Nearshore in Portugal: Your Simplified Advantage

"At Smart Nearshore, we not only recognize Portugal's pivotal role in the IT landscape but also empower our clients with cost savings and access to an innovative ecosystem." - João Marques, Business Unit Manager at Smart Nearshore.

Why Choose Portugal for Nearshore

In recent years, nearshoring has emerged as a strategic approach for companies looking to enhance operational efficiency and reduce costs. Among the key nearshoring destinations, Portugal has emerged as a dynamic IT hub, alluring global businesses for its unique blend of advantages.

Here's why Portugal should be at the top of your list for outsourcing operations.

Skilled Workforce

A promising talent hub, Portugal boasts a highly educated and skilled workforce. The country has a strong emphasis on education, particularly in fields such as information technology, engineering, and business.

6 Portuguese universities are among the best in the world, and produce a steady stream of talented graduates who are well-versed in the latest technologies and methodologies.

English Proficiency

Portugal’s workforce is not only skilled but highly proficient in English, making communication with international clients and partners straightforward and effective.

Ranking 8th globally in English proficiency, Portugal ensures smooth communication in a multicultural business environment. 

Strategic Location and Time Zone

Strategically situated on the western edge of Europe, Portugal provides easy access to major European markets, including the UK and Germany, serving as an ideal gateway for nearshore partnerships. Its time zone (GMT +1) is the same as London, which ensures minimal time zone differences for companies based in the rest of Europe. This proximity facilitates real-time communication and collaboration, shorter travel times, and more efficient management of nearshore teams.

Additionally, Portugal's well-developed infrastructure, including major airports and seaports, supports seamless connectivity with the rest of the world. The country has direct connections to the United States and Brazil, currently two of the world’s fastest-growing tech hubs.

Business-Friendly Environment

Portugal has made significant strides in creating a business-friendly environment. The country offers several business-friendly policies, such as incentives for foreign investment, including tax breaks and grants for companies that set up operations in Portugal and streamlined visa processes.

The Portuguese government is committed to supporting the technology and innovation sectors, which is evident from the numerous tech hubs and incubators that have sprung up across the country.

Thriving Tech Ecosystem

Portugal has rapidly become a hub for technology and innovation. Cities like Lisbon and Porto are home to vibrant tech communities, hosting numerous startups, tech conferences, and innovation centers.

In the last few years, Portugal has been home to 7 unicorn companies: Farfetch, OutSystems, Talkdesk, Feedzai, Remote, Sword Health and Anchorage Digital. Moreover, several multinational companies like Google, Microsoft, Nokia, and Bosch have already chosen Portugal as their technological hub.

Competitive Costs

While Western Europe is known for high labour costs, Portugal offers a more cost-effective alternative without compromising on quality. The cost of living in Portugal is relatively lower compared to other Western European countries, translating into competitive wages for skilled labour.

In 2024, Portugal ranks 60th place in the Cost-of-Living Index. This cost advantage allows companies to maximize their budgets and invest more in innovation and growth.

Cultural Affinity and Quality of Life

Portugal shares cultural values with many Western countries, particularly those in Europe and the US. This cultural alignment fosters effective communication and collaboration, making it a preferred choice for successful nearshore partnerships. The country also enjoys political and economic stability, making it a reliable partner for long-term business engagements.

Moreover, one of Portugal's most attractive features is its quality of life. With a mild climate, stunning landscapes along the coastline, and rich cultural heritage, Portugal is an appealing place for expats and their families. This life quality helps attract and retain top talent and contributes to a positive work environment, ensuring stability and continuity for nearshore operations.

Why Choose Smart Nearshore

As businesses explore the potential of nearshoring in Portugal, Smart Nearshore stands as a seasoned partner with a decade of experience. Our approach goes beyond cost-effective solutions, emphasizing collaboration, cultural alignment, and access to a long-time expertise and skilled workforce.

"Smart Nearshore has witnessed the transformative power of Portugal's IT capabilities. Our clients benefit not just from cost savings but from a thriving ecosystem that fosters innovation." - João Marques, Business Unit Manager at Smart Nearshore.

We offer two delivery models to our partners:

- Team Extension: We use our precise recruitment and our pool of top-notch candidates to add value to your internal team.

- Team-as-a-Service: We set up Scrum nearshore teams to partner with our clients. This is the real tailored solution for your IT needs, designed by an architectural team with a specific company, project and goal in mind.

But really, why us? Here are six compelling reasons:

- Delivery Center: We have a well-structured Nearshore Delivery Center in Lisbon.

- Reaction Capacity: We value promptness in the project. As such, we guarantee a quick reaction time and a high level of responsiveness to your IT needs.

- Precise Recruitment: Our recruitment teams work on three levels – direct hiring, specialized recruitment, and Smart Consultants. Having access to a pool of candidates means being able to choose the perfect fit for each project.

- Technical Validation: Before assembling a solution, we assess our consultants with our vast know-how on the IT market, using Codility as a tool for technical validation.

- Regular Follow-ups: We value a proactive solution style so that we can adjust and manage the team and the project as we go along. Once a project begins, we start doing regular follow-ups with the client and the team.

- Expertise: Our clients and partners represent diverse sectors of activity. We developed a wide range of expertise by having the opportunity to work on different challenging projects.

Conclusion

Choosing Portugal for nearshoring offers a strategic advantage through a combination of location, skilled workforce, cost efficiency, and a supportive business environment. The country’s high quality of life, robust tech ecosystem, and strong government support further enhance its appeal.

For companies looking to optimize their operations and drive innovation, Portugal presents a compelling nearshore destination that combines the best of business and lifestyle. And as for us, we are the smart solution for your nearshore needs.

Your journey toward IT excellence in Portugal starts here. Get in touch!