BREXIT is causing a lot of anxiety to the European and world economy. With people, businesses and money threatening to leave the UK, likely impacts and losses are being weighed in multiple sectors and industries, IT included.
The IT landscape in the UK is expected to change as a result of the British voters’ decision to leave the EU. Until now, the UK has been a preferred choice for IT multinationals to base their European operations and a key tech hub for investors, start-ups and talent. In the near future, regulations, currency, capital and people may lead many to re-evaluate their activity in the UK.
Talent and money drain
The British IT industry is highly dependent on the talent of European workers with free access to the labour market up till now. Currency fluctuation and increased bureaucracy (e.g. need for visas) are likely to make the UK less attractive for specialized staff and hiring foreign workers time consuming and complex.
The UK has held a central position in global IT investment so far - not only major tech companies have operations in the UK, as there are hundreds of start-ups driven by Venture Capital and Government initiatives. Due to economic and regulatory uncertainty, multiple tech players will be forced to rethink how they’ll get or monetize investment. The loss off EU funding amounting to several million Euros, will also be an issue.
In face of such speculation and doubt, near-shoring to Portugal can bring some peace of mind to British software companies, providing straightforward expertise, agility and stability to their projects. Here is why:
- Quick, simple, efficient – setting-up a near-shore team in Portugal allows adding further capacity or specific expertise to your software-related projects; teams can be as flexible and scalable as needed, and will always match your tech requirements; team setup is fast with recruitment and legal procedures handled by the near-shore partner.
- Expanded talent pool - Portugal has highly skilled, experienced and driven native IT professionals, besides free movement of workers from other member states of the EU; engaging development and testing experts to your projects with experience in multi-cultural working environments, is quite easy; Portuguese workers are also language-skilled and English is the most spoken foreign language.
- Low travel, communication and time impacts - Portugal and the UK are on the same time zone and the distance between the two countries is short when compared to other near-shoring and off-shoring destinations; there are several daily direct flights between the UK and Portugal (including low cost) with a flight time around two and a half hours; topics like work schedule, daily meetings or short-notice travel needs are not an issue.
- Social, political and regulatory framework - Portugal is a politically and socially stable and secure country with a highly rated business environment and privileged geography, climate and quality of life; as a member state, Portugal follows EU ethics and standards, namely on data protection.
- Competitive advantage - the cost structure in Portugal is quite competitive both in terms of cost of living and in terms of labour costs.
- One of the oldest alliances in the book - the liaison between Portugal and Britain dates back to the Middle Ages; the two nations have been political and economic allies for a long time; Portugal is a preferred destination for many British not only to visit but also to live; there is a large English community in the country.
In times of uncertainty, an effective and reliable option should not be overlooked…
By Ana Raposo Guerra | Executive & Marketing Manager | via LinkedIn