25 October 2017

Portugal, a potential nearshore destination

Nearshore is a topic that is increasingly debated globally. And, there are several companies that have been betting on making this kind of service available to their customers. Portugal has a significant percentage of professionals in the IT field, with a high capacity for adaptation and use of new technologies, being already a country recognized globally by large companies that compete in the international market.

In this way, Portugal presents more advantages than disadvantages, as a destination to install technology service centers. With the goal of cost optimizations, companies have been using offshore for many of the projects and services they require, however, this model works better in some industries than others.

Over time, this model showed some disadvantages, namely the lack of available professionals with sufficient technical knowledge, problems with language issues in daily activities (video and audio calls, for example), difficulty in involving the teams in face-to-face sessions at critical periods of projects, as well as the issue of cultural differences and instability in the countries of origin of these professionals.

Thus, given this reality, many companies have moved and are moving these functions to closer places, especially those that require more interaction with teams and business areas, as well as more technical knowledge. In this way, these same companies are, on one hand, concerned with reducing costs, but, on the other, do not leave aside the quality of the products and services presented.

Given this, Portugal, with its strategic location, is increasingly an option for the installation of competence centers and provision of services at the level of information technologies. This choice is due to several factors, ranging from high team skills, technical quality, language skills, flexibility, adaptability, excellent response time capability, as well as the competitive value facing other countries, geographical location and the current safety level.

Another advantage is the fact that Portugal increasingly focuses on the development of infrastructures and communications, such as broadband coverage and new generation networks, as well as the incentive to innovation, research and development, which allows a range of very competitive services.

In addition to the attractive value of services in Portugal, there are other factors that contribute to making our country a profitable option, such as office, hotel and restaurant costs. These, together with the favorable climate, in all contribute to a growing desire of executives to establish their base here.

Thus, we can easily understand that it is not only a factor that makes companies choose Portugal as the perfect place to install their nearshore offices, but rather by offering a set of advantages.

In order to respond to the new requirements of the market, Competence Centers are increasingly providing customers with advantages, namely in the services they provide, ie enabling customers to reduce costs, improve response time (time-to-market), working with experienced, flexible and linguistically proficient teams to operate more efficiently.

Each nearshore Center has its own organization and management to optimize knowledge sharing, promote best practices and create the best methodologies. The Nearshore Center is a strategic initiative that provides the right resources to on demand customers, with excellence processes related to security, quality assurance and engagement.

The main challenge of the nearshore model is related to the natural tendency to work with local teams instead of remote teams, as well as the increasing competition of countries with costs equivalent to those of Portugal, which is combated through the excellence of work and focus on value creation, the offer of the best of breed and the high level skills of the teams, thus creating a differentiating and very competitive offer in the market.

We believe that this is a path for the development of Portugal and for the creation of qualified and value-adding jobs. At the same time, the qualifications of Portuguese talent are promoted and there are also very attractive opportunities and challenges for young graduates.

Portugal is like this, a destination of choice for nearshore.

Opinion article published in media NTech – October 25, 2017