Why IT nearshore works so well between Portugal and The Netherlands?
In recent years, the IT industry has seen a significant increase in nearshore partnerships between Portugal and The Netherlands. But what makes this particular partnership so successful? In this article, we'll explore the reasons behind the success of IT nearshore between these two countries and why it may be the perfect solution for your business.
What is Nearshoring?
Before we dive into the specifics of the Portugal-Netherlands partnership, let's first define what nearshore actually means.
Nearshoring is a business model where a company outsources its IT services to a nearby country, typically close to the same time zone and with a similar cultural and linguistic background. This allows for easier communication and collaboration, as well as cost savings compared to onshore development.
What are the benefits of Nearshoring?
Nearshoring offers several advantages over other outsourcing models, such as offshore development. These include:
Proximity: Nearshore teams are located in a nearby country, making it easier to travel for face-to-face meetings and ensuring a similar time zone for better communication.
Cultural and linguistic similarities: Nearshore teams often share similar cultural and linguistic backgrounds, making it easier to understand each other and work together effectively.
Cost savings: Nearshore development can offer significant cost savings compared to onshore development, while still maintaining high-quality work.
Access to a larger talent pool: By expanding your search for IT talent to nearby countries, you have access to a larger pool of skilled professionals.
Flexibility: Nearshore teams can be easily scaled up or down depending on your project needs, providing flexibility and cost-effectiveness.
The Portugal-Netherlands Partnership
The partnership between Portugal and The Netherlands has become increasingly popular in the IT industry, and for good reason. Let's take a closer look at why this particular nearshore partnership works so well.
Similar Time Zones and Cultural Backgrounds
Portugal and The Netherlands are both located in Western Europe, meaning they share a similar time zone. This makes it easier for teams to communicate and collaborate in real-time, without the need for early morning or late-night meetings.
Additionally, both countries have a strong cultural and linguistic connection, with Portuguese being the second most spoken language in the Netherlands. This shared background allows for smoother communication and a better understanding of each other's work styles.
High-Quality IT Talent
Both Portugal and The Netherlands have a strong reputation for producing high-quality IT talent. Portugal has a growing tech scene, with a large pool of skilled professionals and a strong focus on education in the IT field. The Netherlands, on the other hand, has a long history of innovation and is home to many successful tech companies.
By combining the talent from these two countries, nearshore teams can offer a diverse range of skills and expertise, ensuring high-quality work for their clients.
Cost-Effectiveness
One of the main reasons for the success of the Portugal-Netherlands partnership is the cost-effectiveness it offers. While the Netherlands is known for its high cost of living and labour, Portugal has a lower cost of living and labour costs, making it an attractive option for Dutch companies looking to outsource their IT services.
This cost-effectiveness allows for a win-win situation for both parties, with Dutch companies saving on labour costs while Portuguese companies can charge competitive rates for their services.
Real-World Examples of Successful Nearshore Partnerships
Several companies have already seen the benefits of the Portugal-Netherlands nearshore partnership.
One example is the collaboration between a prominent global hosting and cloud services provider in the Netherlands and our nearshore team extension. In this article, you can read about the challenge and see how the nearshore team augmentation solution helped overcome it.
Conclusion
In conclusion, the nearshore partnership between Portugal and The Netherlands offers several advantages for businesses looking to outsource their IT services. With similar time zones, cultural backgrounds, and a high-quality talent pool.
Over the last 7 years VELV has proven to be highly successful for many companies nationally and internationally and our new office opening in 2024 in the Netherlands is the proof that we want to be close to our clients and help them to scale up with their projects.
Want to know more?
Contact us and we’ll get back to you in 48h!
Written by Manuel Cardoso.