India, China, and Eastern Europe have dominated the Nearshore and Outsourcing industry for the longest time. However, countries like Portugal are gaining newfound recognition as one of the premier choices for these services, disrupting these industries at lightning speed.
Here's why Portugal is growing as a Nearshore and Outsourcing destination and why you should start considering moving your IT services here:
A Strategic Location
Located in Western Europe, Portugal shares the same time zone as the UK and Ireland, and it is just one hour behind Central European Time (CET).
This proximity facilitates real-time communication and collaboration, reducing delays and enhancing productivity. For US companies, Portugal’s position allows for convenient overlapping work hours with the East Coast.
It also means that Portugal is always, at most, operating one or two hours behind Nordic countries like Denmark, Norway, Sweden, and Finland and one hour behind Germany.
Working with Portugal means that time constraints will, by default, be reduced to a minimum.
Skilled Workforce
Portugal stands out as one of the world's most highly educated and multilingual countries and workforce. With several universities ranking in the top spots for technical and engineering programs, Portugal has been a producer of highly skilled developers, engineers, and IT specialists.
Moreover, the level of English proficiency in Portugal is among the highest in Europe which makes communication easy for international companies. In addition, many Portuguese professionals are fluent in other languages like Spanish, French, and German thereby widening their reach and scope among multinational firms.
Cost-Effective Talent
While the level of talent is world-class and up to date with the world-leading industry's best practices, Portuguese talents are considerably more cost-effective when compared to their European counterparts.
This cost advantage enables companies to access high-quality talent and services without the high cost typically associated with more traditional outsourcing locations.
Not only are you getting the talent you need, but you will also get it for a price you wouldn't get anywhere else.
Robust Country-Wide Infrastructure
Portugal has, for decades, significantly upgraded its infrastructure, focusing on technology and telecommunications.
The country now has a high-speed internet network and modern IT systems, ensuring smooth connectivity and efficient operations.
Your outsourced workers will always have reliable, stable, and high-speed internet connections, a valuable resource when it comes to collaborative multi-country work.
Additionally, Portugal's well-established transportation network makes travel and logistics management straightforward, a key factor for businesses needing regular on-site visits.
Business-Friendly Environment
Portugal's law exists within a Western frame of law and with a business-friendly environment.
Some of the steps taken to foster over the years have been tax incentives for foreign companies, simplified administrative procedures, and support for startups and innovation.
Additionally, there are many government agencies and chambers of commerce dedicated to fostering business growth and support for international companies that wish to either hire in or take their business to Portugal.
Portugal’s legal framework is transparent and aligned with European Union standards, providing a stable and predictable environment for business operations.
Political Stability
Portugal is a Western democracy, characterized by a long-standing multiparty parliamentary system, with no civil conflict or unrest of note.
It has Spain as its only geographical neighbor and is part of the European Union, NATO, the United Nations, and other organizations like CPLP - The Community of Portuguese Language Countries.
This means that not only Portugal is part of the world's major organizations, but it also has access to the European Single Market, its own geopolitical zone in the CPLP, and close links to the USA through NATO.
Final Notes
With all its endogenous characteristics and the decades-long investment in a skilled and highly educated workforce, world-class infrastructure, and increasing business ease, Portugal is positioning itself as the new market for great talent at an affordable price, ready to become the new home for companies from the Nordic countries like Sweden, Norway, Denmark, and Finland, or to Central Europe countries like Germany.
If you're seeking to capitalize on Portugal's exceptional talent pool, competitive business environment, and world-class infrastructure to expand your Nordic or Central European company, reach out to us. As your strategic partner, Syone can help you harness Portugal's unique advantages, ensuring a seamless expansion that unlocks new growth opportunities and cost-effective solutions.
Contact Syone now to discover how we can pave the way for your business success in this promising market. Learn more here.
