Why Hire Developers in Portugal?

Main Trends of Portuguese IT Sphere

The modern economy of Portugal has gone through many stages of development, from the era of conquest and ending with the country’s accession to the EU. At the moment, the IT sphere is one of the most promising sectors in this country. IT outsourcing of Portugal developers for hire is also popular there. As it is reported by the Portuguese American Journal, this country is one of the most significant competitors in providing IT outsourcing and IT staffing services in the world. IT outsourcing Portugal is a good decision if you want to move your software development process to a foreign European country. Innovative developments are used in many spheres of public life here, including the financial sphere and the sphere of public administration. The development of the Portuguese IT sector also allows talking about increasing utilization of information and communication technology in this country. Thus, according to ICT Institute Carnegie Mellon, Portugal is one of the leaders in the usage of mobile devices which also leads to the increasing development of mobile apps.

The Popularity of Nearshoring in Portugal

There are several reasons why many companies choose nearshoring Portugal among other options. First of all, it is located in the EU, which makes it a perfect destination. There are many direct flights so the business leaders can meet and work with the team without any problems. It is also in the GMT zone, which makes nearshoring in Portugal beneficial for European countries.

The second main reason is the amount of talented and highly-professional employees. There are plenty of software development companies here with the main part of them located in Lisbon. Overall, 60% of citizens know at least one foreign language, usually English. When looking to hire developers for new business, consider partnering with startup recruiting firms for a more streamlined hiring process and keep in mind the potential advantages that come with hiring developers specifically experienced in launching new businesses.

Many European countries, namely the UK, choose to nearshore Portugal as this country shares European values and corporate culture. The political and social situation there is stable and this is always great for business. It is also a secure destination in terms of legislation and documentation. There is a transparent legislative system and a business can be registered online in three days. And the taxes here are also quite low, as the government puts effort into the development of small businesses. Among other benefits of nearshoring Lisbon are affordable rent and well-built transport and technological infrastructure.

Overall, Portuguese developers offer a high-quality products and affordable prices, that’s why companies from the UK, Germany, and the Netherlands often choose nearshoring there. It is especially popular in Great Britain because of Brexit and the growing demand for specialists that cannot be fulfilled by the internal workforce.

The Web Summit in Lisbon: A Thriving Hub of Innovation Since 2016

Web Summit has been taking place in Lisbon since 2016. The location changed from Dublin to the coast of the Iberian Peninsula. Lisbon became an ideal destination not only because of its pleasant weather and picturesque landscapes. The city, like the country as a whole, is famous for its IT professionals.

The choice to relocate the Web Summit to Lisbon improved the event’s attractiveness. It also underlined Portugal’s dedication to encouraging entrepreneurship and innovation. The Portuguese government strongly supported this event. The Web Summit was named a technologically significant event for the country.

Lisbon was an ideal location for the summit thanks to its combination of beauty and a booming technology industry. Also, additional bonuses were the accessibility of the city, developed infrastructure and relatively low cost of living. Year after year, the Lisbon Web Summit continues to push the boundaries of innovation and foster collaboration in the digital industry. Each time the event strengthens its position as a meeting place for people passionate about the entrepreneurial goals of technology.

The Industry of App Development Portugal

The software development industry is a booming sector of software development globally, and Portugal’s tech market isn’t lagging behind. With the increasing prevalence of smartphones, software development Portugal, especially app development, has seen significant growth, making it a crucial component of the software development industry.

Portugal has become a hotspot for mobile app development with a growing demand for software developers Portugal. With roughly 6.51 million smartphone users in the country, developers in Portugal are sought after to deliver competitive, high-quality services for iOS and Android platforms. They have successfully provided their expertise to businesses from around the globe, contributing to offshore software development in Portugal, and aiding the outsourcing and nearshoring economy.

Aided by supportive governmental regulations and taxation policies, Portugal has become an attractive destination for IT investments with annual IT Industry Growth Rate  1.60%. Its strategic location within Europe, fluency in English, and a thriving tech ecosystem further add to its appeal for Portugal developers.

With around 9,200 IT companies employing approximately 114,000 professionals, software development Portugal has established a solid footing. The capital city, Lisbon, remains the central hub, hosting software development Lisbon with a large portion of the IT workforce.

The industry is quite versatile, with professionals skilled in various programming languages such as PHP, ASP.NET, Python, Ruby, and Java. These technical competencies are in high demand, contributing to Portugal’s growing tech export value, which stands at an impressive $3.56 billion.
The app development industry in Portugal is thriving, with promising forecasts for the future. The total revenue in the App market is projected to reach an impressive US$394.50 million. Looking further into the future, revenue is expected to continue on this growth trajectory, with a compound annual growth rate (CAGR) of 7.59% from 2022 to 2027. If this prediction holds, the market volume could amount to approximately US$591.50 million by 2027.

Portugal’s English Proficiency Index score of 614 highlights a respectable level of English proficiency within the country, showcasing the effectiveness of language education and communication skills among its population.

Portugal’s Job Conditions

Portugal’s job landscape shows a good mix of industries, with a focus on tourism, agriculture and manufacturing, along with a growing focus on technology and renewable energy. Only 6.1% of the population is unemployed. 

Payroll cycles in the country follow a monthly payment schedule, with salaries paid at the end of each month. Employers must stick to specific payroll taxes. This includes contributions towards social security, healthcare and other benefits. These taxes greatly influence the overall cost of labor for businesses. 

The minimum wage in Portugal has seen slow but steady growth in recent years to support the well-being of employees. As of the most recent data, the minimum rate stands at around $775 per month. Overtime pay is set by labor laws (Constituição da República Portuguesa), ensuring that employees receive extra money for any more hours worked. And, often, this is at a higher rate than their standard wage.

Employee benefits are a very important part of the staff framework in the country. Many companies offer comprehensive health insurance, paid leave and retirement plans. These benefits are designed to enhance employee satisfaction and foster a healthy work environment.

Diverse Tech Hubs in Portugal: A Closer Look at Cities

The dynamic landscape of the software development industry in Portugal is spread across several cities, each boasting its unique strengths and opportunities. Let’s delve into the specifics of these tech hubs, exploring the thriving environment for software developers in Portugal.

• Lisbon

Lisbon, the capital of Portugal, has emerged as a vibrant tech hub, home to software developers Lisbon, with an estimated 1,000 software developers as of now. These professionals have been drawn to the city’s dynamic tech scene and the competitive salaries from €45,000 to €60,000 annually.

• Porto

Known for its vibrant tech scene, Porto has seen an impressive growth in its tech industry. The average annual remuneration for software developer Porto varied between €30,000 and €45,000. About 1500 software developers are currently working in Porto.

• Vila Nova de Gaia

Sharing its border with Porto, Vila Nova de Gaia benefits from its proximity to one of the country’s tech hotspots. About 350 software developers in this region could expect to earn an average salary ranging from €40,000 to €60,000 annually.

• Amadora

As part of the Greater Lisbon metropolitan area, Amadora also has a significant tech scene. The average salary for software developers was in the ballpark of €25,000 to €49,000 annually. About 400 developers are now living in this area.

• Braga

Braga’s tech sector has been steadily growing, drawing an increasing number of software developers to the city. The average salary for software developers varied from €25,000 to €40,000 annually. The developer population was trending upwards in line with the burgeoning tech industry: more than 700 software engineers are now living and working in Braga.

An Alternative to Portugal Dedicated Team

Nevertheless, the IT staffing of Ukrainian developers is also rather promising and can be a good disjunctive to Portugal dedicated team due to the number of reasons listed here.

Hiring Ukrainian development teams and making use of IT offshoring/nearshoring services, you will be able to:

• Choose among 200,000 IT talents of any stack and levels;
• Extend your development team within a few days or 2 weeks max;
• Focus on the core of your business;
• Reduce expenses and overhead costs associated with the equipment of workplaces, training of staff, information support, etc.;
• Achieve improvement in the quality of your products through the concentration of management and finance on core spheres;
• Control the whole development process and your development team while the IT team extension company will care for your staff retention, extension, substitution;
• Share risks and responsibilities with the dedicated dev team company.

Hire Developers in Portugal or in Ukraine? Kyiv or Lisbon developer? Comparison of Average Expenses

If you’re considering hiring software developers in Portugal, understanding the average wage scale is crucial. Comparatively, it can also be beneficial to look at the salaries of developers in other tech hubs, such as Ukraine. On average, a software developer Portugal earns around $3,100 per month, as per PayScale data. Meanwhile, in Kyiv, Ukraine’s capital, a software programmer’s average compensation is close to $2,200 monthly. This comparison can provide valuable insights to help decide the most suitable location for software development teams in Portugal or Ukraine.

If you want to hire developers in Portugal, first of all, you should be acquainted with the scales of their wages. It also makes sense to compare these indicators with salaries of Ukrainian programmers.

* Ukrainian salaries are provided based on Mobilunity’s Recruitment Team research on the local job markets. All salaries are net and do not include the service fee (in case of hiring on a dedicated team model). The salaries are provided for comparison purposes and could be not entirely accurate. Contact us to know the exact cost of hiring a developer corresponding to the required parameters.

As we can see the rates of Ukrainian and Portugal developers depend on skills and technology and it’s impossible to make a conclusion what country is more profitable in terms of developers rates. But Ukraine is a bigger country with a higher population, it’s a fact. And there are many more IT providers and qualified specialists in Kyiv than in Lisbon. Ukraine has a talent pool with 200,000 software developers in the country while Portugal has 2 times less – 95,000.

Regulatory Requirements

In Portugal and Ukraine, the hiring process is governed by labor laws that outline regulations regarding work hours, vacation days, contract termination, and more. Both countries also have stringent anti-discrimination laws to ensure fairness in hiring. Importantly, compliance with GDPR is required when dealing with employees’ personal data in Portugal.

For Intellectual Property (IP) protection, both Portugal and Ukraine have comprehensive legal frameworks adhering to international standards. Portugal’s IP protection aligns with EU regulations, while Ukraine’s is in accordance with international treaties such as the Paris Convention and the Berne Convention. 

However, specific nuances within each country’s laws necessitate seeking local legal advice for optimal IP protection. In both hiring and IP protection, understanding and complying with local legal landscapes is crucial when expanding or outsourcing operations in either country.

Benefits of Outsourcing the Development to Professionals

Outsourcing the hiring process to professionals comes with a range of benefits that can significantly enhance the effectiveness of recruitment efforts and the overall operational efficiency of your business. Here are some key advantages to consider when deciding to engage the expertise of hiring professionals:

• Expertise and Experience

Professionals are well-versed with the complexities of hiring, including labor laws, market trends, and salary benchmarks. They bring a wealth of knowledge and a comprehensive understanding of the industry to find the best fit for your needs.

• Time and Cost Efficiency

Outsourcing the hiring process saves a significant amount of time that can be invested in core business operations. Also, professionals often have access to a wider talent pool and established processes that can accelerate hiring and reduce costs.

• Access to a Larger Talent Pool

Hiring professionals typically have vast networks and access to potential candidates that might not be actively looking for jobs or are not reachable through traditional channels.

• Scalability

Hiring professionals can easily scale their services up or down based on your needs, making it ideal for project-based work or during periods of rapid company growth.

• Market Insight

Outsourcing professionals often have deep insights into the job market, competitive salaries, and hiring trends, which can give you an edge over competitors. This insight can be especially valuable when dealing with IT staff augmentation in Portugal and other tech-related fields.

Mobilunity as a Global Outsourcing Provider

While hiring developers in Ukraine and Portugal might seem comparable in terms of cost, the relative scarcity of IT professionals in Portugal can pose a challenge for businesses. This is where Mobilunity, one of the leading dedicated dev team providers in Portugal, comes into play.

Headquartered in Kyiv, Mobilunity excels in providing tailored development teams, with significant expertise in staffing for businesses in Portugal as well. Our flexible IT outsourcing model allows for financial control and predictability, making us a smart choice for quality and cost-effective IT team augmentation in Portugal.

Whether you are looking to hire offshore development team in Portugal or need a specialist, Mobilunity serves as a reliable partner. We operate with a flexible IT outsourcing model that provides dedicated teams, thereby ensuring that you retain control over your budget via predictable monthly rates. Choosing to collaborate with Mobilunity’s Ukrainian development teams allows you to balance quality and cost-effectiveness, ensuring that you consistently receive superior results.

If you want to hire powerbi developer contact us! IT outsourcing of dedicated teams of Mobilunity gives you a possibility to control your investments and pay fixed monthly rate according to different and very flexible plans. This means that you will be always able to save your money and receive products of high quality hiring Ukrainian development teams with us.

Mobilunity’s Main Service Models

At Mobilunity, we offer a range of service models tailored to suit the specific needs and requirements of our clients. These services, which have been fine-tuned based on our experience and expertise, aim to provide comprehensive solutions for our clients’ diverse needs. Here’s a closer look at our primary service models:

• Dedicated Development Teams

At Mobilunity, our cornerstone service is the provision of dedicated development teams to our clients. Our clients are given direct managerial control over these full-time resources while we handle all HR, accounting, and helpdesk queries. Our goal is to provide a smooth operational environment for our clients, allowing them to focus on project execution and their core competencies. This model works great for businesses looking for offshore software development in Portugal.

• Consultancy Services

As part of our diverse service offerings, we also provide consultancy services to our clients. In this model, we offer part-time resources who work under the direct management of the client, allowing flexibility for short-term or specific tasks. Once again, we cover all HR, hiring a front end developer Porto, accounting, and help desk concerns, empowering our clients to concentrate on their primary business functions and project goals.

• Recruiting Services

At Mobilunity, we pride ourselves on offering top-tier recruiting services. We provide recruiting-as-a-service, assisting clients in hiring both locally in Portugal and sourcing the best candidates from Eastern Europe. With a track record of successful local hiring in complex markets like Japan, we use our deep understanding of various job markets and recruitment strategies to meet each client’s specific hiring needs, like Java developer Porto. Our goal is to deliver seamless and efficient hiring solutions, regardless of whether our clients are looking to expand their teams locally or internationally. Our services prove to be efficient for those looking for IT staff augmentation services in Portugal.

Whether you are looking to iOS developer Porto or need a complete team in Lisbon, Mobilunity ensures seamless service for all your needs. Our profound knowledge about where to hire a web developer Braga and other regions makes us an ideal choice for your IT and software development needs.

Hire developers in other Countries

Expand your team’s capabilities globally by hiring skilled developers from various countries. Tap into a diverse pool of talent to bring fresh perspectives and specialized expertise to your projects.

Philippines

Estonia

Israel

Serbia

Spain

FAQs

• Where does Portugal stand in terms of its technological landscape?

As a result of the country’s emphasis on new ideas and business creation, Portugal’s IT sector is booming. Numerous established and up-and-coming technology businesses have opened operations in Portugal. This is due in large part to the country’s abundance of tech hotspots like Lisbon and Porto. Increased need for qualified developers is a direct effect of this expansion.

• How does the culture in Portugal influence the selection of software engineers?

The Portuguese cultural tradition places a premium on honesty, teamwork, and a healthy work-life equilibrium. Portugal has a more laid-back approach to the workplace, with a priority on quality rather than haste. The benefits of this for businesses that need to hire developers include potentially higher-quality output and a more pleasant office environment.

• How would you describe the Portuguese educational system?

Portugal’s education system is among the best in the world, including numerous top-tier institutions and institutes of higher technology. Courses and degrees in computer science and related topics can be found at many of these schools. This means that many Portuguese programmers have a solid educational background and set of skills.

• Which fields or kinds of work are most suited for Portuguese programmers?

Developers from Portugal are adaptable and capable of working on a wide variety of projects, from web and mobile apps to machine learning and artificial intelligence. Developers with experience in the financial technology and e-commerce sectors would do well to look for work in Portugal.

• Where can I learn about the steps required to hire a programmer in Portugal?

The assistance of a recruiting agency are commonplace components of the Portuguese hiring process, however variations exist. Education, work history, technical aptitude, and cultural compatibility are only some of the factors considered throughout the hiring process. Potential employees’ technical skills could be evaluated through interviews or competitions. The most qualified candidate is then chosen for the position.

Ready to transform your ideas into reality? Take advantage of our offshore software development services in Portugal. Contact us to begin our beneficial cooperation right now!

Written by:

Anastasia Stefanuk

Market Researcher

Disclaimer: All salaries and prices mentioned within the article are approximate NET numbers based on the research done by our in-house Recruitment Team. Please use these numbers as a guide for comparison purposes only and feel free to use the contact form to inquire on the specific cost of the talent according to your vacancy requirements and chosen model of engagement.