Portugal, the place to grow
Associação Portugal Outsourcing is a non-profit entity that unites the top ICT and BPO Service Providers in Portugal. Founded in 2008, its objectives are to nurture the IT based outsourcing activity, to represent the sector next to the main economic agents, to promote best practices and to stimulate the creation of competence centers.
Operating in Portugal since
Number of employees
1 (General Secretary), working closely with the five non-executive Board Members (elected representatives from associate members)
Portugal holds a mature domestic environment, with the availability of highly qualified professionals within the ICT and Business Process industry, high quality and robust infrastructures, alongside with the fact that Portugal has appropriate legislation in place regarding effective protection of privacy and security of data and intellectual property, all side by side with a very competitive costs structure.
Strengths of Portugal
Being the nearest European country to the U.S. and South America (3-hour time-zone difference with Brazil). Portuguese is the 5th most widely spoken language in the world and the 1st in the Southern hemisphere. Portuguese native’s language skills are preeminent. Regarding workforce, Portugal has highly skilled and educated professionals and young generations are highly committed: graduation rates are well above the OECD average as Portugal ranks on Top within the EU in number of PhDs per 1,000 inhabitants. 40% of students in tertiary education are enrolled in engineering, sciences and health. Regarding costs, Portugal is also very competitive: hourly labor costs in 2012 decreased -4,9% (Euro 27 rose by +2,2%) and in 2012 the average hourly labor costs was of €12.2, comparing to €23.4 in the EU27 (€28.0 in the euro area). In terms of real estate, Portugal is among the least expensive locations. Portugal holds a high-quality overall Infrastructure, major technological advances have been introduced in the past few years - the country has currently 95% coverage of broadband infrastructures and over 60% of households have internet access, with telecom prices below European average. Electrical supply is highly reliability (downtime below 1day/year – 0 days 2012), and Portugal is currently investing in energy efficiency: developing smart grids and establishing itself as one of the European leaders in renewables (7th out of 28 EU countries in total consumption of energy from renewables). Lastly, Portugal has a business friendly environment having been ranked the best country to do business in Southern Europe (Doing Business, World Bank). Average time to set up a firm is less than 1-hour and Portugal ranks #1 among EU countries regarding public services online (European Commission. The UN has considered Portugal a case study in e-Government.
growth in Portugal
Shared Services and Contact Centers - overview:
- 450 companies operating in the SS&CC industry, employing over 30.000 professionals and representing around 2% of GDP;
- a growing number of companies are choosing Portugal to invest: two-digit growth over the last 4 years;
- Portugal is already the chosen destination for large and medium sized contact centers from transnational corporations which profit from the existing installed expertise combined with comparative lower installation and operational costs;
- The Portuguese SSC market is growing, with new centers recently established. According to the latest IBM-PLI SSC Monitor, Portugal represents 2% of the SSC market and is included in the third wave location trend;
Outsourcing services: Overview
- The Outsourcing activities are growing fast across the country. Currently, this industry represents around € 900 Million (0.54% of GDP), but it is expected to create 10,000 new jobs and to generate one billion euros in productivity gains;
- In the past four years Portugal has been recognized by Gartner as one of the 13 (7 EMEA’s) developed countries with more potential to ‘perform’ as an ICT platform, both in terms of providing transnational services from Portugal as well as a being a good location to investing and establishing SSC’s.
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