Nearshoring in Portugal - Good for companies and good for the country

How can Portugal benefit from this new opportunity? What makes Portugal a preferred destination for Nearshore? Why are big companies like Google, Amazon and Microsoft moving here?

         João Malpica BOLD


Article by João Malpica
International Business Unit Director

Last year, organizations embraced new technologies and accelerated their digital transformation efforts at the fastest pace in the past decade. The need for social distancing, confinement and economic contraction has led to a new way of understanding work, how the market functions and technology.

CIOs have responded to this challenge by reassessing their outsourcing models, privileging the symbiosis between the response to the immediate needs and the long-term strategy.

Outsourcing has been a reality for many companies since the 1950s, which initially used this model to delegate some non-essential services or tasks. Over the years, outsourcing has become the solution to the lack of talent in IT, gaining importance in organizations.

IT Outsourcing is now a solution used by many companies in some of its services, projects and key areas, which has led to the emergence of offshoring as a response to finding qualified talent and reduce costs - moving services and skills to geographically very dispersed and remote regions.

Nearshore as a response to the new work challenges

 

After the initial economic shock caused by the pandemic, organizations began to recognize the potential of remote work and to realize that productivity and performance were not affected by employees not being physically in the office.

It was clear, therefore, that Nearshore Software Development could be part of a companies' digital transformation strategy, with advantages over offshoring.

But how can Portugal benefit from this new opportunity? 

What makes Portugal a preferred destination for Nearshore?

Why are big companies like Google, Amazon and Microsoft moving here?

When looking for a Nearshore partner, there are several reasons to take into account, but the first and perhaps the most important is the quality and guarantee of the service provided: if, on the one hand, Portugal has some of the best universities in Europe, it is also true that the cost of living in the country is lower when compared to other countries like England, France and Germany. This reason alone would be enough to make our country a competitive option to consider, but there are others.

One of the advantages of a Nearshore collaboration, when compared to Offshore, is the geographic proximity and the reduced difference between time zones. It not only allows for quick travel to our country in case of need, but the time difference of just one hour to the main European capitals also allows for quick communication and no delays. In addition, the extra hour can also be used to speed up delivery times and thus increase project profitability.
 
Of course, Portugal's advantages don't end here. Those who know our country see in us a welcoming, friendly and communicative people and, when it comes to our weather and gastronomy, there is no doubt that we stand alongside the best in the world.

Choosing a country and partner with which to start a Nearshore collaboration model is not a decision to be taken lightly. More than knowing if it is an economically favourable decision, organizations must ensure that it is aligned with their strategic objectives.

In conclusion, Portugal is in a sweet spot that helps the decision-making process for any company looking for a Nearshore partner: between our top-rated universities; our ease of communication; our superior location; and the food, weather and culture; there's no lack of good reasons to choose Portugal as your companies' next destination.

 

 

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