Portugal has become a highly sought-after destination for nearshoring IT services, with Lisbon emerging as a hub for talented IT professionals. Companies that are seeking to outsource their IT needs can benefit from the high-quality services provided by a highly skilled workforce, the low geopolitical risk, and the favourable business environment. In this article, we will discuss why Lisbon is an excellent choice for nearshoring IT services, including its highly skilled workforce in technologies like Python, Java, full-stack development, and Angular, as well as examples of non-IT companies from the UK and Europe who have set up software development centres in Lisbon.

World-class Education

Portugal has a highly educated and skilled workforce, with a strong focus on STEM education. The country’s literacy rate is over 95%, according to the United Nations, which is higher than the average for the European Union. Lisbon, the capital city of Portugal, is home to several top-ranked universities, including the University of Lisbon, which ranks in the top 100 universities in the world for computer science according to the QS World University Rankings.

Tech Visa Program

Portugal has one of the best tech visa programs, allowing tech experts without EU nationality to quickly get a work and residency permit, expanding even more a very rich and increasing tech pool.

Highly skilled IT Talent

Portugal has many highly skilled professionals in cutting-edge technologies like Outsystems, Java , Cloud and Event-drive architectures, with a growing community of skilled professionals in these fields.

Low Geopolitical Risk

Portugal is a stable democracy with a strong rule of law, providing businesses with low geopolitical risk. Lisbon is the capital city of Portugal, with a pro-business government, a streamlined regulatory environment, and a strong focus on innovation and entrepreneurship. These factors make it an attractive location for businesses looking to set up or expand their operations in Europe.

Competitive Costs

Portugal has a lower cost of living and lower salaries compared to other European countries, making it cost-effective for companies seeking to outsource IT services. The country offers tax incentives for foreign companies investing in the country, making it an attractive option for companies looking to reduce costs and maximize profits.

Examples of Companies Setting up Software Development Centres in Lisbon

Lisbon has become a popular destination for companies from the UK and Europe looking to set up software development centres. For example, Mercedes-Benz has a research and development centre in Lisbon focused on autonomous vehicles and mobility solutions. Siemens, the German engineering and technology company, has established a digital services centre in Lisbon, while the Swiss food and beverage company Nestlé has a technology centre in the city focused on digital innovation.

Trend of Bringing Back Software Development Centres to Europe

There is a trend among European and UK companies to bring back software development centres from India to Europe due to concerns about data privacy, intellectual property protection, and quality control.

The cultural proximity, same time zone and superb fluency in English are other strong points of Portugal. As a result, many companies are looking to set up centres in European cities like Lisbon, which offer high-quality IT services and a favourable business environment.

Conclusion

In conclusion, nearshoring IT services to Lisbon offers many benefits, including a highly skilled workforce in technologies like Python, Java, full-stack development, and Angular, a low geopolitical risk, a favourable business environment, and competitive costs. Non-IT companies such as Mercedes-Benz, Siemens, and Nestlé have already established software development centres in Lisbon, and there are many other companies from both the UK and the US who are considering setting up their operations in Lisbon. With its strong academic background and talented workforce, Portugal is an excellent choice for businesses looking to outsource their IT needs and establish a presence in Europe.