “the
Founders”); Fitory S.A., a company organized under the laws of Uruguay; Wayra Argentina S.A., a corporation organized under
the laws of Argentina; Stultum Pecuniam Ventures LLC, a limited liability company organized under the laws of the state of Washington,
United States; Ms. Eun Young Hwang (“Rebecca”); Acamica S.A., a company organized under the laws of Argentina (“Acamica
Argentina”) and Acamica Inc, a corporation organized under the laws of the state of Delaware, United States (“Acamica
US” and together with Acamica Argentina, the “Acamica Group Companies”) whereas the Founders own 100% of the
capital share of Acamica Group Companies and shall form a new company organized under the laws of Spain (“Holdco”)
which shall own 100% of the capital shares of Acamica US and 97% of the capital shares of Acamica Argentina. On January 3, 2017,
pursuant to the terms of the subscription agreement the Company made a capital contribution of 750 to the Acamica Tecnologías
S.L. (previously referred as Holdco) in exchange for a 20% ownership stake in the entity.



ITEM 9. THE OFFER AND LISTING.



A. Offering and listing details.



Our ordinary shares
began trading on the NYSE under the symbol “GLOB” in connection with our IPO on July 18, 2014. Before then, there was
no public market for our ordinary shares. The following table sets forth, for the periods indicated, the high and low closing prices
of our ordinary shares as reported by the NYSE since July 18, 2014.



Our ordinary shares
began trading on the Lux SE under the International Securities Identification Number (ISIN) code “LU0974299876” on
August 11, 2016.



The following table
sets forth, for the periods indicated, the high and low closing prices of our ordinary shares as reported (i) by the NYSE
since July 18, 2014 and (ii) by the Lux SE since August 11, 2016.



106







|                                                                      |  | NYSE |       |  | LUXSE | 
|--------------------------------------------------------------------- |  | ---- | ----- |  | ----- | 
|Period                                                                |  | High |       |  | Low   | 
|2014                                                                  |  |      |       |  |       | 
|July 18 - July 31                                                     |  |      | 12.99 |  |       | 
|August                                                                |  |      | 13.25 |  |       | 
|September                                                             |  |      | 14.78 |  |       | 
|October                                                               |  |      | 14.19 |  |       | 
|November                                                              |  |      | 14.31 |  |       | 
|December                                                              |  |      | 15.85 |  |       | 
|2015                                                                  |  |      |       |  |       | 
|January                                                               |  |      | 15.50 |  |       | 
|February                                                              |  |      | 16.89 |  |       | 
|March                                                                 |  |      | 22.37 |  |       | 
|April                                                                 |  |      | 25.71 |  |       | 
|May                                                                   |  |      | 26.66 |  |       | 
|June                                                                  |  |      | 33.02 |  |       | 
|July                                                                  |  |      | 35.00 |  |       | 
|August                                                                |  |      | 32.98 |  |       | 
|September                                                             |  |      | 33.96 |  |       | 
|October                                                               |  |      | 36.80 |  |       | 
|November                                                              |  |      | 38.16 |  |       | 
|December                                                              |  |      | 38.23 |  |       | 
|2016                                                                  |  |      |       |  |       | 
|January                                                               |  |      | 37.86 |  |       | 
|February                                                              |  |      | 31.96 |  |       | 
|March                                                                 |  |      | 32.65 |  |       | 
|April                                                                 |  |      | 35.91 |  |       | 
|May                                                                   |  |      | 40.14 |  |       | 
|June                                                                  |  |      | 41.23 |  |       | 
|July                                                                  |  |      | 42.96 |  |       | 
|August With respect to Lux SE, this reflects trading from 11-31 only. |  |      | 44.81 |  |       | 
|September                                                             |  |      | 42.35 |  |       | 
|October                                                               |  |      | 47.19 |  |       | 
|November                                                              |  |      | 45.73 |  |       | 
|December                                                              |  |      | 34.51 |  |       | 
|2017                                                                  |  |      |       |  |       | 
|January                                                               |  |      | 35.52 |  |       | 
|February                                                              |  |      | 37.48 |  |       | 
|March 1 - March 20                                                    |  |      | 37.57 |  |       | 



As of March 20,
2017, we had 176 holders of record of our common shares.



107







B. Plan of Distribution



Not applicable.



C. Markets



Our ordinary shares began trading on (i)
the NYSE under the symbol “GLOB” in connection with our IPO on July 18, 2014, and (ii) on the Lux SE under the ISIN
code “LU0974299876”on August 11, 2016. See “ - Offering and Listing Details.”



D. Selling Shareholders



Not applicable.



E. Dilution



Not applicable.



F. Expenses of the Issue



Not applicable.



ITEM 10. ADDITIONAL INFORMATION.



A. Share capital



Not applicable.



B. Memorandum and Articles of Association



The following is a
summary of some of the terms of our common shares, based on our articles of association.



The following summary
is not complete and is subject to, and is qualified in its entirety by reference to, the provisions of our articles of association,
as amended, which were included as an exhibit to our report on Form 6-K filed with the SEC on June 1, 2016, and applicable Luxembourg
law, including Luxembourg Corporate Law.



General



We are a Luxembourg
joint stock company (société anonyme ) and our legal name is “Globant S.A.” We were incorporated
on December 10, 2012. We are registered with the Luxembourg Trade and Companies Register ( Registre de Commerce et des Sociétés
de Luxembourg ) under number B 173 727 and have our registered office at 37A, avenue J.F. Kennedy, L-1855 Luxembourg.



Share Capital



As of December 31,
2016, our issued share capital was $41,749,483, represented by 34,791,236 common shares with a nominal value of $1.20 each, of
which 143,593 were treasury shares held by us.



We had an authorized
share capital, excluding the issued share capital, of $6,730,321 consisting of 5,608,601 common shares with a nominal value of
$1.20 each.



Our shareholders’
meeting has authorized our board of directors to issue common shares within the limits of the authorized share capital at such
times and on such terms as our board of directors may decide during a period of five years starting from the date of the publication
in Luxembourg ́s official gazette (Mémorial C Recueil des Sociétés et Associations) of the decision
of the extraordinary general meeting of shareholders held on May 6, 2016, which publication occurred on July 21, 2016, and ends
on July 21, 2021 and which period may be renewed. Accordingly, our board of directors may currently issue up to 5,530,018 common
shares until such date. We currently intend to seek renewals and/or extensions as required from time to time.



108







Our authorized share
capital is determined by our articles of association, as amended from time to time, and may be increased or reduced by amending
the articles of association by approval of the requisite two-thirds majority of the votes at a quorate extraordinary general shareholders’
meeting. Under Luxembourg law, our shareholders have no obligation to provide further capital to us.



Under Luxembourg law,
our shareholders benefit from a pre-emptive subscription right on the issuance of common shares for cash consideration. However,
our shareholders have, in accordance with Luxembourg law, waived and suppressed, and have authorized our board of directors to
waive, suppress or limit any pre-emptive subscription rights of shareholders provided by law to the extent our board of directors
deems such waiver, suppression or limitation advisable for any issue or issues of common shares within the scope of our authorized
unissued share capital. Such common shares may be issued above, at or below market value as well as above, at or below nominal
value by way of incorporation of available reserves (including premium).



Form and Transfer of Common Shares



Our common shares are
issued in registered form only and are freely transferable under Luxembourg law and our articles of association. Luxembourg law
does not impose any limitations on the rights of Luxembourg or non-Luxembourg residents to hold or vote our common shares.



Under Luxembourg law,
the ownership of registered shares is established by the inscription of the name of the shareholder and the number of shares held
by him or her in the shareholder register. Transfers of common shares not deposited into securities accounts are effective towards
us and third parties either through the recording of a declaration of transfer into the register of shares, signed and dated by
the transferor and the transferee or their representatives or by us, upon notification of the transfer to, or upon the acceptance
of the transfer by, us. Should the transfer of common shares not be recorded accordingly, the shareholder is entitled to enforce
his or her rights by initiating the relevant proceedings before the competent courts of Luxembourg.



In addition, our articles
of association provide that our common shares may be held through a securities settlement system or a professional depositary of
securities. The depositor of common shares held in such manner has the same rights and obligations as if such depositor held the
common shares directly. Common shares held through a securities settlement system or a professional depositary of securities may
be transferred from one account to another in accordance with customary procedures for the transfer of securities in book-entry
form. However, we will make dividend payments (if any) and any other payments in cash, common shares or other securities (if any)
only to the depositary recorded in the register or in accordance with its instructions.



Issuance of Common Shares



Pursuant to Luxembourg
Corporate Law, the issuance of common shares requires the amendment of our articles of association by the approval of the requisite
two-thirds majority of the votes at a quorate extraordinary general shareholders’ meeting. However, the general meeting may
approve an authorized share capital and authorize our board of directors to issue common shares up to the maximum amount of such
authorized unissued share capital for a period ending five years from the date of publication in Luxembourg ́s official gazette
(Mémorial C Recueil des Sociétés et Associations / Recueil Electronique des Sociétés et Associations)
of the minutes of the relevant general meeting approving such authorization. The general meeting may amend or renew such authorized
share capital and such authorization of our board of directors to issue common shares.



We have an authorized
share capital, excluding the issued share capital, of $6,636,021.60 and our board of directors is authorized to issue up to 5,530,018
common shares (subject to stock splits, consolidation of common shares or like transactions) with a nominal value of $1.20 per
common share.



Our articles provide
that no fractional shares shall be issued or exist.



Pre-emptive Rights



Unless limited, waived
or cancelled by our board of directors in the context of the authorized unissued share capital or by an extraordinary general meeting
of shareholders pursuant to the provisions of the articles of association relating to amendments thereof, holders of our common
shares have a pro rata pre-emptive right to subscribe for any new common shares issued for cash consideration. Our articles provide
that pre-emptive rights can be waived, suppressed or limited by our board of directors for a period starting from the date of the
publication in the Luxembourg official gazette (Mémorial C Recueil des Sociétés et Associations) of
the decision of the extraordinary general meeting of shareholders held on May 6, 2016, which publication occurred on July 21, 2016
and which ends on July 21, 2021, in the event of an increase of the issued share capital by our board of directors within the limits
of the authorized unissued share capital.



109







Repurchase of Common Shares



We cannot subscribe
for our own common shares. We may, however, repurchase issued common shares or have another person repurchase issued common shares
for our account, subject to the following conditions:



| | • | the repurchase complies with the principle of equal treatment of all shareholders;
| | - | ----------------------------------------------------------------------------------

| | • | prior authorization by a simple majority vote at an ordinary general meeting of shareholders is
granted, which authorization sets forth the terms and conditions of the proposed repurchase, including the maximum number of common
shares to be repurchased, the duration of the period for which the authorization is given (which may not exceed five years) and,
in the case of a repurchase for consideration, the minimum and maximum consideration per common share;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | the repurchase does not reduce our net assets (on a non-consolidated basis) to a level below the
aggregate of the issued share capital and the reserves that we must maintain pursuant to Luxembourg law or our articles of association;
and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | only fully paid-up common shares are repurchased.
| | - | -------------------------------------------------



No prior authorization
by our shareholders is required for us to repurchase our own common shares if:



| | • | we are in imminent and severe danger, in which case our board of directors must inform the general
meeting of shareholders held subsequent to the repurchase of common shares of the reasons for, and aim of such repurchase, the
number and nominal value of the common shares repurchased, the fraction of the share capital such repurchased common shares represented
and the consideration paid for such shares; or
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | the common shares are repurchased by us or by a person acting for our account in view of a distribution
of the common shares to our employees.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------



On June 18, 2014, the
general meeting of shareholders according to the conditions set forth in article 49.2 of Luxembourg Corporate Law granted our board
of directors the authorization to repurchase up to a maximum number of shares representing 20% of the issued share capital immediately
after the closing of our initial public offering for a net purchase price being (i) no less than 50% of the lowest stock price
and (ii) no more than 50% above the highest stock price, in each case being the closing price, as reported by the New York City
edition of the Wall Street Journal, or, if not reported therein, any other authoritative sources to be selected by our board of
directors, over the ten trading days preceding the date of the purchase (or the date of the commitment to the transaction). The
authorization is valid for a period ending five years from the date of the general meeting or the date of its renewal by a subsequent
general meeting of shareholders. Pursuant to such authorization, our board of directors is authorized to acquire and sell our common
shares under the conditions set forth in the minutes of such general meeting of shareholders. Such purchases and sales may be carried
out for any purpose authorized by the general meeting of Globant S.A.



Capital Reduction



Our articles of association
provide that our issued share capital may be reduced by a resolution adopted by the requisite two-thirds majority of the votes
at a quorate extraordinary general shareholders’ meeting. If the reduction of capital results in the capital being reduced
below the legally prescribed minimum, the general meeting of the shareholders must, at the same time, resolve to increase the capital
up to the required level.



General Meeting of Shareholders



Any regularly constituted
general meeting of our shareholders represents the entire body of shareholders.



Each of our common
shares entitles the holder thereof to attend our general meeting of shareholders, either in person or by proxy, to address the
general meeting of shareholders and to exercise voting rights, subject to the provisions of Luxembourg law and our articles of
association. Each common share entitles the holder to one vote at a general meeting of shareholders. Our articles of association
provide that our board of directors shall adopt as it deems fit all other regulations and rules concerning the attendance to the
general meeting.



A general meeting of
our shareholders may, at any time, be convened by our board of directors, to be held at such place and on such date as specified
in the convening notice of such meeting. Our articles of association provide that a general meeting of shareholders must be convened
by our board of directors, upon request in written indicating the agenda, addressed to our board of directors by one or more shareholders
representing at least ten percent (10%) of our issued share capital. In such case, a general meeting of shareholders must be convened
and must be held within a period of one month from receipt of such request. One or more shareholders holding at least five percent
(5%) of our issued share capital may request the addition of one or more items to the agenda of any general meeting of shareholders
and propose resolutions. Such requests must be received at our registered office by registered mail at least 22 days before the
date of such meeting.



110







Our articles of association
provide that if our common shares are listed on a stock exchange, all shareholders recorded in any register of our shareholders
are entitled to be admitted and vote at the general meeting of shareholders based on the number of shares they hold on a date and
time preceding the general meeting of shareholders as the record date for admission to the general meeting of shareholders (the
“Record Date”), which the board of directors may determine as specified in the convening notice. Furthermore, any shareholder,
holder or depositary, as the case may be, who wishes to attend the general meeting must inform us thereof no later than on the
fourteenth day preceding the date of such general meeting, or by any other date which the board of directors may determine and
as specified in the convening notice, in a manner to be determined by the board of directors in the convening notice. In case of
common shares held through the operator of a securities settlement system or with a depositary designated by such depositary, a
holder of common shares wishing to attend a general meeting of shareholders should receive from such operator or depositary a certificate
certifying the number of common shares recorded in the relevant account on the Record Date. The certificate should be submitted
to us no later than three business days prior to the date of such general meeting. If the shareholder votes by means of a proxy,
the proxy must be deposited at our registered office or with any agent of ours, duly authorized to receive such proxies, at the
same time. Our board of directors may set a shorter period for the submission of the certificate or the proxy in which case this
will be specified in the convening notice.



General meetings of
shareholders shall be convened in accordance with the provisions of our articles of association and the 1915 Luxembourg Companies
Act (the "1915 Companies Act"). Such law provides inter alia that convening notices for every general meeting
shall contain the agenda of the meeting and shall take the form of announcements published in the Recueil Electronique des Sociétés
et Associations, a new official electronic platform of central publication regarding companies and associations ("RESA"),
in a Luxembourg newspaper and in the media in a manner which ensures an effective dissemination of information to the public throughout
the European Economic Area and in a manner which ensures a fast access to it on a non-discriminatory basis. Notices by mail shall
also be sent at least eight days before the meeting to registered shareholders but no proof need be given that this formality has
been complied with. Where all the common shares are in registered form, the convening notices may be made only by registered letters.



In case an extraordinary
general meeting of shareholders is convened to enact an extraordinary resolution (see below under “- Voting Rights”
for further background information) and if such meeting is not quorate and a second meeting is convened, the second meeting will
be convened by means of notices published twice, with a minimum interval of fifteen days between publication and at least fifteen
days before the meeting, in the RESA and in two Luxembourg newspapers. Such convening notice shall reproduce the agenda and indicate
the date and the results of the previous meeting.



Pursuant to our articles
of association, if all shareholders are present or represented at a general meeting of shareholders and state that they have been
informed of the agenda of the meeting, the general meeting of shareholders may be held without prior notice.



Our annual general
meeting is held in Luxembourg, at the registered office of the company or such other place as specified in the convening notice
of the meeting on the fourth Friday of April of each year at 11:00 AM local time. If that day is a legal holiday in Luxembourg,
the meeting will be held on the next following Luxembourg business day.



Voting Rights



Each share entitles
the holder thereof to one vote at a general meeting of shareholders.



Luxembourg law distinguishes
ordinary resolutions and extraordinary resolutions.



Extraordinary resolutions
relate to proposed amendments to the articles of association and certain other limited matters. All other resolutions are ordinary
resolutions.



Ordinary Resolutions.Pursuant to our articles of association and the 1915 Companies Act, ordinary resolutions shall be adopted by a simple majority
of votes validly cast on such resolution at a general meeting. Abstentions and nil votes will not be taken into account.



Extraordinary Resolutions.
Extraordinary resolutions are required for any of the following matters, among others: (a) an increase or decrease of the authorized
capital or issued share capital, (b) a limitation or exclusion of preemptive rights, (c) approval of a merger (fusion) or de-merger
(scission), (d) dissolution and (e) an amendment to our articles of association. Pursuant to Luxembourg law and our articles of
association, for any extraordinary resolutions to be considered at a general meeting, the quorum must generally be at least half
(50%) of our issued share capital. Any extraordinary resolution shall generally be adopted at a quorate general meeting upon a
two-thirds majority of the votes validly cast on such resolution. In case such quorum is not reached, a second meeting may be convened
by our board of directors in which no quorum is required, and which must generally still approve the amendment with two-thirds
of the votes validly cast. Abstentions and nil votes will not be taken into account.



111







Change in nationality.
Pursuant to to our articles of association, we may only change our nationality with the unanimous consent of all shareholders.
Moreover, if we have bondholders, the bondholders must generally approve the change of nationality at a general meeting with a
quorum of at least half of the bonds issued and the resolution must be adopted by a two-thirds majority of the bondholder votes
validly cast.



Appointment and
Removal of Directors.Members of our board of directors are elected by ordinary resolution at a general meeting of shareholders.
Under the articles of association, all directors are elected for a period of up to four years; provided, however, that directors
shall be elected on a staggered basis, with one-third of the directors being elected each year. Any director may be removed with
or without cause and with or without prior notice by a simple majority vote at any general meeting of shareholders. The articles
of association provide that, in case of a vacancy, our board of directors may fill such vacancy on a temporary basis by a person
designated by the remaining members of our board of directors until the next general meeting of shareholders, which will resolve
on a permanent appointment. The directors shall be eligible for re-election indefinitely.



Neither Luxembourg
law nor our articles of association contain any restrictions as to the voting of our common shares by non-Luxembourg residents.



Amendment to the Articles of Association



Shareholder Approval
Requirements. Luxembourg law requires that amendments to our articles of association be made by extraordinary resolution. The
agenda of the general meeting of shareholders must indicate the proposed amendments to the articles of association.



Pursuant to the 1915
Companies Act and our articles of association, for an extraordinary resolution to be considered at a general meeting, the quorum
must generally be at least 50% of our issued share capital. Any extraordinary resolution shall be adopted at a quorate general
meeting (save as otherwise provided by mandatory law) upon a two-thirds majority of the votes validly cast on such resolution.
If the quorum of 50% is not reached at this meeting, a second general meeting may be convened, in which no quorum is required,
and may approve the resolution at a majority of two-third of votes validly cast.



Formalities.
Any resolutions to amend the articles of association or to approve a merger, de-merger or dissolution must be taken before a Luxembourg
notary and such amendments must be published in accordance with Luxembourg law.



Merger and Division



A merger by absorption
whereby one Luxembourg company, after its dissolution without liquidation, transfers to another company all of its assets and liabilities
in exchange for the issuance of common shares in the acquiring company to the shareholders of the company being acquired, or a
merger effected by transfer of assets to a newly incorporated company, must, in principle, be approved at a general meeting of
shareholders by an extraordinary resolution of the Luxembourg company, and the general meeting of shareholders must be held before
a notary. Further conditions and formalities under Luxembourg law are to be complied with in this respect.



Liquidation



In the event of our
liquidation, dissolution or winding-up, the assets remaining after allowing for the payment of all liabilities will be paid out
to the shareholders pro rata according to their respective shareholdings. Generally, the decisions to liquidate, dissolve or wind-up
require the passing of an extraordinary resolution at a general meeting of our shareholders, and such meeting must be held before
a notary.



Mandatory Takeover, Squeeze-Out and
Sell-Out Rights under the Luxembourg Takeover Law



Mandatory bid.
The Luxembourg law of May 19, 2006 implementing Directive 2004/25/EC of the European Parliament and the Council of April 21, 2004
on takeover bids ( the “Takeover Law”), provides that, if a person acting alone or in concert acquires securities of
our company which, when added to any existing holdings of our securities, give such person voting rights representing at least
one-third of all of the voting rights attached to the issued shares of our company, this person is obliged to make an offer for
the remaining shares of our company. In a mandatory bid situation, a “fair price” is in principle considered to be
the highest price paid by the offeror or a person acting in concert with the offeror for the securities during the 12-month period
preceding the mandatory bid.



112







Squeeze-out right.
The Takeover Law provides that, when an offer (mandatory or voluntary) is made to all of the holders of voting securities of our
company and after such offer the offeror holds at least 95% of the securities carrying voting rights and 95% of the voting rights,
the offeror may require the holders of the remaining securities to sell those securities (of the same class) to the offeror. The
price offered for such securities must be a fair price. The price offered in a voluntary offer would be considered a fair price
in the squeeze-out proceedings if the offeror acquired at least 90% of the company’s shares carrying voting rights that were
the subject of the offer. The price paid in a mandatory offer is deemed a fair price. The consideration paid in the squeeze-out
proceedings must take the same form as the consideration offered in the offer or consist solely of cash. Moreover, an all-cash
option must be offered to the remaining shareholders. Finally, the right to initiate squeeze-out proceedings must be exercised
within three months following the expiration of the offer.



Sell-out right.
The Takeover Law provides that, when an offer (mandatory or voluntary) is made to all of the holders of voting securities of the
company and if after such offer the offeror holds securities carrying more than 90% of the voting rights, the remaining security
holders may require that the offeror purchase the remaining securities of the same class. The price offered in a voluntary offer
would be considered “fair” in the sell-out proceedings if the offeror acquired at least 90% of the company’s
shares carrying voting rights and which were the subject of the offer. The price paid in a mandatory offer is deemed a fair price.
The consideration paid in the sell-out proceedings must take the same form as the consideration offered in the offer or consist
solely of cash. Moreover, an all-cash option must be offered to the remaining shareholders of the company. Finally, the right to
initiate sell-out proceedings must be exercised within three months following the expiration of the offer.



We also fall under
the scope of the Luxembourg law of July 21, 2012 on the squeeze-out and sell-out of securities of companies admitted or having
been admitted to trading on a regulated market or which have been subject to a public offer (the “Luxembourg Mandatory Squeeze-Out
and Sell-Out Law”). The Luxembourg Mandatory Squeeze-Out and Sell-Out Law provides that, subject to the conditions set forth
therein being met, if any individual or legal entity, acting alone or in concert with another, holds a number of shares or other
voting securities representing at least 95% of the voting share capital and 95% of the voting rights of the company: (i) such holder
may require the holders of the remaining shares or other voting securities to sell those remaining securities (the “Mandatory
Squeeze-Out”); and (ii) the holders of the remaining shares or securities may require such holder to purchase those remaining
shares or other voting securities (the “Mandatory Sell-Out”). The Mandatory Squeeze-Out and the Mandatory Sell-Out
must be exercised at a fair price according to objective and adequate methods applying to asset disposals. The procedures applicable
to the Mandatory Squeeze-Out and the Mandatory Sell-Out are subject to further conditions and must be carried out under the supervision
of the Commission de Surveillance du Secteur Financier (the "CSSF").



Disclosure of transactions
by persons discharging managerial responsibilities



Pursuant to Regulation
(EU) No 596/2014 of the European Parliament and of the Council of April 16, 2014 on market abuse and related regulations (collectively
referred to as the “Market Abuse Regulation”), persons discharging managerial responsibilities within the company as
well as persons closely associated with them, must notify the CSSF and the company of every transaction conducted on their own
account (a concept that must be interpreted within the meaning of the Market Abuse Regulation) relating to our shares instruments
or to derivatives or other financial instruments linked thereto. The obligation applies to any subsequent transaction once a total
amount of EUR 5,000 has been reached within a calendar year, calculated by adding without netting all relevant transactions relating
to the shares. The notification must be made promptly and no later than three business days after the date of the transaction.
The company must ensure that any information on relevant transactions notified to it is made public promptly and no later than
three business days after the transaction in a manner which enables fast access to this information on a non-discriminatory basis.



For the purpose of
the Market Abuse Regulation, a “person discharging managerial responsibilities” means a person who is (a) a member
of the administrative, management or supervisory body of that entity; or (b) a senior executive who is not a member of the bodies
referred to in point (a), who has regular access to inside information relating directly or indirectly to that entity and power
to take managerial decisions affecting the future developments and business prospects of that entity.



“Persons discharging
senior managerial responsibilities” within our company are the members of our board of directors and the members of our senior
management identified in this report.



Publication of regulated
information



Pursuant to directive
2004/109/EC of the European Parliament and of the Council of December 15, 2004 on the harmonization of transparency requirements
in relation to information about issuers whose securities are admitted on trading on a regulated market (the “Transparency
Directive”), issuers that fall within the scope of that directive are required to provide ongoing and periodic information
which the directive defines as “regulated information”. As regards that regulated information, the Transparency Directive
imposes three obligations on issuers:

| | • | publish the regulated information;
| | - | ----------------------------------



113







| | • | make this information available to an Officially Appointed Mechanism ("OAM") for the
central storage of regulated information; and
| | - | ----------------------------------------------------------------------------------------------------------------------------------

| | • | file the regulated information with the competent authority of the relevant home European Economic Area Member State.
| | - | ---------------------------------------------------------------------------------------------------------------------



In accordance with
article 20 of the Luxembourg law of January 11, 2008 implementing the Transparency Directive (the “Transparency Law”),
issuers are required to disclose regulated information in a manner ensuring fast access to such information on a non-discriminatory
basis. Thus, they shall use such media as may reasonably be relied upon for the effective dissemination of information to the public
in all European Economic Area Member States.



We are required to
file the aforementioned information with the OAM in Luxembourg.



All news and press
releases issued by us are available on our website at www.globant.comin the “Investors”
section.



No Appraisal Rights



Neither Luxembourg
law nor our articles of association provide for any appraisal rights of dissenting shareholders.



Distributions



Subject to Luxembourg
law, if and when a dividend is declared by the general meeting of shareholders or an interim dividend is declared by our board
of directors, each common share is entitled to participate equally in such distribution of funds legally available for such purposes.
Pursuant to our articles of association, our board of directors may pay interim dividends, subject to Luxembourg law.



Declared and unpaid
distributions held by us for the account of the shareholders shall not bear interest. Under Luxembourg law, claims for unpaid distributions
will lapse in our favor five years after the date such distribution became due and payable.



Any amount payable
with respect to dividends and other distributions declared and payable may be freely transferred out of Luxembourg, except that
any specific transfer may be prohibited or limited by anti-money laundering regulations, freezing orders or similar restrictive
measures.



Annual Accounts



Under Luxembourg law,
our board of directors must prepare annual accounts and consolidated accounts. Except in some cases provided for by Luxembourg
Law, our board of directors must also annually prepare management reports on the annual accounts and consolidated accounts. The
annual accounts, the consolidated accounts, the management report and the auditor’s reports must be available for inspection
by shareholders at our registered office at least 15 calendar days prior to the date of the annual ordinary general meeting of
shareholders.



The annual accounts
and consolidated accounts are audited by an approved statutory auditor (réviseur d’entreprises agréé).



The annual accounts
and the consolidated accounts, after approval by the annual ordinary general meeting of shareholders, will be filed with the Luxembourg
Trade and Companies Register (Registre de Commerce et des Sociétés of Luxembourg).



Information Rights



Luxembourg law gives
shareholders limited rights to inspect certain corporate records 15 calendar days prior to the date of the annual ordinary general
meeting of shareholders, including the annual accounts with the list of directors and auditors, the consolidated accounts, the
notes to the annual accounts and the consolidated accounts, a list of shareholders whose common shares are not fully paid up, the
management reports and the auditor’s report.



In addition, any registered
shareholder is entitled to receive a copy of the annual accounts, the consolidated accounts, the auditor’s reports and the
management reports free of charge prior to the date of the annual ordinary general meeting of shareholders.



Under Luxembourg law,
it is generally accepted that a shareholder has the right to receive responses to questions concerning items on the agenda for
a general meeting of shareholders, if such responses are necessary or useful for a shareholder to make an informed decision concerning
such agenda item, unless a response to such questions could be detrimental to our interests.



114







Disclosure of significant ownership of our shares



Holders of common shares,
including depositary receipts representing common shares admitted to trading on a regulated market and for which Luxembourg is
the home Member State and to which voting rights are attached (the “Securities”) and derivatives or other financial
instruments linked to the Securities may be subject to notification obligations pursuant to the Luxembourg law of January 11, 2008
on transparency requirements for issuers, as amended (the “Luxembourg Transparency Law”) and the Grand ducal regulation
of January 11, 2008 on transparency requirements for issuers, as amended. The following description summarizes these obligations.
Our common shareholders are advised to consult with their own legal advisers to determine whether the notification obligations
apply to them.



The Luxembourg Transparency
Law provides that, if a person acquires or disposes of Securities of the Company, and if following the acquisition or disposal,
the proportion of voting rights held by the person reaches, exceeds or falls below one of the thresholds of 5%, 10%, 15%, 20%,
25%, 33 1/3%, 50% or 66 2/3% (each a “Relevant Threshold”) of the total voting rights existing when the situation giving
rise to a declaration occurs, such person must simultaneously notify us and the CSSF of the proportion of voting rights held by
it further to such event. The voting rights shall be calculated on the basis of all the common shares, including depositary receipts
representing common shares, to which voting rights are attached even if the exercise thereof is suspended. Moreover, this information
shall be given in respect of all the common shares, including depositary receipts representing common shares, which are in the
same class and to which voting rights are attached. A person must also notify us and the CSSF of the proportion of his or her voting
rights if that proportion reaches, exceeds or falls below the above mentioned thresholds as a result of events changing the breakdown
of voting rights and on the basis of the information disclosed by us.



The same notification
requirements apply to a natural person or legal entity to the extent such person or entity is entitled to acquire, to dispose of,
or to exercise voting rights in any of the following cases or a combination of them:



| | a. | voting rights held by a third party with whom that person or entity has concluded an agreement,
which obliges them to adopt, by concerted exercise of the voting rights they hold, a lasting common policy towards the management
of the issuer;
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b. | voting rights held by a third party under an agreement concluded with that person or entity providing
for the temporary transfer for consideration of the voting rights in question;
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c. | voting rights attaching to Securities which are lodged as collateral with that person or entity,
provided the person or entity controls the voting rights and declares his intention of exercising them;
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | d. | voting rights attaching to Securities in which that person or entity has the life interest;
| | -- | -------------------------------------------------------------------------------------------

| | e. | voting rights which are held, or may be exercised within the meaning of points (a) to (d), by an
undertaking controlled by that person or entity;
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------

| | f. | voting rights attaching to Securities deposited with that person or entity which the person or
entity can exercise at his discretion in the absence of specific instructions from the Securities holders;
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | g. | voting rights held by a third party in its own name on behalf of that person or entity;
| | -- | ---------------------------------------------------------------------------------------

| | h. | voting rights which that person or entity may exercise as a proxy where the person or entity can
exercise the voting rights at his discretion in the absence of specific instructions from the Securities holders.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The above notification
requirements also apply to a natural person or legal entity that holds, directly or indirectly, financial instruments linked to
our common shares.



Board of Directors



Globant S.A. is managed
by our board of directors which is vested with the broadest powers to take any actions necessary or useful to fulfill our corporate
purpose with the exception of actions reserved by law or our articles of association to the general meeting of shareholders. Our
articles of association provide that our board of directors must consist of at least seven members and no more than fifteen members.
Our board of directors meets as often as company interests require.



A majority of the members
of our board of directors present or represented at a board meeting constitutes a quorum, and resolutions are adopted by the simple
majority vote of our board members present or represented. In the case of a tie, the chairman of our board shall have the deciding
vote. Our board of directors may also make decisions by means of resolutions in writing signed by all directors.



Directors are elected
by the general meeting of shareholders, and appointed for a period of up to four years; provided, however, that directors are elected
on a staggered basis, with one-third of the directors being elected each year; and provided, further, that such term may be exceeded
by a period up to the annual general meeting held following the fourth anniversary of the appointment, and each director will hold
office until his or her successor is elected. The general shareholders’ meeting may remove one or more directors at any time,
without cause and without prior notice by a resolution passed by simple majority vote. If our board of directors has a vacancy,
such vacancy may be filled on a temporary basis by a person designated by the remaining members of our board of directors until
the next general meeting of shareholders, which will resolve on a permanent appointment. Any director shall be eligible for re-election
indefinitely.



115







Within the limits provided
for by law and our articles of association, our board of directors may delegate to one or more directors or to any one or more
persons, who need not be shareholders, acting alone or jointly, the daily management of Globant S.A. and the authority to represent
us in connection with such daily management. Our board of directors may also grant special powers to any person(s) acting alone
or jointly with others as agent of Globant S.A.



Our board of directors
may establish one or more committees, including without limitation, an audit committee, a corporate governance and nominating committee
and a compensation committee, and for which it shall, if one or more of such committees are set up, appoint the members, determine
the purpose, powers and authorities as well as the procedures and such other rules as may be applicable thereto.



No contract or other
transaction between us and any other company or firm shall be affected or invalidated by the fact that any one or more of our directors
or officers is interested in, or is a director, associate, officer, agent, adviser or employee of such other company or firm. Any
director or officer who serves as a director, officer or employee or otherwise of any company or firm with which we shall contract
or otherwise engage in business shall not, by reason of such affiliation with such other company or firm only, be prevented from
considering and voting or acting upon any matters with respect to such contract or other business.



Any director having
an interest in a transaction submitted for approval to our board of directors that conflicts with our interest, must inform our
board of directors thereof and to cause a record of his statement to be included in the minutes of the meeting. Such director may
not take part in these deliberations and may not vote on the relevant transaction. At the next general meeting, before any resolution
is put to a vote, a special report shall be made on any transactions in which any of the directors may have had an interest that
conflicts with our interest.



No shareholding qualification
for directors is required.



Any director and other
officer, past and present, is entitled to indemnification from us to the fullest extent permitted by law against liability and
all expenses reasonably incurred or paid by such director in connection with any claim, action, suit or proceeding in which he
is involved as a party or otherwise by virtue of his being or having been a director. We may purchase and maintain insurance for
any director or other officer against any such liability.



No indemnification
shall be provided against any liability to us or our shareholders by reason of willful misconduct, bad faith, gross negligence
or reckless disregard of the duties of a director or officer. No indemnification will be provided with respect to any matter as
to which the director or officer shall have been finally adjudicated to have acted in bad faith and not in our interest, nor will
indemnification be provided in the event of a settlement (unless approved by a court or our board of directors).



Registrars and registers for the common shares



All our common shares
are in registered form only.



We keep a register
of common shares at our registered office in Luxembourg. This register is available for inspection by any shareholder. In addition,
we may appoint registrars in different jurisdictions who will each maintain a separate register for the registered common shares
entered therein. It is possible for our shareholders to elect the entry of their common shares in one of these registers and the
transfer thereof at any time from one register to any other, including to the register kept at our registered office. However,
our board of directors may restrict such transfers for common shares that are registered, listed, quoted, dealt in or have been
placed in certain jurisdictions in compliance with the requirements applicable therein.



Our articles of association
provide that the ownership of registered common shares is established by inscription in the relevant register. We may consider
the person in whose name the registered common shares are registered in the relevant register as the full owner of such registered
common shares.



In connection with
a general meeting, our board of directors may forbid any entry in the relevant register of shareholders as well as any recognition
of notices of transfer by us or the relevant registrar during the period starting on the Record Date and ending on the closing
of such general meeting. Transfer to, and on, the register kept at our registered office may always be requested.



Transfer Agent and Registrar



The transfer agent
and registrar for our common shares is American Stock Transfer & Trust Company, LLC, with an address at 6201 15th Avenue Brooklyn,
New York, NY 11219.



116







Our common shares are
listed on the NYSE under the symbol “GLOB” and on the Official List of the Luxembourg Stock Exchange.



C. Material Contracts



We have not entered
into any material contracts during the preceding two years which were outside the ordinary course of business. Notwithstanding
the foregoing, during the preceding year and up to the date of this annual report, we have issued shares under certain subscription
agreements we entered into, which include, among other terms, certain transferability restrictions on the shares issued thereunder,
as set forth below:



| | • | In May 2016, we issued 75,221 common shares in favor of the sellers of WAE (the "WAE Subscribers")
pursuant to the terms of certain subscription agreements entered into by us and the WAE Subscribers during that same month. As
of the date of this annual report, such common shares are subject to certain transfer restrictions under the terms of the relevant
subscription agreements, whereby the WAE Subscribers have agreed, among other terms, during a one-year period from the date of
issuance of the common shares, not to offer, pledge, sell, announce the intention to sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer
or dispose of, directly or indirectly, the common shares subscribed for under the subscription agreements, provided, however, that
the foregoing restrictions are subject to a range of exceptions.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | In July 2016, we issued 23,508 common shares to the sellers of Clarice (the "Clarice Subscribers")
pursuant to the terms of certain subscription agreements entered into by us and the Clarice Subscribers during that same month.
As of the date of this annual report, such common shares are subject to certain transfer restrictions under the terms of the relevant
subscription agreements, whereby the Clarice Subscribers have agreed, among others, during a one-year period from the date of issuance
of the common shares, not to offer, pledge, sell, announce the intention to sell, contract to sell, sell any option or contract
to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or
dispose of, directly or indirectly, the common shares subscribed for under the subscription agreements, provided, however, that
the foregoing restrictions are subject to a range of exceptions.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | In November 2016, we issued 70,380 common shares in favor of the sellers of L4 Mobile (the "L4
Subscribers") pursuant to the terms of certain subscription agreements entered into by us and the L4 Subscribers during that
same month. As of the date of this annual report such common shares are subject to certain transfer restrictions under the terms
of the relevant subscription agreements, whereby the L4 Subscribers have agreed, among others, during a one-year period from the
date of issuance of the common shares, not to offer, pledge, sell, announce the intention to sell, contract to sell, sell any option
or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise
transfer or dispose of, directly or indirectly, the common shares subscribed for under the subscription agreements, provided, however,
that the foregoing restrictions are subject to a range of exceptions.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | In February 2017, we issued 34,309 common shares in favor of the sellers of Ratio (the "Ratio
Subscribers") pursuant to the terms of certain subscription agreements entered into by us and the Ratio Subscribers during
that same month. As of the date of this annual report such common shares are subject to certain transfer restrictions under the
terms of the relevant subscription agreements, whereby the Ratio Subscribers have agreed, among others, during a one-year period
from the date of issuance of the common shares, not to offer, pledge, sell, announce the intention to sell, contract to sell, sell
any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or
otherwise transfer or dispose of, directly or indirectly, the common shares subscribed for under the subscription agreements, provided,
however, that the foregoing restrictions are subject to a range of exceptions.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



D. Exchange Controls



See “Information
on the Company — Business Overview — Regulatory Overview — Foreign Exchange Controls.”



E. Taxation



The following is a
summary of the material Luxembourg and U.S. federal income tax consequences to U.S. Holders (as defined below) of the ownership
and disposition of our common shares. This summary is based upon Luxembourg tax laws and U.S. federal income tax laws (including
the U.S. Internal Revenue Code of 1986, as amended (the “Code”), final, temporary and proposed Treasury regulations,
rulings, judicial decisions and administrative pronouncements), all currently in effect as of the date hereof and all of which
are subject to change or changes in wording or administrative or judicial interpretation occurring after the date hereof, possibly
with retroactive effect. To the extent that the following discussion relates to matters of Luxembourg tax law, it represents the
opinion of Arendt & Medernach, Luxembourg, our Luxembourg counsel, and to the extent that the discussion relates to matters
of U.S. federal income tax law, it represents the opinion of DLA Piper LLP (US), our U.S. counsel.



117







As used herein, the
term “U.S. Holder” means a beneficial owner of one or more of our common shares:



| | (a) | that is for U.S. federal income tax purposes one of the following:
| | --- | ------------------------------------------------------------------

| | (i) | an individual citizen or resident of the United States,
| | --- | -------------------------------------------------------

| | (ii) | a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) created
or organized in or under the laws of the United States or any political subdivision thereof, or
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source;
| | ----- | -----------------------------------------------------------------------------------------------------------

| | (b) | who holds the common shares as capital assets for U.S. federal income tax purposes;
| | --- | -----------------------------------------------------------------------------------

| | (c) | who owns, directly, indirectly or by attribution, less than 10% of the share capital or voting shares of Globant; and
| | --- | ---------------------------------------------------------------------------------------------------------------------

| | (d) | whose holding is not effectively connected with a permanent establishment in Luxembourg.
| | --- | ----------------------------------------------------------------------------------------



This summary does not
address all of the tax considerations that may apply to holders that are subject to special tax rules, such as U.S. expatriates,
insurance companies, tax-exempt organizations, certain financial institutions, persons subject to the alternative minimum tax,
dealers and certain traders in securities, persons holding common shares as part of a straddle, hedging, conversion or other integrated
transaction, persons who acquired their common shares pursuant to the exercise of employee shares options or otherwise as compensation,
partnerships or other entities classified as partnerships for U.S. federal income tax purposes or persons whose functional currency
is not the U.S. dollar. Such holders may be subject to U.S. federal income tax consequences different from those set forth below.
In addition, this summary does not address all of the Luxembourg tax considerations that may apply to holders that are subject
to special tax rules.



If a partnership holds
common shares, the tax treatment of a partner generally will depend upon the status of the partner and the activities of the partnership.
A partnership, or partner in a partnership, that holds common shares is urged to consult its own tax advisor regarding the specific
tax consequences of owning and disposing of the common shares.



Potential investors
in our common shares should consult their own tax advisors concerning the specific Luxembourg and U.S. federal, state and local
tax consequences of the ownership and disposition of our common shares in light of their particular situations as well as any consequences
arising under the laws of any other taxing jurisdiction.



Luxembourg Tax Considerations



Introduction



The following is an
overview of certain material Luxembourg tax consequences of purchasing, owning and disposing of the common shares issued by us.
It does not purport to be a complete analysis of all possible tax situations that may be relevant to a decision to purchase, own
or deposit our common shares. It is included herein solely for preliminary information purposes and is not intended to be, nor
should it construed to be, legal or tax advice. Prospective purchasers of our common shares should consult their own tax advisers
as to the applicable tax consequences of the ownership of our common shares, based on their particular circumstances. The following
description of Luxembourg tax law is based upon the Luxembourg law and regulations as in effect and as interpreted by the Luxembourg
tax authorities as of the date of this annual report and is subject to any amendments in law (or in interpretation) later introduced,
whether or not on a retroactive basis. Please be aware that the residence concept used under the respective headings below applies
for Luxembourg tax assessment purposes only. Any reference in this section to a tax, duty, levy impost or other charge or withholding
of a similar nature refers to Luxembourg tax laws and/or concepts only. Also, please note that a reference to Luxembourg income
tax encompasses corporate income tax (impôt sur le revenu des collectivités), municipal business tax (impôt
commercial communal), a solidarity surcharge (contribution au fonds pour l’emploi) and personal income tax (impôt sur
le revenu) generally. Corporate taxpayers may further be subject to net worth tax (impôt sur la fortune), as well as other
duties, levies or taxes. Corporate income tax, municipal business tax, as well as the solidarity surcharge invariably applies to
most corporate taxpayers resident of Luxembourg for tax purposes. Individual taxpayers are generally subject to personal income
tax and to the solidarity surcharge. Under certain circumstances, where an individual taxpayer acts in the course of the management
of a professional or business undertaking, municipal business tax may apply as well.



118







Taxation of the company



Income tax



As the company is a
fully-taxable Luxembourg company, its net taxable profit is as a rule subject to corporate income tax (“CIT”) and municipal
business tax (“MBT”) at ordinary rates in Luxembourg.



The taxable profit
as determined for CIT purposes is applicable, with minor adjustments, for MBT purposes. CIT is levied at an effective maximum rate
of 20.33% in 2017 and 19.26% as from 2018 (inclusive of the 7% surcharge for the employment fund). MBT is levied at a variable
rate according to the municipality in which the company is located (6.75% in the City of Luxembourg). The maximum aggregate CIT
and MBT rate consequently amounts to 27.08% in 2017 and 26.01% as from 2018 for companies located in the City of Luxembourg.



Dividends and other
payments derived from shares by the company are subject to income taxes, unless the conditions of the participation exemption regime,
as described below, are satisfied. A tax credit is generally granted for withholding taxes levied at source within the limit of
the tax payable in Luxembourg on such income, whereby any excess withholding tax is not refundable.



Under the participation
exemption regime (subject to the relevant anti-abuse rules), dividends derived from shares may be exempt from income tax if (i)
the distributing company is a qualified subsidiary (“Qualified Subsidiary”) and (ii) at the time the dividend is put
at the company’s disposal, the company has held or commits itself to hold for an uninterrupted period of at least 12 months
shares representing a direct participation in the share capital of the Qualified Subsidiary (i) of at least 10% or of (ii) an acquisition
price of at least €1.2 million. A Qualified Subsidiary means (a) a Luxembourg resident fully-taxable company limited by share
capital (société de capitaux), (b) a company covered by Article 2 of the Council Directive 2011/96/EU of November
30, 2011 (the “EU Parent-Subsidiary Directive”) or (c) a non-resident company limited by share capital (société
de capitaux) liable to a tax corresponding to Luxembourg CIT.



Liquidation proceeds
are assimilated to a received dividend and may be exempt under the same conditions. If the conditions of the participation exemption
regime are not met, dividends derived by the company from Qualified Subsidiaries may be exempt for 50 % of their gross amount if
they are received from (i) a Luxembourg resident fully-taxable company limited by share capital, or (ii) a company limited by share
capital resident in a State with which the Grand Duchy of Luxembourg has concluded a double tax treaty and liable to a tax corresponding
to Luxembourg CIT, or (iii) a company resident in a EU Member State and covered by Article 2 of the EU Parent-Subsidiary Directive.



Capital gains realized
by the company on shares are subject to CIT and MBT at ordinary rates, unless the conditions of the participation exemption regime,
as described below, are satisfied. Under the participation exemption regime, capital gains realized on shares of a Qualified Subsidiary
may be exempt from CIT and MBT at the level of the company if at the time the capital gain is realized, the company has held or
commits itself to hold for an uninterrupted period of at least 12 months shares representing a direct participation in the share
capital of the Qualified Subsidiary (i) of at least 10% or of (ii) an acquisition price of at least €6 million. Taxable gains
are defined as being the difference between the price for which shares have been disposed of and the lower of their cost or book
value.



Withholding tax



Dividends paid by us
to the holders of our common shares are as a rule subject to a 15% withholding tax in Luxembourg, unless a reduced withholding
tax rate applies pursuant to an applicable double tax treaty or an exemption pursuant to the application of the participation exemption,
and, to the extent withholding tax applies, we are responsible for withholding amounts corresponding to such taxation at its source.



If the company and
a U.S. relevant holder are eligible for the benefits of the tax treaty concluded between the United State and Luxembourg (the “Treaty”),
the rate of withholding on distributions is 15%, or 5% if the U.S. relevant holder is a qualified resident company as defined in
Article 24 of the Treaty that owns at least 10% of our the company’s voting stock.



A withholding tax exemption
may apply under the participation exemption if cumulatively (i) the holder of our shares is an eligible parent (an “Eligible
Parent”) and (ii) at the time the income is made available, the holder of our shares has held or commits itself to hold for
an uninterrupted period of at least 12 months a direct participation of at least 10% of our share capital or a direct participation
of an acquisition price of at least €1.2 million (or an equivalent amount in another currency). Holding a participation through
an entity treated as tax transparent from a Luxembourg income tax perspective is deemed to be a direct participation in proportion
to the net assets held in this entity. An Eligible Parent includes (a) a company covered by Article 2 of the EU Parent-Subsidiary
Directive or a Luxembourg permanent establishment thereof, (b) a company resident in a State having a double tax treaty with Luxembourg
and subject to a tax corresponding to Luxembourg CIT or a Luxembourg permanent establishment thereof, (c) a company limited by
share capital (société de capitaux) or a cooperative society (société coopérative) resident
in the European Economic Area other than an EU Member State and liable to a tax corresponding to Luxembourg CIT or a Luxembourg
permanent establishment thereof or (d) a Swiss company limited by share capital (société de capitaux) which is effectively
subject to corporate income tax in Switzerland without benefiting from an exemption.



119







No withholding tax
is levied on capital gains and liquidation proceeds.



Net wealth tax



The company is as a
rule subject to Luxembourg net wealth tax (“NWT”) on its net assets as determined for net wealth tax purposes. NWT
is levied at the rate of 0.5% on net assets not exceeding EUR 500 million and at the rate of 0.05% on the portion of the net assets
exceeding EUR 500 million. Net worth is referred to as the unitary value (valeur unitaire), as determined at 1 January of each
year. The unitary value is in principle calculated as the difference between (i) assets estimated at their fair market value (valeur
estimée de réalisation), and (ii) liabilities vis-à-vis third parties.



Under the participation
exemption regime, a qualified shareholding held by the company in a Qualified Subsidiary is exempt for net wealth tax purposes.



As from 1 January 2016,
a minimum net wealth tax (“MNWT”) is levied on companies having their statutory seat or central administration in Luxembourg.
For entities for which the sum of fixed financial assets, receivables against related companies, transferable securities and cash
at bank exceeds 90% of their total balance sheet and EUR 350,000, the MNWT is set at EUR 4,815. For all other companies having
their statutory seat or central administration in Luxembourg which do not fall within the scope of the EUR 4,815 MNWT, the MNWT
ranges from EUR 535 to EUR 32,100, depending on the company’s total balance sheet.



Other taxes



The issuance of our
common shares and any other amendment of our articles of association are currently subject to a €75 fixed registration duty.
The disposal of our common shares is not subject to a Luxembourg registration tax or stamp duty, unless recorded in a Luxembourg
notarial deed or otherwise registered in Luxembourg.



Taxation of the holders of commons
shares



Luxembourg tax residency of the holders
of our common shares



A holder of our common
shares will not become resident, nor be deemed to be resident, in Luxembourg by reason only of the holding and/or disposing of
our common shares or the execution, performance or enforcement of his/her rights thereunder.



Income tax



Luxembourg resident holders



Luxembourg individual residents



Dividends and other
payments derived from our common shares by resident individual holders of our common shares, who act in the course of the management
of either their private wealth or their professional or business activity, are subject to income tax at the ordinary progressive
rates. A tax credit may be granted, under certain circumstances, for Luxembourg withholding tax levied. 50% of the gross amount
of dividends received from the company by resident individual holders of our common shares are exempt from income tax.



Capital gains realized
on the disposal of our common shares by resident individual holders of our common shares, who act in the course of the management
of their private wealth, are not subject to income tax, unless said capital gains qualify either as speculative gains or as gains
on a substantial participation. Capital gains are deemed to be speculative and are subject to income tax at ordinary rates if our
common shares are disposed of within six months after their acquisition or if their disposal precedes their acquisition. Speculative
gains are subject to income tax as miscellaneous income at ordinary rates. A participation is deemed to be substantial where a
resident individual holder of our common shares holds or has held, either alone or together with his spouse or partner and / or
minor children, directly or indirectly at any time within the five years preceding the disposal, more than 10% of the share capital
of the company whose common shares are being disposed of. A holder of our common shares is also deemed to alienate a substantial
participation if he acquired free of charge, within the five years preceding the transfer, a participation that was constituting
a substantial participation in the hands of the alienator (or the alienators in case of successive transfers free of charge within
the same five-year period). Capital gains realized on a substantial participation more than six months after the acquisition thereof
are taxed according to the half-global rate method, (i.e. the average rate applicable to the total income is calculated
according to progressive income tax rates and half of the average rate is applied to the capital gains realized on the substantial
participation). A disposal may include a sale, an exchange, a contribution or any other kind of alienation of the participation.



Capital gains realized
on the disposal of our common shares by resident individual holders of our common shares, who act in the course of their professional
or business activity, are subject to income tax at ordinary rates. Taxable gains are determined as being the difference between
the price for which our common shares have been disposed of and the lower of their cost or book value.



120







Luxembourg fully-taxable corporate residents



Dividends and other
payments derived from our common shares by Luxembourg-resident, fully-taxable companies are subject to CIT and MBT, unless the
conditions of the participation exemption regime, as described below, are satisfied. A tax credit may, under certain circumstances,
be granted for any Luxembourg withholding tax levied. If the conditions of the participation exemption regime are not met, 50%
of the gross amount of dividends received by Luxembourg-resident, fully-taxable companies from our common shares are exempt from
CIT and MBT.



Under the participation
exemption regime, dividends derived from our common shares may be exempt from CIT and MBT at the level of the holder of our common
shares if cumulatively (i) the holder of our common shares is a Luxembourg-resident, fully-taxable company and (ii) at the time
the dividend is put at the holder of our common shares’ disposal, the holder of our common shares has held or commits itself
to hold for an uninterrupted period of at least 12 months a qualified shareholding (“Qualified Shareholding”). A Qualified
Shareholding means common shares representing a direct participation of at least 10% in the share capital of the company or a direct
participation in the company of an acquisition price of at least €1.2 million (or an equivalent amount in another currency).
Liquidation proceeds are assimilated to a received dividend and may be exempt under the same conditions. Common shares held through
a tax-transparent entity are considered as being a direct participation proportionally to the percentage held in the net assets
of the transparent entity.



Capital gains realized
by a Luxembourg-resident, fully-taxable company on our common shares are subject to CIT and MBT at ordinary rates, unless the conditions
of the participation exemption regime, as described below, are satisfied. Under the participation exemption regime, capital gains
realized on our common shares may be exempt from income tax at the level of the holder of our common shares if cumulatively (i)
the holder of our common shares is a Luxembourg fully-taxable corporate resident and (ii) at the time the capital gain is realized,
the holder of our common shares has held or commits itself to hold for an uninterrupted period of at least 12 months our common
shares representing a direct participation in the share capital of the company of at least 10% or a direct participation in the
company of an acquisition price of at least €6 million (or an equivalent amount in another currency). Taxable gains are determined
as being the difference between the price for which our common shares have been disposed of and the lower of their cost or book
value.



Luxembourg residents benefiting from
a special tax regime



Holders of our common
shares who are either (i) an undertaking for collective investment governed by the amended law of December 17, 2010, (ii) a specialized
investment fund governed by the amended law of February 13, 2007, (iii) a family wealth management company governed by the amended
law of May 11, 2007 and (iv) a reserved alternative investment fund treated as a specialized investment fund for Luxembourg tax
purposes governed by the law of July 23, 2016, are exempt from income tax in Luxembourg. Dividends derived from and capital gains
realized on our common shares are thus not subject to income tax in their hands.



Luxembourg non-resident holders



Non-resident holders
of our common shares who have neither a permanent establishment nor a permanent representative in Luxembourg to which or whom our
common shares are attributable, are not liable to any Luxembourg income tax on income and gains derived from our common shares
except capital gains realised on (i) a substantial participation before the acquisition or within the first six months of
the acquisition thereof, or (ii) a substantial participation more than six months after the acquisition thereof by a holder of
our common shares who has been a former Luxembourg resident for more than fifteen years and has become a non-resident, at the time
of transfer, less than five years ago. A participation is deemed to be substantial where a shareholder holds or has held, either
alone or, in case of an individual shareholder, together with his/her spouse or partner and/or minor children, directly or indirectly
at any time within the five years preceding the disposal, more than 10% of the share capital of the company whose common shares
are being disposed of. A shareholder is also deemed to alienate a substantial participation if he acquired free of charge, within
the five years preceding the transfer, a participation that was constituting a substantial participation in the hands of the alienator
(or the alienators in case of successive transfers free of charge within the same five-year period)..



If the company and
a U.S. relevant holder are eligible for the benefits of the Treaty, such U.S. relevant holder generally should not be subject to
Luxembourg tax on the gain from the disposal of such common shares unless such gain is attributable to a permanent establishment
of such U.S. relevant holder in Luxembourg.



Non-resident holders
of our common shares which have a permanent establishment or a permanent representative in Luxembourg to which or whom our common
shares are attributable, must include any income received, as well as any gain realized, on the sale, disposal or redemption of
our common shares, in their taxable income for Luxembourg tax assessment purposes, unless the conditions of the participation exemption
regime, as described below, are satisfied. If the conditions of the participation exemption regime are not fulfilled, 50% of the
gross amount of dividends received by a Luxembourg permanent establishment or permanent representative may be, however, exempt
from income tax. Taxable gains are determined as being the difference between the price for which the common shares have been disposed
of and the lower of their cost or book value.



121







Under the participation
exemption regime, dividends derived from our common shares may be exempt from income tax if cumulatively (i) our common shares
are attributable to a qualified permanent establishment (“Qualified Permanent Establishment”) and (ii) at the time
the dividend is put at the disposal of the Qualified Permanent Establishment, it has held or commits itself to hold a Qualified
Shareholding for an uninterrupted period of at least 12 months. A Qualified Permanent Establishment means (a) a Luxembourg permanent
establishment of a company covered by Article 2 of the EU Parent-Subsidiary Directive, (b) a Luxembourg permanent establishment
of a company limited by share capital (société de capitaux) resident in a State having a tax treaty with Luxembourg,
and (c) a Luxembourg permanent establishment of a company limited by share capital (société de capitaux) or a cooperative
society (société coopérative) resident in the European Economic Area other than a EU Member State. Liquidation
proceeds are assimilated to a received dividend and may be exempt under the same conditions. Common shares held through a tax transparent
entity are considered as being a direct participation proportionally to the percentage held in the net assets of the transparent
entity.



Under the participation
exemption regime, capital gains realized on our common shares may be exempt from income tax if (i) our common shares are attributable
to a Qualified Permanent Establishment and (ii) at the time the capital gain is realized, the Qualified Permanent Establishment
has held or commits itself to hold, for an uninterrupted period of at least 12 months, our common shares representing a direct
participation in the share capital of the company of at least 10% or a direct participation in the company of an acquisition price
of at least €6 million (or an equivalent amount in another currency). Taxable gains are determined as being the difference
between the price for which our common shares have been disposed of and the lower of their cost or book value.



Net Wealth Tax



Luxembourg resident
holders of our common shares, as well as non-resident holders of our common shares who have a permanent establishment or a permanent
representative in Luxembourg to which or whom our common shares are attributable, are subject to Luxembourg net wealth tax on our
common shares, except if the holder is (i) a resident or non-resident individual taxpayer, (ii) a securitization company governed
by the amended law of March 22, 2004 on securitization, (iii) a company governed by the amended law of June 15, 2004 on venture
capital vehicles, (iv) a professional pension institution governed by the amended law of July 13, 2005, (v) a specialized investment
fund governed by the amended law of February 13, 2007, (vi) a family wealth management company governed by the amended law of May
11, 2007, (vii) an undertaking for collective investment governed by the amended law of December 17, 2010 or (viii) a reserved
alternative investment fund governed by the law of July 23, 2016. However, (i) a securitization company governed by the amended
law of March 22, 2004 on securitization, (ii) a company governed by the amended law of June 15, 2004 on venture capital vehicles,
(iii) a professional pension institution governed by the amended law of July 13, 2005 and (iv) a reserved alternative investment
fund treated as a venture capital vehicle for Luxembourg tax purposes and governed by the law of July 23, 2016, remain subject
to minimum net wealth tax.



Under the participation
exemption, a Qualified Shareholding held in the company by an Eligible Parent or attributable to a Qualified Permanent Establishment
may be exempt. The net wealth tax exemption for a Qualified Shareholding does not require the completion of the 12-month holding
period.



Other Taxes



Under Luxembourg tax
law, where an individual holder of our common shares is a resident of Luxembourg for tax purposes at the time of his or her death,
our common shares are included in his or her taxable basis for inheritance tax purposes. On the contrary, no inheritance tax is
levied on the transfer of our common shares upon the death of an individual holder in cases where the deceased was not a resident
of Luxembourg for inheritance purposes.



Gift tax may be due
on a gift or donation of our common shares, if the gift is recorded in a Luxembourg notarial deed or otherwise registered in Luxembourg.



122







U.S. Federal Income Tax Considerations



Taxation of dividends



Distributions received
by a U.S. Holder on common shares, including the amount of any Luxembourg taxes withheld, other than certain pro rata distributions
of common shares to all shareholders, will constitute foreign source dividend income to the extent paid out of our current or accumulated
earnings and profits (as determined for U.S. federal income tax purposes). Because Globant does not maintain calculations of its
earnings and profits under U.S. federal income tax principles, it is expected that such distributions (including any Luxembourg
taxes withheld) will be reported to U.S. Holders as dividends. Although it is Globant’s intention, if it pays any dividends,
to pay such dividends in U.S. dollars, if dividends are paid in euros, the amount of the dividend a U.S. Holder will be required
to include in income will equal the U.S. dollar value of the euro, calculated by reference to the exchange rate in effect on the
date the payment is received by the U.S. Holder, regardless of whether the payment is converted into U.S. dollars on the date of
receipt. If the dividend is converted to U.S. dollars on the date of receipt, a U.S. holder should not be required to recognize
foreign currency gain or loss in respect of the dividend income. A U.S. Holder may have foreign currency gain or loss if the dividend
is converted into U.S. dollars after the date of its receipt. If a U.S. Holder realizes gain or loss on a sale or other disposition
of euro, it will be U.S. source ordinary income or loss. Corporate U.S. Holders will not be entitled to claim the dividends received
deduction with respect to dividends paid by Globant. Subject to applicable limitations, dividends received by certain non-corporate
U.S. Holders of common shares will generally be taxable at the reduced rate that otherwise applies to long-term capital gains.
Non-corporate U.S. Holders should consult their own tax advisors to determine whether they are subject to any special rules that
limit their ability to be taxed at this favorable rate. Certain pro rata distributions of ordinary shares to all shareholders are
not generally subject to U.S. federal income tax.



Instead of claiming
a credit, a U.S. Holder may elect to deduct foreign taxes (including any Luxembourg taxes) in computing its taxable income, subject
to generally applicable limitations. An election to deduct foreign taxes (instead of claiming foreign tax credits) applies to all
taxes paid or accrued in the taxable year to foreign countries and possessions of the United States. The limitations on foreign
taxes eligible for credit is calculated separately with respect to specific classes of income. The rules governing foreign tax
credits are complex. Therefore, U.S. Holders should consult their own tax advisors regarding the availability of foreign tax credits
in their particular circumstances.



Taxation upon sale or other disposition
of common shares



A U.S. Holder will
recognize U.S. source capital gain or loss on the sale or other disposition of common shares, which will be long-term capital gain
or loss if the U.S. Holder has held such common shares for more than one year. The amount of the U.S. Holder’s gain or loss
will be equal to the difference between such U.S. Holder’s tax basis in the common shares sold or otherwise disposed of and
the amount realized on the sale or other disposition.



Passive foreign investment company
rules



Globant believes that
it will not be a passive foreign investment company (“PFIC”) for U.S. federal income tax purposes for its current taxable
year and does not expect to become one in the foreseeable future. However, because PFIC status depends upon the composition of
a Globant’s income and assets and the market value of its assets (including, among others, less than 25% owned equity investments)
from time to time, there can be no assurance that Globant will not be considered a PFIC for any taxable year. Because Globant has
valued its goodwill based on the market value of its equity, a decrease in the price of common shares may also result in Globant
becoming a PFIC. The composition of Globant’s income and our assets will also be affected by how, and how quickly, Globant
spends its cash. Under circumstances where the cash is not deployed for active purposes, Globant’s risk of becoming a PFIC
may increase. If Globant were treated as a PFIC for any taxable year during which a U.S. Holder held common shares, certain adverse
tax consequences could apply to the U.S. Holder.



If Globant were treated
as a PFIC for any taxable year during which a U.S. Holder held common shares, gain recognized by a U.S. Holder on a sale or other
disposition of a common shares would be allocated ratably over the U.S. Holder’s holding period for the common shares. The
amounts allocated to the taxable year of the sale or other disposition and to any year before Globant became a PFIC would be taxed
as ordinary income. The amount allocated to each other taxable year would be subject to tax at the highest rate in effect for individuals
or corporations, as appropriate, and an interest charge would be imposed on the resulting tax liability. The same treatment would
apply to any distribution in respect of common shares to the extent it exceeds 125% of the average of the annual distributions
on common shares received by the U.S. Holder during the preceding three years or the U.S. Holder’s holding period, whichever
is shorter. Certain elections may be available that would result in alternative treatments (such as mark-to-market treatment) of
the common shares.



In addition, if Globant
were treated as a PFIC in a taxable year in which it pays a dividend or in the prior taxable year, the reduced rate discussed above
with respect to dividends paid to certain non-corporate U.S. Holders would not apply.



Information reporting and backup
withholding



Payments of dividends
and sales proceeds that are made within the United States or through certain U.S.-related financial intermediaries generally are
subject to information reporting and to backup withholding unless the U.S. Holder is a corporation or other exempt recipient or,
in the case of backup withholding, the U.S. Holder provides a correct taxpayer identification number and certifies that it is not
subject to backup withholding. The amount of any backup withholding from a payment to a U.S. Holder will be allowed as a credit
against the U.S. Holder’s U.S. federal income tax liability and may entitle such U.S. Holder to a refund, provided that the
required information is timely furnished to the Internal Revenue Service.



123







F. Dividends and Paying Agents



Not applicable.



G. Statement by Experts.



Not applicable.



H. Documents on Display



As a foreign private
issuer, we are subject to periodic reporting and other informational requirements of the Exchange Act as applicable. Accordingly,
we are required to file reports, including this annual report on Form 20-F, and other information with the SEC. However, we are
allowed four months to file our annual report with the SEC instead of approximately three, and we are not required to disclose
certain detailed information regarding executive compensation that is required from United States domestic issuers. In addition,
we are not required under the Exchange Act to file periodic reports and financial statements with the SEC as frequently as companies
that are not foreign private issuers whose securities are registered under the Exchange Act. Also, as a foreign private issuer,
we are exempt from the rules of the Exchange Act prescribing the furnishing of proxy statements to shareholders, and our senior
management, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained
in Section 16 of the Exchange Act.



As a foreign private
issuer, we are also exempt from the requirements of Regulation FD (Fair Disclosure) which, generally, are meant to ensure that
select groups of investors are not privy to specific information about an issuer before other investors. We are, however, still
subject to the anti-fraud and anti-manipulation rules of the SEC, such as Rule 10b-5. Since many of the disclosure obligations
required of us as a foreign private issuer are different than those required by other United States domestic reporting companies,
our shareholders, potential shareholders and the investing public in general should not expect to receive information about us
in the same amount, and at the same time, as information is received from, or provided by, other United States domestic reporting
companies. We are liable for violations of the rules and regulations of the SEC which do apply to us as a foreign private issuer.



You may review and
copy the registration statement, reports and other information we file at the SEC’s Public Reference Room at 100 F Street,
N.E., Washington, DC 20549. You may also request copies of these documents upon payment of a duplicating fee by writing to the
SEC.



For further information
on the Public Reference Room, please call the SEC at 1-800-SEC-0330. Our SEC filings, including the registration statement, are
also available to you on the SEC’s website at http://www.sec.gov. This site contains reports, proxy and information
statements and other information regarding issuers that file electronically with the SEC. The information on that website is not
part of this annual report.



I. Subsidiaries Information



Not applicable.



ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.



Our market risk exposure
results primarily from concentration of credit risk, fluctuations in interest rates and foreign currency rates and inflation. We
do not engage in trading of derivative instruments for speculative purposes.



Concentration of Credit and Other Risk



Financial instruments
that potentially subject us to significant concentrations of credit risk consist primarily of cash and bank balances, short-term
investments and trade receivables. These financial instruments approximate fair value due to short-term maturities. We maintain
our cash and bank balances and short-term investments with high credit quality financial institutions. Our investment portfolio
is primarily comprised of time deposits and corporate and treasury bonds. We believe that our credit policies reflect normal industry
terms and business risk. We do not anticipate non-performance by the counterparties and, accordingly, do not require collateral.



Trade receivables are
generally dispersed across our clients in proportion to the revenues we generate from them. For the years ended December 31,
2016, 2015 and 2014, our top five clients accounted for 33.7%, 33.0% and 27.8%, respectively, of our net revenues. Our top clients
for the years ended December 31, 2016, Southwest Airlines Co. and Walt Disney Parks and Resorts Online in 2015 and 2014 ,
accounted for 9.7%, 12.3% and 8.7% of our revenues, respectively. As of December 31, 2016, accounts receivable from Southwest
Airlines Co. represented 9.9% of our total accounts receivable; whereas accounts receivable from Walt Disney Parks and Resorts
Online in 2015 and 2014, represented 11.2% and 5.7% of our total accounts receivable, respectively.



124







Credit losses and write-offs
of trade receivable balances have historically not been material to our consolidated financial statements.



Interest Rate Risk



Our exposure to market
risk for changes in interest rates relates primarily to our cash and bank balances and our credit facilities. Our credit lines
in Argentina bear interest at fixed rates ranging from 15.25% and 15.50% in local currency (equivalent to an interest rate around
3.75% and 4%). We do not use derivative financial instruments to hedge our risk of interest rate volatility.



Based on our debt position
as of December 31, 2016, if we needed to refinance our existing debt, a 1% increase in interest rates would not materially
impact us.



We have not been exposed
to material risks due to changes in market interest rates. However, our future financial costs related to borrowings may increase
and our financial income may decrease due to changes in market interest rates.



Foreign Exchange Risk



Our exchange rate risk
arises in the ordinary course of our business primarily from our foreign currency expenses and, to a lesser extent, revenues. We
are also exposed to exchange rate risk on the portion of our cash and bank balances, investments and trade receivables that is
denominated in currencies other than the U.S. dollar and on other receivables, such as Argentine tax credits.



Our consolidated financial
statements are prepared in U.S. dollars. Because the majority of our operations are conducted in Latin America and Asia, we incur
the majority of our operating expenses and capital expenditures in non-U.S. dollar currencies, primarily the Argentine peso, Uruguayan
peso, Colombian peso, Mexican peso, Indian rupees and Brazilian real. 90.0% of our revenues for the year ended December 31,
2016 was generated in U.S. dollars, with the balance being generated primarily in Euros and, to a lesser extent, other currencies
(including the Argentine peso, the Colombian peso and the Brazilian real). The following table shows the breakdown of our revenues
by the currencies in which they were generated during the years ended December 31, 2016, 2015 and 2014, respectively.



|            |  | Year ended December 31, |        
|----------- |  | ----------------------- | -------
|            |  | 2016                    |        
|By Currency |  |                         |        
|USD         |  | $                       | 290,636
|EUR         |  |                         | 12,060 
|GBP         |  |                         | 4,988  
|Others      |  |                         | 15,172 
|Revenues    |  | $                       | 322,856



Until December 31,
2016, when our Argentine subsidiaries received payments in U.S. dollars for services performed under our client contracts, we were
required by Argentine law to convert such amounts into Argentine pesos, as a result of which the portion of our cash and bank balances
that we held in Argentina was exposed to the fluctuations in the official exchange rate between the Argentine peso and the U.S.
dollar. This exposure was short term, as these funds were immediately used to pay salaries and capital expenditures primarily in
Argentina. The Argentine peso has fluctuated significantly against the U.S. dollar since the end of Argentine peso/U.S. dollar
parity in 2002 and experienced periods of strong devaluation. Historically, we have been able to mitigate the risk of devaluation
on our cash balances and investments denominated in Argentine pesos through purchases of U.S. dollars. From October 2011 to December
2015, as Cristina Fernández de Kirchner was re-elected as Argentina’s president, the Argentine government adopted
policies that made it more difficult for Argentine enterprises to freely purchase U.S. dollars and remit U.S. dollars abroad. However,
since salaries and capital expenditures were paid in Argentine pesos, there was  limited free cash-flow generated in Argentina.
Most foreign exchange restrictions and restrictions on transfer of funds into and out of Argentina that had been enacted since
2011 were lifted by the Macri administration in December 2015, May 2016, August 2016 and December 2016, reestablishing Argentine
residents’ rights to purchase and remit outside of Argentina foreign currency with no maximum amount and without specific
allocation or prior approval. In particular, Communication “A” 6137, issued by the Argentine Central Bank on December
30, 2016, eliminated the requirement to repatriate and exchange funds obtained from the export of services into Argentine pesos
through the FX Market. Such requirement remains applicable only for exported services included in the FOB (free on board) and/or
CIF (cost insurance and freight) value of exported goods (which is not applicable to the types of services exported by the company).
Consequently, we are not required to repatriate or exchange the foreign currency proceeds received from services rendered to non-Argentine
residents outside of Argentina (which are proceeds from our exports held in off-shore accounts, such as the collections of services
fees in U.S. dollars).



125







A small percentage
of our trade receivables is generated from net revenues earned in non-U.S. dollar currencies (primarily Euros, British pounds sterling,
the Brazilian real, the Uruguayan peso, the Colombian peso and the Argentine peso).



Our results of operations
can be affected if the Argentine peso, Colombian peso, Uruguayan peso, Mexican peso, Reais, Euros or British pound appreciate or
depreciate against the U.S. dollar.



A 30% depreciation
of the Argentine peso against the U.S. dollar would have resulted in a $39.7 million decrease in our operating costs. Given that
we have a greater amount of Argentine peso-denominated assets than Argentine peso-denominated liabilities, a 30.0% depreciation
of the Argentine peso against the U.S. dollar would have resulted in a $1.9 million loss. As a result, the combined effect on our
income statement would have been a $37.8 million increase in our net income for the year ended December 31, 2016.



A 30% appreciation
of the Argentine peso against the U.S. dollar would have resulted in a $51.6 million increase in our operating costs. Given that
we have a greater amount of Argentine peso-denominated assets than Argentine peso-denominated liabilities, a 30% appreciation of
the Argentine peso against the U.S. dollar would have resulted in a $2.5 million gain. As a result, the combined effect on our
income statement would have been a $49.1 million decrease in our net income for the year ended December 31, 2016.



We periodically evaluate
the need for hedging strategies with our board of directors, including the use of such instruments to mitigate the effect of foreign
exchange rate fluctuations. During the year ended December 31, 2016, our principal Argentine operating subsidiaries, Sistemas
Globales S.A. and IAFH Global S.A., entered into foreign exchange forward contracts to reduce their risk of exposure to fluctuations
in foreign currency. As of December 31, 2016 and 2015, the foreign exchange forward contracts were recognized, according to
IAS 39, as financial assets at fair value through profit or loss. We may in the future, as circumstances warrant, decide to enter
into derivative transactions to reduce our exposure to appreciation or depreciation in the value of certain foreign currencies.



Wage Inflation Risk



Argentina has experienced
significant levels of inflation in recent years. According to the INDEC, the consumer price index increased 10.8% in 2012, 10.9%
in 2013, 21.7% in 2014 and 23.9% in 2015. Inflation data released by the INDEC has been criticized by economists and investors
as understating inflation in Argentina. In November 2015, the INDEC suspended the publication of the CPI. According to the most
recent publicly available information based on data from the Province of San Luis, the CPI grew by 31.6% in 2015 and by 31.4% in
2016. According to the most recent publicly available information based on data from the City of Buenos Aires, the CPI grew by
26.9% in 2015 and by 41.0% in 2016. After implementing certain methodological reforms and adjusting certain macroeconomic statistics
based of these reforms, in June 2016 the INDEC resumed its publication of the CPI. According to the INDEC, Argentina’s rate
of inflation for May, June, July, August, September, October, November and December 2016 was 4.2%, 3.1%, 2%, 0.2%, 1.1%, 2.4%,
1.6% and 1.3%, respectively. See “Key Information — Risk Factors — Risks Related to Operating
in Latin America and Argentina — Argentina — Our results of operations may be adversely affected
by high and possibly increasing inflation in Argentina.” and “Key Information — Risk Factors — Risks
Related to Operating in Latin America and Argentina — Argentina — The credibility of several Argentine
economic indexes has been called into question, which may lead to a lack of confidence in the Argentine economy and may in turn
limit our ability to access the credit and capital markets.” The impact of inflation on our salary costs, or wage inflation,
and thus on our statement of profit or loss and other comprehensive income varies depending on the fluctuation in exchange rates
between the Argentine peso and the U.S. dollar. In an environment where the Argentine peso is weakening against the U.S. dollar,
the impact of wage inflation will be partially offset, whereas in an environment where the Argentine peso is strengthening against
the U.S. dollar, the impact of wage inflation will be increased. As of December 2016, approximately 48.8% of our employees were
based in Argentina, where wages can be influenced by current inflation rates. Assuming a constant exchange rate and no ability
to increase prices, for every 10.0% increase in wage inflation in Argentina we would experience an estimated decrease of approximately
$6.8 million in net income for the year.



ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES.



A. Debt Securities



Not applicable.



126







B. Warrants and Rights



Not applicable.



C. Other Securities



Not applicable.



D. American Depositary Shares



Not applicable.



PART II.



ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES.



Not applicable.



ITEM 14. MATERIAL MODIFICATIONS TO THE
RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS.



Not applicable.



ITEM 15. CONTROLS AND PROCEDURES.



Evaluation of Disclosure Controls and Procedures



a) Disclosure Controls and Procedures



As of December 31,
2016, our management, with the participation of the Chief Executive Officer and Chief Financial Officer, conducted an evaluation
pursuant to Rule 13a-15 promulgated under the Securities Exchange Act of 1934, of the effectiveness of our disclosure controls
and procedures. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including
the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective
disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.



Based on such evaluation,
our Chief Executive Officer and Chief Financial Officer concluded that Company’s disclosure controls and procedures were
effective as of December 31, 2016.



b) Management’s Annual Report
on Internal Control over Financial Reporting



Our management is responsible
for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f)
under the Securities Exchange Act of 1934. Our internal control over financial reporting is a process designed under the supervision
of our Chief Executive Officer and Chief Financial Officer that: (i) pertains to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the Company’s assets; (ii) provides reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements for external reporting in accordance
with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorization
of our management and directors; and (iii) provides reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of our assets that could have a material effect on the financial statements.



Because of its inherent
limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedure may deteriorate. Our management, with the participation of our
Chief Executive Officer and Chief Financial Officer, has assessed the effectiveness of our internal control over financial reporting
as of December 31, 2016. In making this assessment, our management used the criteria established in “Internal Control
— Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).
As a result of this assessment, our management has determined that our internal control over financial reporting was effective
as of December 31, 2016.



127







Our management has
excluded We Are London Limited, Difier S.A. and L4 Mobile, LLC, which were acquired on May 23, 2016, November 14, 2016 and November
14, 2016, respectively, from its assessment of internal control over financial reporting as of December 31, 2016. In aggregate,
the financial statements of each of the aforementioned entities constitute 2% of our total consolidated assets and 2% of related
consolidated revenues for the year ended December 31, 2016.



c) Attestation Report of the Registered Public Accounting
Firm



The effectiveness of
our internal control over financial reporting as of December 31, 2016 has been audited by Deloitte & Co. S.A., an independent
registered public accounting firm, as stated in their report which is included below:



| | Deloitte & Co. S.A.
        Florida 234, 5° piso
        C1005AAF
        Ciudad Autónoma
        de Buenos Aires
        Argentina
        
        Tel.: (+54-11) 4320-2700
        Fax: (+54-11) 4325-8081/4326-7340
        www.deloitte.com/ar
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM



To the Board of Directors and Stockholders
of Globant S.A.

37A, avenue J.F. Kennedy,

L-1885, Luxembourg



We have audited the
internal control over financial reporting of Globant S.A. and subsidiaries (the "Company") as of December 31, 2016, based
on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of
the Treadway Commission. As described in Management’s Annual Report on Internal Control over Financial Reporting, management
excluded from its assessment the internal control over financial reporting at We Are London Limited, Difier S.A. and L4 Mobile
LLC, which were acquired on May 23, 2016, November 14, 2016 and November 14, 2016, respectively, and whose financial statements
constitute in conjunction 2% of total assets and 2% of revenues of the consolidated financial statements amounts as of and for
the year ended December 31, 2016. Accordingly, our audit did not include the internal control over financial reporting at We Are
London Limited, Difier S.A. and L4 Mobile LLC. The Company's management is responsible for maintaining effective internal control
over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in
the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express
an opinion on the Company's internal control over financial reporting based on our audit.



We conducted our audit
in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting
was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control
based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that
our audit provides a reasonable basis for our opinion.



A company's internal
control over financial reporting is a process designed by, or under the supervision of, the company's principal executive and principal
financial officers, or persons performing similar functions, and effected by the company's board of directors, management, and
other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with International Financial Reporting Standards, as issued by the International
Accounting Standards Board (“IFRS”). A company's internal control over financial reporting includes those policies
and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with IFRS, and that receipts and expenditures of the company are being
made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material
effect on the financial statements.



Because of the inherent
limitations of internal control over financial reporting, including the possibility of collusion or improper management override
of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections
of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk
that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.



128







In our opinion, the
Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based
on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations
of the Treadway Commission.



We have also audited,
in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements
as of and for the year ended December 31, 2016 of the Company and our report dated March 29, 2017 expressed an unqualified opinion
on those financial statements.



City of Buenos Aires,
Argentina

March 29, 2017



Deloitte & Co.
S.A.



/s/ Gabriel Gómez
Paz

Partner



Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited,
a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and
each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”)
does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member
firms.



Deloitte Touche Tomatsu Limited is a private Company limited
by guarantee incorporated in England & Wales under Company number 07271800, and its registered office is Hill House, 1 Little
new Street, London, EC4a, 3TR, United Kingdom.



d) Changes in internal control over financial reporting



As required by Rule 13a-15(d),
under the Securities Exchange Act of 1934, as amended, our management, including our Chief Executive Officer and Chief Financial
Officer, conducted an evaluation of our internal control over financial reporting to determine whether any change occurred during
the period covered since the last annual report that has materially affected, or is reasonably likely to materially affect, our
internal control over financial reporting. Based on this evaluation, it has been determined that there has been no change during
the period covered by this annual report that has materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.



ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT.



See “Directors,
Senior Management and Employees—Board Practices—Board Committees—Audit Committee.” Our Board of Directors
has determined that Mario Vázquez qualifies as an “audit committee financial expert” under applicable SEC rules.



ITEM 16B. CODE OF ETHICS.



Effective as of July
23, 2014, we adopted a code of business conduct and ethics which sets the guidelines and principles necessary for promoting
and assuring good behavior within the organization. A copy of that code is available on our website at investors.globant.com/code-of-ethics.
Any amendments to such code will be disclosed on our website.



129







ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES.



The following table
provides information on the aggregate fees billed by our principal accountants, Deloitte & Co. S.A. and affiliates, classified
by type of service rendered for the periods indicated, in thousands of dollars:



|                       |  | 2016             |       |  | 2015 | 
|---------------------- |  | ---------------- | ----- |  | ---- | 
|                       |  | ($ in thousands) |      
|Audit Fees (1)         |  |                  | 932   |  |      | 
|Audit Related Fees (2) |  |                  | 86    |  |      | 
|Tax Fees (3)           |  |                  | 30    |  |      | 
|Others (4)             |  |                  | 13    |  |      | 
|Total                  |  |                  | 1,061 |  |      | 



| | (1) | “Audit Fees” includes fees billed for professional services rendered by the principal
accountant in connection with the audit of the annual financial statements, certain procedures regarding our quarterly financial
results, services in connection with statutory and regulatory filings.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | “Audit Related Fees” includes fees billed for professional services rendered by the
principal accountant and not included under the prior category. These services include, among others, due diligence related to
mergers and acquisitions and internal control reviews.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | “Tax Fees” includes fees billed for services related to transfer pricing and assistance
with assessing compliance with tax regulations.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------

| | (4) | "Others" includes other fees billed that do not apply to the other type of classifications included above.
| | --- | ----------------------------------------------------------------------------------------------------------



Audit Committee Approval Policies and Procedure



In accordance with
the audit committee’s charter, all fees and retention terms relating to audit and non-audit services performed by our independent
auditors must be pre-approved by the audit committee. The audit committee makes annual recommendations to the general meeting of
shareholders of the company regarding the appointment, replacement, base compensation, evaluation and oversight of the work of
the independent auditors to be retained to audit the annual financial statements of the company and review the quarterly financial
statements of the company.



The audit committee
oversees the relationship with the independent auditors, including discussing with the auditors the planning and staffing of the
audit and the nature and rigor of the audit process, receiving and reviewing audit reports, reviewing with the auditors any problems
or difficulties the auditors may have encountered in carrying out their responsibilities and any board of directors’ letters
provided by the auditors and the company’s response to such letters, and providing the auditors full access to the audit
committee and the board of directors to report on all appropriate matters.



The audit committee
provides oversight of the company’s auditing, accounting and financial reporting principles, policies, controls, procedures
and practices, and reviews significant changes to the foregoing as suggested by the independent auditors, internal auditors or
the board of directors.



The audit committee
approved all of the services described above and determined that the provision of such services is compatible with maintaining
the independence of Deloitte & Co. S.A. and affiliates.



ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT
COMMITTEES.



Not applicable.



ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND
AFFILIATED PURCHASERS.



Not applicable.



ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT.



Not applicable.



130







ITEM 16G. CORPORATE GOVERNANCE.



Corporate Governance Practices



Our corporate governance
practices are governed by Luxembourg law (particularly the law of August 10th, 1915 on commercial companies as amended) and our
articles of association.



The Ten Principles
of Corporate Governance of the Luxembourg Stock Exchange (the "Ten Principles") include: (1) mandatory principles, (2)
"comply or explain" recommendations and (3) non-binding guidelines. As of the date of this Annual Report, we comply with
the mandatory principles in all respects. In certain instances, we have elected to not comply with certain of the recommendations
because we comply with similar corporate governance rules of the NYSE as further set out in the following paragraphs, or, other
procedures which we have determined to be sufficient.



As a Luxembourg company
listed on the NYSE, we are not required to comply with all of the corporate governance listing standards of the NYSE for U.S. listed
companies. We, however, believe that our corporate governance practices meet or exceed, in all material respects, the corporate
governance standards that are generally required by the NYSE for U.S. listed companies. Below is a summary of the significant ways
that our corporate governance practices differ from the corporate governance standards required for listed U.S. companies by the
NYSE (provided that our corporate governance practices may differ in non-material ways from the standards required by the NYSE
that are not detailed here)



Majority of Independent Directors



Under NYSE standards,
U.S. listed companies must have a majority of independent directors. There is no legal obligation under Luxembourg law to have
a majority of independent directors on the board of directors; however, the Ten Principles recommend that the board of directors
includes an appropriate number of independent directors.



Non-management Directors’ Meetings



Under NYSE standards,
non-management directors must meet at regularly scheduled executive sessions without management present and, if such group includes
directors who are not independent, a meeting should be scheduled once per year including only independent directors. Luxembourg
law does not require holding of such meetings. For additional information, see “Directors, Senior Management and Employees—Directors
and Senior Management.”



Audit Committee



Under NYSE standards,
listed U.S. companies are required to have an audit committee composed of independent directors that satisfies the requirements
of Rule 10A-3 promulgated under the Exchange Act of 1934. Luxembourg law also provides for an audit committee and related rules.
Our articles of association provide that the board of directors may set up an audit committee. The board of directors has set up
an Audit Committee and has appointed Messrs. Mott, Odeen and Vázquez, with Mr. Vázquez serving as the chairman of
our audit committee. Each of Messrs. Mott, Odeen and Vázquez satisfies the “independence” requirements within
the meaning of Section 303A of the corporate governance rules of the NYSE as well as under Rule 10A-3 under the Exchange Act. For
additional information, see “Directors, Senior Management and Employees—Board Practices”.



Under NYSE standards,
all audit committee members of listed U.S. companies are required to be financially literate or must acquire such financial knowledge
within a reasonable period and at least one of its members shall have experience in accounting or financial administration. In
addition, if a member of the audit committee is simultaneously a member of the audit committee of more than three public companies,
and the listed company does not limit the number of audit committees on which its members may serve, then in each case the board
must determine whether the simultaneous service would prevent such member from effectively serving on the listed company’s
audit committee and shall publicly disclose its decision. Under Luxembourg law, at least one member of the audit committee must
be financially literate.



Standards for Evaluating Director Independence



Under NYSE standards,
the board is required, on a case by case basis, to express an opinion with regard to the independence or lack of independence of
each individual director. Neither Luxembourg law nor our articles of association require the board to express such an opinion;
however, to be considered independent under the Ten Principles, a director must not have any significant business relationship
with the company, close family relationship with any executive manager or any other relationship with the company, its controlling
shareholders or executive managers which is liable to impair the independence of the director's judgment.



Audit Committee Responsibilities



The NYSE requires certain
matters to be set forth in the audit committee charter of U.S. listed companies. Our audit committee charter provides for many
of the responsibilities that are expected from such bodies under the NYSE standard; however, the charter does not contain all such
responsibilities, including provisions related to setting hiring policies for employees or former employees of independent auditors.



131







Corporate Governance and Nominating Committee



The NYSE requires that
a listed U.S. company has a corporate governance and nominating committee of independent directors and a committee charter specifying
the purpose, duties and evaluation procedures of the committee.



The board of directors
has set up corporate governance and nominating committee and has appointed Mssrs. Galperin, Odeen and Vázquez, with Mr.
Vázquez serving as chairman of our corporate governance and nominating committee. Each of Messrs. Galperin, Vázquez
and Odeen satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance
rules of the NYSE. For additional information, see “Directors, Senior Management and Employees— Board Practices”.



Compensation Committee



The NYSE requires that
a listed U.S. company have a compensation committee of independent directors and a committee charter specifying the purpose, duties
and evaluation procedures of the committee.



The current members
of our compensation committee are Messrs. Vázquez, Odeen and Galperin, with Mr. Vázquez serving as chairman. Each
of Messrs. Vázquez, Odeen and Galperin satisfies the “independence” requirements within the meaning of Section
303A of the corporate governance rules of the NYSE. For additional information, see “Directors, Senior Management and Employees—Board
Practices”.



Shareholder Voting on Equity Compensation Plans



Under NYSE standards,
shareholders of U.S. listed companies must be given the opportunity to vote on equity compensation plans and material revisions
thereto, except for employment inducement awards, certain grants, plans and amendments in the context of mergers and acquisitions,
and certain specific types of plans. Neither Luxembourg corporate law nor our articles of incorporation require shareholder approval
of equity based compensation plans. Luxembourg law only requires approval of the board of directors for the adoption of equity
based compensation plans.



The Ten Principles
recommend that the criteria for compensation of the executive management in whichever form be subject to the approval of the shareholders.
However, as permitted by the Ten Principles, we have decided that the approval of our compensation committee, which is comprised
of independent members, is sufficient to set the compensation criteria for our executive management team and that it is not necessary
to seek approval from our shareholders for such matters. We believe that the members of our compensation committee have a strong
understanding of the achievements and failures of each executive because the compensation committee monitors the performance of
executive management as part of the responsibilities delegated to it by our board of directors and shareholders.



Code of Business Conduct and Ethics



Under NYSE standards,
listed companies must adopt and disclose a code of business conduct and ethics for directors, officers and employees, and promptly
disclose any waivers of the code for directors or executive officers. Effective as of July 23, 2014 we adopted a code of business
conduct and ethics applicable to our principal executive, financial and accounting officers and all persons performing similar
functions. A copy of that code is available on our website at www.globant.com.



Chief Executive Officer Certification



A chief executive officer
of a U.S. company listed on NYSE must annually certify that he or she is not aware of any violation by the company of NYSE corporate
governance standards. In accordance with NYSE rules applicable to foreign private issuers, our chief executive officer is not required
to provide NYSE with this annual compliance certification. However, in accordance with NYSE rules applicable to all listed companies,
our chief executive officer must promptly notify NYSE in writing after any of our executive officers becomes aware of any noncompliance
with any applicable provision of NYSE’s corporate governance standards. In addition, we must submit an executed written affirmation
annually and an interim written affirmation each time a change occurs to the board or the audit committee.



ITEM 16H. MINE SAFETY DISCLOSURE.



Not applicable.



132







PART III.



ITEM 17. FINANCIAL STATEMENTS.



We have elected to
provide financial statements pursuant to Item 18.



ITEM 18. FINANCIAL STATEMENTS.



Our Consolidated Financial
Statements are included at the end of this annual report.



ITEM 19. EXHIBITS.



The following exhibits
are filed or incorporated by reference as part of this annual report:



|ExhibitNo. |  | Description
|---------- |  | -----------
|1.1        |  |            
|2.1        |  |            
|4.1        |  |            
|4.2        |  |            
|4.3        |  |            
|4.4        |  |            
|4.5        |  |            
|4.6        |  |            
|8.1        |  |            
|12.1       |  |            
|12.2       |  |            
|13.1       |  |            
|13.2       |  |            
|15.1       |  |            



133







SIGNATURE



The registrant hereby
certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned
to sign this annual report on its behalf.



Date: April 7, 2017



| | GLOBANT S.A.
| | ------------
| | By:         
| |             
| | Name:       
| | Title:      



134







GLOBANT S.A.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS



|Consolidated Financial Statements as of December 31, 2016 and 2015 and for the three years in the period ended December 31, 2016 |     
|-------------------------------------------------------------------------------------------------------------------------------- | ----
|Report of Independent Registered Public Accounting Firm                                                                          | F-2 
|Consolidated Statements of Profit or Loss and Other Comprehensive Income for the Years ended December 31, 2016, 2015 and 2014    | F-3 
|Consolidated Statements of Financial Position as of December 31, 2016 and 2015                                                   | F-5 
|Consolidated Statements of Changes in Equity for the Years ended December 31, 2016, 2015 and 2014                                | F-6 
|Consolidated Statements of Cash Flows for the Years ended December 31, 2016, 2015 and 2014                                       | F-8 
|Notes to the Consolidated Financial Statements                                                                                   | F-10



F-1











| | Deloitte & Co. S.A.
        Florida 234, 5° piso
        C1005AAF
        Ciudad Autónoma
        de Buenos Aires
        Argentina
        
        Tel.: (+54-11) 4320-2700
        Fax: (+54-11) 4325-8081/4326-7340
        www.deloitte.com/ar
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM



To the Board of Directors and Stockholders of Globant S.A.

5 rue Guillaume Kroll

L-1882, Luxembourg



We have audited the accompanying consolidated
statements of financial position of Globant S.A. and subsidiaries (the "Company") as of December 31, 2016 and 2015, and
the related consolidated statements of profit or loss and other comprehensive income, changes in equity, and cash flows for each
of the three years in the period ended December 31, 2016. These consolidated financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.



We conducted our audits in accordance with
the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.



In our opinion, such consolidated financial
statements present fairly, in all material respects, the financial position of Globant S.A. and subsidiaries as of December 31,
2016 and 2015, and the results of their operations, their cash flows and changes in equity for each of the three years in the period
ended December 31, 2016, in conformity with International Financial Reporting Standards, as issued by the International Accounting
Standards Board.



We have also audited, in accordance with
the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control over financial reporting
as of December 31, 2016, based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee
of Sponsoring Organizations of the Treadway Commission and our report dated March 29, 2017 expressed an unqualified opinion on
the Company's internal control over financial reporting.



City of Buenos Aires, Argentina

March 29, 2017



Deloitte & Co. S.A.



/s/ Gabriel Gómez Paz

Partner



Deloitte refers to one or more of Deloitte Touche
Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related
entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte
Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL
and its member firms.



Deloitte Touche Tomatsu Limited is a private Company
limited by guarantee incorporated in England & Wales under Company number 07271800, and its registered office is Hill House,
1 Little new Street, London, EC4a, 3TR, United Kingdom.



F-2







GLOBANT S.A.

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(in thousands of U.S. dollars, except per share amounts)



|                                                                |  |         |  | For the year ended December 31, |         
|--------------------------------------------------------------- |  | ------- |  | ------------------------------- | --------
|                                                                |  | Notes   |  | 2016                            |         
|                                                                |  |         |  |                                 |         
|Revenues (1)                                                    |  |         |  |                                 | 322,856 
|Cost of revenues (2) (4)                                        |  | 5.1     |  |                                 | (191,395
|Gross profit                                                    |  |         |  |                                 | 131,461 
|                                                                |  |         |  |                                 |         
|Selling, general and administrative expenses(3) (4)             |  | 5.2     |  |                                 | (81,889 
|Impairment of tax credits, net of recoveries                    |  | 3.7.1.1 |  |                                 | —       
|Profit from operations                                          |  |         |  |                                 | 49,572  
|                                                                |  |         |  |                                 |         
|Gain on transactions with bonds                                 |  | 3.18    |  |                                 | —       
|                                                                |  |         |  |                                 |         
|Finance income                                                  |  | 6       |  |                                 | 16,215  
|Finance expense                                                 |  | 6       |  |                                 | (19,227 
|Finance (expense) income, net                                   |  |         |  |                                 | (3,012  
|                                                                |  |         |  |                                 |         
|Other income and expenses, net (5)                              |  |         |  |                                 | 3,629   
|Profit before income tax                                        |  |         |  |                                 | 50,189  
|                                                                |  |         |  |                                 |         
|Income tax                                                      |  | 7.1     |  |                                 | (14,327 
|Net income for the year                                         |  |         |  |                                 | 35,862  
|                                                                |  |         |  |                                 |         
|Other comprehensive income                                      |  |         |  |                                 |         
|Items that may be reclassified subsequently to profit and loss: |  |         |  |                                 |         
|- Exchange differences on translating foreign operations        |  |         |  |                                 | 1,103   
|- Net fair value gain on available-for-sale financial assets    |  |         |  |                                 | (52     
|Total comprehensive income for the year                         |  |         |  |                                 | 36,913  
|                                                                |  |         |  |                                 |         
|Net income attributable to:                                     |  |         |  |                                 |         
|Owners of the Company                                           |  |         |  |                                 | 35,876  
|Non-controlling interest                                        |  |         |  |                                 | (14     
|Net income for the year                                         |  |         |  |                                 | 35,862  
|                                                                |  |         |  |                                 |         
|Total comprehensive income for the year attributable to:        |  |         |  |                                 |         
|Owners of the Company                                           |  |         |  |                                 | 36,927  
|Non-controlling interest                                        |  |         |  |                                 | (14     
|Total comprehensive income for the year                         |  |         |  |                                 | 36,913  



F-3







GLOBANT S.A.

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(in thousands of U.S. dollars, except per share amounts)



|                                                      |  |       |  | For the year ended December 31, |       
|----------------------------------------------------- |  | ----- |  | ------------------------------- | ------
|                                                      |  | Notes |  | 2016                            |       
|                                                      |  |       |  |                                 |       
|Earnings per share                                    |  |       |  |                                 |       
|Basic                                                 |  | 8     |  |                                 | 1.04  
|Diluted                                               |  | 8     |  |                                 | 1.01  
|Weighted average of outstanding shares (in thousands) |  |       |  |                                 |       
|Basic                                                 |  | 8     |  |                                 | 34,402
|Diluted                                               |  | 8     |  |                                 | 35,413



| | (1) | Includes transactions with related parties for 6,462, 6,655 and 7,681 as of December 31, 2016,
2015 and 2014, respectively. See note 21.1.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Includes depreciation and amortization expense of 4,281, 4,441 and 3,813 for 2016, 2015 and 2014,
respectively. See note 5.
| | --- | ---------------------------------------------------------------------------------------------------------------------------

| | (3) | Includes depreciation and amortization expense of 6,637, 4,860 and 4,221 for 2016, 2015 and 2014,
respectively. See note 5.
| | --- | ---------------------------------------------------------------------------------------------------------------------------

| | (4) | Includes share-based compensation expense of 917, 735 and 35 under cost of revenues; and 2,703,
1,647 and 582 under selling, general and administrative expenses for 2016, 2015 and 2014, respectively. See note 5.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5) | In 2016 includes a gain of 418 on remeasurement of the contingent consideration of Clarice explained
in note 27.10.1 and the gain of 2,981 related to the remeasurement at fair value of the call and put option over non-controlling
interest explained in note 27.10.2. In 2015 includes a gain of 625 related to valuation at fair value of the 22.7% of share interest
held in Dynaflows as explained in note 23. In 2016 and 2014 includes the gain of 225 and 472 related to the bargain business combination
of Difier S.A. and Bluestar Energy S.A.C., respectively, explained in note 23.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The accompanying notes 1 to 32 are an integral
part of these consolidated financial statements



F-4







GLOBANT S.A.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF DECEMBER
31, 2016 AND 2015

(in thousands of U.S. dollars)



|                                                   |  |       |  | As of December 31, |        
|-------------------------------------------------- |  | ----- |  | ------------------ | -------
|                                                   |  | Notes |  | 2016               |        
|ASSETS                                             |  |       |  |                    |        
|Current assets                                     |  |       |  |                    |        
|Cash and cash equivalents                          |  |       |  |                    | 50,532 
|Investments                                        |  | 9.1   |  |                    | 9,355  
|Trade receivables (1)                              |  | 10    |  |                    | 54,170 
|Other receivables                                  |  | 11    |  |                    | 18,869 
|Other financial assets                             |  | 23    |  |                    | 900    
|Total current assets                               |  |       |  |                    | 133,826
|                                                   |  |       |  |                    |        
|Non-current assets                                 |  |       |  |                    |        
|Other receivables                                  |  | 11    |  |                    | 27,465 
|Deferred tax assets                                |  | 7.2   |  |                    | 7,691  
|Investment in associates                           |  | 9.2   |  |                    | 800    
|Other financial assets                             |  | 23    |  |                    | 319    
|Property and equipment                             |  | 12    |  |                    | 35,676 
|Intangible assets                                  |  | 13    |  |                    | 13,791 
|Goodwill                                           |  | 14    |  |                    | 65,180 
|Total non-current assets                           |  |       |  |                    | 150,922
|TOTAL ASSETS                                       |  |       |  |                    | 284,748
|                                                   |  |       |  |                    |        
|LIABILITIES                                        |  |       |  |                    |        
|Current liabilities                                |  |       |  |                    |        
|Trade payables                                     |  | 15    |  |                    | 5,603  
|Payroll and social security taxes payable          |  | 16    |  |                    | 30,328 
|Borrowings                                         |  | 17    |  |                    | 217    
|Other financial liabilities                        |  | 23    |  |                    | 12,602 
|Tax liabilities                                    |  | 18    |  |                    | 6,249  
|Other liabilities                                  |  |       |  |                    | —      
|Total current liabilities                          |  |       |  |                    | 54,999 
|                                                   |  |       |  |                    |        
|Non-current liabilities                            |  |       |  |                    |        
|Borrowings                                         |  | 17    |  |                    | —      
|Other financial liabilities                        |  | 23    |  |                    | 19,224 
|Other liabilities                                  |  |       |  |                    | 20     
|Provisions for contingencies                       |  | 19    |  |                    | 1,945  
|Total non-current liabilities                      |  |       |  |                    | 21,189 
|TOTAL LIABILITIES                                  |  |       |  |                    | 76,188 
|                                                   |  |       |  |                    |        
|Capital and reserves                               |  |       |  |                    |        
|Issued capital                                     |  |       |  |                    | 41,576 
|Additional paid-in capital                         |  |       |  |                    | 62,790 
|Other reserves                                     |  |       |  |                    | (961   
|Retained earnings                                  |  |       |  |                    | 105,119
|Total equity attributable to owners of the Company |  |       |  |                    | 208,524
|Non-controlling interests                          |  |       |  |                    | 36     
|Total equity                                       |  |       |  |                    | 208,560
|TOTAL EQUITY AND LIABILITIES                       |  |       |  |                    | 284,748



| | (1) | Includes balances due from related parties of 575 and 1,593
as of December 31, 2016 and 2015, respectively. See note 21.1.
| | --- | --------------------------------------------------------------------------------------------------------------------------



The accompanying notes 1 to 32 are an integral
part of these consolidated financial statements



F-5







GLOBANT S.A.

CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(in thousands of U.S. dollars except number
of shares issued)



|                                                                                      |  | Number ofSharesIssued (1) |            |  | Issued
    capital |  |        | Additional
    paid-in capital |  |  | Retained
    earnings |   |  | Foreign
    currency translation reserve |        |  | Investment
    revaluation reserve |  |      | Attributable
    to owners of the Parent |  |  | Non-
    controlling interests |  |  | Total |        
|------------------------------------------------------------------------------------- |  | ------------------------- | ---------- |  | ------------------ |  | ------ | ------------------------------ |  |  | --------------------- | - |  | ---------------------------------------- | ------ |  | ---------------------------------- |  | ---- | ---------------------------------------- |  |  | ------------------------------ |  |  | ----- | -------
|Balance at January 1, 2014                                                            |  |                           | 28,995,158 |  |                    |  | 34,794 |                                |  |  | 12,468                |   |  |                                          | 12,389 |  |                                    |  | (278 | )                                        |  |  | —                              |  |  |       | 59,373 
|Issuance of shares in connection with the initial
    public offering (see note 29.1) |  |                           | 4,350,000  |  |                    |  | 5,220  |                                |  |  | 32,513                |   |  |                                          | —      |  |                                    |  | —    |                                          |  |  | —                              |  |  |       | 37,733 
|Issuance of shares under share-based compensation
    plan (see note 29.1)            |  |                           | 258,742    |  |                    |  | 310    |                                |  |  | 780                   |   |  |                                          | —      |  |                                    |  | —    |                                          |  |  | —                              |  |  |       | 1,090  
|                                                                                      |  |                           |            |  |                    |  |        |                                |  |  |                       |   |  |                                          |        |  |                                    |  |      |                                          |  |  |                                |  |  |       |        
|Share-based compensation plan (see note 22)                                           |  |                           | —          |  |                    |  | —      |                                |  |  | 3,541                 |   |  |                                          | —      |  |                                    |  | —    |                                          |  |  | —                              |  |  |       | 3,541  
|                                                                                      |  |                           |            |  |                    |  |        |                                |  |  |                       |   |  |                                          |        |  |                                    |  |      |                                          |  |  |                                |  |  |       |        
|Other comprehensive income for the year                                               |  |                           | —          |  |                    |  | —      |                                |  |  | —                     |   |  |                                          | —      |  |                                    |  | (433 | )                                        |  |  | —                              |  |  |       | (433   
|Acquisition of non-controlling interest (see
    note 23)                             |  |                           | —          |  |                    |  | —      |                                |  |  | (96                   | ) |  |                                          | —      |  |                                    |  | —    |                                          |  |  | —                              |  |  |       | (96    
|Recall of call and put option over non-controlling
    interest (see note 23)         |  |                           | —          |  |                    |  | —      |                                |  |  | 1,070                 |   |  |                                          | —      |  |                                    |  | —    |                                          |  |  | —                              |  |  |       | 1,070  
|                                                                                      |  |                           |            |  |                    |  |        |                                |  |  |                       |   |  |                                          |        |  |                                    |  |      |                                          |  |  |                                |  |  |       |        
|Net income for the year                                                               |  |                           | —          |  |                    |  | —      |                                |  |  | —                     |   |  |                                          | 25,201 |  |                                    |  | —    |                                          |  |  | —                              |  |  |       | 25,201 
|                                                                                      |  |                           |            |  |                    |  |        |                                |  |  |                       |   |  |                                          |        |  |                                    |  |      |                                          |  |  |                                |  |  |       |        
|Balance at December 31,
    2014                                                      |  |                           | 33,603,900 |  |                    |  | 40,324 |                                |  |  | 50,276                |   |  |                                          | 37,590 |  |                                    |  | (711 | )                                        |  |  | —                              |  |  |       | 127,479



|                                                                            |  | Number ofSharesIssued (1) |            |  | Issued
    capital |  |        | Additional
    paid-in capital |  |  | Retained
    earnings |   |  | Foreign
    currency translation reserve |        |  | Investment
    revaluation reserve |  |        | Attributable
    to owners of the Parent |  |  | Non-
    controlling interests |  |  | Total |        
|--------------------------------------------------------------------------- |  | ------------------------- | ---------- |  | ------------------ |  | ------ | ------------------------------ |  |  | --------------------- | - |  | ---------------------------------------- | ------ |  | ---------------------------------- |  | ------ | ---------------------------------------- |  |  | ------------------------------ |  |  | ----- | -------
|Issuance of shares under share-based
    compensation plan (see note 29.1)  |  |                           | 560,649    |  |                    |  | 673    |                                |  |  | 1,878                 |   |  |                                          | —      |  |                                    |  | —      |                                          |  |  | —                              |  |  |       | 2,551  
|Issuance of shares under subscription agreement
    (see note 29.1)         |  |                           | 43,857     |  |                    |  | 53     |                                |  |  | 847                   |   |  |                                          |        |  |                                    |  |        |                                          |  |  | —                              |  |  |       | 900    
|                                                                            |  |                           |            |  |                    |  |        |                                |  |  |                       |   |  |                                          |        |  |                                    |  |        |                                          |  |  |                                |  |  |       |        
|Share-based compensation plan (see note 22)                                 |  |                           | —          |  |                    |  | —      |                                |  |  | 5,903                 |   |  |                                          | —      |  |                                    |  | —      |                                          |  |  | —                              |  |  |       | 5,903  
|                                                                            |  |                           |            |  |                    |  |        |                                |  |  |                       |   |  |                                          |        |  |                                    |  |        |                                          |  |  |                                |  |  |       |        
|Other comprehensive income for the year                                     |  |                           | —          |  |                    |  | —      |                                |  |  | —                     |   |  |                                          | —      |  |                                    |  | (1,353 | )                                        |  |  | 52                             |  |  |       | (1,301 
|Acquisition of non-controlling interest (see
    note 23)                   |  |                           | —          |  |                    |  | —      |                                |  |  | —                     |   |  |                                          | —      |  |                                    |  | —      |                                          |  |  | —                              |  |  |       | —      
|Call of call and put option over non-controlling
    interest (see note 23) |  |                           | —          |  |                    |  | —      |                                |  |  | (7,050                | ) |  |                                          | —      |  |                                    |  | —      |                                          |  |  | —                              |  |  |       | (7,050 
|                                                                            |  |                           |            |  |                    |  |        |                                |  |  |                       |   |  |                                          |        |  |                                    |  |        |                                          |  |  |                                |  |  |       |        
|Net income for the year                                                     |  |                           | —          |  |                    |  | —      |                                |  |  | —                     |   |  |                                          | 31,653 |  |                                    |  | —      |                                          |  |  | —                              |  |  |       | 31,653 
|                                                                            |  |                           |            |  |                    |  |        |                                |  |  |                       |   |  |                                          |        |  |                                    |  |        |                                          |  |  |                                |  |  |       |        
|Balance at December 31,
    2015                                            |  |                           | 34,208,406 |  |                    |  | 41,050 |                                |  |  | 51,854                |   |  |                                          | 69,243 |  |                                    |  | (2,064 | )                                        |  |  | 52                             |  |  |       | 160,135



F-6







GLOBANT S.A.

CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(in thousands of U.S. dollars except number
of shares issued)



|                                                                            |  | Number ofSharesIssued (1) |            |  | Issued
    capital |  |        | Additional
    paid-in capital |  |  | Retained
    earnings |  |  | Foreign
    currency translation reserve |         |  | Investment
    revaluation reserve |  |        | Attributable
    to owners of the Parent |  |  | Non-
    controlling interests |   |  | Total |        
|--------------------------------------------------------------------------- |  | ------------------------- | ---------- |  | ------------------ |  | ------ | ------------------------------ |  |  | --------------------- |  |  | ---------------------------------------- | ------- |  | ---------------------------------- |  | ------ | ---------------------------------------- |  |  | ------------------------------ | - |  | ----- | -------
|Balance at January 1, 2016                                                  |  |                           | 34,208,406 |  |                    |  | 41,050 |                                |  |  | 51,854                |  |  |                                          | 69,243  |  |                                    |  | (2,064 | )                                        |  |  | 52                             |   |  |       | 160,135
|Issuance of shares under share-based compensation
    plan (see note 29.1)  |  |                           | 258,915    |  |                    |  | 311    |                                |  |  | 1,867                 |  |  |                                          | —       |  |                                    |  | —      |                                          |  |  | —                              |   |  |       | 2,178  
|Issuance of shares for payments of Huddle minority
    interest (note 29.1) |  |                           | 11,213     |  |                    |  | 13     |                                |  |  | 292                   |  |  |                                          | —       |  |                                    |  | —      |                                          |  |  | —                              |   |  |       | 305    
|Issuance of shares under subscription agreement
    (see note 29.1)         |  |                           | 169,109    |  |                    |  | 202    |                                |  |  | 6,218                 |  |  |                                          | —       |  |                                    |  | —      |                                          |  |  | —                              |   |  |       | 6,420  
|                                                                            |  |                           |            |  |                    |  |        |                                |  |  |                       |  |  |                                          |         |  |                                    |  |        |                                          |  |  |                                |   |  |       |        
|Share-based compensation plan (see note 22)                                 |  |                           | —          |  |                    |  | —      |                                |  |  | 2,559                 |  |  |                                          | —       |  |                                    |  | —      |                                          |  |  | —                              |   |  |       | 2,559  
|                                                                            |  |                           |            |  |                    |  |        |                                |  |  |                       |  |  |                                          |         |  |                                    |  |        |                                          |  |  |                                |   |  |       |        
|Other comprehensive income for the year                                     |  |                           | —          |  |                    |  | —      |                                |  |  | —                     |  |  |                                          | —       |  |                                    |  | 1,103  |                                          |  |  | (52                            | ) |  |       | 1,051  
|                                                                            |  |                           |            |  |                    |  |        |                                |  |  |                       |  |  |                                          |         |  |                                    |  |        |                                          |  |  |                                |   |  |       |        
|Net income for the year                                                     |  |                           | —          |  |                    |  | —      |                                |  |  | —                     |  |  |                                          | 35,876  |  |                                    |  | —      |                                          |  |  | —                              |   |  |       | 35,876 
|                                                                            |  |                           |            |  |                    |  |        |                                |  |  |                       |  |  |                                          |         |  |                                    |  |        |                                          |  |  |                                |   |  |       |        
|Balance at December 31,
    2016                                            |  |                           | 34,647,643 |  |                    |  | 41,576 |                                |  |  | 62,790                |  |  |                                          | 105,119 |  |                                    |  | (961   | )                                        |  |  | —                              |   |  |       | 208,524



| | (1) | Includes the effect of the retroactive application of 1-for-12
reverse share split. See note 29.2.
| | --- | --------------------------------------------------------------------------------------------------



The accompanying notes 1 to 32 are an integral
part of these consolidated financial statements.



F-7







GLOBANT S.A.

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED
DECEMBER 31, 2016, 2015 AND 2014

(in thousands of U.S. dollars)



|                                                                                                       |  | For the year ended December 31, |         
|------------------------------------------------------------------------------------------------------ |  | ------------------------------- | --------
|                                                                                                       |  | 2016                            |         
|Cash flows from operating activities                                                                   |  |                                 |         
|Net income for the year                                                                                |  |                                 | 35,862  
|Adjustments to reconcile net income for the year to net cash flows from operating activities:          |  |                                 |         
|Share-based compensation expense                                                                       |  |                                 | 3,620   
|Current income tax                                                                                     |  |                                 | 15,057  
|Deferred income tax                                                                                    |  |                                 | (730    
|Depreciation of property and equipment                                                                 |  |                                 | 6,290   
|Amortization of intangible assets                                                                      |  |                                 | 4,628   
|Allowance for doubtful accounts                                                                        |  |                                 | 928     
|Allowance for claims and lawsuits                                                                      |  |                                 | 999     
|Gain on remeasument of contingent consideration (note 27.10.1)                                         |  |                                 | (418    
|Gain from bargain business combination (note 23)                                                       |  |                                 | (225    
|Gain on remeasurement of valuation of call and put option over non-controlling interest (note 27.10.2) |  |                                 | (2,981  
|Accrued interest                                                                                       |  |                                 | 757     
|Allowance for impairment of tax credits, net of recoveries (note 3.7.1.1)                              |  |                                 | —       
|Gain on transactions with bonds                                                                        |  |                                 | —       
|Net gain arising on financial assets classified held-for-trading                                       |  |                                 | (653    
|Net gain arising on financial assets classified held-to-maturity                                       |  |                                 | —       
|Net gain arising on financial assets classified as available for sale                                  |  |                                 | (6,325  
|Exchange differences                                                                                   |  |                                 | 5,959   
|Changes in working capital:                                                                            |  |                                 |         
|Net increase in trade receivables                                                                      |  |                                 | (5,847  
|Net increase in other receivables                                                                      |  |                                 | (17,067 
|Net (decrease) increase in trade payables                                                              |  |                                 | (1,219  
|Net increase in payroll and social security taxes payable                                              |  |                                 | 3,316   
|Net (decrease) increase in tax liabilities                                                             |  |                                 | (1,846  
|Utilization of provision of contingencies                                                              |  |                                 | (400    
|Net (decrease) increase in other liabilities                                                           |  |                                 | (9      
|Cash provided by operating activities                                                                  |  |                                 | 39,696  
|Income tax paid                                                                                        |  |                                 | (8,216  
|Net cash provided by (used in) operating activities                                                    |  |                                 | 31,480  
|                                                                                                       |  |                                 |         
|Cash flows from investing activities                                                                   |  |                                 |         
|Acquisition of property and equipment (2)                                                              |  |                                 | (17,660 
|Proceeds from disposals of property and equipment                                                      |  |                                 | 50      
|Acquisition of intangible assets (3)                                                                   |  |                                 | (6,374  
|(Payments) proceeds related to forward contracts                                                       |  |                                 | (1,126  
|Acquisition of held-for-trading investments                                                            |  |                                 | (220,391
|Proceeds from held-for-trading investments                                                             |  |                                 | 222,759 
|Acquisition of held-to-maturity investments                                                            |  |                                 | —       
|Proceeds from held-to-maturity investments                                                             |  |                                 | —       
|Acquisition of available-for-sale investments                                                          |  |                                 | (201,931
|Proceeds from available-for-sale investments                                                           |  |                                 | 219,924 
|Payments to acquire investments in associates                                                          |  |                                 | (500    
|Acquisition of bonds                                                                                   |  |                                 | —       
|Proceeds from sale of bonds                                                                            |  |                                 | —       
|Acquisition of business, net of cash (note 23) (1)                                                     |  |                                 | (16,584 
|Seller financing                                                                                       |  |                                 | (6,166  
|Net cash (used in) provided by investing activities                                                    |  |                                 | (27,999 



F-8







GLOBANT S.A.

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED
DECEMBER 31, 2016, 2015 AND 2014

(in thousands of U.S. dollars)



|                                                                                   |  | For the year ended December 31, |       
|---------------------------------------------------------------------------------- |  | ------------------------------- | ------
|                                                                                   |  | 2016                            |       
|Cash flows from financing activities                                               |  |                                 |       
|Proceeds from issuance of shares in connection with the initial public offering(4) |  |                                 | —     
|Proceeds from the issuance of shares under the share-based compensation plan       |  |                                 | 1,863 
|Proceeds from subscription agreement                                               |  |                                 | 6,420 
|Repayment of borrowings                                                            |  |                                 | (543  
|Proceeds from borrowings                                                           |  |                                 | —     
|Payment of offering costs                                                          |  |                                 | —     
|Cash provided by financing activities                                              |  |                                 | 7,740 
|Interest paid                                                                      |  |                                 | (41   
|Net cash provided by financing activities                                          |  |                                 | 7,699 
|                                                                                   |  |                                 |       
|Effect of exchange rate changes on cash and cash equivalents                       |  |                                 | 2,632 
|Increase in cash and cash equivalents                                              |  |                                 | 13,812
|                                                                                   |  |                                 |       
|Cash and cash equivalents at beginning of the year                                 |  |                                 | 36,720
|Cash and cash equivalents at end of the year                                       |  |                                 | 50,532



| | (1) | Cash paid for assets acquired and liabilities assumed in
the acquisition of subsidiaries (note 23):
| | --- | ---------------------------------------------------------------------------------------------------



|Supplemental information                                           |  |  |        |   |  |  |        |   |  |  |        |  
|------------------------------------------------------------------ |  |  | ------ | - |  |  | ------ | - |  |  | ------ | -
|Cash paid                                                          |  |  | 19,525 |   |  |  | 10,726 |   |  |  | 1,357  |  
|Less: cash and cash equivalents acquired                           |  |  | (2,941 | ) |  |  | (157   | ) |  |  | (1,575 | )
|Total consideration paid net of cash and cash equivalents acquired |  |  | 16,584 |   |  |  | 10,569 |   |  |  | (218   | )



| | (2) | In 2016, 2015 and 2014, there were 478, 26 and 1,207 of
acquisition of property and equipment financed with trade payables, respectively. In 2014, there were 223 of acquisition of property
and equipment financed with borrowings. In 2016, 2015 and 2014, the Company paid 2,224, 1,207 and 3,533 related to property and
equipment acquired in 2015, 2014 and 2013, respectively.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | In 2016, 2015 and 2014 there were 7, 439 and 216 of acquisition
of intangibles financed with trade payables, respectively. In 2016 and 2015 , the Company paid 439 and 216 related to intangibles
acquired in 2015 and 2014, respectively.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | Proceeds from the Initial Public Offering are disclosed
in the statements of changes in Equity net of related expenses which amount 2,722.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------



The accompanying notes 1 to 32 are an integral
part of these consolidated financial statements



F-9







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



NOTE 1 – COMPANY OVERVIEW AND
BASIS OF PRESENTATION



Globant S.A. is a company organized in
the Grand Duchy of Luxembourg, primarily engaged in building digital journeys that matter to millions of users through its subsidiaries
(hereinafter the “Company” or “Globant Lux” or “Globant Group”). The Company specializes in
providing innovative software solutions by leveraging emerging technologies and trends.



The Company’s principal operating
subsidiaries and countries of incorporation as of December 31, 2016 were the following: Sistemas UK Limited and We are London
Limited in the United Kingdom, Globant LLC and L4 Mobile LLC in the United States of America (the “U.S.”), Sistemas
Globales S.A., IAFH Global S.A. and Dynaflows S.A. in Argentina, Sistemas Colombia S.A.S. in Colombia, Global Systems Outs S.R.L.
de C.V. in Mexico, Sistemas Globales Uruguay S.A. and Difier S.A. in Uruguay, Globant Brasil Consultoria Ltda. in Brazil; Sistemas
Globales Chile Ases. Ltda. in Chile, Globant Peru S.A.C. in Peru, Globant India Private Limited in India and Software Product Creation
in Spain.



The Globant Group provides services from
development and delivery centers located in Buenos Aires, Tandil, Rosario, Tucumán, Mendoza, Córdoba, Resistencia,
Bahía Blanca, Mar del Plata and La Plata in Argentina; Montevideo, Uruguay; Bogotá and Medellín, Colombia;
São Paulo, Brazil; Mexico City, Mexico; Lima, Peru; Santiago, Chile; Pune and Bangalore, India; Madrid, Spain; London, UK;
and San Francisco, New York and Seattle in the United Statesand it also has client management centers in United States (Boston,
New York, Orlando and San Francisco), Brazil (São Paulo), Colombia (Bogotá), Uruguay (Montevideo), Argentina (Buenos
Aires) and the United Kingdom (London). The Company also has centers of software engineering talent and educational excellence,
primarily across Latin America.



Substantially all revenues are generated
in the U.S. and United Kingdom, through subsidiaries located in those countries. The Company ́s workforce is mainly located
in Argentina and to a lesser extent in Latin America, India and U.S.



The Company’s changed its registered
office address since January 30, 2016 from 5 rue Guillaume Kroll, L-1882, Luxembourg to 37A, avenue J.F. Kennedy,L-1855 Luxembourg,
Luxembourg.



NOTE 2 – BASIS OF PREPARATION OF THESE CONSOLIDATED
FINANCIAL STATEMENTS



These consolidated financial statements
have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International
Accounting Standards Board (“IASB”). These consolidated financial statements are presented in thousands of United States
dollars (“U.S. dollars”) and have been prepared under the historical cost convention except as disclosed in the accounting
policies below.



2.1 – Application of new and
revised International Financial Reporting Standards



| | • | Adoption of new and revised standards
| | - | -------------------------------------



The Company has adopted all of the new
and revised standards and interpretations issued by the IASB that are relevant to its operations and that are mandatorily effective
at December 31, 2016. The application of these amendments has had no impact on the disclosures or amounts recognized in the
Company ́s consolidated financial statements.



| | • | New accounting pronouncements
| | - | -----------------------------



The Company has not applied the following
new and revised IFRSs that have been issued but are not yet mandatorily effective:



|IFRS 9                              | Financial Instruments1                                                                
|----------------------------------- | --------------------------------------------------------------------------------------
|IFRS 15                             | Revenue from contracts with customer1                                                 
|Amendment to IFRS 15                | Revenue from contracts with customer1 |                                               
|IFRS 16                             | Leases2                                                                               
|Amendments to IFRS 10 and IAS 28    | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture3
|Amendment to IAS 12                 | Recognition of Deferred Tax Assets for Unrealised Losses4                             
|Amendment to IAS 7                  | Financial reporting disclosure4                                                       
|Amendments to IFRS 2                | Share-based payments1                                                                 
|Amendments to IFRS 1, 12 and IAS 28 | Annual improvements 2014 -2016 Cycle1- 4                                              
|IFRIC 22                            | Foreign Currency Transactions and Advance Consideration1                              



1 Effective for annual periods beginning
on or after January 1, 2018. Early adoption is permitted.

2 Effective for annual periods beginning
on or after January 1, 2019. Early adoption is permitted if IFRS 15 has also been applied.

3 Effective date deferred indefinitely.

4 Effective for annual periods beginning
on or after January 1, 2017. Early adoption is permitted.



F-10







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



| | • | In November 2009, the International Accounting Standards
Board (IASB) issued IFRS 9, which introduced new requirements for the classification and measurement of financial assets. IFRS
9 was subsequently amended in October 2010 to include requirements for the classification and measurement of financial liabilities
and for derecognition, and in November 2013 to include the new requirements for general hedge accounting. On July 24, 2014, the
IASB published the final version of IFRS 9 'Financial Instruments'. IFRS 9, as revised in July 2014, introduces a new expected
credit loss impairment model. The expected credit loss model requires an entity to account for expected credit losses and changes
in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition. In other words,
it is no longer necessary for a credit event to have occurred before credit losses are recognised. Also limited changes to the
classification and measurement requirements for financial assets by introducing a ‘fair value through other comprehensive
income’ (FVTOCI) measurement category for certain simple debt instruments.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Based on the analysis of the
Company’s financial assets and financial liabilities as of December 31, 2016 on the basis of the facts and circumstances
that exists at that date, the directors of the Company have performed a preliminary assessment of the impact of IFRS 9 to the Company’s
consolidated financial statements as follows:



| | ◦ | Classification and measurement: all financial assets
and financial liabilities will continue to be measured on the same bases as is currently adopted under IAS 39.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | Impairment: no financial assets are measured at amortized
cost.
| | - | ---------------------------------------------------------------

| | ◦ | Hedge accounting: the management of the Company does
not anticipate that the application of the IFRS 9 Hedge accounting requirements will have a material impact on the Company’s
consolidated financial statements.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



It should be noted that the
above assessment were made base on an analysis of the Company’s financial assets and financial liabilities as of December
31, 2016 on the bases of the facts and circumstances that existed at that date. As facts and circumstances may change during the
period leading up to the initial date of application of IFRS 9, which is expected to be January 1, 2018 as the Company does not
intend to early apply the standard, the assessment of the potential impact is subject to change.This new standard is effective
for periods beginning on or after January 1, 2018.



| | • | On May 28, 2014 the IASB published its new revenue Standard,
IFRS 15 “Revenue from Contracts with Customers”. IFRS 15 provides a single comprehensive model for entities to use
in accounting for revenue arising from contracts with customers. IFRS 15 will supersede the current revenue recognition guidance
including IAS 18 Revenue, IAS 11 Construction Contracts and the related interpretations when it becomes effective. The core principle
of IFRS 15 is that an entity should recognise revenue to depict the transfer or promised goods or services to customers in an
amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically,
the standard introduces a five-step approach to revenue recognition:
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Step 1: Identify the contract with the customer
| | - | -----------------------------------------------

| | • | Step 2: Identify the performance obligations in the
contract
| | - | ------------------------------------------------------------

| | • | Step 3: Determine the transaction price
| | - | ---------------------------------------

| | • | Step 4: Allocate the transaction price to the performance
obligations in the contracts
| | - | --------------------------------------------------------------------------------------

| | • | Step 5: Recognize revenue when (or as) the entity
satisfies a performance obligation.
| | - | -------------------------------------------------------------------------------------



On April
12, 2016 the IASB has published amendments with clarifications to IFRS 15 'Revenue from Contracts with Customers'. The amendments
address the following topics: identifying performance obligations, principal versus agent considerations, and licensing, and provide
some transition relief for modified contracts and completed contracts.



F-11







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Under IFRS 15, an entity recognises
revenue when or as performance obligation is satisfied, i.e. when control of the goods or services underlying the particular performance
obligation is transferred to the customer. Far more prescriptive guidance has been added in IFRS 15 to deal with specific scenarios.
Furthermore, extensive disclosures are required by IFRS 15. The new standard is effective for annual periods beginning on or after
January 1, 2018. Early adoption is permitted. The standard permits a modified retrospective approach for the adoption. Under this
approach entities will recognize transitional adjustments in retained earnings on the date of initial application (e.g. January
1, 2017), i.e. without restating the comparative period. They will only need to apply the new rules to contracts that are not completed
as of the date of initial application. The Management do not intend to early apply the standard and intend to use the modified
retrospective method upon adoption.



The Company has completed an initial
impact assessment of the new standard by completing a survey of all businesses identifying the likely impact of IFRS 15. This was
a tailored questionnaire based on the known impacts of the new standard on technology services companies. Management is still in
the process of assessing the full impact of the application of IFRS 15 on the Company ́s consolidated financial statements
and it is not practicable to provide a reasonable financial estimate of the effect until the management complete the detail review,
including, but not limited to, variable consideration contracts and performance obligations where multiple services are provided
in individual contracts.



| | • | On January 13, 2016, the IASB issued the IFRS 16 which
specifies how an IFRS reporter will recognize, measure, present and disclose leases. The standard provides a single lessee accounting
model, with the distinction between operating and finance leases removed, requiring lessees to recognize assets and liabilities
for all leases unless the lease term is 12 months or less or the underlying asset has a low value to be accounted for by simply
recognizing an expense, typically straight line, over the lease term. Lessors continue to classify leases as operating or finance,
with IFRS 16’s approach to lessor accounting substantially unchanged from its predecessor, IAS 17. IFRS 16 supersedes IAS
17 and related interpretations. Furthermore, extensive disclosures are required by IFRS 16. As of December 31, 2016, the Group
has non–cancellable operating lease commitment of $30,628 for office space and office equipment. IAS 17 does not require
the recognition of any right-of-use or liability for future payments for these leases; instead, certain information is disclosed
as operating lease commitment in note 26. If these arrangements meet the definition of a lease under IFRS 16, the Company will
recognize a right–of–use asset and a liability in respect of them unless they qualify of a low value or short–term
leases upon the application of IFRS 16. In contrast, for finance leases where the Company is a lessee, the Company will recognize
an asset and a related finance lease liability for the lease arrangement. Management are currently assessing its potential impact
of the application of IFRS 16. It is not practicable to provide a reasonable estimate of the financial effect on the amounts recognized
in the Company ́s consolidated financial statements until the management complete the review. The standard is effective for
annual periods beginning on or after January 1, 2019, with earlier application being permitted if IFRS 15 has also been applied.
The Company has not opted for early application.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | On September 11, 2014, the IASB issued amendments to IFRS
10 and IAS 28. These amendments clarify the treatment of the sale or contribution of assets from an investor to its associate
or joint venture, as follows:
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | require full recognition in the investor's financial
statements of gains and losses arising on the sale or contribution of assets that constitute a business (as defined in IFRS 3
Business Combinations);
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | require the partial recognition of gains and losses
where the assets do not constitute a business, i.e. a gain or loss is recognised only to the extent of the unrelated investors’
interests in that associate or joint venture.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



These requirements apply regardless of
the legal form of the transaction, e.g. whether the sale or contribution of assets occurs by an investor transferring shares in
any subsidiary that holds the assets (resulting in loss of control of the subsidiary), or by the direct sale of the assets themselves.
On December 17, 2015 the IASB issued an amendment that defers the effective date of the September 2014 amendments to these
standards indefinitely until the research project on the equity method has been concluded. Earlier application of the September
2014 amendments continues to be permitted.



| | • | On January 19, 2016, the IASB issued the amendment IAS 12 Income
Taxes to clarify the following aspects:
| | - | --------------------------------------------------------------------------------------------------------

| | ◦ | Unrealised losses on debt instruments measured at
fair value and measured at cost for tax purposes give rise to a deductible temporary difference regardless of whether the debt
instrument's holder expects to recover the carrying amount of the debt instrument by sale or by use.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | The carrying amount of an asset does not limit the
estimation of probable future taxable profits.
| | - | -------------------------------------------------------------------------------------------------

| | ◦ | Estimates for future taxable profits exclude tax deductions
resulting from the reversal of deductible temporary differences.
| | - | ----------------------------------------------------------------------------------------------------------------------------



F-12







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



| | ◦ | An entity assesses a deferred tax asset in combination
with other deferred tax assets. Where tax law restricts the utilisation of tax losses, an entity would assess a deferred tax asset
in combination with other deferred tax assets of the same type.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The directors of the Company do
not anticipate that the application of these amendments will have a material impact on the Group's consolidated financial statements.
The amendment is effective for annual periods beginning on or after January 1, 2017, with earlier application being permitted.



| | • | On January 29, 2016, the IASB published amendments to IAS
7 as part of its disclosure initiative (i.e., projects to improve the effectiveness of financial reporting disclosures). The objective
of the amendments is to clarify IAS 7 to improve information provided to financial statement users about an entity’s financing
activities. The amendments require that an entity disclose, to the extent necessary to meet the disclosure objective, the following
changes in liabilities arising from financing activities:
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | changes from financing cash flows;
| | - | ----------------------------------

| | ◦ | changes arising from obtaining or losing control of
subsidiaries or other businesses;
| | - | -------------------------------------------------------------------------------------

| | ◦ | the effect of changes in foreign exchange rates;
| | - | ------------------------------------------------

| | ◦ | changes in fair values; and
| | - | ---------------------------

| | ◦ | other changes.
| | - | --------------



The IASB defines liabilities arising
from financing activities as liabilities “for which cash flows were, or future cash flows will be, classified in the statement
of cash flows as cash flows from financing activities.” The amendments indicate that the new disclosure requirements also
apply to changes in financial assets that meet this definition. The amendments state that one way to meet the new disclosure requirements
is to provide “a reconciliation between the opening and closing balances in the statement of financial position for liabilities
arising from financing activities. The directors of the Company do not anticipate that the application of these amendments will
have a material impact on the Group's consolidated financial statements. The amendments are effective for annual periods beginning
on or after January 1, 2017. Earlier application is permitted.



| | • | On June 20, 2016, the IASB issued amendments to IFRS 2
(share-based payments). The amendments clarify the accounting for cash-settled share-based payment transactions that include a
performance condition, the classification of share-based payment transactions with net settlement features, and the accounting
for modifications of share-based payment transactions from cash-settled to equity-settled. The directors of the Company do not
anticipate that the application of these amendments will have a material impact on the Group's consolidated financial statements.
The amendments are effective prospectively for annual periods beginning on or after January 1, 2018. Early adoption is permitted.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | On December 8, 2016, the IASB issued amendments to the
following standards as result of the IASB's annual improvements 2014-2016 project:
| | - | -----------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | IFRS 1 (First time adoption of International Financial
Reporting Standards): Deletes the short-term exemptions in paragraphs E3–E7 because they have now served their intended
purpose.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | IFRS 12 (Disclosure of interests in other entities):
Clarifies the scope of the standard by specifying that the disclosure requirements in the standard, except for those in paragraphs
B10–B16, apply to an entity’s interests listed in paragraph 5 that are classified as held for sale, as held for distribution
or as discontinued operations in accordance with IFRS 5 (Non-current assets held for sale and discontinued operations).
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ◦ | IAS 28 (Investments in associates and joint ventures):
Clarifies that the election to measure at fair value through profit or loss an investment in an associate or a joint venture that
is held by an entity that is a venture capital organisation, or other qualifying entity, is available for each investment in an
associate or joint venture on an investment-by- investment basis, upon initial recognition.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The directors of the Company do
not anticipate that the application of these amendments will have a material impact on the Group's consolidated financial statements.
The amendments to IFRS 1 and IAS 28 are effective for annual periods beginning on or after January 1, 2018 and the amendment to
IFRS 12 for annual periods beginning on or after January 1, 2017. Early adoption is permitted.



| | • | On December 8, 2016, the IASB published IFRIC 22, which
was developed by the IFRS Interpretations Committee to clarify the accounting for transactions that include the receipt or payment
of advance consideration in a foreign currency. The interpretation is being issued to reduce diversity in practice related to
the exchange rate used when an entity reports transactions that are denominated in a foreign currency in accordance with IAS 21
in circumstances in which consideration is received or paid before the related asset, expense, or income is recognized.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-13







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



The interpretations are effective
prospectively for annual periods beginning on or after January 1, 2018. Early adoption is permitted.



The Management of the Company do not anticipate
that the application of these amendments will have a material impact on the Group's Financial Statements.



2.2 – Basis of consolidation



These consolidated financial statements
include the consolidated financial position, results of operations and cash flows of the Company and its consolidated subsidiaries.
Control is achieved where the company has the power over the investee; exposure, or rights, to variable returns from its involvement
with the investee and the ability to use its power over the investee to affect the amount of the returns. All intercompany transactions
and balances between the Company and its subsidiaries have been eliminated in the consolidation process.



Non-controlling interest in the equity
of consolidated subsidiaries is identified separately from the Company’s net liabilities therein. Non-controlling interest
consists of the amount of that interest at the date of the original business combination and the non-controlling share of changes
in equity since the date of the consolidation. Losses applicable to non-controlling shareholders in excess of the non-controlling
interest in the subsidiary’s equity are allocated against the interest of the Company, except to the extent that the non-controlling
interest has a binding obligation and is able to make an additional investment to cover the losses.



Acquired companies are accounted for under
the acquisition method whereby they are included in the consolidated financial statements from their acquisition date.



Detailed below are the subsidiaries of
the Company whose financial statement line items have been included in these consolidated financial statements.



F-14







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



|                                          |  | Country                  |  |                                                             |  | Percentage ownership |       
|----------------------------------------- |  | ------------------------ |  | ----------------------------------------------------------- |  | -------------------- | ------
|                                          |  | of                       |  | Main                                                        |  | As of December 31,   |       
|Company                                   |  | incorporation            |  | Activity                                                    |  | 2016                 |       
|Sistemas UK Limited                       |  | United Kingdom           |  | Customer referral services and software development support |  |                      | 100.00
|Globant LLC                               |  | United States of America |  | Customer referral services and software development support |  |                      | 100.00
|Sistemas Globales Buenos Aires S.R.L. (1) |  | Argentina                |  | Investing activities                                        |  |                      | -     
|4.0 S.R.L. (1)                            |  | Argentina                |  | Investing activities                                        |  |                      | -     
|Sistemas Colombia S.A.S.                  |  | Colombia                 |  | Software development and consultancy                        |  |                      | 100.00
|Global Systems Outsourcing S.R.L. de C.V. |  | Mexico                   |  | Software development and consultancy                        |  |                      | 100.00
|Software Product Creation S.L.            |  | Spain                    |  | Software development and consultancy                        |  |                      | 100.00
|Globant S.A.                              |  | Spain                    |  | Investing activities                                        |  |                      | 100.00
|Sistemas Globales Uruguay S.A.            |  | Uruguay                  |  | Software development and consultancy                        |  |                      | 100.00
|Sistemas Globales S.A.                    |  | Argentina                |  | Software development and consultancy                        |  |                      | 100.00
|IAFH Global S.A.                          |  | Argentina                |  | Software development and consultancy                        |  |                      | 100.00
|Sistemas Globales Chile Ases. Ltda.       |  | Chile                    |  | Software development and consultancy                        |  |                      | 100.00
|Globers S.A.                              |  | Argentina                |  | Travel organization services                                |  |                      | 100.00
|Globant Brasil Participações Ltda. (2)    |  | Brazil                   |  | Investing activities                                        |  |                      | -     
|Globant Brasil Consultoria Ltda. (3)      |  | Brazil                   |  | Software development and consultancy                        |  |                      | 100.00
|Huddle Investment LLP                     |  | United Kingdom           |  | Investing activities                                        |  |                      | 100.00
|Huddle Group S.A.                         |  | Argentina                |  | Software development and consultancy                        |  |                      | 100.00
|Huddle Group S.A.(4)                      |  | Chile                    |  | Software development and consultancy                        |  |                      | -     
|Huddle Group Corp.(5)                     |  | United States            |  | Software development and consultancy                        |  |                      | -     
|Globant Peru S.A.C.                       |  | Peru                     |  | Software development and consultancy                        |  |                      | 100.00
|Globant India Privated Limited (6)        |  | India                    |  | Software development and consultancy                        |  |                      | 100.00
|Dynaflows S.A. (7)                        |  | Argentina                |  | Software development and consultancy                        |  |                      | 66.73 
|We Are London Limited (8)                 |  | United Kingdom           |  | Service design consultancy                                  |  |                      | 100.00
|L4 Mobile LLC (9)                         |  | United States of America |  | Software development and consultancy                        |  |                      | 100.00
|Difier S.A. (10)                          |  | Uruguay                  |  | Software development and consultancy                        |  |                      | 100.00



F-15







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



| | (1) | As from January 1, 2015, Sistemas Globales Buenos Aires
S.R.L. and 4.0 S.R.L. were merged into Sistemas Globales S.A. and IAFH Global S.A., respectively.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | As of December 31, 2015, Globant Brasil Participações
Ltda. was merged into Globant Brasil Consultoría Ltda. (formerly TerraForum Consultoria Ltda.).
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | As of March 23, 2016, TerraForum Consultoría Ltda.
was renamed Globant Brasil Consultoría Ltda..
| | --- | ------------------------------------------------------------------------------------------------

| | (4) | As of December 31, 2015, Huddle Group S.A. from Chile was
merged into Sistemas Globales Chile Ases. Ltda.
| | --- | ---------------------------------------------------------------------------------------------------------

| | (5) | As of October 31, 2016, Huddle Group a.Corp. from United
States was merged into Globant LLC.
| | --- | --------------------------------------------------------------------------------------------

| | (6) | Globant India Private Limited (formerly “Clarice
Technologies Pvt. Ltd”) was acquired on May 14, 2015 (see note 23).
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (7) | On October 22, 2015, the Company has increased its participation
in Dynaflows S.A. obtaining the control over this company (see note 23).
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------

| | (8) | We are London Limited and We are Experience LLC were acquired
on May 23, 2016 (see note 23). On October 31, 2016, We are Experience LLC was merged into Globant LLC.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (9) | L4 Mobile LLC was acquired on November 14, 2016 (see note
23).
| | --- | --------------------------------------------------------------

| | (10) | Difier S.A. was acquired on November 14, 2016 (see note
23).
| | ---- | ------------------------------------------------------------



NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



3.1 – Business combinations



Acquisitions of businesses are accounted
for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated
as the sum of the acquisition date fair values of the assets transferred to the Company, liabilities incurred by the Company to
the former owners of the acquiree and the equity interests issued by the Company in exchange for control of the acquiree. Acquisition-related
costs are recognized in profit or loss as incurred.



At the acquisition date, the identifiable
assets acquired and the liabilities assumed are recognized at their fair value, except that:



| | • | deferred tax assets or liabilities, and assets or liabilities
related to employee benefit arrangements are recognized and measured in accordance with IAS 12 Income Taxes and IAS 19
Employee Benefits respectively; and
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | liabilities or equity instruments related to share-based
payment arrangements of the acquiree or share-based payment arrangements of the Company entered into to replace share-based payment
arrangements of the acquiree are measured in accordance with IFRS 2 Share-based Payment at the acquisition date.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Goodwill is measured as the excess of the
sum of the consideration transferred, the amount of any non-controlling interests in the acquired business, and the fair value
of the acquirer’s previously held equity interest in the acquired business (if any) over the net of the acquisition date
amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition date
amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount
of any non-controlling interests in the acquired business and the fair value of the acquirer’s previously held equity interest
in the acquired business (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain.



Non-controlling interests that are present ownership interests
and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially
measured either at fair value or at the non-controlling interests’ proportionate share of the recognized amounts of the acquired
business identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis.



When the consideration transferred by the
Company in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent
consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business
combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted
retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from
additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition
date) about facts and circumstances that existed at the acquisition date.



F-16







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



The subsequent accounting for changes in
the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent
consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates
and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability
is remeasured at subsequent reporting dates in accordance with IAS 39, or IAS 37 Provisions, Contingent Liabilities and Contingent
Assets, as appropriate, with the corresponding gain or loss being recognized in profit or loss.



When a business combination is achieved
in stages, the Company’s previously held equity interest in the acquiree is remeasured to its acquisition-date fair value
and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to
the acquisition date that have previously been recognized in other comprehensive income are reclassified to profit or loss where
such treatment would be appropriate if that interest were disposed of.



Arrangements that include remuneration
of former owners of the acquiree for future services are excluded of the business combinations and will be recognized in expense
during the required service period.



3.2 – Goodwill



Goodwill arising in a business combination
is carried at cost as established at the acquisition date of the business less accumulated impairment losses, if any. For the purpose
of impairment testing, goodwill is allocated to a unique cash generating unit (CGU).



Goodwill is not amortized but is reviewed for impairment at
least annually or more frequently when there is an indication that the business may be impaired. If the recoverable amount of the
business is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill
allocated to the business and then to the other assets of the business pro-rata on the basis of the carrying amount of each asset
in the business. Any impairment loss for goodwill is recognized directly in profit or loss in the consolidated statement of income
and other comprehensive income. An impairment loss recognized for goodwill is not reversed in a subsequent period.



The Company has not recognized any impairment loss in the years
ended December 31, 2016, 2015 and 2014.



3.3 – Revenue recognition



The Company generates revenue primarily
from the provision of software development, testing, infrastructure management, application maintenance, outsourcing services,
consultancy and Services over Platforms (SoP). SoP is a new concept for the services industry that aims deliver digital journeys
in more rapid manner providing specific platforms as a starting point and then customizing them to the specific need of the customers.
Revenue is measured at the fair value of the consideration received or receivable.



The Company’s services are performed
under both time-and-material (where materials costs consist of travel and out-of-pocket expenses) and fixed-price contracts. For
revenues generated under time-and-material contracts, revenues are recognized as services are performed with the corresponding
cost of providing those services reflected as cost of revenues when incurred. The majority of such revenues are billed on an hourly,
daily or monthly basis whereby actual time is charged directly to the client.



The Company recognizes revenues from fixed-price
contracts based on the percentage of completion method. Under this method, revenue is recognized in the accounting periods in which
services are rendered. In instances where final acceptance of the product, system or solution is specified by the client, revenues
are deferred until all acceptance criteria have been met. In absence of a sufficient basis to measure progress towards completion,
revenues are recognized upon receipt of final acceptance from the client. The cumulative impact of any revision in estimates is
reflected in the financial reporting period in which the change in estimate becomes known. Fixed-price contracts generally corresponds
for services over a period of 12 months or less.



3.4 – Leasing



Leases are classified as finance leases whenever the terms of
the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating
leases.



Finance leases which transfer to the Company
substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the commencement of the
lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments
are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are recognized in finance costs in the consolidated statement of profit or
loss and other comprehensive income. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable
certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the
estimated useful life of the asset and the lease term.



F-17







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



During the years ended December 31,
2016 and 2015, the Company has recognized some agreements related to computer leases as finance leases, considering all the factors
mentioned above.



Operating lease payments are recognized
as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the
time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are
recognized as an expense in the period in which they are incurred.



In the event that lease incentives are
received to enter into operating leases, such incentives are recognized as a liability. The aggregate benefit of incentives is
recognized as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative
of the time pattern in which economic benefits from the leased asset are consumed. The Company did not receive any lease incentives
in any of the years presented.



There are no situations in which the Company
qualifies as a lessor.



3.5 – Foreign currencies



Except in the case of Globant Brasil Consultoría
Ltda. (formerly TerraForum Consultoria Ltda.), Globers S.A. and We are London Limited, the Company and the other subsidiaries’
functional currency is the U.S. dollar. In preparing these consolidated financial statements, transactions in currencies other
than the U.S. dollar (“foreign currencies”) are recognized at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates
prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are kept at the
original translated cost. Exchange differences are recognized in profit and loss in the period in which they arise.



Globant Brasil Consultoría Ltda.,
Globers S.A. and We are London Limited, functional currency is the Brazilian Real, the Argentine Peso and the Great Britain Pound,
respectively. Assets and liabilities are translated at current exchange rates, while income and expense are translated at the date
of the transaction rate. The resulting foreign currency translation adjustment is recorded as a separate component of accumulated
other comprehensive income (loss) in the equity.



3.6 – Borrowing costs



The Company does not have borrowings attributable
to the construction or production of assets. All borrowing costs are recognized in profit and loss under finance loss.



3.7 – Taxation



3.7.1 – Income taxes –
current and deferred



Income tax expense represents the estimated
sum of income tax payable and deferred tax.



3.7.1.1 – Current income tax



The current income tax payable is the sum
of the income tax determined in each taxable jurisdiction, in accordance with their respective income tax regimes.



Taxable profit differs from profit as reported
in the consolidated statement of profit or loss and other comprehensive income because taxable profit excludes items of income
or expense that are taxable or deductible in future years and it further excludes items that are never taxable or deductible. The
Company’s liability for current income tax is calculated using tax rates that have been enacted or substantively enacted
as of the balance sheet dates. The current income tax charge is calculated on the basis of the tax laws in force in the countries
in which the consolidated entities operate.



F-18







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Globant S.A, the Luxembourg company, is
subject to a corporate income tax rate of 20% or 21% if taxable income is lower or higher than EUR 15,000, respectively. The tax
increased by a 7% surcharge for contribution to the unemployment fund. Thus, Luxembourg's effective corporate income tax rate of
22.47% (meaning the previous rate of 21% that was increased by 7%) and the municipal business tax. For the year 2017, the corporate
income tax rate will be 19%.



In 2008, Globant S.A. (Spain) elected to
be included in the Spanish special tax regime for entities having substantially all of their operations outside of Spain, known
as “Empresas Tenedoras de Valores en el Exterior” (“ETVE”), on which dividends distributed from
its foreign subsidiaries as well as any gain resulting from disposal are tax free. In order to be entitled to the tax exemption,
among other requirements, Globant Spain’s main activity must be the administration and management of equity instruments from
non-Spanish entities and such entities must be subject to a tax regime similar to that applicable in Spain for non-ETVEs companies.
During 2016 and 2015, the Company’s Uruguayan, Colombian and Argentinian subsidiaries distributed dividends to Globant S.A.
for a total amount of 85,064 and 4,511, respectively. If this tax exemption would not applied, the applicable tax rate should be
25%. The Company ́s Spanish subsidiary Software Product Creation S.L. is subject to a 25% corporate income tax rate.



From a taxable income perspective, the Argentine subsidiaries
represent the Company’s most significant operations. Argentine companies are subject to a 35% corporate income tax rate.
In January 2006, Huddle Group S.A. (“Huddle Argentina”) and, in May 2008, IAFH Global S.A. and Sistemas Globales S.A.
were notified by the Argentine Government through the Ministry of Economy and Public Finance that they had been included within
the promotional regime for the software industry established under Law No. 25,922 (the “Software Promotion Regime”).



Under Argentina’s Software Promotion Law No. 25,922 (Ley
de Promoción de la Industria de Software), our operating subsidiaries in Argentina benefit from a 60% reduction in their
corporate income tax rate (as applied to income from promoted software activities) and a tax credit of up to 70% of amounts paid
for certain social security taxes (contributions) that may be offset against value-added tax liabilities. Law No. 26,692, the 2011
amendment to the Software Promotion Law (“Law No. 26,692”), also allows such tax credits to be applied to reduce our
Argentine subsidiaries’ corporate income tax liability by a percentage not higher than the subsidiaries’ declared percentage
of exports and extends the tax benefits under the Software Promotion Law until December 31, 2019.



On May 21, 2010, Ministry of Industry and
Tourism published Resolution No 177/2010 which establishes that audits, verifications, inspections, controls and evaluations related
to the regime of Law No. 25,922, will be supported by the beneficiaries by paying a monthly and annual fee of 7% calculated on
the amount of tax benefits.



On September 16, 2013, the Argentine Government
published Regulatory Decree No. 1315/2013, which governs the implementation of the Software Promotional Regime, established by
Law No. 25,922, as amended by Law No. 26,692. Regulatory Decree No. 1315/2013, introduced the specific requirements needed to obtain
the fiscal benefits contemplated under the Software Promotion Regime, as amended by Law No. 26,692. Those requirements include,
among others, minimum annual revenue, minimum percentage of employees involved in the promoted activities, minimum aggregate amount
spent in salaries paid to employees involved in the promoted activities, minimum research and development expenses and the filing
of evidence of software-related services exports.



Regulatory Decree No. 1315/2013
further provides that:

| | • | from September 17, 2014 through December 31, 2019,
only those companies that are accepted for registration in the National Registry of Software Producers (Registro Nacional de Productores
de Software y Servicios Informáticos) maintained by the Secretary of Industry (Secretaria de Industria del Ministerio de
Industria) will be entitled to participate in the benefits of the Software Promotion Regime;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | applications for registration in the National Registry
of Software Producers must be made to the Secretary of Industry within 90 days after the publication in the Official Gazette (Boletín
Oficial) of the relevant registration form (which period expired on July 8, 2014);
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | the 60% reduction in corporate income tax provided
under the Software Promotion Regime shall only become effective as of the beginning of the fiscal year after the date on which
the applicant is accepted for registration in the National Registry of Software Producers; and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-19







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



| | • | upon the Secretary of Industry’s formal approval
of an applicant’s registration in the National Registry of Software Producers, any promotional benefits previously granted
to such person under Law No. 25,922 shall be extinguished.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In addition, Regulatory Decree No. 1315/2013
delegates authority to the Secretary of Industry and the Federal Administration of Public Revenue (Administración Federal
de Ingresos Publicos, or AFIP) to adopt ‘‘complementary and clarifying’’ regulations in furtherance of
the implementation of the Software Promotion Regime.



On March 11, 2014, AFIP issued General
Resolution No. 3,597. This resolution provides that, as a further prerequisite to participation in the Software Promotion Regime,
a company that exports software and related services must register in a newly established Special Registry of Exporters of Services
(Registro Especial de Exportadores de Servicios). On March 14, May 21 and May 28, 2014, the Company ́s Argentine subsidiaries,
Huddle Group S.A., IAFH Global S.A. and Sistemas Globales S.A., respectively, applied and were accepted for registration in the
Special Registry of Exporters of Services. In addition, General Resolution No. 3,597 states that any tax credits generated under
Law No. 25,922 by a participant in the Software Promotion Regime was only valid until September 17, 2014.



The Company’s Argentine subsidiaries
submitted their applications for registration in the National Registry of Software Producers on June 25, 2014.



As of December 31, 2013, based on its interpretation
of Regulatory Decree No. 1315/2013, and considering the facts and circumstances available until the date of issuance of the consolidated
financial statements for the year then ended, management believed that any tax credits generated under Law No. 25,922 would only
be valid until the effective date of registration in the National Registry of Software Producers and, consequently, due to the
uncertainty regarding the actual date of registration in such registry, that there was a substantial doubt as to the recoverability
of the tax credit generated by its Argentine subsidiaries under Law No. 25,922. Accordingly, as of December 31, 2013 the Company
recorded a valuation allowance of 9,579 to reduce the carrying value of such tax credit to its estimated net realizable value.



On March 26, 2015 and April 17, 2015, the
Secretary and Subsecretary of Industry issued rulings approving the registration in the National Registry of Software Producers
of Sistemas Globales S.A. and IAFH Global S.A. and Huddle Group S.A., respectively. In each case, the ruling made the effective
date of registration retroactive to September 18, 2014 and provided that the benefits enjoyed under the Software Promotion Law
as originally enacted were not extinguished until the ruling goes into effect (which have occurred upon its date of publication
in the Argentine government’s official gazette).



On May 7, 2015, the Company applied to
the Subsecretary of Industry for deregistration of Huddle Group S.A. from the National Registry of Software Producers, as the subsidiary
had discontinued activities since January 1, 2015. As a consequence, Huddle Group S.A. is subject to a 35% corporate income tax
rate since January 1, 2015.



As of December 31, 2015 and 2014, the Company
recorded a gain of 1,820 and 1,505, respectively related to the partial reversal of the allowance of impairment of tax credit generated
under the abovementioned regime up to the date of the reaccreditation of the Argentine subsidiary (Sistemas Globales S.A.) by the
Secretary of Industry who stated in the respective resolutions that the tax benefits under the previous regime expired on the date
of the reaccreditation. After the date of the reaccreditation under the new law, the Company has not recognized any benefit under
the law 25,922.



Regarding the rest of the Company's Argentine
subsidiaries, Globers Travel and Dynaflows, as they are not in included within the Software Promotion Regime, are subject to a
corporate income tax rate of 35%.



The Company’s Uruguayan subsidiary
Sistemas Globales Uruguay S.A. is domiciled in a tax free zone and has an indefinite tax relief of 100% of the income tax rate
and an exemption from VAT. Aggregate income tax relief arising under Sistemas Globales Uruguay S.A. for years ended December 31,
2016, 2015 and 2014 were 1,231, 1,175, 469, respectively. The Company’s Uruguayan subsidiary Difier S.A. is located outside
tax-free zone and according to Article 163 bis of Decree No. 150/007 the software development services performed are exempt from
income tax and value-added tax applicable as long as they are exported and utilized abroad.



The Company’s Colombian subsidiary
Sistemas Colombia S.A.S. is subject to federal corporate income tax at the rate of 31% and the CREE (“Contribución
Empresarial para la Equidad”) at the rate of 9% calculated on net income before income tax, applicable since January 1, 2016.
On December 29, 2016, Law No 1,819 of 2016 was passed introducing significant changes in the Colombian tax system for corporates
and individuals and became effective on January 1, 2017. Since January 1, 2017, the CREE is deleted and the Company ́s will
be subject to federal corporate income tax at the rate of 40% for the year 2017.



F-20







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



The Company’s U.S. subsidiaries Globant
LLC and L4 Mobile LLC are subject to U.S. federal income tax at the rate of 34%. For tax purposes, L4 Mobile LLC is considered
a partnership which elected to be a disregarded entity. The profit of L4 Mobile LLC will passed directly through the business to
Globant LLC and will be taxed on its income tax return.



The Company’s English subsidiaries
Sistemas UK Limited, We are London Limited and Huddle Investment LLP, are subject to corporate income tax at the rate of 20%. For
the year 2015, the corporate income tax rate was 21%.



The Company’s Chilean subsidiary Sistemas Globales Chile
Ases. Ltda. is subject to corporate income tax at the rate of 24%. For the year 2015, the corporate income tax rate was 22.5% and
for 2017 it will be 25.5%.



The Company’s Brazilian subsidiary
Globant Brasil Consultoría Ltda. (formerly Terraforum Consultoría Ltda.), applies the taxable income method called
“Lucro real”. Under this method, taxable income is based upon a percentage of profit accrued by the Company, adjusted
according to the add-backs and exclusions provided in the relevant tax law. The rate applicable to the taxable income derived from
the subsidiary’s activity is 24% plus 10% if the net income before income tax is higher than 240,000 reais for the year 2016
and 120,000 reais for the year 2015.



The Company’s Peruvian subsidiary,
Globant Peru S.A.C. is subject to corporate income tax at the rate of 28%. For the year 2015, the corporate income tax rate was
30% and it will be 29.5% for the next year.



The Company’s Mexican subsidiary,
Global Systems Outsourcing S.R.L. de C.V., is subject to corporate income tax at the rate of 30%.



The Company’s Indian subsidiary Globant
India Private Limited is primarily export-oriented and is eligible for certain income tax holiday benefits granted by the government
of India for export activities conducted within Special Economic Zones, or SEZs. The services provided by our Pune development
center are eligible for a deduction of 100% of the profits or gains derived from the export of services for the first five years
from the financial year in which the center commenced the provision of services and 50% of such profits or gains for the five years
thereafter. Certain tax benefits are also available for a further five years subject to the center meeting defined conditions. Indian
profits ineligible for SEZ benefits are subject to corporate income tax at the rate of 34.61%. In addition, all Indian profits,
including those generated within SEZs, are subject to the Minimum Alternative Tax (MAT), at the current rate of approximately 21.34%,
including surcharges.



3.7.1.2 – Deferred tax



Deferred tax is recognized on temporary
differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding
tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary
differences, and deferred tax assets including tax loss carry forwards are generally recognized for all deductible temporary differences
to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can
be utilized. Such deferred assets and liabilities are not recognized if the temporary difference arises from goodwill or from the
initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither
the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference
arises from the initial recognition of goodwill.



Deferred tax liabilities are recognized
for taxable temporary differences associated with investments in subsidiaries, except where the entities are able to control the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized
to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary
differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed
at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be recovered.



Deferred tax assets and liabilities are
measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based
on tax rates (and tax laws) that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred
tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the
reporting date, to recover or settle the carrying amount of its assets and liabilities.



F-21







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Deferred tax assets and liabilities are
offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate
to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities
on a net basis.



Current and deferred tax are recognized
in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in
which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.
The Company has not recorded any current or deferred income tax in other comprehensive income or equity in any each of the years
presented.



Where current tax or deferred tax arises
from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.



Under IFRS, deferred income tax assets (liabilities) are classified
as non-current assets (liabilities).



The Company does not have unrecognized
tax benefits or reserve for uncertain tax positions that require disclosure in its consolidated financial statements.



3.8 – Property and equipment



Fixed assets are valued at acquisition cost, net of the related
accumulated depreciation and accumulated impairment losses, if any.



Depreciation is recognized so as to write
off the cost or valuation of assets less their residual values over their useful lives, using the straight-line method.



The estimated useful lives, residual values
and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted
for on a prospective basis.



Lands and properties under construction
are carried at cost, less any recognized impairment loss. Properties under construction are classified to the appropriate categories
of property and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property
assets, commences when the assets are ready for their intended use. Land is not depreciated.



An item of property and equipment is derecognized
upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising
on the disposal or retirement of an item of property and equipment is determined as the difference between the sales proceeds and
the carrying amount of the asset and is recognized in profit or loss.



The value of fixed assets, taken as a whole,
does not exceed their recoverable value.



3.9 – Intangible assets



Intangible assets include licenses, customer
relationships and non-compete agreements. The accounting policies for the recognition and measurement of these intangible assets
are described below.



3.9.1 – Intangible assets acquired
separately



Intangible assets with finite useful life
that are acquired separately (licenses) are carried at cost less accumulated amortization and accumulated impairment losses. Amortization
is recognized on a straight-line basis over the intangible assets estimated useful lives. The estimated useful lives and amortization
method are reviewed at the end of each annual reporting period, with the effect of any changes in estimates being accounted for
on a prospective basis.



F-22







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



3.9.2 – Intangible assets acquired
in a business combination



Intangible assets acquired in a business
combination (trademarks, customer relationships and non-compete agreements) are recognized separately from goodwill and are initially
recognized at their fair value at the acquisition date (which is regarded as their cost).



Subsequent to initial recognition, intangible assets acquired
in a business combination are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis
as intangible assets acquired separately.



3.9.3 – Internally-generated
intangible assets



Intangible assets arising from development
are recognized if, and only if, all the following have been demonstrated:

- the technical feasibility of completing
the intangible asset so that it will be available for use or sale;

- the intention to complete the intangible
asset and use or sell it;

- the ability to use or sell the intangible
asset;

- how the intangible asset will generate
probable future economic benefits;

- the ability of adequate technical, financial
and other resources to complete the development and to use or sell the intangible asset, and

- the ability to measure reliably the expenditure
attributable to the intangible asset during its development.



The amount initially recognized for internally-generated
assets is the sum of expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above.
Where no internally-generated intangible asset can be recognized, development expenditure is recognized in profit or loss in the
period in which it is incurred.



Subsequent to initial recognition, intangible assets are reported
at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired
separately.



3.9.4 – Derecognition of intangible assets



An intangible asset is derecognized on
disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of
an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are
recognized in profit or loss when the asset is derecognized. No intangible asset has been derecognized in the last three years.



3.10 – Impairment of tangible
and intangible assets excluding goodwill



At each balance sheet date, the Company
reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets
have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine
the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset,
the Company estimates the recoverable amount of the cash-generating unit or the business, as the case may be.



The recoverable amount of an asset is the
higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset for which the estimates of future cash flows have not been adjusted.



If the recoverable amount of an asset is
estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment
loss is recognized immediately in the statement of profit or loss and other comprehensive income for the year.



As of December 31, 2016, 2015 and
2014, no impairment losses were recorded.



F-23







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



3.11 – Provisions for contingencies



The Company has existing or potential claims,
lawsuits and other proceedings. Provisions are recognized when the Company has a present obligation (legal or constructive) as
a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can
be made of the amount of the obligation.



The amount recognized as a provision is
the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account
the risks and uncertainties surrounding the obligation, and the advice of the Company’s legal advisors.



When some or all of the economic benefits required to settle
a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain
that reimbursement will be received and the amount of the receivable can be measured reliably. The amount of the recognized receivable
does not exceed the amount of the provision recorded.



3.12 – Financial assets



Financial assets are classified into the
following specified categories: “held-to-maturity” investments, “available-for-sale” (“AFS”)
financial assets, “fair value through profit or loss” (“FVTPL”) and “loans and receivables”.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.



3.12.1 – Effective interest method



The effective interest method is a method
of calculating the amortized cost of an instrument and of allocating interest income over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form
an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of
the instrument, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.



3.12.2 – Financial assets at
FVTPL



Financial assets are classified as at FVTPL when the financial
asset is either held for trading or it is designated as at FVTPL. A financial asset is classified as held for trading if:

| | - | It has been acquired principally for the purpose of
selling it in the near term; or
| | - | -----------------------------------------------------------------------------------

| | - | On initial recognition it is part of a portfolio of
identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking;
or
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | It is a derivative that is not designated and effective
as a hedging instrument.
| | - | --------------------------------------------------------------------------------



A financial asset other than a financial
asset held for trading may be designated as at FVTPL upon initial recognition if:

| | - | Such designation eliminates or significantly reduces
a measurement or recognition inconsistency that would otherwise arise; or
| | - | ------------------------------------------------------------------------------------------------------------------------------

| | - | The financial asset forms part of a group of financial
assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance
with the Company’s documented risk management or investment strategy, and information about the grouping is provided internally
on that basis; or
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | It forms part of a contract containing one or more
embedded derivatives, and IAS 39 permits the entire combined contract to be designated as at FVTPL.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------



Financial assets at FVTPL are stated at
fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in
profit or loss incorporates any dividend or interest earned on the financial asset and is included in the ‘Finance income’
line.



3.12.3 – Available-for-sale
financial assets (AFS financial assets)



AFS financial assets are non-derivatives
that are either designated as AFS or are not classified as (a) loans and receivables, (b) held-to-maturity investments or (c) FVTPL.



F-24







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Listed redeemable notes held by the Company
that are traded in an active market are classified as AFS and are stated at fair value at the end of each reporting period. Fair
value is determined in the manner described in note 27.8. Changes in the carrying amount of AFS financial assets relating to changes
in foreign currency rates, interest income calculated using the effective interest method are recognized in profit or loss. Other
changes in the carrying amount of AFS financial assets are recognized in other comprehensive income and accumulated under the heading
of investment revaluation reserve.



The AFS financial assets denominated in
a foreign currency is determined in that foreign currency and translated at the spot rate prevailing at the end of the reporting
period. The foreign exchange gains and losses that are recognized in profit or loss are determined based on the amortized cost
of the monetary asset. Other foreign exchange gains and losses are recognized in other comprehensive income.



3.12.4 - Held-to-maturity investments



Held-to-maturity investments are non-derivative
financial assets with fixed or determinable payments and fixed maturity dates that the Group has the positive intent and ability
to hold to maturity. Subsequent to initial recognition, held-to-maturity investments are measured at amortised cost using the effective
interest method less any impairment. During December, 2015, the Company has reclassified its held-to-maturity investments as available-for-sale
investments, as described in note 27.8.



3.12.5 - Derivative financial instruments



The Company enters into foreign exchange
forward contracts. Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and
are subsequently remeasured to fair value at the end of each reporting period. The resulting gain or loss is recognized in profit
or loss.



3.12.6 – Loans and receivables



Trade receivables, loans, and other receivables
that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’.
Loans and receivables are measured at amortized cost using the effective interest method, less any impairment.



Interest income is recognized by applying the effective interest
rate, except for short-term receivables when the recognition of interest would be immaterial.



3.12.7 – Investment in associates



An associate is an entity over which the
Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions
of the investee but is not control or joint control over those policies.



The results and assets and liabilities
of associates are incorporated in these consolidated financial statements using the equity method of accounting. Under the equity
method, an investment in associate is initially recognized in the consolidated statement of financial position at cost and adjusted
thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the associate.



3.12.8 – Other Financial Assets



Call option over non-controlling
interest in subsidiary



On October 22, 2015, the Company was granted
with a call option to acquire the remaining 33.27% interest in Dynaflows S.A, which can be exercised from October 22, 2020 till
October 21, 2021. At the same moment, the Company has also agreed on a put option with the non-controlling shareholders which gives
them the right to sell its remaining 33.27% interest on October 22, 2018 or October 22, 2020. As of December 31, 2016 and
2015, the Company accounted for the call option at its fair value of 319 and 321, respectively, in a similar way to a call option
over an entity’s own equity shares and the initial fair value of the option was recognized in equity.



F-25







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Clarice Subscription agreement



On May 14, 2015, the Company signed a subscription
agreement as described in note 23. According to this agreement, the Company will receive a fix amount of money in exchange of a
variable number of shares of the Company. According to IAS 32:11, a financial asset has been recognized in order to reflect the
contractual right to receive cash. As of December 31, 2016 and 2015, the Company has recorded 900 as current financial asset.
As of December 31, 2015 the Company recorded 900 as non-current financial asset.



3.12.9– Impairment of financial
assets



Financial assets, other than those at FVTPL,
are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when
there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial
asset, the estimated future cash flows of the financial asset have been affected.



For AFS equity investments, a significant
or prolonged decline in the fair value of the security below its cost considered to be objective evidence of impairment. When an
AFS financial asset is considered to be impaired, cumulative gains or losses previously recognized in other comprehensive income
are reclassified to profit or loss in the period.



In respect of AFS equity securities, impairment
losses previously recognized in profit or loss are not reversed through profit or loss. Any increase in the fair value subsequent
to an impairment loss is recognized in other comprehensive income. In respect of AFS debt securities, impairment losses are subsequently
reversed through profit or loss if an increase in the fair value of the investment can be objectively related to an event occurring
after the recognition of the impairment loss.



For financial assets measured at amortized
cost, the amount of the impairment loss recognized is the difference between the asset’s carrying amount and the present
value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.



For financial assets measured at amortized
cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an
event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss
to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized
cost would have been had the impairment not been recognized.



For all other financial assets, objective
evidence of impairment could include:

| | - | Significant financial difficulty to the issuer or
counterparty;
| | - | ---------------------------------------------------------------

| | - | Breach of contract, such as a default or delinquency
in interest or principal payments;
| | - | ---------------------------------------------------------------------------------------

| | - | It becoming probable that the borrower will enter
bankruptcy or financial reorganization; or
| | - | --------------------------------------------------------------------------------------------

| | - | The disappearance of an active market for the financial
asset because of financial difficulties.
| | - | ------------------------------------------------------------------------------------------------



Trade receivables carrying amount is reduced
through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance
account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying
amount of the allowance account are recognized in profit and loss.



3.12.10 – Derecognition of
financial assets



The Company derecognizes a financial asset
when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially
all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest
in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and
rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes
a collateralised borrowing for the proceeds received.



On derecognition of a financial asset in
its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable
and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized
in profit or loss.



F-26







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



On derecognition of a financial asset other than in its entirety
(e.g. when the Company retains an option to repurchase part of a transferred asset), the Company allocates the previous carrying
amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer
recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying
amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized
and any cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized in profit
or loss. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues
to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts.



3.13 – Financial liabilities and equity instruments



3.13.1 – Classification as
debt or equity



Debt and equity instruments issued by the
Company and its subsidiaries are classified as either financial liabilities or as equity in accordance with the substance of the
contractual arrangements and the definitions of a financial liability and an equity instrument.



3.13.2 – Equity instruments



An equity instrument is any contract that
evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the
Company are recognized at the proceeds received, net of direct issue costs.



Repurchase of the Company’s own equity
instruments is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale,
issue or cancellation of the Company’s own equity instruments.



3.13.3 – Financial liabilities



Financial liabilities, including trade
payables, other liabilities and borrowings, are initially measured at fair value, net of transaction costs.



Financial liabilities are subsequently
measured at amortized cost using the effective interest method, with interest expense recognized on an effective yield basis.



The effective interest method is a method
of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability,
or (where appropriate) a shorter period, to the net carrying amount on initial recognition.



3.13.4 – Derecognition of financial
liabilities



The Company derecognizes financial liabilities when, and only
when, the Company’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the
financial liability derecognized and the consideration paid and payable is recognized in profit or loss.



3.14 – Cash and cash equivalents



For the purposes of the statement of cash
flows, cash and cash equivalents include cash on hand and in banks and short-term highly liquid investments (original maturity
of less than 90 days). In the consolidated statements of financial position, bank overdrafts are included in borrowings within
current liabilities.



Cash and cash equivalents as shown in the
statement of cash flows only includes cash and bank balances.



3.15 – Reimbursable expenses



Out-of-pocket and travel expenses are recognized as expense
in the statements of income for the year. Reimbursable expenses are billed to customers and recorded net of the related expense.



F-27







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



3.16 - Deferred Offering Costs



Deferred offering costs consisted primarily
of direct incremental accounting and legal fees related to the Company’s initial public offering (“IPO”) of its
common shares that took place after the effectiveness of the Company’s form F-1 filed with the U.S. Securities and Exchange
Commission (“SEC”) on July 23, 2014. Upon completion of the Company’s IPO on July 23, 2014, this amount was offset
against the proceeds of the offering and included in equity. For further explanation see note 29.1.



3.17 - Share-based compensation plan



The Company has a share-based compensation
plan for executives and employees of the Company and its subsidiaries. Equity-settled share-based payments to employees are measured
at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled
share-based transactions are set forth in note 22.



The fair value determined at the grant
date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company’s
estimate of equity instruments that will potentially vest, with a corresponding increase in equity.



3.18 – Gain on transactions with bonds - Proceeds
received by Argentine subsidiaries through capital contributions



During the years ended December 31,
2015 and 2014, the Argentine subsidiaries of the Company, through cash received from capital contributions, acquired Argentine
sovereign bonds, including BODEN and Bonos Argentinos (“BONAR”), in the U.S. market denominated in U.S. dollars. These
bonds trade both in the U.S. and Argentine markets. The Company considers the Argentine market to be the principal market for these
bonds.



After acquiring these bonds and after holding them for a certain
period of time, the Argentine subsidiaries, sell those bonds in the Argentine market. The fair value of these bonds in the Argentine
market (in Argentine pesos) during the years ended December 31, 2015 and 2014 was higher than its quoted price in the U.S.
market (in U.S. dollars) converted at the official exchange rate prevailing in Argentina, which is the rate used to convert these
transactions in foreign currency into the Company’s functional currency; thus, generating a gain when remeasuring the fair
value of the bonds in Argentine pesos into U.S. dollars at the official exchange rate prevailing in Argentina.



During the years ended December 31,
2015 and 2014 the Company recorded a gain amounting to 19,102 and 12,629, respectively, due to the above-mentioned transactions
that were disclosed under the caption “Gain on transactions with bonds” in the consolidated statements of profit or
loss and other comprehensive income.



During the year ended December 31,
2016, the Company did not engage in the above described transaction.



3.19 – Components of other
comprehensive income



Components of other comprehensive income are items of income
and expense that are not recognized in profit or loss as required or permitted by other IFRSs. The Company included gains and losses
arising from translating the financial statements of a foreign operation and the income related to the valuation at fair value
of the financial assets classified as available for sale.



NOTE 4 – CRITICAL ACCOUNTING JUDGEMENTS AND KEY
SOURCES OF ESTIMATION UNCERTAINTY



In the application of the Company’s
accounting policies, which are described in note 3, the Company’s management is required to make judgments, estimates and
assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates
and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results
may differ from these estimates.



The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate is revised
if the revision affects only that year or in the year of the revision and future years if the revision affects both current and
future years.



F-28







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



The critical accounting estimates concerning
the future and other key sources of estimation uncertainty at the end of the reporting year that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within the next year are the following:



| | 1. | Revenue recognition
| | -- | -------------------



The Company generates revenues
primarily from the provision of software development services. The Company recognizes revenues when realized or realizable and
earned, which is when the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the
sales price is fixed or determinable; and collectability is reasonably assured. If there is an uncertainty about the project completion
or receipt of payment for the consulting services, revenues are deferred until the uncertainty is sufficiently resolved.



Recognition of revenues under
fixed-price contracts involves significant judgment in the estimation process including factors relating to the assumptions, risks
and uncertainties inherent with the application of the percentage-of-completion method of accounting affecting the amounts of revenues
and related expenses reported in the Company’s consolidated financial statements. Under this method, total contract revenue
during the term of an agreement is recognized on the basis of the percentage that each contract’s total labor cost to date
bears to the total expected labor cost. This method is followed where reasonably dependable estimates of revenues and costs can
be made. A number of internal and external factors can affect these estimates, including labor hours and specification and testing
requirement changes.



Revisions to these estimates
may result in increases or decreases to revenues and income and are reflected in the consolidated financial statements in the periods
in which they are first identified. If the estimates indicate that a contract loss will be incurred, a loss provision is recorded
in the period in which the loss first becomes probable and reasonably estimable. Contract losses are determined to be the amount
by which the estimated costs of the contract exceed the estimated total revenues that will be generated by the contract and are
included in cost of revenues in the consolidated statement of income and other comprehensive income. Contract losses for the periods
presented in these consolidated financial statements were immaterial.



| | 2. | Goodwill impairment analysis
| | -- | ----------------------------



Goodwill is measured as the excess
of the cost of an acquisition over the sum of the amounts assigned to tangible and intangible assets acquired less liabilities
assumed. The determination of the fair value of the tangible and intangible assets involves certain judgments and estimates. These
judgments can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate
weighted average cost of capital.



The Company evaluates goodwill
for impairment at least annually or more frequently when there is an indication that the unit may be impaired. When determining
the fair value of the Company’s cash generating unit, the Company utilizes the income approach using discounted cash flow.
The income approach considers various assumptions including increase in headcount, headcount utilization rate and revenue per employee,
income tax rates and discount rates. The assumptions considered by the Company as of December 31, 2016 are the following: projected
cash flows for the following five years, the average growth rate considered was 24.2% and the rate used to discount cash flows
was 14.11%.



Any adverse changes in key assumptions
about the businesses and their prospects or an adverse change in market conditions may cause a change in the estimation of fair
value and could result in an impairment charge. Based upon the Company’s evaluation of goodwill, no impairments were recognized
during 2016, 2015 and 2014.



| | 3. | Income taxes
| | -- | ------------



Determining the consolidated
provision for income tax expenses, deferred income tax assets and liabilities requires significant judgment. The provision for
income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated
future tax consequences in each of the jurisdictions where the Company operates of temporary differences between the financial
statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted
tax rates would result in either increases or decreases in the provision for income taxes in the period of changes.



F-29







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



The carrying amount of a deferred
tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow the benefit of part or all of the deferred tax assets to be utilized. This assessment
requires judgments, estimates and assumptions by management. In evaluating the Company’s ability to utilize its deferred
tax assets, the Company considers all available positive and negative evidence, including the level of historical taxable income
and projections for future taxable income over the periods in which the deferred tax assets are recoverable. The Company’s
judgments regarding future taxable income are based on expectations of market conditions and other facts and circumstances. Any
adverse change to the underlying facts or the Company’s estimates and assumptions could require that the Company reduces
the carrying amount of its net deferred tax assets.



| | 4. | The allowance for doubtful accounts
| | -- | -----------------------------------



The Company maintains an allowance
for doubtful accounts for estimated losses resulting from the inability of its clients to make required payments. The allowance
for doubtful accounts is determined by evaluating the relative credit-worthiness of each client, historical collections experience
and other information, including the aging of the receivables. If the financial condition of customers of the Company were to deteriorate,
resulting in an impairment of their ability to make payments, additional allowances may be required.



| | 5. | Share-based compensation plan
| | -- | -----------------------------



The Company’s grants under
its share-based compensation plan with employees are measured based on fair value of the Company’s shares at the grant date
and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact
reflected in additional paid-in capital.



Determining the fair value of
the share-based awards at the grant date requires judgments. The Company calculated the fair value of each option award on the
grant date using the Black-Scholes option pricing model. The Black-Scholes model requires the input of highly subjective assumptions,
including the fair value of the Company’s shares, expected volatility, expected term, risk-free interest rate and dividend
yield.



Fair value of the shares:
For 2014 Equity Incentive Plan, the fair value of the shares is based on the quote market price of the Company’s shares at
the grant date. For 2012 Equity Incentive Plan, as the Company’s shares were not publicly traded the fair value was determined
using the market approach technique based on the value per share of private placements. The Company had gone in the past through
a series of private placements in which new shares have been issued. The Company understood that the price paid for those new shares
was a fair value of those shares at the time of the placement. In January 2012, Globant S.A.U. (Spain) had a capital contribution
from a new shareholder, which included cash plus share options granted to the new shareholder, therefore, the Company considered
that amount to reflect the fair value of their shares. The fair value of the shares related to this private placement resulted
from the following formula: cash minus fair value of share options granted to new shareholder divided by number of newly issued
shares. The fair value of the share options granted to the new shareholder was determined using the same variables and methodologies
as the share options granted to the employees. After the reorganization in December 2012, shares of Globant S.A (Luxembourg) were
sold by existing shareholders in a private placement to WPP. The fair value of the shares related to this private placement results
from the total amount paid by WPP to the existing shareholders.



Expected volatility: As
the Company does not have sufficient trading history for the purpose of valuating the share options, the expected volatility for
their shares was estimated by taking the average historic price volatility of the NASDAQ 100 Telecommunication Index.



Expected term: The expected
life of options represents the period of time the granted options are expected to be outstanding.



Risk free rate: The risk-free
rate for periods within the contractual life of the option is based on the U.S. Federal Treasury yield curve with maturities similar
to the expected term of the options.



Dividend yield: The Company
has never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. Consequently,
the Company used an expected dividend yield of zero.



F-30







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



| | 6. | Call option over non-controlling interest
| | -- | -----------------------------------------



As of December 31, 2016
and 2015, the Company held a call option to acquire the 33.27% of the remaining interest in Dynaflows S.A., which could be exercised
from October 22, 2020 till October 21, 2021. The Company calculated the fair value of this option using the Black-Scholes option
model. The Black-Scholes model requires the input of highly subjective assumptions, including the expected volatility, maturity,
risk-free interest rate, value of the underlying asset and dividend yield.



Expected volatility: The
Company has considered annualized volatility as multiples of EBITDA and Revenue of publicly traded companies in the technology
business in the U.S., Europe and Asia from 2008.



Maturity: The combination
between the call and put options (explained in note 23) implied that, assuming no liquidity restrictions as part of the Company
at the moment that the option was exercisable and considering that both parties wanted to maximize their benefits, the Company
would acquire the minority shareholders shares at the date that this option was exercisable. Therefore, the Company has assumed
that the maturity date of call option is October 22, 2020.



Risk free rate: The risk-free
rate for periods within the contractual life of the option was based on the Argentinean bonds (BONAR) with a quote in the US market
with maturities similar to the expected term of the option.



Value of the underlying assets:
The Company considered a multiple of EBITDA and Revenue resulting from the implied multiple in Dynaflows adjusted by the lack of
control.



Dividend yield: The Company
did not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company used an expected dividend yield
of zero.



| | 7. | Recoverability of internally generated intangible asset
| | -- | -------------------------------------------------------



During the year, the Company
considered the recoverability of its internally generated intangible asset which are included in the consolidated financial statements
as of December 31, 2016 and 2015 with a carrying amount of 3,904 and 2,497, respectively.



Detailed sensitivity analysis
has been carried out by the Company, considering both, revenue from customers in case of the assets sold to third parties and internal
usage for those assets that are use internally, and, as a result, the Company believes that the carrying amount of the asset will
be recovered in full. This situation will be closely monitored, and adjustments made in future periods if future market activity
indicates that such adjustments are appropriate.



| | 8. | Fair value measurement and valuation processes
| | -- | ----------------------------------------------



Certain assets and liabilities
of the Company are measured at fair value for financial reporting purposes.



In estimating the fair value
of an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level 1 inputs are not
available, the Company engages third party qualified valuers to perform the valuation. Information about the valuation techniques
and inputs used in determining the fair value of various assets and liabilities are disclosed in note 27.9.



| | 9. | Useful lives of property, equipment and intangible assets
| | -- | ---------------------------------------------------------



The Company reviews the estimated
useful lives of property, equipment and intangible assets at the end of each reporting period. The Company determined that the
useful lives of the assets included as property, equipment and intangible assets are in accordance with their expected lives.



| | 10. | Provision for contingencies
| | --- | ---------------------------



Provisions are recognized when
the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will
be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.



F-31







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



The amount recognized as a provision
is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking
into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated
to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value
of money is material).



When some or all of the economic benefits required to settle
a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain
that reimbursement will be received and the amount of the receivable can be measured reliably.



NOTE 5 – COST OF REVENUES AND
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES



5.1 - Cost of revenues



|                                                      |  | For the year ended December 31, |         
|----------------------------------------------------- |  | ------------------------------- | --------
|                                                      |  | 2016                            |         
|Salaries, employee benefits and social security taxes |  |                                 | (176,490
|Shared-based compensation expense                     |  |                                 | (917    
|Depreciation and amortization expense                 |  |                                 | (4,281  
|Travel and housing                                    |  |                                 | (6,586  
|Office expenses                                       |  |                                 | (1,084  
|Professional services                                 |  |                                 | (1,754  
|Recruiting, training and other employee expenses      |  |                                 | (216    
|Taxes                                                 |  |                                 | (67     
|TOTAL                                                 |  |                                 | (191,395



5.2 - Selling, general and administrative expenses



|                                                      |  | For the year ended December 31, |        
|----------------------------------------------------- |  | ------------------------------- | -------
|                                                      |  | 2016                            |        
|Salaries, employee benefits and social security taxes |  |                                 | (30,603
|Shared-based compensation expense                     |  |                                 | (2,703 
|Rental expenses                                       |  |                                 | (12,032
|Office expenses                                       |  |                                 | (10,200
|Professional services                                 |  |                                 | (7,599 
|Travel and housing                                    |  |                                 | (5,054 
|Taxes                                                 |  |                                 | (5,010 
|Depreciation and amortization expense                 |  |                                 | (6,637 
|Promotional and marketing expenses                    |  |                                 | (1,123 
|Charge to allowance for doubtful accounts             |  |                                 | (928   
|TOTAL                                                 |  |                                 | (81,889



F-32







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



NOTE 6 – FINANCE INCOME / EXPENSE



|                                                    |  | For the year ended December 31, |        
|--------------------------------------------------- |  | ------------------------------- | -------
|                                                    |  | 2016                            |        
|Finance income                                      |  |                                 |        
|Interest gain                                       |  |                                 | 60     
|Gain arising for held-for-trading investments       |  |                                 | 3,619  
|Gain arising for held-to-maturity investments       |  |                                 | —      
|Gain arising for available-for-sale investments (*) |  |                                 | 6,325  
|Foreign exchange gain                               |  |                                 | 6,211  
|Subtotal                                            |  |                                 | 16,215 
|                                                    |  |                                 |        
|Finance expense                                     |  |                                 |        
|Interest expense on borrowings                      |  |                                 | (41    
|Loss arising for held-for-trading investments       |  |                                 | (2,966 
|Foreign exchange loss                               |  |                                 | (14,831
|Other interest                                      |  |                                 | (776   
|Other                                               |  |                                 | (613   
|Subtotal                                            |  |                                 | (19,227
|TOTAL                                               |  |                                 | (3,012 



(*) As of December 31, 2016 includes 52 related to the
gain recognized as Other comprehensive income as of December 31, 2015.



NOTE 7 – INCOME TAXES



7.1 – INCOME TAX RECOGNIZED IN PROFIT AND LOSS



|                         |  | For the year ended December 31, |        
|------------------------ |  | ------------------------------- | -------
|                         |  | 2016                            |        
|Tax expense:             |  |                                 |        
|Current tax expense      |  |                                 | (15,057
|Deferred tax gain (loss) |  |                                 | 730    
|TOTAL INCOME TAX EXPENSE |  |                                 | (14,327



Substantially all revenues are generated
in the U.S. and United Kingdom, through subsidiaries located in those countries. The Company ́s workforce is mainly located
in Argentina and to a lesser extent in Latin America, India and U.S.



F-33







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



The following table provides a reconciliation of the statutory
tax rate to the effective tax rate. As the operations of the Argentine subsidiaries are the most significant source of net taxable
income of the Company, the following reconciliation has been prepared using the Argentine tax rate:



|                                                                                          |  | For the year ended December 31, |        
|----------------------------------------------------------------------------------------- |  | ------------------------------- | -------
|                                                                                          |  | 2016                            |        
|Profit before income tax                                                                  |  |                                 | 50,189 
|Tax rate (note 3.7.1.1)                                                                   |  |                                 | 35     
|Income tax expense                                                                        |  |                                 | (17,566
|                                                                                          |  |                                 |        
|Permanent differences                                                                     |  |                                 |        
|Argentine Software Promotion Regime (note 3.7.1.1)                                        |  |                                 | 7,189  
|Effect of different tax rates of subsidiaries operating in countries other than Argentina |  |                                 | 1,069  
|Non-deductible expenses                                                                   |  |                                 | 2,301  
|Tax loss carry forward not recognized                                                     |  |                                 | (878   
|Exchange difference                                                                       |  |                                 | (6,593 
|Other                                                                                     |  |                                 | 151    
|INCOME TAX EXPENSE RECOGNIZED IN PROFIT AND LOSS                                          |  |                                 | (14,327



7.2 – DEFERRED TAX ASSETS



|                              |  | As of December 31, |      
|----------------------------- |  | ------------------ | -----
|                              |  | 2016               |      
|Share-based compensation plan |  |                    | 4,919
|Allowances and provisions     |  |                    | 1,033
|Loss carryforward (1)         |  |                    | 1,739
|TOTAL DEFERRED TAX ASSETS     |  |                    | 7,691



| | (1) | As of December 31, 2016, the Company’s subsidiaries
Dynaflows S.A. has a tax loss carry forward for an amount of 17 which expires in 2020 and Globant Brasil Consultoría Ltda.,
Sistemas Globales Chile Ases. Ltda., Globant LLC, Software Product Creation S.L. and Sistemas UK Limited have a tax loss carry
forward for an amount of 1,235;101;274; 7 and 105, respectively, which do not expire. The amount of the carryforward that can
be utilized for Globant Brasil Consultoría Ltda. is limited to 30% of taxable income in each carryforward year. As of December 31,
2015, the Company’s subsidiaries Global Systems Outsourcing S.R.L. de C.V. has a tax loss carry forward for an amount of
140 which expires in 2024 and Terraforum and Sistemas Chile have a tax loss carry forward for an amount of 798 and 38, respectively,
which do not expire.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



NOTE 8 – EARNINGS PER SHARE



The earnings and weighted average number
of shares used in the calculation of basic and diluted earnings per share are as follows:



|                                                                                               |  | For the year ended December 31, |       
|---------------------------------------------------------------------------------------------- |  | ------------------------------- | ------
|                                                                                               |  | 2016                            |       
|Net income for the year attributable to owners of the Company                                  |  |                                 | 35,876
|Weighted average number of shares (in thousands) for the purpose of basic earnings per share   |  |                                 | 34,402
|Weighted average number of shares (in thousands) for the purpose of diluted earnings per share |  |                                 | 35,413
|BASIC EARNINGS PER SHARE                                                                       |  | $                               | 1.04  
|DILUTED EARNINGS PER SHARE                                                                     |  | $                               | 1.01  



F-34







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



The following potential ordinary shares
are anti-dilutive and are therefore excluded from the weight average number of ordinary shares for the purpose of diluted earning
per share:



|                                                          |  | For the year ended December 31, |          
|--------------------------------------------------------- |  | ------------------------------- | ---------
|                                                          |  | 2016                            |          
|Shares deemed to be issued in respect of employee options |  |                                 | 1,021,250



NOTE 9 –INVESTMENTS



9.1 – Current investments



|                 |  | As of December 31, |      
|---------------- |  | ------------------ | -----
|                 |  | 2016               |      
|                 |  |                    |      
|Mutual funds (1) |  |                    | 9,355
|CEDIN (1)        |  |                    | —    
|LEBACs (2)       |  |                    | —    
|TOTAL            |  |                    | 9,355



| | (1) | Held for trading investment.
| | --- | ----------------------------

| | (2) | Available for sale investment. As of December 31,
2015, 5,125 are required to maintain as collateral of future contracts explained in 27.10.3.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------



9.2 – Investments in associates



CHVG investment



The Company owns the 40% of total shares of CHVG S.A. (“CHVG”)
and accounted for this investment using the equity method.



Collokia investment



As of December 31, 2016, the Company has a 19.5% of participation
in Collokia LLC for an amount of 800.



On February 25, 2016, the Company signed
a subscription agreement with Collokia LLC, through which Collokia LLC agreed to increase its capital by issuing 55,645 preferred
units, from which the Company acquired 20,998 at the price of $23.81 per share for a total amount of 500. After this subscription,
the Company has a 19.5% of participation in Collokia LLC for a total amount of 800 and accounted for this investment using the
equity method considering that the Company has significant influence over the operating and governance decisions of Collokia LLC,
as the participation in the board of director, the approval of budget and business plan, among other decisions.



Assets, liabilities, results and other
comprehensive income for all the above mentioned investments as of December 31, 2016, 2015 and 2014 and for the years
then ended were not significant individually nor in the aggregate.



F-35







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



NOTE 10 – TRADE RECEIVABLES



|                                      |  | As of December 31, |       
|------------------------------------- |  | ------------------ | ------
|                                      |  | 2016               |       
|                                      |  |                    |       
|Accounts receivable(1)                |  |                    | 47,466
|Unbilled revenue                      |  |                    | 7,321 
|Subtotal                              |  |                    | 54,787
|Less: Allowance for doubtful accounts |  |                    | (617  
|TOTAL                                 |  |                    | 54,170



| | (1) | Includes amounts due from related parties of 575 and 1,593 as of December 31, 2016 and 2015 (see note 21.1).
| | --- | ------------------------------------------------------------------------------------------------------------



Rollforward of the allowance
for doubtful accounts



|                                                     |  | As of December 31, |     
|---------------------------------------------------- |  | ------------------ | ----
|                                                     |  | 2016               |     
|                                                     |  |                    |     
|Balance at beginning of year                         |  |                    | (438
|Additions (1)                                        |  |                    | (928
|Additions related to business combinations (note 23) |  |                    | —   
|Write-off of receivables                             |  |                    | 749 
|Translation                                          |  |                    | —   
|Balance at end of year                               |  |                    | (617



| | (1) | The impairment recognized represents the difference between
the carrying amount of these trade receivables and the present value of the recoverable amounts included those expected in liquidation
proceeds. The Company does not hold any collateral over these balances. In determining the recoverability of a trade receivable,
the Company considers any change in the credit quality of the trade receivable from the date credit was initially granted up to
the end of the each fiscal year.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Aging of past due not impaired trade receivables



|                       |  | As of December 31, |    
|---------------------- |  | ------------------ | ---
|                       |  | 2016               |    
|                       |  |                    |    
|60-90 days             |  |                    | 472
|91+ days               |  |                    | 108
|Balance at end of year |  |                    | 580



The average credit period on sales is 60
days. No interest is charged on trade receivables. The Company reviews past due balances on a case-by-case basis. The Company has
recognized an allowance for doubtful accounts of some individually trade receivables that are considered not recoverable and 100%
against all receivables over 120 days because historical experience has been that receivables that are past due beyond 120 days
are usually not recoverable.



F-36







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Aging of impaired trade receivables



|                       |  | As of December 31, |    
|---------------------- |  | ------------------ | ---
|                       |  | 2016               |    
|                       |  |                    |    
|60-90 days             |  |                    | —  
|91-180 days            |  |                    | 617
|180+ days              |  |                    | —  
|Balance at end of year |  |                    | 617



NOTE 11 – OTHER RECEIVABLES



|                                                      |  | As of December 31, |       
|----------------------------------------------------- |  | ------------------ | ------
|                                                      |  | 2016               |       
|Other receivables                                     |  |                    |       
|Current                                               |  |                    |       
|Tax credit - VAT                                      |  |                    | 7,391 
|Tax credit - Software Promotion Regime (note 3.7.1.1) |  |                    | 4,486 
|Income tax credits                                    |  |                    | 978   
|Other tax credits                                     |  |                    | 471   
|Advances to suppliers (*)                             |  |                    | 4,013 
|Prepaid expenses                                      |  |                    | 1,034 
|Loans granted to employees                            |  |                    | 32    
|Other                                                 |  |                    | 464   
|TOTAL                                                 |  |                    | 18,869



(*) As of December 31, 2016 and 2015
includes 2,992 and 3,047 related to advance to acquired building as explained in note 20.



|                                |  | As of December 31, |       
|------------------------------- |  | ------------------ | ------
|                                |  | 2016               |       
|Non-current                     |  |                    |       
|Advances to suppliers (note 20) |  |                    | 20,977
|Tax credit - VAT                |  |                    | 4,122 
|Other tax credits               |  |                    | 577   
|Guarantee deposits              |  |                    | 1,289 
|Other                           |  |                    | 500   
|TOTAL                           |  |                    | 27,465



Rollforward of the allowance for impairment of tax credits



|                             |  | As of December 31, |  
|---------------------------- |  | ------------------ | -
|                             |  | 2016               |  
|                             |  |                    |  
|Balance at beginning of year |  |                    | —
|Recovery (note 3.7.1.1)      |  |                    | —
|Write-off tax credits        |  |                    | —
|Translation                  |  |                    | —
|Balance at end of year       |  |                    | —



F-37







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



NOTE 12 – PROPERTY AND EQUIPMENT



Property and equipment as of December 31, 2016 included
the following:



|                                                     |  | Computer
    equipment and software |        |   | Furniture
    and office supplies |  |       | Office
    fixtures |  |  | Vehicles |  |  | Buildings |    |  | Lands |  |       | Properties
    under construction |  |  | Total | 
|---------------------------------------------------- |  | ----------------------------------- | ------ | - | --------------------------------- |  | ----- | ------------------- |  |  | -------- |  |  | --------- | -- |  | ----- |  | ----- | --------------------------------- |  |  | ----- | 
|Useful life (years)                                  |  | 3                                   |        |   | 5                                 |  |       | 3                   |  |  | 5        |  |  | 50        |    |  |       |  |       |                                   |  |  |       | 
|Cost                                                 |  |                                     |        |   |                                   |  |       |                     |  |  |          |  |  |           |    |  |       |  |       |                                   |  |  |       | 
|Values at beginning of year                          |  |                                     | 14,351 |   |                                   |  | 3,439 |                     |  |  | 19,793   |  |  |           | —  |  |       |  | 4,204 |                                   |  |  | 2,354 | 
|Additions related to business combinations (note 23) |  |                                     | 156    |   |                                   |  | 55    |                     |  |  | 48       |  |  |           | —  |  |       |  | —     |                                   |  |  | —     | 
|Additions                                            |  |                                     | 3,547  |   |                                   |  | 1,083 |                     |  |  | 1,353    |  |  |           | 34 |  |       |  | 2,777 |                                   |  |  | —     | 
|Additions through finance lease (note 26)            |  |                                     | —      |   |                                   |  | —     |                     |  |  | —        |  |  |           | —  |  |       |  | —     |                                   |  |  | —     | 
|Transfers                                            |  |                                     | 31     |   |                                   |  | 557   |                     |  |  | 8,423    |  |  |           | —  |  |       |  | —     |                                   |  |  | —     | 
|Disposals                                            |  |                                     | (53    | ) |                                   |  | —     |                     |  |  | —        |  |  |           | —  |  |       |  | —     |                                   |  |  | —     | 
|Currency translation difference                      |  |                                     | 65     |   |                                   |  | (17   | )                   |  |  | 106      |  |  |           | —  |  |       |  | —     |                                   |  |  | —     | 
|Values at end of year                                |  |                                     | 18,097 |   |                                   |  | 5,117 |                     |  |  | 29,723   |  |  |           | 34 |  |       |  | 6,981 |                                   |  |  | 2,354 | 
|                                                     |  |                                     |        |   |                                   |  |       |                     |  |  |          |  |  |           |    |  |       |  |       |                                   |  |  |       | 
|Depreciation                                         |  |                                     |        |   |                                   |  |       |                     |  |  |          |  |  |           |    |  |       |  |       |                                   |  |  |       | 
|Accumulated at beginning of year                     |  |                                     | 8,870  |   |                                   |  | 2,434 |                     |  |  | 12,751   |  |  |           | —  |  |       |  | 156   |                                   |  |  | —     | 
|Additions                                            |  |                                     | 2,306  |   |                                   |  | 725   |                     |  |  | 3,162    |  |  |           | 4  |  |       |  | 93    |                                   |  |  | —     | 
|Disposals                                            |  |                                     | (3     | ) |                                   |  | —     |                     |  |  | —        |  |  |           | —  |  |       |  | —     |                                   |  |  | —     | 
|Currency translation difference                      |  |                                     | 46     |   |                                   |  | (23   | )                   |  |  | 8        |  |  |           | —  |  |       |  | —     |                                   |  |  | —     | 
|Accumulated at end of year                           |  |                                     | 11,219 |   |                                   |  | 3,136 |                     |  |  | 15,921   |  |  |           | 4  |  |       |  | 249   |                                   |  |  | —     | 
|Carrying amount                                      |  |                                     | 6,878  |   |                                   |  | 1,981 |                     |  |  | 13,802   |  |  |           | 30 |  |       |  | 6,732 |                                   |  |  | 2,354 | 



Property and equipment as of December 31, 2015 included
the following:



|                                                         |  | Computer
    equipment and software |        |   | Furniture
    and office supplies |  |       | Office
    fixtures |  |  | Vehicles |   |  | Buildings |   |  | Lands |  |       | Properties
    under construction |  |  | Total | 
|-------------------------------------------------------- |  | ----------------------------------- | ------ | - | --------------------------------- |  | ----- | ------------------- |  |  | -------- | - |  | --------- | - |  | ----- |  | ----- | --------------------------------- |  |  | ----- | 
|Useful life (years)                                      |  | 3                                   |        |   | 5                                 |  |       | 3                   |  |  | 5        |   |  | 50        |   |  |       |  |       |                                   |  |  |       | 
|Cost                                                     |  |                                     |        |   |                                   |  |       |                     |  |  |          |   |  |           |   |  |       |  |       |                                   |  |  |       | 
|Values at beginning of year                              |  |                                     | 10,030 |   |                                   |  | 2,692 |                     |  |  | 14,142   |   |  |           | — |  |       |  | 4,204 |                                   |  |  | —     | 
|Additions related to business combinations (note
    23) |  |                                     | 51     |   |                                   |  | 25    |                     |  |  | 113      |   |  |           | — |  |       |  | —     |                                   |  |  | —     | 
|Additions                                                |  |                                     | 4,302  |   |                                   |  | 393   |                     |  |  | 1,504    |   |  |           | — |  |       |  | —     |                                   |  |  | 2,354 | 
|Additions through finance lease (note 26)                |  |                                     | 2      |   |                                   |  | —     |                     |  |  | —        |   |  |           | — |  |       |  | —     |                                   |  |  | —     | 
|Transfers                                                |  |                                     | 118    |   |                                   |  | 376   |                     |  |  | 4,204    |   |  |           | — |  |       |  | —     |                                   |  |  | —     | 
|Disposals                                                |  |                                     | (69    | ) |                                   |  | —     |                     |  |  | (24      | ) |  |           | — |  |       |  | —     |                                   |  |  | —     | 
|Currency translation difference                          |  |                                     | (83    | ) |                                   |  | (47   | )                   |  |  | (146     | ) |  |           | — |  |       |  | —     |                                   |  |  | —     | 
|Values at end of year                                    |  |                                     | 14,351 |   |                                   |  | 3,439 |                     |  |  | 19,793   |   |  |           | — |  |       |  | 4,204 |                                   |  |  | 2,354 | 
|                                                         |  |                                     |        |   |                                   |  |       |                     |  |  |          |   |  |           |   |  |       |  |       |                                   |  |  |       | 
|Depreciation                                             |  |                                     |        |   |                                   |  |       |                     |  |  |          |   |  |           |   |  |       |  |       |                                   |  |  |       | 
|Accumulated at beginning of year                         |  |                                     | 7,154  |   |                                   |  | 2,110 |                     |  |  | 9,148    |   |  |           | — |  |       |  | 72    |                                   |  |  | —     | 
|Additions                                                |  |                                     | 1,785  |   |                                   |  | 366   |                     |  |  | 3,637    |   |  |           | — |  |       |  | 84    |                                   |  |  | —     | 
|Disposals                                                |  |                                     | (3     | ) |                                   |  | —     |                     |  |  | (2       | ) |  |           | — |  |       |  | —     |                                   |  |  | —     | 
|Currency translation difference                          |  |                                     | (66    | ) |                                   |  | (42   | )                   |  |  | (32      | ) |  |           | — |  |       |  | —     |                                   |  |  | —     | 
|Accumulated at end of year                               |  |                                     | 8,870  |   |                                   |  | 2,434 |                     |  |  | 12,751   |   |  |           | — |  |       |  | 156   |                                   |  |  | —     | 
|Carrying
    amount                                      |  |                                     | 5,481  |   |                                   |  | 1,005 |                     |  |  | 7,042    |   |  |           | — |  |       |  | 4,048 |                                   |  |  | 2,354 | 



F-38







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



NOTE 13– INTANGIBLE ASSETS



Intangible assets as of December 31, 2016 included the
following:



|                                                     |  | Licenses and internal developments |        |  | Customer relationships |  |       | Non-compete agreement |  |  | Total | 
|---------------------------------------------------- |  | ---------------------------------- | ------ |  | ---------------------- |  | ----- | --------------------- |  |  | ----- | 
|Useful life (years)                                  |  | 5                                  |        |  | 3 - 10                 |  |       | 3                     |  |  |       | 
|Cost                                                 |  |                                    |        |  |                        |  |       |                       |  |  |       | 
|Values at beginning of year                          |  |                                    | 12,611 |  |                        |  | 4,334 |                       |  |  | 586   | 
|Additions related to business combinations (note 23) |  |                                    | 28     |  |                        |  | 5,054 |                       |  |  | —     | 
|Additions                                            |  |                                    | 5,942  |  |                        |  | —     |                       |  |  | —     | 
|Currency translation difference                      |  |                                    | 10     |  |                        |  | 246   |                       |  |  | —     | 
|Values at end of year                                |  |                                    | 18,591 |  |                        |  | 9,634 |                       |  |  | 586   | 
|                                                     |  |                                    |        |  |                        |  |       |                       |  |  |       | 
|Amortization                                         |  |                                    |        |  |                        |  |       |                       |  |  |       | 
|Accumulated at beginning of year                     |  |                                    | 8,229  |  |                        |  | 1,507 |                       |  |  | 586   | 
|Additions                                            |  |                                    | 3,702  |  |                        |  | 926   |                       |  |  | —     | 
|Currency translation difference                      |  |                                    | 4      |  |                        |  | 66    |                       |  |  | —     | 
|Accumulated at end of year                           |  |                                    | 11,935 |  |                        |  | 2,499 |                       |  |  | 586   | 
|Carrying amount                                      |  |                                    | 6,656  |  |                        |  | 7,135 |                       |  |  | —     | 



Intangible assets as of December 31, 2015 included the
following:



|                                                     |  | Licenses and internal developments |        |   | Customer relationships |  |       | Non-compete agreement |  |  | Total | 
|---------------------------------------------------- |  | ---------------------------------- | ------ | - | ---------------------- |  | ----- | --------------------- |  |  | ----- | 
|Useful life (years)                                  |  | 5                                  |        |   | 3 - 10                 |  |       | 3                     |  |  |       | 
|Cost                                                 |  |                                    |        |   |                        |  |       |                       |  |  |       | 
|Values at beginning of year                          |  |                                    | 7,889  |   |                        |  | 4,868 |                       |  |  | 586   | 
|Additions related to business combinations (note 23) |  |                                    | 296    |   |                        |  | —     |                       |  |  | —     | 
|Additions                                            |  |                                    | 4,445  |   |                        |  | —     |                       |  |  | —     | 
|Currency translation difference                      |  |                                    | (19    | ) |                        |  | (534  | )                     |  |  | —     | 
|Values at end of year                                |  |                                    | 12,611 |   |                        |  | 4,334 |                       |  |  | 586   | 
|                                                     |  |                                    |        |   |                        |  |       |                       |  |  |       | 
|Amortization                                         |  |                                    |        |   |                        |  |       |                       |  |  |       | 
|Accumulated at beginning of year                     |  |                                    | 5,648  |   |                        |  | 1,083 |                       |  |  | 507   | 
|Additions                                            |  |                                    | 2,598  |   |                        |  | 752   |                       |  |  | 79    | 
|Currency translation difference                      |  |                                    | (17    | ) |                        |  | (328  | )                     |  |  | —     | 
|Accumulated at end of year                           |  |                                    | 8,229  |   |                        |  | 1,507 |                       |  |  | 586   | 
|Carrying amount                                      |  |                                    | 4,382  |   |                        |  | 2,827 |                       |  |  | —     | 



F-39







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



NOTE 14 – GOODWILL



|                             |  | As of December 31, |       
|---------------------------- |  | ------------------ | ------
|                             |  | 2016               |       
|                             |  |                    |       
|Cost                         |  |                    |       
|Balance at beginning of year |  |                    | 32,532
|Additions (note 23)          |  |                    | 32,325
|Translation                  |  |                    | 323   
|Balance at end of year       |  |                    | 65,180



NOTE 15 – TRADE PAYABLES



|                 |  | As of December 31, |      
|---------------- |  | ------------------ | -----
|                 |  | 2016               |      
|                 |  |                    |      
|Suppliers        |  |                    | 1,951
|Expenses accrual |  |                    | 3,652
|TOTAL            |  |                    | 5,603



NOTE 16 – PAYROLL AND SOCIAL SECURITY TAXES PAYABLE



|                                 |  | As of December 31, |       
|-------------------------------- |  | ------------------ | ------
|                                 |  | 2016               |       
|                                 |  |                    |       
|Salaries                         |  |                    | 5,388 
|Social security tax              |  |                    | 5,508 
|Provision for vacation and bonus |  |                    | 19,218
|Directors fees                   |  |                    | 186   
|Other                            |  |                    | 28    
|TOTAL                            |  |                    | 30,328



NOTE 17 – BORROWINGS



|                                          |  | As of December 31, |    
|----------------------------------------- |  | ------------------ | ---
|                                          |  | 2016               |    
|                                          |  |                    |    
|Current                                   |  |                    |    
|Bank and financial institutions (note 25) |  |                    | 217
|TOTAL                                     |  |                    | 217
|                                          |  |                    |    
|Non-current                               |  |                    |    
|Bank and financial institutions (note 25) |  |                    | —  
|TOTAL                                     |  |                    | —  



F-40







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



NOTE 18 –TAX LIABILITIES



|                                                  |  | As of December 31, |      
|------------------------------------------------- |  | ------------------ | -----
|                                                  |  | 2016               |      
|                                                  |  |                    |      
|Income tax                                        |  |                    | 4,813
|Periodic payment plan                             |  |                    | 127  
|VAT payable                                       |  |                    | 461  
|Personal Assets Tax – Substitute taxpayer (*)     |  |                    | —    
|Software Promotion Law - Annual and monthly rates |  |                    | 561  
|Other                                             |  |                    | 287  
|TOTAL                                             |  |                    | 6,249



(*) On July 22, 2016, Law No 27,260, published
in the Argentine Official Gazette, introduced benefits for compliant taxpayers that include the exemption of personal assets tax
until 2019. The Argentinian subsidiaries are elegible for the exemption.



NOTE 19 – PROVISIONS FOR CONTINGENCIES



The Company is subject to legal proceedings
and claims which arise in the ordinary course of its business. The Company has recorded a provision for labor and regulatory claims
where the risk of loss is considered probable. The final resolution of these potential claims is not likely to have a material
effect on the results of operations, cash flow or the financial position of the Company.



As of December 31, 2016, the Company
recorded a reserve for regulatory claims as result of the business combination of Difier, explained in note 23 to these consolidated
financial statements.



Breakdown of reserves for lawsuits claims
and other disputed matters include the following:



|                              |  | As of December 31, |      
|----------------------------- |  | ------------------ | -----
|                              |  | 2016               |      
|                              |  |                    |      
|Reserve for labor claims      |  |                    | 138  
|Reserve for regulatory claims |  |                    | 1,807
|TOTAL                         |  |                    | 1,945



Roll forward is as follows:



|                                                     |  | As of December 31, |      
|---------------------------------------------------- |  | ------------------ | -----
|                                                     |  | 2016               |      
|                                                     |  |                    |      
|Balance at beginning of year                         |  |                    | 650  
|Additions                                            |  |                    | 1,343
|Additions related to business combinations (note 23) |  |                    | 817  
|Recovery                                             |  |                    | (344 
|Utilization of provision for contingencies           |  |                    | (400 
|Translation                                          |  |                    | (121 
|Balance at end of year                               |  |                    | 1,945



F-41







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



NOTE 20 – ADVANCES TO ACQUIRE BUILDINGS



On December 4, 2015, our Argentine subsidiaries
Sistemas Globales S.A. and IAFH Global S.A., entered into a Purchase Agreement with IRSA Inversiones y Representaciones Sociedad
Anónima (“IRSA”) to acquire four floors representing approximately 4,896 square meters in a building to be constructed
in a premium business zone of the City of Buenos Aires, Argentina.



In consideration for the property the subsidiaries
agreed to pay IRSA the following purchase price: (i) AR$ 180,279 on the date of signing of the purchase agreement, equivalent to
18,779 at such date; (ii) 8,567 during a three-year term beginning in June 2016; and (iii) the remaining 3,672 at the moment of
transfer of the property ownership, after finalization of the building.



As of December 31, 2016 and 2015,
20,977 and 18,779 are included in these consolidated financial statements as other receivables non-current.



Additionally, during the year 2015 the
Company gave other advances to acquire a building in La Plata and Tucumán, Argentina.As of December 31, 2016 and 2015, 2,992 and 3,047 are included in these consolidated financial statements as other
receivables current.



NOTE 21 – RELATED PARTIES BALANCES AND TRANSACTIONS



21.1 – WPP and Other related parties



The Company provides software and consultancy services to certain
WPP subsidiaries and other related parties. Outstanding receivable balances as of December 31, 2016 and 2015 are as follows:



|                       |  | As of December 31, |    
|---------------------- |  | ------------------ | ---
|                       |  | 2016               |    
|                       |  |                    |    
|Added Value            |  |                    | 2  
|Burson Marsteller      |  |                    | —  
|Frontier Communication |  |                    | —  
|Grey Global Group Inc. |  |                    | 98 
|Group M Worldwide Inc  |  |                    | 59 
|Ibope Argentina        |  |                    | —  
|JWT                    |  |                    | 241
|Kantar Operations      |  |                    | 13 
|Kantar Retail          |  |                    | 8  
|Mindshare              |  |                    | —  
|Qualicorp              |  |                    | —  
|Mercado Libre S.R.L.   |  |                    | 43 
|TNS                    |  |                    | 111
|Young & Rubicam        |  |                    | —  
|Total                  |  |                    | 575



F-42







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



During the year ended December 31, 2016, 2015 and 2014,
the Company recognized revenues for 6,462, 6,655 and 7,681, respectively, as follows:



|                                    |  | For the year ended December 31, |      
|----------------------------------- |  | ------------------------------- | -----
|                                    |  | 2016                            |      
|                                    |  |                                 |      
|Acceleration eMarketing             |  |                                 | —    
|Added Value                         |  |                                 | 790  
|Blue State Digital                  |  |                                 | —    
|Burson Marsteller                   |  |                                 | 59   
|Fbiz Comunicação Ltda.              |  |                                 | —    
|Geometry Global                     |  |                                 | —    
|Grey Global Group Inc.              |  |                                 | 1,182
|Group M Worldwide Inc               |  |                                 | 822  
|IBOPE Argentina                     |  |                                 | 244  
|IBOPE Pesquisa de Mídia Ltda        |  |                                 | —    
|JWT                                 |  |                                 | 919  
|Kantar Group                        |  |                                 | 674  
|Kantar Retail                       |  |                                 | 93   
|Mindshare                           |  |                                 | —    
|Ogilvy & Mather Brasil Comunication |  |                                 | 611  
|Qualicorp                           |  |                                 | —    
|Rockfish Interactive Corporation    |  |                                 | —    
|Tenthavenue Media ltd               |  |                                 | —    
|TNS                                 |  |                                 | 579  
|VML                                 |  |                                 | —    
|Wunderman CATO Johnson S.A          |  |                                 | —    
|Young & Rubicam                     |  |                                 | 366  
|Mercado Libre S.R.L.                |  |                                 | 100  
|Coretech                            |  |                                 | 23   
|Total                               |  |                                 | 6,462



21.2 – Compensation of key management personnel



The remuneration of directors and other members of key management
personnel during each of the three years are as follows:



|                     |  | For the year ended December 31, |      
|-------------------- |  | ------------------------------- | -----
|                     |  | 2016                            |      
|                     |  |                                 |      
|Salaries and bonuses |  |                                 | 4,432
|Total                |  |                                 | 4,432



The remuneration of directors and key executives
is determined by the Board of Directors based on the performance of individuals and market trends.



During 2014, the Company granted 296,167
share options at a strike price of $10. During 2015, the Company granted 30,000 and 273,000 share options at a strike price of
$22.77 and $28.31, respectively. During 2016, the Company granted 260,000 and 82,500 share options at a strike price of $29.01
and $32.36, respectively.



F-43







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



NOTE 22– EMPLOYEE BENEFITS



22.1 – Share-based compensation
plan



Share-based compensation expense for awards
of equity instruments to employees and non-employee directors is determined based on the grant-date fair value of the awards. Fair
value is calculated using Black & Scholes model.



The 2012 share-based compensation agreement
was signed by the employees on June 30, 2012. Under this share-based compensation plan, during the year 2014, other share-based
compensation agreements were signed for a total of 55,260 options granted.



Each employee share option converts into
one ordinary share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options
carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date
of their expiry (seven years after the effective date).



All options vested on the date of modification
of the plan or all other non-vested options expire within seven years after the effective date or seven years after the period
of vesting finalizes.



In July 2014, the Company adopted a new
Equity Incentive Program, the 2014 Plan.



Pursuant to this plan, on July 18, 2014,
the first trading day of the Company common shares on the NYSE, the Company made the annual grants for 2014 Plan to certain of
the executive officers and other employees. The grants included 589,000 share options with a vesting period of 4 years, becoming
exercisable a 25% of the options on each anniversary of the grant date through the fourth anniversary of the grant. Share-based
compensation expense for awards of equity instruments is determined based on the fair value of the awards at the grant date.



Each employee share option converts into
one ordinary share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options
carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date
of their expiry (ten years after the effective date).



Under this share-based compensation plan,
during the year 2016 and 2015, other share-based compensation agreements were signed for a total of 1,003,250 and 789,948 options
granted, respectively.



The following shows the evolution of the
share options outstanding for the years ended at December 31, 2016 and 2015:



|                                 |  | As of December 31, 2016 |           |   | As of December 31, 2015             | 
|-------------------------------- |  | ----------------------- | --------- | - | ----------------------------------- | 
|                                 |  | Number of options       |           |   | Weighted average
    exercise price | 
|                                 |  |                         |           |   |                                     | 
|Balance at the beginning of year |  |                         | 1,933,239 |   |                                     | 
|Options granted during the year  |  |                         | 1,003,250 |   |                                     | 
|Forfeited during the year        |  |                         | (33,979   | ) |                                     | 
|Exercised during the year        |  |                         | (243,915  | ) |                                     | 
|Balance at end of year           |  |                         | 2,658,595 |   |                                     | 



F-44







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



The following table summarizes the share-based compensation
plan at the end of the year:



|Grant date                  |  | Excerise price ($) |       |  | Number of stock options |  |           | Number of stock options vested as of December 31, 2016 |  |  | Fair value at grant date ($) |  |  | Fair value vested
                                                                                                         ($) |        |  | Expense as of December 31, 2016 ($) (*) (**) | 
|--------------------------- |  | ------------------ | ----- |  | ----------------------- |  | --------- | ------------------------------------------------------ |  |  | ---------------------------- |  |  | ------------------------------------------------------------------------------------------------------------------------------ | ------ |  | -------------------------------------------- | 
|                            |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|2006                        |  |                    | 0.95  |  |                         |  | 15,603    |                                                        |  |  | 15,603                       |  |  |                                                                                                                                | 85     |  |                                              | 
|                            |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|2007                        |  |                    | 0.71  |  |                         |  | 200,000   |                                                        |  |  | 200,000                      |  |  |                                                                                                                                | 1,135  |  |                                              | 
|                            |  |                    | 1.40  |  |                         |  | 1,416     |                                                        |  |  | 1,416                        |  |  |                                                                                                                                | 7      |  |                                              | 
|                            |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|2010                        |  |                    | 2.48  |  |                         |  | 4,720     |                                                        |  |  | 4,720                        |  |  |                                                                                                                                | 19     |  |                                              | 
|                            |  |                    | 2.93  |  |                         |  | —         |                                                        |  |  | —                            |  |  |                                                                                                                                | —      |  |                                              | 
|                            |  |                    | 3.38  |  |                         |  | 55,332    |                                                        |  |  | 55,332                       |  |  |                                                                                                                                | 183    |  |                                              | 
|                            |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|2011                        |  |                    | 2.71  |  |                         |  | 32,225    |                                                        |  |  | 32,225                       |  |  |                                                                                                                                | 125    |  |                                              | 
|                            |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|2012                        |  |                    | 6.77  |  |                         |  | 1,651     |                                                        |  |  | 1,651                        |  |  |                                                                                                                                | 3      |  |                                              | 
|                            |  |                    | 7.04  |  |                         |  | 3,991     |                                                        |  |  | 3,991                        |  |  |                                                                                                                                | 6      |  |                                              | 
|                            |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|2013                        |  |                    | 12.22 |  |                         |  | 24,999    |                                                        |  |  | 24,999                       |  |  |                                                                                                                                | 65     |  |                                              | 
|                            |  |                    | 14.40 |  |                         |  | 2,395     |                                                        |  |  | 2,395                        |  |  |                                                                                                                                | 4      |  |                                              | 
|                            |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|2014                        |  |                    | 10.00 |  |                         |  | 501,434   |                                                        |  |  | 225,191                      |  |  |                                                                                                                                | 1,668  |  |                                              | 
|                            |  |                    | 13.20 |  |                         |  | 6,569     |                                                        |  |  | 1,423                        |  |  |                                                                                                                                | 13     |  |                                              | 
|                            |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|2015                        |  |                    | 22.77 |  |                         |  | 30,000    |                                                        |  |  | 10,000                       |  |  |                                                                                                                                | 221    |  |                                              | 
|                            |  |                    | 28.31 |  |                         |  | 636,035   |                                                        |  |  | 136,163                      |  |  |                                                                                                                                | 4,408  |  |                                              | 
|                            |  |                    | 29.34 |  |                         |  | 32,295    |                                                        |  |  | 21,446                       |  |  |                                                                                                                                | 218    |  |                                              | 
|                            |  |                    | 34.20 |  |                         |  | 18,000    |                                                        |  |  | 4,500                        |  |  |                                                                                                                                | 155    |  |                                              | 
|                            |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|2016                        |  |                    | 29.01 |  |                         |  | 260,000   |                                                        |  |  | —                            |  |  |                                                                                                                                | 1,793  |  |                                              | 
|                            |  |                    | 32.36 |  |                         |  | 646,250   |                                                        |  |  | —                            |  |  |                                                                                                                                | 5,235  |  |                                              | 
|                            |  |                    | 35.39 |  |                         |  | 70,000    |                                                        |  |  | —                            |  |  |                                                                                                                                | 607    |  |                                              | 
|                            |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|Subtotal                    |  |                    |       |  |                         |  | 2,542,915 |                                                        |  |  | 741,055                      |  |  |                                                                                                                                | 15,950 |  |                                              | 
|                            |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|Non employees stock options |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|                            |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|2012                        |  |                    | 6.77  |  |                         |  | 22,170    |                                                        |  |  | 22,170                       |  |  |                                                                                                                                | 35     |  |                                              | 
|2013                        |  |                    | 12.22 |  |                         |  | 22,170    |                                                        |  |  | 22,170                       |  |  |                                                                                                                                | 52     |  |                                              | 
|2014                        |  |                    | 10.00 |  |                         |  | 44,340    |                                                        |  |  | 44,340                       |  |  |                                                                                                                                | 87     |  |                                              | 
|2016                        |  |                    | 39.37 |  |                         |  | 27,000    |                                                        |  |  | —                            |  |  |                                                                                                                                | 248    |  |                                              | 
|                            |  |                    |       |  |                         |  |           |                                                        |  |  |                              |  |  |                                                                                                                                |        |  |                                              | 
|Subtotal                    |  |                    |       |  |                         |  | 115,680   |                                                        |  |  | 88,680                       |  |  |                                                                                                                                | 422    |  |                                              | 
|Total                       |  |                    |       |  |                         |  | 2,658,595 |                                                        |  |  | 829,735                      |  |  |                                                                                                                                | 16,372 |  |                                              | 



(*) Total share-based compensation for year 2016 includes 434
related to the shares granted to one employee explained in note 29.1.



F-45







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



(**) Expense as of December 31, 2015 and 2014 amount to
1,990 and 617, respectively. Total share-based compensation for year 2015 includes 392 related to the shares granted to one employee
explained in note 29.1.



Deferred income tax asset arising from the recognition of the
share-based compensation plan amounted to 4,919 and 5,774 for the years ended December 31, 2016 and 2015, respectively.



22.2 - Share options exercised during the year:



|                           |  | As of December 31, 2016     |         |  | As of December 31, 2015 | 
|-------------------------- |  | --------------------------- | ------- |  | ----------------------- | 
|                           |  | Number of options exercised |         |  | Exercise price          | 
|                           |  |                             |         |  |                         | 
|Granted in 2006            |  |                             | 3,196   |  |                         | 
|Granted in 2007            |  |                             | 36,538  |  |                         | 
|Granted in 2007            |  |                             | 6,321   |  |                         | 
|Granted in 2009            |  |                             | —       |  |                         | 
|Granted in 2010            |  |                             |         |  |                         | 
|Granted in 2010            |  |                             | 3,295   |  |                         | 
|Granted in 2010            |  |                             | 1,402   |  |                         | 
|Granted in 2010            |  |                             | 39,142  |  |                         | 
|Granted in 2011            |  |                             | 60,000  |  |                         | 
|Granted in 2011            |  |                             | —       |  |                         | 
|Granted in 2012            |  |                             | 2,000   |  |                         | 
|Granted in 2012            |  |                             | 13,191  |  |                         | 
|Granted in 2012            |  |                             | —       |  |                         | 
|Granted in 2014            |  |                             | 42,645  |  |                         | 
|Granted in 2014            |  |                             | 2,901   |  |                         | 
|Granted in 2015            |  |                             | 30,465  |  |                         | 
|Granted in 2015            |  |                             | 2,819   |  |                         | 
|Balance at end of the year |  |                             | 243,915 |  |                         | 



The average market price of the share amounted to 36.77 and
26.78 for year 2016 and 2015, respectively.



22.3 - Fair value of share-based compensation granted



Determining the fair value of the stock-based
awards at the grant date requires judgment. The Company calculated the fair value of each option award on the grant date using
the Black-Scholes option pricing model. The Black-Scholes model requires the input of highly subjective assumptions, including
the fair value of the Company’s shares, expected volatility, expected term, risk-free interest rate and dividend yield.



The Company estimated the following assumptions
for the calculation of the fair value of the share options:



|Assumptions             |  | Granted in 2016 for 2014 plan |         |   | Granted in 2015 for 2014 plan |  |         | Granted in 2014 for 2014 plan | 
|----------------------- |  | ----------------------------- | ------- | - | ----------------------------- |  | ------- | ----------------------------- | 
|Stock price             |  |                               | 31.89   |   |                               |  | 28.29   |                               | 
|Expected option life    |  |                               | 6 years |   |                               |  | 6 years |                               | 
|Volatility              |  |                               | 20      | % |                               |  | 20      | %                             | 
|Risk-free interest rate |  |                               | 1.95    | % |                               |  | 1.76    | %                             | 

See Note 4 for a description of the assumptions.



F-46







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



NOTE 23 – BUSINESS COMBINATIONS



Acquisition of Huddle Group



On October 11, 2013, the Company, by accepting
the Offer Letter dated October 11, 2013, executed and submitted by Pusfel S.A., a company organized and existing under the laws
of Uruguay and ACX Partners One LP, a limited partnership organized and existing under the laws of England (“ACX”,
and together with Pusfel, the “Sellers”), entered into a Stock Purchase Agreement to purchase 86.25% of the capital
interests of Huddle Investment LLP, a company organized and existing under the laws of England (“Huddle UK”) (the “Stock
Purchase Agreement”). Huddle UK owns, directly or indirectly, 100% of the capital stock and voting rights of the following
subsidiaries: Huddle Group S.A., a corporation (sociedad anónima) organized and existing under the laws of the Republic
of Argentina (“Huddle Argentina”); Huddle Group S.A., a corporation (sociedad anónima) organized and
existing under the laws of the Republic of Chile (“Huddle Chile”); and Huddle Group Corp., a corporation organized
and existing under the laws of the State of Washington (“Huddle US”, and together with Huddle Argentina and Huddle
Chile, the “Huddle Subsidiaries”, and together with Huddle UK, the “Huddle Group”). The closing of the
transaction contemplated in the Stock Purchase Agreement took place on October 18, 2013 (the “Closing Date”).



The Huddle Group is engaged in the software
development, consulting services and digital applications. As of the date of the Offer letter the total headcount of the Huddle
Group was 156 employees distributed in four different locations: Argentina, Chile, United States and United Kingdom.



The aggregate purchase price under the
Stock Purchase Agreement was 8,395. Such purchase price may be subject to adjustments based on the future performance of the Huddle
Group, and will be payable to the Sellers in seven installments, pro rate to each of the sellers’ ownership percentage (62.802%
and 37.198% in the case of ACX and Pusfel, respectively), as follows:



| | - | On October 21, 2013 and November 4, 2013, the Company paid a total of 3,436 including interest.
| | - | -----------------------------------------------------------------------------------------------

| | - | Second installment: On April 21, 2014, the Company paid a total of 2,156, including interests.
| | - | ----------------------------------------------------------------------------------------------

| | - | Third installment: Based on the gross revenue and gross profit
achieved by the Huddle Group for the year 2013, the Company paid on April 22, 2014, 861 and recognized as of December 31, 2013,
a gain for 109 arisen on the remeasurement of the liability, included in “Other income and expense, net”.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | Fourth installment: On October 25, 2014, the Company paid 870, including interests.
| | - | -----------------------------------------------------------------------------------

| | - | Fifth installment: On April 2, 2015, the Company paid 647, including interests.
| | - | -------------------------------------------------------------------------------

| | - | Sixth installment: On March 31, 2016, the Company paid 187, including interests.
| | - | --------------------------------------------------------------------------------

| | - | The seventh installment of 115 shall be paid no later than the fifth anniversary date of Closing
Date.
| | - | ------------------------------------------------------------------------------------------------------



The consideration transferred for Huddle Group acquisition was
calculated as follows:



|Purchase price      |  | Amount |      
|------------------- |  | ------ | -----
|Down payment        |  |        | 3,019
|Installment payment |  |        | 5,117
|Total consideration |  |        | 8,136



| | (a) | Net present value of future installment payments including interest.
| | --- | --------------------------------------------------------------------

| | (b) | The outstanding balance as of December 31, 2016 and 2015 amounted to 104 and 275, respectively, including interest; classified
183 as current as of December 31, 2015 and 104 and 92 as non-current other financial liabilities as of December 31, 2016
and 2015, respectively.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Minority interest purchase agreement



On October 11, 2013, the Company, by accepting
the Offer Letter dated October 11, 2013, executed and submitted by Gabriel Eduardo Spitz (“Mr. Spitz”), entered into
a Stock Purchase Agreement (the “Minority Interest SPA”) to purchase an additional 13.75% of the capital interests
of Huddle UK (the “Spitz Interest”). According to this agreement, the consideration for the purchase of Spitz interest
was agreed to be paid in common shares of the Company to be transferred in three tranches, subject to adjustments based on the
future performance of the Huddle Group. If in each tranche the Huddle Group didn’t achieve the target defined in the Minority
Interest SPA, the Company was not obliged to buy any portion of Spitz interest.



F-47







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



On October 23, 2014, the Company entered
into an agreement to amend the Minority Interest SPA, to purchase the remaining 13.75% of the capital interests of Huddle UK (the
“Spitz Interest”). Pursuant to this amendment, Mr. Spitz transferred to the Company the remaining 13.75% of the capital
interests of Huddle UK. The consideration for the purchase of Spitz interest, was the amount resulting from valuating Huddle UK
at 0.7 times its annual gross revenue for the twelve-month period ended on December 31, 2014 (“2014 Gross revenue”)
multiplied by 0.1375; provided that if the 2014 Gross revenue was higher than 7,800, then the purchase price shall be an amount
equivalent to 0.8 times the 2014 Gross revenue multiplied by 0.1375. The consideration shall in no case be less than 650. As of
December 31, 2014, the consideration amounts to 650 and will be payable in three installments, as follows:



| | - | First installment: the amount of 100 was paid on October 23, 2014.
| | - | ------------------------------------------------------------------

| | - | Second installment: the amount of 225 was paid on February 28, 2015.
| | - | --------------------------------------------------------------------

| | - | Third installment: On January 22, 2016, the Company granted 11,213 treasury shares at a price of
$27.2 per share to Mr. Spitz to cancel the remaining liability of 305. The Company withholds the remaining amount of 20 as an escrow
till October 23, 2019.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



As a consequence of this amendment, the
call and put option explained above were recalled and the Company increased its percentage of shares in Huddle UK to 100%. The
carrying amount of the non-controlling interest was adjusted to reflect this transaction. The difference between the amount by
which the non-controlling interest was adjusted, and the fair value of the consideration paid was recognized directly in equity
and attributed to the owners of the parent.



Acquisition of Bluestar Energy



On October 10, 2014, the Company entered
into a Stock Purchase Agreement (“SPA”) with AEP Retail Energy Partners LLC to purchase the 100% of the capital stock
of BlueStar Energy Holdings, Inc, a Delaware corporation (“BSE Holding”), whose only material asset is 100% of the
capital stock of BlueStar Energy S.A.C., a Peruvian company (“BlueStar Peru”). BlueStar Peru is engaged in the business
of providing information technology support services to the retail electric industry.



The aggregate purchase price under the
SPA amounted to 1,357, equal to the net working capital of BlueStar Energy Holding, Inc. as of the acquisition date. Jointly with
this SPA, the Company signed with AEP Energy Inc. a consulting services agreement, to provide software services in the United States
and other jurisdictions for the following three years. The fair value of this agreement was recognized as an intangible asset as
of the date of acquisition for an amount of 472, which originated a gain for a bargain business combination for the same amount
included in “Other income and expense, net”.



As of December 21, 2014 the Company changed
the legal name of Bluestar Energy S.A.C. to Globant Peru S.A.C.



Acquisition of Clarice Techonologies



On May 14, 2015 (“closing date”),
Globant S.A. (Spain) acquired Clarice Technologies PVT, Ltd (“Clarice”), a company organized and existing under the
laws of India. Clarice is an innovative software product development services company that offers product engineering and user
experience (UX) services and has operations in the United States and India. As of the closing date, the total headcount of Clarice
was 337 employees distributed in India and United States. The purpose of the acquisition is related to the benefit of expected
synergies, revenue growth, future market development and the assembled workforce of Clarice.



As of December 21, 2015 the Company changed
the legal name of Clarice to Globant India Private Limited ("Globant India").



The aggregate purchase price under the
Stock Purchase Agreement (“SPA”) amounted to 20,184. Such purchase price may be subject to adjustments based on the
future performance of Clarice and was payable to the sellers as follows:



| | 1. | First Closing: As of the closing date, the sellers transferred 10,200 shares representing
76.13% of the shares to the Company for an aggregate consideration of 9,324 paid by the Company to the sellers on May 14, 2015.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2. | Staggered Acquisition: The remaining 23.87% of the shares shall be transferred to the Company
and the remaining purchase price shall be paid to each of the Sellers in three tranches, in the following manner, provided that
the remaining purchase price paid out to each of the sellers shall be the higher of the following:
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-48







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



| | 2.1 | Fair Market Value of such shares, calculated in accordance with the methodology prescribed by the
Reserve Bank of India by an appointed chartered accountant; or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2.2 | The consideration as detailed below:
| | --- | ------------------------------------



| | 2.2.1 | The second share transfer tranche, comprising 1,249 shares representing 9.32% of the shares of
Clarice was transferred by the sellers to the Company on July 15, 2016. Based on the revenue and gross profit achieved by Globant
India (formerly "Clarice") for the period between May 15, 2015 and May 15, 2016, the Company paid on July 15, 2016, 4,208
and recognized as of December 31, 2016 a gain of 418 arisen on the remeasurement of the liability, included in "Other income
and expense, net".
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2.2.2 | The third Share transfer tranche, comprising 1,249 of the shares representing 9.32% of the shares
of Clarice, shall be transferred by the sellers to the Company no later than July 14, 2017, in consideration for the payment of
the minimum share price for such shares, defined as 859.61 per share for this tranche, plus an amount of 3,455, comprising 1,774
and 1,681, both subject to the achievement of certain financial and capacity targets of Clarice.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2.2.3 | The fourth share transfer tranche comprising the transfer of 700 shares representing 5.23% of the
shares of Clarice shall be transferred by the sellers to the Company no later than on June 20, 2018, in consideration for payment
of the minimum share price for such shares, defined as 946.46 per share for this tranche, plus an amount of 1,938, subject to the
achievement of certain capacity target by Clarice.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



All financial targets and capacity targets
payments shall be subject to the condition that sellers who were employee of Clarice at the date of acquisition, remain as employee
of Globant or any associated entity of the Company on the due date of such payment.



The Company has concluded that as in the
same SPA all parties have agreed the transfer of the 100% of the shares of Clarice in different stages, the transaction should
be considered as one, and therefore the Company has accounted the acquisition for the 100% of the shares of Clarice and the consideration
involved is the sum of the amount paid at closing date and the three installments payables in years 2016, 2017 and 2018.



The consideration transferred for Clarice
acquisition was calculated as follows:



|Purchase price           |  | Amount |       
|------------------------ |  | ------ | ------
|Down payment             |  |        | 9,324 
|Installment payment      |  |        | 2,483 
|Contingent consideration |  |        | 8,377 
|Total consideration      |  |        | 20,184



| | (a) | As of December 31, 2016 and 2015 included as 4,446 and 4,418 as Other financial liabilities current, and 2,408 and 6,682
as Other financial liabilities non-current, respectively.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



On February 2017, the Company signed an
amendment of the SPA with one of the shareholders where they agreed: the acquisition of the shares held by this employee for an
amount of 600 and the termination of the employment agreement. As a consequence, the Company recorded a gain of 418, related to
the remasurement at fair value of this contingent consideration.



Clarice sellers’ subscription agreement



On May 14, 2015, the Company signed two agreements whereas agreed
to issue to the subscribers, as detailed below, and the subscribers agree to subscribe from the Company the number of shares set
forth below:



First agreement



First tranche



The first tranche for 38,984 common shares were subscribed by
two employees and their spouses for a total amount of 800.



F-49







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Second and third tranches



Regarding second tranche, on July 25, 2016,
the Company issued 20,896 common shares for an amount of 800.



Third tranches will due on May 2017. The
Company shall issue additional shares at a price equal to the volume weighted average trading price (“VWAP”) (derived
from the trading price of the shares as quoted in the NYSE) for the 60-trading period ending on the second trading day prior to
the third tranche issue date. Such numbers of shares will be allocated among the subscribers in the proportion in which they were
allocated in the First tranche. The number of the third Tranche shares to be issued to each of the subscribers shall be the lower
of (i) 80% of the maximum amount of shares that such subscriber is eligible to purchase under applicable law and (ii) the quotient
obtained by dividing 200 by the third tranche 60-day VWAP.



Total estimated amount is 800 for third
tranche.



Second agreement



First tranche



The first tranche for 4,873 common shares was subscribed by
one employee for a total amount of 100.



Second and third tranches



Regarding second tranche, on July 25, 2016,
the Company issued 2,612 common shares for an amount of 100.



Third tranches will due on May 2017. The
Company shall issue additional shares for an aggregate consideration of 100 equal the quotient obtained by dividing 100 by the
Second tranche 60-day VWAP.



As of December 31, 2015, 43,857 shares
were issued for a total amount of 900.



Both agreements are forward contracts to
issue and sell a variable number of shares for a fixed amount of cash, thus according to IAS 32, the Company recorded a financial
liability and a financial asset for the shares to be issued and the payment to be received, respectively, for an amount of 1,800.



As of December 31, 2016 the Company
has 900 as a current financial asset and as a current financial liability.



Acquisition of Dynaflows



On October 22, 2015, the Company acquired
from Alfonso Amat, Wayra Argentina S.A., BDCINE S.R.L., Laura A. Muchnik, Facundo Bertranou, Mora Amat and Fabio Palioff (jointly
“the Sellers) 9,014 shares, which represents 38.5% of the capital stock of Dynaflows S.A. Before this acquisition, the Company
had 22.7% of the capital stock of Dynaflows and classified it as investment in associates. Through this transaction, the Company
gained the control of Dynaflows S.A. As a consequence, the Company accounted for this acquisition in accordance with IFRS 3 as
a business combination achieved in stages and as such, the Company remeasured its previously held equity interest in Dynaflows
at its acquisition date fair value and recognize the resulting gain for an amount of 625 in Other income and expense, net.



The aggregate purchase price under the
Stock Purchase Agreement (“SPA”) amounted to ARS 13,316 (1,402) and 414, payable in two installments, as following:



- The first installment amounted to ARS
13,316 (1,402) paid at the closing date.



- The second installment amounted to 414
paid on April 22, 2016.



On the same date, the Company made a capital
contribution of 868 (ARS 8,250,000) to Dynaflows by issuing 9,190 shares.



F-50







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



After both agreements and considering the
previous equity interest held by the Company of 22.7%, the Company holds the 66.73% of participation in Dynaflows.



The consideration transferred for Dynaflows
acquisition was calculated as follows:



|Purchase price      |  | Amount |      
|------------------- |  | ------ | -----
|Down payment        |  |        | 1,402
|Installment payment |  |        | 414  
|Total consideration |  |        | 1,816



| | (a) | As of December 31, 2016 the consideration was totally canceled. As of December 31, 2015, included as 414 as Other financial
liabilities current.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------



Minority interest purchase agreement



On October 22, 2015, the Company entered
into a Shareholders Agreement (the “Minority Interest SHA”) with Alfonso Amat and Mora Amat (the “non-controlling
shareholders”) to agree on a put option over the 33.27% of the remaining interest of Dynaflows effective on the third or
fifth anniversary from the date of acquisition, pursuant to which the non-controlling shareholders shall have the right (the "Put
Option") to sell and the Company shall purchase all, but not less than all the shareholder’s non-controlling interest.
The aggregate purchase price to be paid by the Company upon exercise of the Put Option shall be equal to the price resulting from
valuing the Company at the following:



In case the put option is exercised in
the third anniversary, 50% of the total of: 1) eight (8) times EBITDA multiplied by 0.50 according to the Company's most recent
audited annual financial statements at the time of the delivery of such exercise of the Put Option; plus 2) four (4) times Revenue
multiplied by 0.50 according to the Company's most recent audited annual financial statements at the time of the delivery of such
exercise of the Put Option;



In case the put option is exercised in
the fifth anniversary, the total of: 1) eight (8) times EBITDA multiplied by 0.50 according to the Company's most recent audited
annual financial statements at the time of the delivery of such exercise of the Put Option; plus 2) four (4) times Revenue multiplied
by 0.50 according to the Company's most recent audited annual financial statements at the time of the delivery of such exercise
of the Put Option;



The Company implemented the IFRIC Interpretation
DI/2012/2 “Put Options Written on Non-controlling Interests” issued in May 2012 that requires a financial liability
initially measured at the present value of the redemption amount in the parent’s consolidated financial statements for written
puts on non-controlling interest. Subsequently, the financial liability is measured in accordance with IAS 39.



As of December 31, 2016 and 2015,
the Company has recognized as non-current other financial liabilities the written put option for an amount of 4,388 and 7,371,
respectively equal to the present value of the amount that could be required to be paid to the counterparty discounted at an interest
rate of 3.5%. Changes in the measurement of the gross obligation are recognized in profit or loss.



Pursuant to the shareholder’s agreement,
the Company also agreed on a call option over non-controlling interest effective after the fifth anniversary from the closing date
till the sixth anniversary from the closing date pursuant to which the Company shall have the right to purchase and the non-controlling
interest shareholders shall sell all but not less than all the shareholder’s non-controlling interest then owned by the non-controlling
shareholders. The Company calculated the fair value of call option on the grant date using the Black-Scholes option pricing model.
The Black-Scholes model requires the input of highly subjective assumptions, including the maturity, exercise price, spot, risk-free
and standard deviation. See Note 4 for a description of the assumptions.



As of December 31, 2016 and 2015,
the Company has accounted for the call option at its fair value of 319 and 321 in a similar way to a call option over an entity’s
own equity shares and the initial fair value of the option was recognized in equity.



F-51







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Acquisition of WAE



On May 23, 2016 (closing date), Globant
S.A. (Spain) acquired 100% of shares of We Are London Limited (WAE UK), a company organized and existing under the laws of England
and Wales and 100% of shares of We Are Experience, Inc. a corporation organized and existing under the Laws of the State of New
York, United States (WAE US) (jointly WAE UK and WAE US are WAE). WAE is a service design consultancy, specialized in three distinct
but complementary service offerings - Research, Strategy and Creative. Total headcount of WAE was 40 employees with operations
in United States and United Kingdom. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth,
future market development and the assembled workforce of WAE.



The aggregate purchase price under the
Stock Purchase Agreement (SPA) amounted to 19,851, of which 12,131 relates to WAE UK and 7,720 relates to WAE US. Such purchase
price may be subject to adjustments based on the future performance of WAE and is payable to the sellers as follows:



1. Up-front payment: As
of the closing date, the Company paid an aggregate consideration of 8,500 to the sellers.



2. First earn-out payment:
Not later than August 16, 2017, the amount of 5,000, provided that such amount shall be reduced in proportion to the percentage
of revenue and gross profit achievement by WAE during the period commencing on June 1, 2016 and ending on May 31, 2017.



3. Second earn-out payment:
Not later than August 20, 2018, the amount of 5,000, provided that such amount shall be reduced in proportion to the percentage
of revenue and gross profit achievement by WAE during the period commencing on June 1, 2017 and ending on May 31, 2018.



Additionally, the Company shall pay to
the sellers an amount of 575 in cash on the first earn-out payment date and/or the second earn-out payment date related to the
corporation tax saved by WAE UK prior to such date as a result of any deduction obtained under income tax law applicable to United
to Kingdom attributable to the exercise of the stock options plan granted by WAE UK to the option holders. This amount is considered
by the Company as part of the consideration amount.



Finally, as part of the total consideration
the Company computed the working capital adjustment defined in the SPA. Total adjustment amounted to 1,357.



Acquisition-related costs amounting to
515 have been excluded from the consideration transferred and have been recognized as an expense in profit or loss in the current
year, within the Professional services line item.



The fair value of the consideration transferred
for WAE acquisition was calculated as follows:



|Purchase price             |  | Amount |       
|-------------------------- |  | ------ | ------
|Down payment               |  |        | 8,500 
|Working capital adjustment |  |        | 1,352 
|Installment payment        |  |        | 551   
|Contingent consideration   |  |        | 9,448 
|Total consideration        |  |        | 19,851



(a) As of December 31, 2016 included as 5,457 and 4,735 as Other
financial liabilities current and non-current, respectively



Acquisition of Difier



On November 14, 2016, the Company entered
into a Stock Purchase Agreement (“SPA”) with 3Cinteractive corp. (“3C”) to purchase the 100% of the capital
stock of Difier S.A., a Uruguayan company (“Difier”). Difier is engaged in the business of providing information technology
support services to 3C, who has been and remains the only customer of Difier.



The aggregate purchase price under the
SPA amounted to 25 and was paid as of the closing date. Jointly with this SPA, the Company signed with 3C a consulting services
agreement representing a customer relationship, to provide software services in the United States and other jurisdictions for the
following four years. The fair value of this agreement was recognized as an intangible asset as of the date of acquisition for
an amount of 652, which originated a gain for a bargain business combination of 225 included in "Other income and expenses,
net".



F-52







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Acquisition related expenses were not material
and were recognized directly as expense.



Acquisition of L4



On November 14, 2016 (“closing date”),
Globant LLC acquired 100% of shares of L4 Mobile, LLC (“L4”), a limited liability company organized and existing under
the laws of the State of Washington, United States. L4 offers the digital product consulting, design, development and quality assurance
services necessary to build and manage robust digital products. Total headcount of L4 was 90 employees with operations in United
States. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development
and the assembled workforce of L4.



The aggregate purchase price under the
Stock Purchase Agreement (“SPA”) amounted to 20,388. Such purchase price may be subject to adjustments based on the
future performance of L4 and is payable to the seller as follows:



| | 1. | Up-front payment: As of the closing date, the Company paid an aggregate consideration of 11,000 to the seller.
| | -- | --------------------------------------------------------------------------------------------------------------



| | 2. | First earn-out payment: Not later than February 15, 2017, the amount of 980, considering
the revenue achievement by L4 during the period commencing on November 1, 2016 and ending on December 31, 2016.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3. | Second earn-out payment: Not later than February 15, 2018, the amount of 4,000, provided
that such amount shall be reduced in proportion to the percentage of revenue and gross profit achievement by L4 during the period
commencing on January 1, 2017 and ending on December 31, 2017.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 4. | Third earn-out payment: Not later than February 15, 2019, the amount of 4,000, provided
that such amount shall be reduced in proportion to the percentage of revenue and gross profit achievement by L4 during the period
commencing on January 1, 2018 and ending on December 31, 2018.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The fair value of the consideration transferred
for L4 acquisition was calculated as follows:



|Purchase price             |  | Amount |       
|-------------------------- |  | ------ | ------
|Down payment               |  |        | 11,000
|Working capital adjustment |  |        | 817   
|Contingent consideration   |  |        | 8,571 
|Total consideration        |  |        | 20,388



(a) As of December 31, 2016 included 1,799 and 7,589 as
Other financial liabilities current and non-current, respectively



Acquisition related expenses were not material and were recognized
directly as expense.



F-53







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Outstanding balances of financial liabilities
related to the abovementioned acquisitions as of December 31, 2016 and 2015 are as follows:



|                                             |  | As of December 31, 2016               |        |  | As of December 31, 2015                   | 
|-------------------------------------------- |  | ------------------------------------- | ------ |  | ----------------------------------------- | 
|                                             |  | Other financial liabilities - current |        |  | Other financial liabilities - non current | 
|                                             |  |                                       |        |  |                                           | 
|Huddle Group                                 |  |                                       | —      |  |                                           | 
|Huddle Group - Minority interest agreement   |  |                                       | —      |  |                                           | 
|Clarice                                      |  |                                       | 4,446  |  |                                           | 
|Subscription agreement                       |  |                                       | 900    |  |                                           | 
|Dynaflows                                    |  |                                       | —      |  |                                           | 
|Put option on minority interest of Dynaflows |  |                                       | —      |  |                                           | 
|WAE                                          |  |                                       | 5,457  |  |                                           | 
|L4                                           |  |                                       | 1,799  |  |                                           | 
|Total                                        |  |                                       | 12,602 |  |                                           | 



F-54







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Purchase Price Allocation



Fair values of the assets and liabilities incurred at the date
of acquisition in the business combinations above mentioned are as follows:



|                                           |  | Huddle Group |       |   | Bluestar Energy |  |       | Clarice |  |  | Dynaflows |   |  | WAE |        |   | L4 |  |        | Difier | 
|------------------------------------------ |  | ------------ | ----- | - | --------------- |  | ----- | ------- |  |  | --------- | - |  | --- | ------ | - | -- |  | ------ | ------ | 
|Current Assets                             |  |              |       |   |                 |  |       |         |  |  |           |   |  |     |        |   |    |  |        |        | 
|Cash and cash equivalents                  |  |              | 1,226 |   |                 |  | 1,575 |         |  |  | 153       |   |  |     | 4      |   |    |  | 2,671  |        | 
|Investments                                |  |              | —     |   |                 |  | —     |         |  |  | 1,232     |   |  |     | —      |   |    |  | —      |        | 
|Trade receivables                          |  |              | 1,475 |   |                 |  | —     |         |  |  | 1,983     |   |  |     | 82     |   |    |  | 1,706  |        | 
|Other receivables                          |  |              | 54    |   |                 |  | 471   |         |  |  | 1,731     |   |  |     | 7      |   |    |  | 1,549  |        | 
|                                           |  |              |       |   |                 |  |       |         |  |  |           |   |  |     |        |   |    |  |        |        | 
|Non current assets                         |  |              |       |   |                 |  |       |         |  |  |           |   |  |     |        |   |    |  |        |        | 
|Porperty and equipment                     |  |              | 233   |   |                 |  | 105   |         |  |  | 180       |   |  |     | 9      |   |    |  | 96     |        | 
|Intangibles                                |  |              | 2,210 |   |                 |  | 472   |         |  |  | 54        |   |  |     | 242    |   |    |  | 2,269  |        | 
|Deferred tax                               |  |              | —     |   |                 |  | —     |         |  |  | 5         |   |  |     | 49     |   |    |  | 562    |        | 
|Other receivables                          |  |              | 915   |   |                 |  | 42    |         |  |  | 227       |   |  |     | 1      |   |    |  | —      |        | 
|Goodwill (1) (3)                           |  |              | 4,226 |   |                 |  | —     |         |  |  | 17,702    |   |  |     | 2,759  |   |    |  | 16,201 |        | 
|                                           |  |              |       |   |                 |  |       |         |  |  |           |   |  |     |        |   |    |  |        |        | 
|Current liabilities                        |  |              |       |   |                 |  |       |         |  |  |           |   |  |     |        |   |    |  |        |        | 
|Trade and other payables                   |  |              | (378  | ) |                 |  | (360  | )       |  |  | (620      | ) |  |     | (17    | ) |    |  | (3,248 | )      | 
|Borrowings                                 |  |              | (441  | ) |                 |  | —     |         |  |  | —         |   |  |     | —      |   |    |  | —      |        | 
|Tax liabilities                            |  |              | —     |   |                 |  | (194  | )       |  |  | (1,734    | ) |  |     | (95    | ) |    |  | (1,872 | )      | 
|Payroll and social security                |  |              | (761  | ) |                 |  | (282  | )       |  |  | (727      | ) |  |     | (67    | ) |    |  | (83    | )      | 
|Other liabilities                          |  |              | —     |   |                 |  | —     |         |  |  | (2        | ) |  |     | —      |   |    |  | —      |        | 
|                                           |  |              |       |   |                 |  |       |         |  |  |           |   |  |     |        |   |    |  |        |        | 
|Non current liabilities                    |  |              |       |   |                 |  |       |         |  |  |           |   |  |     |        |   |    |  |        |        | 
|Provision for contingencies  (4)           |  |              | —     |   |                 |  | —     |         |  |  | —         |   |  |     | —      |   |    |  | —      |        | 
|Borrowings                                 |  |              | —     |   |                 |  | —     |         |  |  | —         |   |  |     | —      |   |    |  | —      |        | 
|                                           |  |              |       |   |                 |  |       |         |  |  |           |   |  |     |        |   |    |  |        |        | 
|Non controlling interest                   |  |              | (623  | ) |                 |  | —     |         |  |  | —         |   |  |     | (83    | ) |    |  | —      |        | 
|Gain from bargain business combination (2) |  |              | —     |   |                 |  | (472  | )       |  |  | —         |   |  |     | —      |   |    |  | —      |        | 
|Fair value of previous interest held       |  |              | —     |   |                 |  | —     |         |  |  | —         |   |  |     | (1,075 | ) |    |  | —      |        | 
|Total consideration                        |  |              | 8,136 |   |                 |  | 1,357 |         |  |  | 20,184    |   |  |     | 1,816  |   |    |  | 19,851 |        | 



| | (1) | Goodwill arising from Huddle Group, Clarice, Dynaflows and WAE are not deductible for tax purposes.
| | --- | ---------------------------------------------------------------------------------------------------

| | (2) | As the total amount paid for Difier S.A. and Bluestar Energy is less than the fair value of the
assets and liabilities recognized at the date of acquisition, the Company has recorded a gain from bargain business combination.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | Goodwill arising from L4 is deductible for tax purposes.
| | --- | --------------------------------------------------------

| | (4) | Includes provision for contingencies related to potential regulatory claims.
| | --- | ----------------------------------------------------------------------------



Goodwill has arisen in the acquisition
of Huddle Group and L4 because the cost of the equity interest acquired included a control premium. In addition, the consideration
paid for this acquisition effectively included amounts in relation to the benefit of expected synergies, revenue growth, customer
relationships, future market development and the assembled workforce of acquired companies. Only the customer relationships are
recognized as intangible. The other benefits are not recognized separately from goodwill because they do not meet the recognition
criteria for identifiable intangible assets.



F-55







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Goodwill arose in the acquisition of Clarice
and Dynaflows because the cost of the equity interests acquired included control premium. In addition, the consideration paid for
these acquisitions effectively included amounts in relation to the benefit of expected synergies, revenue growth, future market
development and the assembled workforce of acquired companies. These benefits are not recognized separately from goodwill because
they do not meet the recognition criteria for identifiable intangible assets.



The fair values of the receivables acquired
do not differ from their gross contractual amount.



Acquisition related expenses were not material
and were recognized directly as expense for each period.



Impact of acquisitions on the results
of the Company



The net income for the year ended December 31,
2014 includes a gain of 393 attributable to the business generated by Bluestar Energy. Revenue for the year ended December 31,
2014 included 1,058 related to the business of that company. Had the business combination of Bluestar Energy been effected at January
1, 2014, the consolidated revenue of the Company would have been 203,345, the net income for the year ended December 31, 2014
would have been 25,655 and earnings per share would have amounted to $0.83.



The net income for the year ended December 31,
2015 includes 1,623 attributable to the business generated by Clarice. Revenue for the year ended December 31, 2015 includes
7,084 related to the business of that company. Had the business combination been effected at January 1, 2015, the consolidated
revenue of the Company would have been 263,393, the net profit for the year ended December 31, 2015 would have been 33,890
and basic and diluted earnings per share would have amounted to 1.00 and 0.97, respectively.



The net income for the year ended December 31,
2015 includes a loss of 98 attributable to the business generated by Dynaflows. Revenue for the year ended December 31, 2015
includes 194 related to the business of that company. Had the business combination been effected at January 1, 2015, the consolidated
revenue of the Company would have been 254,382, the net profit for the year ended December 31, 2015 would have been 31,471
and basic and diluted earnings per share would have amounted to 0.93 and 0.90, respectively.



The net income for the year ended December 31,
2016 includes a gain of 2,312 attributable to the business generated by WAE. Revenue for the year ended December 31, 2016
includes7,475 related to the business of that company. Had the business combination been effected at January 1, 2016, the consolidated
revenue of the Company would have been 326,175, the net profit for the year ended December 31, 2016 would have been 35,739
and basic and diluted earnings per share would have amounted to 1.04 and 1.01, respectively.



The net income for the year ended December 31,
2016 includes a gain of 7 attributable to the business generated by Difier. Revenue for the year ended December 31, 2016 includes
444 related to the business of that company. Had the business combination been effected at January 1, 2016, the consolidated revenue
of the Company would have been 324,229, the net profit for the year ended December 31, 2016 would have been 36,095 and basic
and diluted earnings per share would have amounted to 1.05 and 1.02, respectively.



The net income for the year ended December 31,
2016 includes a gain of 823 attributable to the business generated by L4. Revenue for the year ended December 31, 2016 includes
3,422 related to the business of that company. Had the business combination been effected at January 1, 2016, the consolidated
revenue of the Company would have been 335,307, the net profit for the year ended December 31, 2016 would have been 37,014
and basic and diluted earnings per share would have amounted to 1.08 and 1.05, respectively.



Directors consider these “pro-forma”
numbers to represent an approximate measure of the performance of the combined group on an annualized basis and to provide a reference
point for comparison in future periods.



NOTE 24 – SEGMENT INFORMATION



Operating segments are components of an
enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker
(“CODM”) in deciding on how to allocate resources and in assessing performance. The Company’s CODM is considered
to be the Company’s chief executive officer (“CEO”). The CEO reviews financial information presented on an entity
level basis for purposes of making operating decisions and assessing financial performance. Therefore, the Company has determined
that it operates in a single operating and reportable segment.



F-56







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



The Company provides services related to
application development, testing, infrastructure management and application maintenance.



The following table summarizes revenues
by geography:



|                                  |  | For the year ended December 31, |        
|--------------------------------- |  | ------------------------------- | -------
|                                  |  | 2016                            |        
|North America                     |  |                                 |        
|United States of America          |  |                                 | 258,388
|Canada                            |  |                                 | 2,535  
|Subtotal North America            |  |                                 | 260,923
|Europe                            |  |                                 |        
|Spain                             |  |                                 | 12,929 
|Ireland                           |  |                                 | 165    
|United Kingdom                    |  |                                 | 10,305 
|Luxembourg                        |  |                                 | 961    
|Germany                           |  |                                 | 2,478  
|Sweden                            |  |                                 | 1,251  
|Italy                             |  |                                 | 718    
|Others                            |  |                                 | 499    
|Subtotal Europe                   |  |                                 | 29,306 
|Asia                              |  |                                 |        
|India                             |  |                                 | 1,132  
|Japan                             |  |                                 | —      
|Others                            |  |                                 | 133    
|Subtotal Asia                     |  |                                 | 1,265  
|Latin America and others          |  |                                 |        
|Argentina                         |  |                                 | 10,216 
|Brazil                            |  |                                 | 2,344  
|Colombia                          |  |                                 | 3,177  
|Chile                             |  |                                 | 13,425 
|Uruguay                           |  |                                 | 84     
|Mexico                            |  |                                 | 966    
|Others                            |  |                                 | 1,150  
|Subtotal Latin America and others |  |                                 | 31,362 
|TOTAL                             |  |                                 | 322,856



One single customer accounted for 12.3%
of revenues for the year ended December 31, 2015. However, no single customer accounted for 10% or more of revenues for the
years ended December 31, 2016 and 2014.



F-57







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



The following table summarizes non-current
assets other than deferred taxes as stated in IFRS 8, paragraph 33.b, by jurisdiction:



|                         |  | As of December 31, |        
|------------------------ |  | ------------------ | -------
|                         |  | 2016               |        
|                         |  |                    |        
|Argentina                |  |                    | 59,595 
|Spain                    |  |                    | 38,825 
|United States of America |  |                    | 22,087 
|Brazil                   |  |                    | 2,652  
|Uruguay                  |  |                    | 722    
|Luxembourg               |  |                    | 5,568  
|Colombia                 |  |                    | 4,976  
|Mexico                   |  |                    | 4,101  
|India                    |  |                    | 3,258  
|Chile                    |  |                    | 971    
|Other countries          |  |                    | 473    
|TOTAL                    |  |                    | 143,228



NOTE 25 – BORROWINGS



25.1 – Bank and financial institutions



The principal balances of outstanding borrowings
under lines of credit with banks and financial institutions were as follows:



|                                          |  | As of December 31, |    
|----------------------------------------- |  | ------------------ | ---
|                                          |  | 2016               |    
|                                          |  |                    |    
|HSBC bank (Argentina)                     |  |                    | 38 
|Banco Santander Rio (Argentina)           |  |                    | 118
|Phenix - Leasing (Argentina)              |  |                    | —  
|Apple Financial Services (United States)  |  |                    | —  
|Financial institution - Leasing (Uruguay) |  |                    | 61 
|Bradesco (Brasil)                         |  |                    | —  
|TOTAL                                     |  |                    | 217



Such balances were included in the consolidated balance sheets
as follows:



|                       |  | As of December 31, |    
|---------------------- |  | ------------------ | ---
|                       |  | 2016               |    
|                       |  |                    |    
|Current borrowings     |  |                    | 217
|Non-current borrowings |  |                    | —  
|TOTAL                  |  |                    | 217



F-58







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Movements in borrowings are analyzed as
follows:



|                                                     |  | As of December 31, |     
|---------------------------------------------------- |  | ------------------ | ----
|                                                     |  | 2016               |     
|                                                     |  |                    |     
|Balance at the beginning of year                     |  |                    | 548 
|Borrowings related to business combination (note 23) |  |                    | 250 
|Payment of borrowings                                |  |                    | (584
|Accrued interest                                     |  |                    | 41  
|Foreign exchange                                     |  |                    | (38 
|TOTAL                                                |  |                    | 217 



25.1.2 —Argentine subsidiary’s loan agreements



The Company, through its Argentine subsidiary,
Sistemas Globales S.A., entered into several loan agreements with HSBC, Santander Rio and Phenix.



Balances as of December 31, 2016 and
2015 were the following:



|                                |  | As of December 31, |    
|------------------------------- |  | ------------------ | ---
|                                |  | 2016               |    
|                                |  |                    |    
|HSBC bank (Argentina)           |  |                    | 38 
|Banco Santander Rio (Argentina) |  |                    | 118
|Phenix  - Leasing (Argentina)   |  |                    | —  
|TOTAL                           |  |                    | 156



These loans contain accelerating clauses
applicable to Sistemas Globales S.A. that would cause outstanding principal and interest to be due and payable mainly under the
following circumstances: 1) upon default on any of the commitments assumed under the loan agreement; 2) upon Sistemas Globales
S.A. becoming insolvent or bankrupt; 3) if Sistemas Globales S.A. is unable to comply with its obligations; 4) if any governmental
authority confiscates, nationalizes or expropriates some or all assets or all equity interest of Sistemas Globales S.A.; 5) if
the board of directors of Sistemas Globales S.A. authorizes the liquidation of the entity; 6) if Sistemas Globales S.A. does not
comply with duly tax payments; 7) if Sistemas Globales S.A. pledges its equity shares; or 8) if Sistemas Globales S.A. grants a
pledge or mortgage on its assets.



As of December 31, 2016, Sistemas
Globales S.A. was in compliance with all the covenants included in the financing agreements.



NOTE 26 – OPERATING AND FINANCE LEASES



The Company is obligated under various
operating leases for office space and office equipment. Total lease expense incurred under these leases was approximately 12,032;
9,945 and 8,830 for the years ended December 31, 2016, 2015 and 2014, respectively.



During the year ended December 31,
2015, the Company recognized some agreements related to computer leases as finance leases ending in the year 2016. Thus, the amount
of computer equipment and software included 2 under finance lease agreements, as of December 31, 2015. The related liability
arises to 61 classified as current borrowings as of December 31, 2016. As of December 31, 2015, the related liability
arises to161, out of which 79 are classified as current borrowings and 82 as non-current borrowings.



F-59







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Future fixed minimum annual lease commitments
are as follows at December 31, 2016:



|Year |  | Amount |       
|---- |  | ------ | ------
|     |  |        |       
|2017 |  |        | 10,401
|2018 |  |        | 8,168 
|2019 |  |        | 6,259 
|2020 |  |        | 4,970 
|2021 |  |        | 830   



NOTE 27 – FINANCIAL INSTRUMENTS



27.1 - Categories of financial instruments



|                                  |  | As of December 31, |        
|--------------------------------- |  | ------------------ | -------
|                                  |  | 2016               |        
|                                  |  |                    |        
|Financial assets                  |  |                    |        
|Cash and cash equivalents         |  |                    | 50,532 
|HFT assets                        |  |                    | 9,355  
|Available-for-sale assets         |  |                    | —      
|Other financial assets            |  |                    | 1,219  
|Loans and receivables             |  |                    | 100,504
|                                  |  |                    |        
|Financial liabilities             |  |                    |        
|Amortized cost                    |  |                    |        
|Trade payables                    |  |                    | 5,603  
|Payroll and social security taxes |  |                    | 30,328 
|Borrowings                        |  |                    | 217    
|Other financial liabilities (1)   |  |                    | 31,826 
|Tax liabilities                   |  |                    | 6,249  
|Other liabilities                 |  |                    | 20     



(1) As of December 31, 2016,
other financial liabilities includes 5,063; 9,647 and 8,604 related to contingent liability arisen in Clarice, WAE and L4 acquisitions,
respectively, which are measured at fair value (see note 27.10.1).



At the end of the reporting years, there
were no loans or receivables designated at fair value through profit or loss. The carrying amounts reflected above represents the
Company’s maximum exposure to credit risk for such loans and receivables.



27.2 - Market risk



The Company is exposed to a variety of
risks: market risk, including the effects of changes in foreign currency exchange rates and interest rates, and liquidity risk.



The Company’s overall risk management
program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s
financial performance. The Company does not use derivative instruments to hedge its exposure to risks.



27.3 - Foreign currency risk management



The Company undertakes transactions denominated
in foreign currencies; consequently, exposures to exchange rate fluctuations arise.



F-60







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Except in Globant Brasil Consultoría
Ltda. (formerly TerraForum Consultoría Ltda.), Globers S.A. and We are London Limited, the subsidiary’s functional
currency is the U.S. dollar. In 2016, 91% of the Company’s revenues are denominated in U.S. dollars. Because the majority
of its personnel are located in Latin America, the Company incurs the majority of its operating expenses and capital expenditures
in non-U.S. dollar currencies, primarily the Argentine peso, Uruguayan peso, Brazilian Real, Mexican peso, Peruvian Sol, Indian
Rupee, Colombian peso and Great Britain Pound.



Foreign exchange sensitivity analysis



The Company is mainly exposed to Argentine
pesos.



The following table details the Company’s
sensitivity to a 30% increase and decrease in the U.S. dollar against the relevant foreign currency. The sensitivity analysis includes
outstanding foreign currency denominated monetary items at December 31, 2016 and adjusts their translation at the year-end
for a 30% change in U.S. dollars against the relevant foreign currency and the same change that affects net income as certain costs
are incurred in Argentine pesos.



|             |  |                 |  |        |         |  | Gain/(loss)  | 
|------------ |  | --------------- |  | ------ | ------- |  | ------------ | 
|Account      |  | Currency        |  | Amount |         |  | 30% Increase | 
|             |  |                 |  |        |         |  |              | 
|Net balances |  | Argentine pesos |  |        | 208,589 |  |              | 
|             |  | Total           |  |        | 208,589 |  |              | 



|        |  |                 |  |        |          |   | Gain/(loss)  | 
|------- |  | --------------- |  | ------ | -------- | - | ------------ | 
|Account |  | Currency        |  | Amount |          |   | 30% Increase | 
|        |  |                 |  |        |          |   |              | 
|Costs   |  | Argentine pesos |  |        | (171,953 | ) |              | 
|        |  | Total           |  |        | (171,953 | ) |              | 



The estimated effect in net income for
the year ended December 31, 2016 due to a 30% increase in the U.S. dollar against the Argentine peso is a gain of 37.758 and
such effect due to a 30% decrease in the U.S. dollar against the Argentine peso is a loss of 49.086.



Depreciation of the Argentine Peso



During 2016, the Argentine peso experienced
a 14% devaluation from 13.91 Argentine peso per US dollar to 15.84 Argentine peso per US dollar.



On December 17, 2015, the Argentine peso
experienced a 42% devaluation from 9.835 Argentine peso per US dollar to 13.95 Argentine peso per US dollar. Since it occurred
during the last days of the year 2015, this fluctuation did not cause any significant impact in the Company’s costs and expenses
generated by the Company’s Argentine subsidiaries in Argentine pesos, as expressed in U.S. dollars, neither on the Company's
revenues, as revenues are mostly in U.S. dollars for the year ended 2015. However, this fluctuation caused a significant foreign
exchange loss of 4,967 related to net exposure of monetary assets and liabilities nominated in Argentine pesos.



27.4 - Interest rate risk management



The Company’s exposure to market
risk for changes in interest rates relates primarily to its cash and bank balances and its credit facilities. The Company ́s
credit lines in Argentina bear interest at fixed rates ranging from 15.25% and 15.50% in local currency (equivalent to an interest
rate around 3.75% and 4%). The Company does not use derivative financial instruments to hedge its risk of interest rate volatility.



F-61







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



27.5 – Liquidity risk management



The Company’s primary sources of
liquidity are cash flows from operating activities and borrowings under credit facilities. See note 25.1.



Management monitors rolling forecasts of
the Company’s liquidity position on the basis of expected cash flow.



The table below analyzes financial liabilities
into relevant maturity groups based on the remaining period at the balance sheet date to the contractual maturity date. The amounts
disclosed in the table are the contractual undiscounted cash flows.



|                            |  | Expected Maturity Date |       
|--------------------------- |  | ---------------------- | ------
|                            |  | 2017                   |       
|                            |  |                        |       
|Borrowings                  |  |                        | 156   
|Interest to be paid         |  |                        | 12    
|Finance leases              |  |                        | 61    
|Other financial liabilities |  |                        | 12,602
|TOTAL                       |  |                        | 12,831



27.6 - Concentration of credit risk



The Company derives revenues from clients
in the U.S. (approximately 81%) and clients related from diverse industries. For the years ended December 31, 2016, 2015 and
2014, the Company’s top five clients accounted for 33,7%, 33.0% and 27.8% of its revenues, respectively. One single customer
accounted for 12.3% of revenues for the year ended December 31, 2015. However, no single customer accounted for 10% or more
of revenues for the years ended December 31, 2016 and 2014 .



27.7 - Fair value of financial instruments that are not
measured at fair value



The carrying amounts of financial assets
and liabilities related to cash and bank balances, investments, trade receivables, other current and non-current receivables, trade
payables, payroll and social security taxes payables, tax liabilities and other liabilities included in the consolidated statement
of financial position as of December 31, 2016 and 2015, approximate to their fair values. Other financial liabilities, including
borrowings, are subsequently measured at amortised cost considering the effective interest rate method, which approximate to its
fair value due to their short-term maturity.



27.8 Available-for-sale investments



During the years ended December 31,
2016 and 2015, the Company acquired “Letras del Banco Central” (LEBAC) with SBS Sociedad de Bolsa S.A. LEBAC are short-term
securities issued and tendered by the Argentine Central Bank, nominated in Argentine pesos, and can be purchased with cash through
banks or stock brokering companies. LEBAC do not pay interest during the life of the instrument. Instead, LEBAC are bought at a
discount from their face value, which is the amount the instrument will be worth at its settlement. When these instruments reach
their maturity, the investor receives an amount equal to the face value of the instrument.



The purpose of this transaction is to ensure
a fixed return in Argentine Pesos.



According to IAS 39, held-to-maturity investments
(HTM) are non-derivative financial assets with fixed or determinable payments and fixed maturity that the entity has the positive
intent and ability to hold to maturity. HTM investments are measured at amortized cost using the effective interest method, less
impairment losses. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the life
of the financial instrument to the net carrying amount of the financial asset.



According to the nature, intention and
ability of the Company to hold those LEBACs until maturity, they were initially classified as held-to-maturity investments. However,
during December, 2015, the Company sold some of those LEBACs and consequently, changed the classification of the remaining LEBACs.
As of December 31, 2016 and 2015, LEBACs are classified as Available-for-sale investments, since it was not permitted to classify
investments as held-to-maturity in accordance with IAS 39. As of December 31, 2016 and 2015, the loss of 52 and the gain of 52,
net of tax effect, are recorded as Other comprehensive income.



F-62







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Changes in the carrying amount of AFS financial
assets relating to changes in foreign currency rates, interest income calculated using the effective interest method are recognized
in profit or loss. Other changes in the carrying amount of AFS financial assets are recognized in other comprehensive income.



27.9 - Fair value measurements recognized in the consolidated
statement of financial position



The following table provides an analysis
of financial instruments that are measured subsequent to initial recognition at fair value, grouped into a three-level fair value
hierarchy as mandated by IFRS 13, as follows:



Level 1 fair value measurements are those
derived from quoted market prices (unadjusted) in active markets for identical assets or liabilities.



Level 2 fair value measurements are those
derived from inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly
(i.e., as prices) or indirectly (i.e., derived from prices).



Level 3 fair value measurements are those
derived from unobservable inputs for the assets or liabilities.



|                                               |  | As of December 31, 2016 |  
|---------------------------------------------- |  | ----------------------- | -
|                                               |  | Level 1                 |  
|Financial assets                               |  |                         |  
|Mutual funds                                   |  |                         | —
|LEBACs                                         |  |                         | —
|Call option on minority interest (see note 23) |  |                         | —
|                                               |  |                         |  
|Financial liabilities                          |  |                         |  
|Contingent consideration                       |  |                         | —
|Put option on minority interest (see note 23)  |  |                         | —



|                                               |  | As of December 31, 2015 |  
|---------------------------------------------- |  | ----------------------- | -
|                                               |  | Level 1                 |  
|Financial assets                               |  |                         |  
|Mutual funds                                   |  |                         | —
|CEDIN                                          |  |                         | —
|LEBACs                                         |  |                         | —
|Call option on minority interest (see note 23) |  |                         | —
|                                               |  |                         |  
|Financial liabilities                          |  |                         |  
|Contingent consideration                       |  |                         | —
|Put option on minority interest (see note 23)  |  |                         | —



There were no transfers of financial assets
between Level 1 and Level 2 during the period.



The Company has applied the market approach
technique in order to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take
place between market participants at the measurement date under current market conditions. The market approach uses prices and
other relevant information generated by market transactions involving identical or comparable (i.e., similar) assets, liabilities
or a group of assets and liabilities.



F-63







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



27.10 Level 3



27.10.1 Contingent consideration



As explained in note 23, the acquisition
of Clarice included a contingent consideration agreement which was payable on a deferred basis and which will be subject to reduction
upon the occurrence of certain events relating, among other things, to the acquired company’s gross revenue, gross profit
and capacity.



As of December 31, 2016, the Company
remeasured the fair value of the contingent consideration related to Clarice described above, considering that the gross revenue
and gross profit target established by the second tranche payment, as defined in the purchase agreement, was partially met. Additionally,
during February, 2017, the Company signed an amendment to the original SPA defining a new structure of earn outs explained in note
23. Gain arising from the change in fair value amounted to 418.



As of December 31, 2016 and 2015,
the nominal value of contingent consideration related to Clarice amounted to 5,392 and 8,847, respectively. The potential undiscounted
amount of all future payments that the Company could be required to make under this agreement was between 2,695 and 5,664 as of
December 31, 2016 and 5,145 and 9,851 as of December 31, 2015. The fair value of the contingent consideration related
to Clarice arrangement of 5,063 and 8,451 as of December 31, 2016 and 2015, respectively, was estimated by discounting to
present value using a risk-adjusted discount rate.



As described in note 23, the acquisition
of WAE (jointly We are London Limited and We are Experience, Inc.) included a contingent consideration agreement which is payable
on a deferred basis and which will be subject to reduction upon the occurrence of certain events relating, among other things,
to the acquired company’s gross revenue and gross profit.



As of December 31, 2016, the nominal
value of contingent consideration related to WAE amounted to 10,000. The potential undiscounted amount of all future payments that
the Company could be required to make under this agreement was between 7,264 and 10,000 as of December 31, 2016. The fair
value of the contingent consideration arrangement of 9,647 as of December 31, 2016 was estimated by discounting to present
value using a risk-adjusted discount rate.



As of December 31, 2016, the nominal
value of contingent consideration related to L4 amounted to 9,000. The potential undiscounted amount of all future payments that
the Company could be required to make under this agreement was between 6,391 and 9,500 as of December 31, 2016. The fair value
of the contingent consideration arrangement of 8,604 as of December 31, 2016 was estimated by discounting to present value
using a risk-adjusted discount rate.



27.10.2 Put and call option on minority interests



The discounted consideration of the put
option over non-controlling interest of Dynaflows of 4,388 and 7,371 as of December 31, 2016 and 2015, respectively, was estimated
by discounting:



- In case the put option is exercised
in the third anniversary, 50% of the total of: 1) eight (8) times EBITDA multiplied by 0.50 according to the Company's most recent
audited annual financial statements at the time of the delivery of such exercise of the Put Option; plus 2) four (4) times Revenue
multiplied by 0.50 according to the Company's most recent audited annual financial statements at the time of the delivery of such
exercise of the Put Option;

- In case the put option is exercised
in the fifth anniversary, the total of: 1) eight (8) times EBITDA multiplied by 0.50 according to the Company's most recent audited
annual financial statements at the time of the delivery of such exercise of the Put Option; plus 2) four (4) times Revenue multiplied
by 0.50 according to the Company's most recent audited annual financial statements at the time of the delivery of such exercise
of the Put Option.



The expected payment is determined by considering
the possible scenarios. The significant unobservable inputs used are: (i) forecasted EBITDA and Revenue of the Dynaflows’s
most recent audited annual financial statements at the time of the delivery of such exercise of the put option, and (ii) risk-adjusted
discount rate (3.5%).



F-64







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Changing one or more of the significant
unobservable inputs used in the reasonably possible alternative assumptions would have the following effects:



|                            |  | Increase (Decrease) in unobservable input |      |    | Increase (Decrease) in call option | 
|--------------------------- |  | ----------------------------------------- | ---- | -- | ---------------------------------- | 
|Risk-adjusted discount rate |  |                                           | 0.5  | %  |                                    | 
|                            |  |                                           | (0.5 | )% |                                    | 
|Forecasted EBITDA & Revenue |  |                                           | 5    | %  |                                    | 
|                            |  |                                           | (5   | )% |                                    | 



The fair value of the call option on minority
interest of 319 and 321 as of December 31, 2016 and 2015, respectively, was estimated by using the Black & Sholes method
considering the EBITDA and Revenue of the Dynaflows’s most recent audited annual financial statements at the time of the
delivery of such exercise of the call option to present value using a risk-adjusted discount rate.



The expected payment is determined by considering
the possible scenarios. The significant unobservable inputs used are: (i) forecasted EBITDA and Revenue of Dynaflows’s most
recent audited annual financial statements at the time of the delivery of such exercise of the call option, and (ii) risk-adjusted
discount rate (0.5%).



Changing one or more of the significant
unobservable inputs used in the reasonably possible alternative assumptions would have the following effects:



|                            |  | Increase (Decrease) in unobservable input |       |    | Increase (Decrease) in call option | 
|--------------------------- |  | ----------------------------------------- | ----- | -- | ---------------------------------- | 
|Risk-adjusted discount rate |  |                                           | 0.25  | %  |                                    | 
|                            |  |                                           | (0.25 | )% |                                    | 
|Forecasted EBITDA & Revenue |  |                                           | 5     | %  |                                    | 
|                            |  |                                           | (5    | )% |                                    | 



As of December 31, 2016, the Company
recorded a gain of 2,981 related to the remeasurement at fair value of the put and call option described above.



Reconciliation of recurring fair value
measurements categorized within Level 3 of the fair value hierarchy:



|                         |  | Financial Assets                 |     |   | Financial liabilities    | 
|------------------------ |  | -------------------------------- | --- | - | ------------------------ | 
|                         |  | Call option on minority interest |     |   | Contingent consideration | 
|December 31, 2015        |  |                                  | 321 |   |                          | 
|Fair value remeasurement |  |                                  | (2  | ) |                          | 
|Acquisition of business  |  |                                  | —   |   |                          | 
|Payments                 |  |                                  | —   |   |                          | 
|Interests                |  |                                  | —   |   |                          | 
|December 31, 2016        |  |                                  | 319 |   |                          | 



27.10.3 Foreign exchange futures contracts



During the years ended December 31,
2016, 2015 and 2014, the Argentinian subsidiaries, Sistemas Globales S.A. and IAFH Global S.A. have acquired foreign exchange futures
contracts with SBS Sociedad de Bolsa S.A. (SBS) in U.S. dollars, with the purpose of hedging the possible decrease of assets’
value held in Argentine Pesos due to the risk of exposure to fluctuations in foreign currency. The foreign exchange futures
contracts were recognized, according to IAS 39, as financial assets at fair value through profit or loss. For the years ended December 31,
2016, 2015 and 2014 the Company has recognized a loss of 1,126, a gain of 7,152, and a loss of 1,069, respectively.



F-65







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



These futures contracts have daily settlements,
in which the futures value changes daily. Sistemas Globales S.A. and IAFH Global S.A. recognize daily variations in SBS primary
accounts, and the gains or losses generated by each daily position through profit or loss. Thus, at the closing of each day, according
to the future price of the exchange rate U.S. Dollar – Argentine peso, the companies perceive a gain or loss for the difference.
As future contracts have daily settlements, hence fair value as of December 31, 2016, 2015 and 2014 was zero.



Pursuant to these contracts, Sistemas Globales
S.A. and IAFH Global S.A. are required to maintain collaterals in an amount equal to a percentage of the notional amounts purchased
until settlement of the contracts. As of December 31, 2015, Globant S.A. held a 10% of the value of those collaterals in LEBACs
in SBS primary account. This ensures minimal funding, in case SBS has to transfer funds to “Mercado a Término de Rosario
S.A” (ROFEX) if losses are generated by daily settlements. This amount must also remain restricted during the term of the
contracts. As of December 31, 2015, both collaterals regarding the transactions are restricted assets for an amount of 5,125
in LEBACs included as investments. As of December 31, 2016, foreign exchange future contracts acquired by the Company were
all settled.



On December 10, 2015, a new president assumed
in Argentina. This new government considered that prices included in some future contracts signed during the previous government
did not reflect the real market value as compared with similar assets.



Consequently, on December 14, 2015, ROFEX
and Argentina Clearing S.A., issued the Communication No. 657 which applies to future contracts signed from September 29, 2015
with maturity date till June 2016. This Communication stated that for the future contracts included in the range of dates previously
mentioned, the gain or losses generated by each daily position through profit or loss should be calculated considering an additional
ARS 1.25 for dollar to the original price agreed for those contracts signed between September 30, 2015 and October 27, 2015; and
ARS 1.75 for dollar to the original price agreed for those contracts signed from October 28, 2015.



Additionally, on December 16, 2015, the
AFIP issued General Resolution No. 3818, which stated a regime of income tax withholdings to be applied to the gain obtained for
future contracts transactions considering the market price as of December 23, 2015. These withholding should be used to compensate
future income tax payments from the Company’s Argentine subsidiaries. As of December 31, 2015 total withholding amount
to 3,037.



NOTE 28 — CONTINGENCIES



On February 10, 2012, Federacion Argentina
de Empleados de Comercio y Servicios (‘‘FAECYS’’) filed a lawsuit against our Argentine subsidiary, Sistemas
Globales S.A., in which FAECYS is demanding the application of its collective labor agreement to the employees of that subsidiary.
According to FAECYS’s claim, Sistemas Globales should have withheld and transferred to FAECYS an amount of 0.5% of the gross
monthly salaries of Sistemas Globales’s employees from October 2006 through October 2011.



Although we believe Sistemas Globales has
meritorious defenses to this lawsuit, no assurance can be provided as to what the ultimate outcome of this matter will be. In the
opinion of our management and our legal advisors, an adverse outcome from this claim is not probable. Consequently, no amount has
been accrued at December 31, 2016. We estimate that the amount of possible loss as of the date of issuance of these financial
statements ranges between $0.7 and $0.8 million, including legal costs and expenses.



In December 2015, we received a civil investigative
demand from the U.S. Attorney's Office for the Northern District of Texas (the “US DOJ”) for the production of records
in connection with an investigation relating to alleged non-compliance with laws governing the application for and use of B visas
during the period January 1, 2009 through December 31, 2015 (the “Relevant Period”).



In order to avoid the inconvenience and
expense of litigation, we settled this matter by entering into a Settlement Agreement with the US DOJ (“Settlement Agreement”)
on March 15, 2017. Under the terms of the Settlement Agreement, we denied the US DOJ’s allegations and all liability in connection
with the conduct alleged by the US DOJ to have involved 21 employees from June 2010 through December 2012. Under the Settlement
Agreement, we agreed, among other things, to pay an amount equal to $1.0 million. Of that amount, $500,000 is attributable to penalties
connected to the above-described conduct and $500,000 is attributable to reimbursement of the US DOJ’s investigative costs.
In return, the US DOJ has agreed, among other things, to release us and/or our affiliates from any civil or administrative monetary
claim that the US DOJ has for the above-described conduct during the Relevant Period with respect to the foreign nationals referenced
in the Settlement Agreement, subject to customary exceptions.



F-66







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



Our U.S. subsidiary, Globant LLC, is currently
under examination by the Internal Revenue Service (“IRS”) regarding payroll and employment taxes primarily in connection
with services performed by employees of certain of our subsidiaries in the United States from 2013 to 2015. Such examination is
currently in progress and, at this stage, we cannot make any predictions about the final outcome of this matter.



As of December 31, 2016, the Company
is also a party in certain labor claims where the risk of loss is considered possible. The final resolution of these claims is
not likely to have a material effect on the Company’s financial position and results of operations.



The Company’s US subsidiary, Globant
LLC, was under examination for fiscal year 2012 by the Internal Revenue Service (“IRS”) regarding transfer pricing
matters and others related to the activities performed by the Company’s subsidiaries in the US. On August 31, 2016, the IRS
issued final outcome of the audit resulted in no adjustment to the originally reported profit of the Company on the 2012 income
tax return.



During the year ended December 31, 2016, some labor claims
where the Company was involved came to final resolution and a utilization of the provision for contingencies was recorded for an
amount of 400.



NOTE 29 — CAPITAL AND RESERVES



29.1 Issuance of common shares



On December 31, 2016, 243,915 common
shares were issued after vested options arising from the 2012 and 2014 share-based compensation plan were exercised by some employees.
Options were exercised at an average price of 7.64 per share amounting to a total of 1,863.



On November 14, 2016, the Company issued
70,380 common shares for an amount of 2,970 as part of the subscription agreement stated in the Stock Purchase Agreement signed
with L4's sellers, explained in note 23.



On July 25, 2016, the Company issued 23,508
common shares for an amount of 900 as part of the subscription agreement signed with Clarice's sellers, explained in note 23.



On May 23, 2016, the Company issued 75,221
common shares for an amount of 2,550 as part of the subscription agreement stated in the Stock Purchase Agreement signed with WAE's
sellers, explained in note 23.



On January 22, 2016, the Company granted
11,213 treasury shares at a price of $ 27.2 per share to Mr. Spitz to cancel the remaining liability of 305, related to the acquisition
of the minority interest of Huddle Group. The Company withholds the remaining amount of 20 as an escrow till October 23, 2019.



On December 31, 2015, 545,649 common
shares were issued after vested options arising from the 2012 and 2014 share-based compensation plan were exercised by some employees.
Options were exercised at an average price of 4.10 per share amounting to a total of 2,236.



On July 16, 2015, the Company issued 43,857
common shares for an amount of 900 as part of the subscription agreement signed with Clarice's sellers, explained in note 23.



On April 30, 2015, the Company granted
to one employee 30,000 common shares to be carried out in two tranches: 15,000 shares delivered during April 2015 and the remaining
15,000 shares was delivered on 1 April 2016. Shares were granted at a price of 21.01 per share amounting to a total of 315 per
year.



On December 21, 2014, 258,742 common shares
were issued in respect of vested options arising from the 2012 share based compensation plan, exercised by 15 employees. Options
were exercised at an average price of $ 4.21 per share.



F-67







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



On July 23, 2014, the Company successfully
completed the initial public offering (IPO) of common shares in the New York Stock Exchange. The Company issued 4,350,000 common
shares, at a price of $ 10 per share, raising an overall amount of approximately 40,455, net of underwriting discounts for
an amount of 3,045. After the deduction of IPO related expenses for an amount of 2,722, the net increase of capital and shared
premium from the offering totaled 37,733. In addition, certain of the existing shareholders sold 2,377,500 of their shares, at
a price of $ 10 per share.



On July 15, 2014, the Company increased
its issued capital in an amount of $ 12.60 that has been paid out of available reserves currently recorded in the accounts of the
Company.



29.2 Reverse Share Split



On June 18, 2014, the extraordinary general
meeting of shareholders of the Company conditionally approved (a) the reclassification of the existing 10 classes of shares of
the Company into a single class of common shares all having the same economic and voting rights and (b) the amendment of the Company’s
issued share capital of 34,794 to reflect 28,995,158 common shares having a nominal value of 1.20 per share, in each case, conditional
upon and with effect solely from and after the approval at a subsequent extraordinary general meeting of shareholder of the Company
of a change in the nominal value of the existing shares of the Company from 0.10 per share to 1.20 per share and, concurrently
therewith, the effecting of a 1-for-12 reverse share split so that the existing shares of the Company having a nominal value of
0.10 per share shall be exchanged against new common shares of the Company having a nominal value of 1.20 per share, such subsequent
extraordinary general meeting occur not later than the business day prior to the business day on which the U.S. Securities and
Exchange Commission declares the Company’s registration statement on Form F-1 effective. All issued and outstanding shares
and options exercisable for shares have been adjusted to reflect this reclassification and reverse share split for all periods
presented.



29.3 Public offerings



On March 30, 2015 the Company successfully
completed its secondary public offering. Registration statement relating to the offering became effective on March 26, 2015. On
March 27, 2015, the underwriters of the previously announced secondary public offering of 3,473,382 common shares exercised
in full their option to purchase an additional 521,008 common shares from certain of the selling shareholders to cover over-allotments
as provided in the underwriting agreement among the Company, the selling shareholders and the underwriters. Including the additional
shares, a total of 3,994,390 common shares were sold in the offering. The common shares were sold to the public at a price of 18.50
per share. The Company did not receive any proceeds from the sale of common shares by the selling shareholders.



On July 8, 2015 the Company successfully
completed a new secondary public offering. Registration statement relating to the offering became effective on July 8, 2015. On
July 9, 2015, the underwriters of the previously announced a new secondary public offering of 3,500,000 common shares exercised
in full their option to purchase additional 525,000 common shares from certain of the selling shareholders to cover over-allotments
as provided in the underwriting agreement among the Company, the selling shareholders and the underwriters. Including the additional
shares, a total of 4,025,000 common shares were sold in the offering. The common shares were sold to the public at a price of 28.31
per share. The Company did not receive any proceeds from the sale of common shares by the selling shareholders.



On August 2, 2016, the Company applied
to the Luxembourg Stock Exchange for listing on the Official List of the Luxembourg Stock Exchange and for the admission to trading
on its regulated market of 34,594,324 existing common shares, issued in registered form, with a nominal value of US$ 1.20 each,
representing the entire share capital of the Company at that moment. The fees estimated in connection with the listing of the common
shares amounted to 162 and are including within professional services.



On August 11, 2016, the Company applied
to the Luxembourg Financial Sector Supervisory Authority (Commission de Surveillance du Secteur Financier) (the “CSSF”)
in its capacity as competent authority, for the approval of the Company’s prospectus, which was approved by the CSSF on August
11, 2016.



As of December 31, 2016, 24,409,182
common shares of the Company's share capital are registered with the SEC and quoted in the New York Stock Exchange.



F-68







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



NOTE 30 - APPROPRIATION OF RETAINED
EARNINGS UNDER SUBSIDIARIES ́ LOCAL LAW



In accordance with Argentine and Uruguayan
Law, the Argentine subsidiaries of the Company must appropriate at least 5% of net income for the year to a legal reserve, until
such reserve equals 20% of their respective share capital amounts.



As of December 31, 2016, the legal
reserve amounted to 925 for all Argentine subsidiaries and as of that date was fully constituted.



As of December 31, 2016, the legal
reserve amounted to 42 for the Company’s Uruguayan subsidiary and as of that date was fully constituted.



According to the ByLaws of Sistemas Colombia
S.A.S., the Colombian subsidiary of the Company must appropriate at least 10% of the net income of the year to a legal reserve
until such reserve equal 50% of its share capital. As of December 31, 2016, there was a legal reserve of 0.4 that was fully
constituted.



Under Spanish law, the Spanish subsidiaries
of the Company must appropriate 10% of its standalone profit to a legal reserve until such reserve equals to 20% of their respective
share capital amount. As of December 31, 2016, no reserve had been constituted.



In accordance with Brazilian Law, there
is no requirement for limited liability companies to allocate profits for the creation of a legal reserve. The Company’s
Brazilian subsidiary did not have a legal reserve as of December 31, 2016.



Under Luxembourg law, at least 5% of our
net profits per year must be allocated to the creation of a legal reserve until such reserve has reached an amount equal to 10%
of our issued share capital. If the legal reserve subsequently falls below the 10% threshold, at least 5% of net profits again
must be allocated toward the reserve. If the legal reserve exceeds 10% of our issued share capital, the legal reserve may be reduced.
The legal reserve is not available for distribution. As of December 31, 2016, no reserve had been constituted. Dividends paid
by the Company to the holders of our common shares are as a rule subject to a 15% withholding tax in Luxembourg, unless a reduced
withholding tax rate applies pursuant to an applicable double tax treaty or an exemption pursuant to the application of the participation
exemption, and, to the extent withholding tax applies, we are responsible for withholding amounts corresponding to such taxation
at its source.



In accordance with Peru corporate law,
the Peruvian subsidiary of the Company must reserve at least 10% of its net income of the year to a legal reserve, until such reserve
equals 20% of its respective amount capital stock. As of December 31, 2016, there was no legal reserve constituted.



According to Mexican Law, the Mexican subsidiary
of the Company must appropriate at least 5% of net income for the year to a legal reserve, until such reserve equals the fifth
portion of their respective share capital amounts. As of December 31, 2016, there was no legal reserve constituted.



Regarding India Law, the Companies Act,
2013 does not mandate any fixed quantum of profits to be transferred / allocated to the reserves of a company. As of December 31,
2016, the legal reserve amounted to 17 for the Company’s Indian subsidiary.



In UK there is no requirement for the UK ́s
Company subsidiary to allocate profits for the creation of a legal reserve. As of December 31, 2016, there was no legal reserve
constituted.



In Chile there is no requirement for the
Chilean subsidiary of the Company to allocate profits for the creation of a legal reserve. As of December 31, 2016, there
was no legal reserve constituted.



F-69







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



NOTE 31 – SUBSEQUENT EVENTS



The Company evaluated transactions occurring
after December 31, 2016 in accordance to IAS 10 ‘Events after the reporting period’, through March 29, 2017,
which is the date that the consolidated financial statements were made available for issuance.



31.1 Acquisition of Ratio



On February 28, 2017, Globant LLC acquired
100% of shares of Ratio Cypress, LLC (“Ratio”), a limited liability company organized and existing under the laws of
the State of Washington, United States. Ratio offers design, development and quality assurance services necessary to build and
manage robust digital products and video streaming solutions for major media companies. Total headcount of Ratio was 45 employees
with operations in United States. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth,
future market development and the assembled workforce of Ratio.



The aggregate purchase price under the
Stock Purchase Agreement (“SPA”) amounted to 10,800. Such purchase price may be subject to adjustments based on the
future performance of Ratio and is payable to the seller as follows:



Up-front payment: As of
the closing date, the Company paid an aggregate consideration of 5,800 to the seller.

| | • | First earn-out payment: Not later than February 15, 2018, the amount of 2,000, considering
the financial, pull though and integration targets achievement by Ratio during the period commencing on March 1, 2017 and ending
on December 31, 2017.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Second earn-out payment: Not later than February 15, 2019, the amount of 2,000, considering
the financial and pull though targets achievement by Ratio during the period commencing on January 1, 2018 and ending on December
31,h 2018.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Third earn-out payment: Not later than February 15, 2020, the amount of 1,000, considering
the financial and pull though targets achievement by Ratio during the period commencing on January 1, 2019 and ending on December
31, 2019.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



As of the date of issuance of these consolidated
financial statements due to the recent of this acquisition, the accounting for this acquisition is incomplete; hence, pursuant
the guidance in paragraph B66 of IFRS 3, the Company has not included in this footnote the following disclosures as required by
such standard, as follows:



| | • | Fair value of the total consideration transferred since the Company has not completed the fair
value analysis of the consideration transferred as of the date of issuance of these financial statements.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | The amounts recognized as of the acquisition date for each major class of assets acquired and liabilities
assumed, the total amount of goodwill (including a qualitative description of the factors that make up the goodwill recognized
and the amount of goodwill that will be deducted for tax purposes) and other intangibles, as applicable.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | The gross contractual amounts of the acquired receivables, and the best estimate at the acquisition
date of the contractual cash flows not expected to be collected. For each contingent liability to be recognized, if any, an estimate
of its financial effect, an indication of the uncertainties relating to the amount or timing of any outflow and the possibility
of any reimbursement, and the reasons why the liability cannot be measured reliably, if applicable.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | The amount of revenues and profit or loss of the acquired subsidiary since the acquisition date,
and the amount of revenues and profit or loss of the combined entity as if the acquisition has been made at the beginning of the
reporting period, since the acquired subsidiary did not have available financial information prepared under IFRS at the acquisition
date. The preparation of this information under IFRS has not been completed as of the date of issuance of these financial
statements.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



31.2 Investment in Acamica



On January 26, 2016, the Company signed
a subscription agreement with Ignacio Moreno, Tomás Escobar, Gonzalo Orsi and Juan Badino (jointly “the Founders”);
Fitory S.A., a company organized under the laws of Uruguay; Wayra Argentina S.A., a corporation organized under the laws of Argentina;
Stultum Pecuniam Ventures LLC, a limited liability company organized under the laws of the state of Washington, United States;
Ms. Eun Young Hwang (“Rebecca”); Acamica S.A., a company organized under the laws of Argentina (“Acamica Argentina”)
and Acamica Inc, a corporation organized under the laws of the state of Delaware, United States (“Acamica US” and together
with Acamica Argentina, the “Acamica Group Companies”) whereas the Founders own 100% of the capital share of Acamica
Group Companies and shall form a new company organized under the laws of Spain (“Holdco”) which shall own 100% of the
capital shares of Acamica US and 97% of the capital shares of Acamica Argentina. On January 3, 2017, pursuant to the terms of the
subscription agreement the Company made a capital contribution of 750 to the Acamica Tecnologías S.L. (previously referred
as Holdco) in exchange for a 20% ownership stake in the entity.



F-70







GLOBANT S.A.



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

As of December 31, 2016 and 2015 and for
the three years in the period ended December 31, 2016

(amounts are expressed in thousands of U.S.
dollars, except where expressly indicated that amounts are stated in thousands of other currencies)



NOTE 32 – APPROVAL OF CONSOLIDATED
FINANCIAL STATEMENTS



The Consolidated Financial Statements were
approved by the Board of Directors on March 29, 2017.



Martín Migoya

President



F-71