Looking East for Nearshore? Why Portugal Might Be the Smarter Bet
When European companies consider nearshoring, the first destinations that usually come to mind are Poland, Romania, Bulgaria, or Ukraine. These countries have long positioned themselves as reliable sources of affordable, skilled tech talent.
But in 2025, CTOs and engineering leaders should take a second look. Westward - because Portugal is quickly emerging as one of the most strategic nearshore hubs in Europe.
If you’re searching for “nearshore in Europe” and only considering Eastern Europe, you may be overlooking one of the most balanced, low-risk, and high-impact locations available.
Eastern Europe Has Its Merits — But Also Growing Challenges
Let’s be clear: countries like Poland and Romania have built strong reputations for delivering nearshore services over the last two decades. They offer large tech talent pools, relatively competitive rates, and time zone proximity for most European clients.
However, several emerging challenges are prompting CTOs to reevaluate:
Rising saturation in major hubs like Kraków, Bucharest, and Sofia — increasing churn and making talent retention more difficult.
Geopolitical risk (especially in countries close to conflict zones).
Cultural friction and communication gaps still impact team efficiency.
Lower English proficiency, often ranking below Western Europe (e.g., EF Index 2024: Romania #17, Bulgaria #24 vs. Portugal #6).
For engineering leaders who prioritize team integration, long-term retention, and fast delivery cycles, these risks are starting to outweigh the benefits.
Why Portugal Is the Smart Nearshore Alternative
Portugal offers a rare combination of strategic advantages — many of which are under the radar for companies used to looking East.
Time Zone Alignment
Portugal is in GMT (same as the UK), with minimal offset from Central European Time. This allows full workday overlap with the UK, Germany, the Netherlands, and the Nordics — enabling real-time collaboration and tight feedback loops.
High English Proficiency
Ranked #6 globally in the EF English Proficiency Index (2024), Portugal consistently outperforms most Eastern European countries in business English skills. Communication friction is lower — especially for remote/hybrid teams that rely on clarity.
Strong Tech Talent Pool
World-class engineering universities (IST, FEUP, Minho, etc.)
Presence of major tech companies and R&D hubs (Google, Cloudflare, Microsoft, Siemens, etc.)
Booming startup ecosystem feeding full-stack and cloud-native expertise
Portugal’s tech ecosystem is modern, cloud-ready, and global-facing.
Cultural Fit and Low Churn
Portuguese engineers are known for being collaborative, stable, and highly integratable with international teams. Retention rates are higher, and integration with UK/NL/DE cultures tends to be smoother.
EU Regulatory Framework + Ease of Doing Business
Portugal operates under EU law, GDPR compliance, and offers political stability, business-friendly policies, and easy access for travel.
Competitive Cost–Quality Ratio
While not the cheapest in Europe, Portugal offers a much stronger ROI than many low-cost destinations — especially when factoring in delivery quality, time saved, and team stability.
| Factor | Portugal | Poland / Romania / Bulgaria |
|---|---|---|
| Time Zone | Full overlap with UK/EU | CET+/EET → partial overlap |
| English Proficiency | Top 10 globally (#6 EF) | Mid-level (Poland #13–17) |
| Talent Availability | Strong, growing | Large, but saturated in hubs |
| Retention & Churn | Low churn | High churn in major cities |
| Geopolitical Risk | Very low | Medium to high in some regions |
| Cultural Compatibility | High | Medium |
| EU Regulatory Ease | Full EU/GDPR | Also EU/GDPR |
| Cost Efficiency | Mid-tier (good value) | Lower rates, but more risk |
Case in Point: How a UK E‑Commerce Platform Scaled With Velv
A growing UK-based e-commerce company came to us after struggling with a previous nearshore setup in Eastern Europe. The issues? High developer turnover, poor sprint predictability, and time zone lag that delayed releases.
By moving their nearshore team to Portugal with Velv, they achieved:
40% faster delivery cycles
Zero churn over 12 months
Full integration with their product owners and UK-based QA
Smoother handoffs and real-time DevOps collaboration
Portugal didn’t just match their technical needs — it accelerated business outcomes.
How to Choose the Right Nearshore Partner in Europe
CTOs looking for stability and scale should assess:
Proven track record with EU/North European clients
Deep technical capability across full-stack, cloud, DevOps, and product engineering
Transparent governance model
English proficiency and real-time collaboration capacity
Retention and onboarding process
Legal and data protection compliance
Portugal checks all these boxes — and companies like Velv deliver on them.
Conclusion: Portugal Isn’t Plan B — It’s the Strategic Nearshore You Might Have Missed
If your instinct is to go East for nearshore talent, you’re not alone. But the landscape has shifted. Portugal offers you the proximity of Europe, the talent of a modern tech hub, the culture of stability, and the communication of a native English partner — all at a cost structure that makes sense.
Before you commit East, take a look West. Portugal might be the smartest nearshore move you’ll make this year.