With more than 90,000 highly skilled IT professionals, Portugal has risen as a popular IT outsourcing hub. The country’s main selling points in terms of software development outsourcing are a skilled workforce and competitive pricing. If you’re considering outsourcing your IT services to Portugal, this guide will help you navigate the landscape. Keep reading to get an ultimate overview of IT outsourcing Portugal. We will discuss the benefits of outsourcing to this location, offer tips for finding the right outsourcing partner, and draw conclusions to help you make a decision.
Overview of the Portuguese IT Outsourcing Market
Let’s start with a brief general overview of the Portuguese IT outsourcing market. Studies show that the country’s software development market is projected to reach €905.7 million by the end of 2023. Besides, local authorities are very favorable to the companies that boost Portugal’s IT industry. In particular, the Portuguese B2B IT market already accounts for 10% of the country’s GDP. All these numbers highlight the fact that the country is growing to become one of Europe’s IT industry leaders. One more important thing about Portugal is its EU membership. This means that the country’s businesses operate within the same legal system as most Western European states. No wonder, this small country is so popular among customers from Germany, France, Netherlands, Belgium, Italy, and Sweden. Finally, there is a great number of ambitious startups in Portugal. Mostly, it goes about young teams willing to find lucrative international contracts. These specialists are success-driven and ready to take on the biggest challenges in the IT industry to showcase their skills.
Benefits of Outsourcing IT Services to Portugal
Cooperation with IT outsourcing companies in Portugal offers several key advantages:
- Cost-efficiency: As previously mentioned, the cost of IT outsourcing in Portugal is competitive. This country is an attractive option for companies looking for high quality at a reasonable cost.
- Access to multilingual talent: Portugal’s workforce is proficient in multiple languages. Also, the Portuguese are notable for very high levels of English proficiency. These factors make the country a perfect outsourcing destination for international businesses.
- European data protection compliance: Portugal’s adherence to EU data protection regulations ensures that your data remains secure and compliant.
- High-quality workforce: Portuguese universities are known for their strong focus on STEM education. There are also many technical courses and professional programs available to the citizens of this country. As a result, Portugal’s largest tech hubs, such as Porto and Lisbon, give international customers access to very solid talent pools.
- Proximity to European markets: Portugal’s location within Europe facilitates proximity to major European markets. Apart from excellent cultural fit, this means time zone proximity.
Tips for Finding an Outsourcing Partner in Portugal
Now, it’s time to dive into the practical side. These are the essential tips that will help you find the right IT outsourcing companies in Portugal. So, these are the steps you should take to gain real value.
Clearly define your needs and priorities
Understand your project objectives, scope, expectations, and preferred outsourcing model. Make sure to outline your priorities, whether it goes about cost, speed of development, or some experimental features. Ideally, all this information will help you come up with a checklist. You will be able to use this checklist while finding a partner with the specific expertise and capabilities you need. Also, make sure to prepare a short list of requirements that will be displayed to your potential outsourcing partner. This part is vital for making your software development team or an agency that helps you find this team understand your needs.
Research and evaluate market options
Thoroughly research the options for outsourcing Portugal. Identify potential outsourcing teams and partners. Make sure to research the Internet to complete a preliminary assessment of their reputation and experience. After that, run interviews to assess the expertise and experience of potential partners. Ask questions about their security practices, tech expertise, and project management style. All these aspects are vital for your productive cooperation. Look for case studies, client testimonials, and portfolio projects that demonstrate their capabilities. Also, make sure to evaluate your candidates’ communication skills. Ensure that your potential partner’s team has strong language skills and can interact with your team seamlessly. Consider cultural fit to foster a productive working relationship. Most Portuguese teams are very flexible in this aspect, but you should still pay attention to cultural aspects. If you feel comfortable during the preliminary communication with your Portuguese outsourcing team, it’s already a good start.
Ensure contractual clarity
All parts of your outsourcing collaboration should be as clear as possible. To avoid misunderstanding, draft a clear and comprehensive service level agreement (SLA). It should correlate with your project requirements. The documentation should outline project milestones, timelines, deliverables, and dispute resolution mechanisms. Don’t rely only on your own vision and interpretations. In some cases, the help from a judiciary advisor is vital. This will help you be on the safe side and have all parts of your outsourcing cooperation clarified properly. When all these steps are completed, you can start your cooperation with an outsourcing partner from Portugal.
Streamline development
Feedback and monitoring are essential for successful software development outsourcing. It helps you ensure that an external development team remains on track. While evaluating the work of your IT support outsourcing companies Portugal, be sure to focus on their work’s alignment with your expectations. Evaluate deadlines, deliverables, communication style, and auditing. Don’t forget to provide regular feedback to help your team improve. If there are some issues that cannot be settled, you may consider finding another outsourcing team in Portugal.
Conclusions
Portugal has emerged as a competitive and reliable IT outsourcing destination. With the right approach, Portugal outsourcing may be a stellar decision for your business. All you should need is to conduct thorough research and be clear in your demands. If you lack expertise, ask Nearshorefriends to help you find a perfect outsourcing option in Portugal. As an experienced offshore and nearshore software development company, we are ready to help. With us, you will harness the benefits of outsourcing while delivering high-quality IT services to your clients and customers.
