Insights

Why nearshoring IT services in Portugal?

Hexis the best company to Nearshore in Portugal.

in Team as a service, IT Strategy, Software development, IT outsourcing By Raquel, Communications Specialist

Let's start by the definition of Portugal: a small paradise by the sea, with a warrior people full of traditions.

Beyond beaches, gastronomy and meteorology, there is a country that is creating a real technological revolution. Historically Portugal has an eternal musical tradition and sports tradition that we have evolved and also become recognized as a small country with one of the best football teams in the world.

We leveraged in our culture behind in the best way we know: talent, technology and teamwork. With these elements and the upmost capacity in all European countries to adapt to other cultures, due to our historical roots, we can detail our mix to the success of these elements as follows:

Talent

Portuguese with the Anglo-Saxon root is one of the most natural languages to adapt to English. The 2019 "World Talent Ranking" index, our country was categorized as 7th in terms of language skills, showing how business-friendly Portugal is. The figure below (source: www.imd.org) shows the overall ranking of Portugal.

Figure 1 - World talent ranking report 2019, country profile Portugal

This study has another curious fact about Portugal: the overall percentage of graduates in ICT, Engineering, Mathematics and Natural Sciences.

Currently, we are categorized 11 as in countries worldwide of people graduating in these study areas, showing the investment and interest in these subjects of study and development, translating to a quality pool of IT engineers to create fantastic software.

It is also important to point out an essential factor about the percentage of women scientists and engineers: as the table below shows, the Portuguese scientific world is also divided by the gender level. (source: https://2019.stateofeuropeantech.com).

Figure 2 - State of European tech 2019, diversity & inclusion

Teamwork

Proximity and teamwork become two essential factors within the Nearshore model. Portugal is in the same timeline as the UK, with only 1-hour difference to Central Europe: a decisive factor for those who consider opting to extend their team in another country, where Portugal is showing up as an ideal location.

Figure 3 - State of European tech 2019, country profile Portugal

Currently, we can count on more than 90,000 developers throughout the Portuguese territory, with gross annual gains of between 30k to 35k euros and employment rates of up to 96%.

Although a developer's salary is considered medium/high in Portugal, they still lag behind the rest of Europe, which could be a cost/benefit advantage: having the best talent at affordable rates to scale-up IT teams.

Technology

We have the talent, we have the proximity, but we also have the accessibility. The Portuguese territory can count on about 97% fixed broadband coverage, and we are considered the 2nd in ultrafast broadband take-up. (source: https://ec.europa.eu/digital-single-market/en/european-digital-progress-report)

In terms of infrastructure, both transport and digital access, we are considered in 18th place worldwide, which demonstrates the public investment made over the last three years.

Figure 4 - Europe’s digital progress report (EDPR) 2019, country profile Portugal

This data only confirms the real technological revolution that is taking place in the country, where we are witnessing a remarkable evolution of the digital world in almost all business sectors.

In conclusion, the Portuguese technological sector in one of the most evolved in Europe. Portugal can create and help all market segments, as well as, to assist the rest of Europe and the world, with the best that Nearshore services can offer, scaling-up teams and supporting with know-how. Another key factor on how the technological ecosystem in Portugal as evolved is the Intellectual Property (IP) protection. Portuguese law is very supportive of what concerns securing the client’s IP protection rights. This alignment in terms of IP laws was key to establish Portugal as a European technological reference. The IT Nearshore market in Portugal is not only driven by a low cost compared to other European countries but with all the associated elements of a modern digital world, and with the best pool of talent available in Europe.

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