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Why nearshoring to Portugal?

The world is changing, and with it the way we work is also evolving in new ways, requiring companies to implement new strategies and new approaches, making sure they can answer today’s concerns. Evolution doesn’t stop, and it is up to us whether we stay on board or stay behind.

Nearshore is one clear example of this evolution. It is becoming more and more of a tendency for companies. In this article, we are going to dive into this term and understand why Portugal can be a great option for your company to require this type of service.

1. Nearshore X Onshore X Offshore

Before we dive deeper into the concept of nearshore, we are going to present to you the differences between the terms Nearshore, Offshore and Onshore.

  • Nearshore Outsourcing is when a company hires employees remotely from a different country to deliver services. It is about outsourcing to countries that are close by and have similar time zones. For example, Portugal would be a nearshore location for the UK.

  • Offshore refers to remote locations with significant time zone variations. An offshore location for Portugal would be India.

  • Onshore refers to outsourcing to companies that are located in the same country.

2. Nearshore Outsourcing – What is it and how does it work?

While there can be a general assumption that nearshore outsourcing can't scale as well as onshore, these worries can be eased with training and improved customer experience technology. Nowadays you can easily access a team outside of your country and expand your business to improve results.

So how does Nearshore Outsourcing work? Well, communication is key to a nearshore strategy's success. In any project, communication between the team and the manager is crucial. The way to succeed is by having a type of communication that is coordinated, transparent, and ensures everyone's visibility. The company's business goals must be in agreement with the nearshore practice. It requires close cultural ties, language fluency, and in-depth industry knowledge in order to establish harmony. The company ought to pick its nearshore partner whilst taking into account each of these requirements.

So in order to have better control over operational costs, some tasks – particularly those involving software development – and some business procedures, can be outsourced to businesses in nearby countries, and this can have significant advantages for your company.

How? Keep reading!

3. Advantages of Nearshore

Hire a talented team that is ready to work

One of the advantages of nearshoring is that you can find talent in other countries and learn from new experiences. If you choose nearshoring, you can opt to work with a team who already has the knowledge you’re seeking, and who may have qualifications acquired.

Fewer time-zone differences

Partnering companies in nearshore outsourcing are typically situated in the same or a close timezone. As such, you may make the most of the time you have for effective communication throughout your work days. One of the important benefits of outsourcing to countries close to you is that you can communicate easily with a 1-2 hour time difference, which is great for all involved. It can even give you the advantage of gaining time in some cases, making it easy to address problems with more ease and fewer worries about pressure and deadlines.

Saving costs

Any business owner who chose nearshoring and is already familiar with how it works will likely state that its main benefit is cutting costs. You can also save money on transportation, as there usually are affordable ticket prices for trips that are faster between countries near each other. With nearshoring, you will find out that the costs are significantly less than in your country. You can hire a team with the same level of expertise or even more, for a small amount of money, as the salaries differ considerably from country to country. This is a huge advantage for your company.

Similar culture and language

The similarity in language and culture play important roles in the nearshore software development process since they make work easier and go faster. Let's say you and your nearshore outsourcing business understand each other’s language. In that instance, you may feel closer proximity, improving the working relationship between the two parties and resulting in improved results. Similarities in culture can also be positive as you may share the same holidays, and commemorative days, work with a similar structure and understand each other’s points of view more easily.

Compensation for lack of employees

IT companies tend to suffer from a lack of staff, as this is a very specific field that requires a high level of education and an ability to always keep learning as professionals due to technology’s constant evolution. If you need to strengthen your team due to lacking employees, nearshore software development businesses are the best choice. These software engineers are accustomed to working on projects and are adaptable enough to start a new project while maintaining all necessary quality requirements.

Due to the same language and cultural commonalities mentioned before, nearshore outsourcing will inevitably result in a quicker and simpler development process.

So now that you are familiar with the advantages of Nearshore Outsourcing, you may be wondering: why nearshoring to Portugal? Why Portugal is the right choice for your company to require this service? We give you 4 reasons.

4. Reasons to choose Portugal

Incredible location

For your nearshore software development partnership to be successful, the right location is a crucial factor. Portugal is located right in the middle of 3 continents: Africa, America, and Europe.

Time zone

If you work in a country with a similar time zone, it is always a good idea to pick a partner that is geographically close to you (as we have explained above). This way, communication flows easily and you don’t have to wait long hours for answers.


In Portugal, you will find reliable people who are hardworking and flexible, and very welcoming to foreigners. We are easily adaptable, we love sharing ideas and views, and we are also very friendly.

Fluency in English

Did you know that in Portugal we are known for our capacity to learn new languages easily? We speak English proficiently and can keep up conversations easily. This is a huge advantage for your nearshore strategy, as there won’t be communication problems.

Now that you know the advantages of working with a Portuguese company, why should you choose Passio Consulting specifically?

At Passio Consulting we specialise in transforming data into valuable insights, with a high investment in gaining knowledge in our field, employing only the most qualified experts who share our values of skills, ambition, and professionalism.

Our goal is to provide high-quality services, keeping our standards of excellence. We have completed over 350 projects successfully, we focus on detail and find the most adequate solutions for each of our clients, taking into account what their industry requires and taking the necessary steps to implement strategies and solutions that work.

If you are looking for a company that specialises in Business Intelligence, Artificial Intelligence, Data Warehouse, and Data Virtualisation solutions, we are available to help you.

We can support you and help you transform data into a great advantage over your competitors, making your business stand out and reach new standards.

To get more information about our nearshore services, go here.

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