Why Portugal is becoming Europe’s Nearshore Engineering Hub

Nearshoring Nearshore Engineering Hub

Overview

Europe is facing a genuine shortage of engineering and technology talent and it’s already slowing down projects across energy, industry and software. In 2024, 57.5% of EU companies trying to hire ICT specialists reported they couldn’t fill all vacancies. Demand is rising far faster than supply, putting pressure on delivery timelines, quality and the ability to scale.

In this landscape, nearshoring is gaining traction not as a cost alternative, but as a strategic delivery model. Teams working within aligned time zones and a shared European culture move faster and collaborate more effectively. This is where Portugal stands out: sharing the same time zone as the UK and Ireland, operating just one hour behind Central Europe, and offering highly skilled engineering talent.

Companies that partner with Portugal-based engineering teams, such as those at Advannor, who work as an extension of their clients’ capabilities, are finding it easier to accelerate projects and maintain consistent technical quality across regions.

The Nearshore Advantage: Speed, Proximity and Integration

Nearshoring is no longer an alternative. It has become the new normal for companies that need to deliver faster, scale reliably and safeguard project continuity. As engineering and digital teams face growing pressure, organisations are moving towards delivery models that reduce friction and increase collaboration.

Working within similar time zones enables real-time interaction and clear communication instead of overnight delays. And nearshore teams that integrate with internal ones sharing tools, rituals and ways of working help companies move from “outsourcing tasks” to co-building solutions. The result is a faster time-to-market, fewer blockers, and a more resilient delivery structure across regions.

Why Portugal Stands Out

Portugal is more than its 300 days of sunshine or its diverse landscapes. It represents political, social and professional stability, a combination that has become increasingly valuable for companies seeking consistent, long-term engineering capacity. Beyond quality of life, Portugal offers a mature talent ecosystem, strong engineering tradition and a work culture that aligns naturally with European organisations.

As nearshoring becomes the new normal, Portugal emerges as one of the countries benefiting most from this shift, ranking among the top European destinations for companies relocating or expanding their operations. This momentum is driven not only by stability, but also by a collaborative mindset, high technical standards and the ability to deliver quality at competitive costs.

Language skills reinforce this advantage: Portugal ranks 6th out of 116 countries in the EF English Proficiency Index, and Portuguese is the 9th most spoken language in the world creating natural bridges between Europe, Africa, the Americas and key global markets. Talent development follows the same trend. In the 2022/2023 academic year, 27.4% of Portuguese graduates completed STEM degrees, strengthening the country’s capacity to support complex engineering and digital projects.

In addition, Portugal is a member of organisations such as the OECD, the EU, NATO and the CPLP, the Community of Portuguese-Speaking Countries.

Combined with geographic proximity to major European hubs and cultural alignment across regions, Portugal positions itself as a reliable nearshore engineering hub. It brings together quality, agility and strategic location, offering companies a simpler delivery model.

Read: Why Is the Nearshoring Model a Smart Choice for Large Intralogistics Companies?

A Hub for the Next Decade of Engineering

With the rapid acceleration of the energy transition, automation and industrial digitalisation, Europe is entering a decade where engineering capacity will define competitiveness. Companies need delivery models that combine speed, technical depth and operational resilience and this is where Portugal is increasingly stepping into a leadership role.

The country has built a strong foundation for the next wave of nearshore engineering: a steady pipeline of technical talent, competitive operating conditions and a work culture naturally aligned with European standards. Portugal has also become a preferred location for global engineering centres and specialised delivery hubs, supported by stable governance, a collaborative professional environment and growing investment in innovation-driven industries.

Advannor plays an active part in this evolution. By providing engineering services and teams and that integrate with European organisations — from design and analysis to on-site commissioning and digital development — the company reflects Portugal’s ability to offer proximity, reliability and specialised expertise at scale. As organisations expand projects across renewables, smart manufacturing and digital infrastructure, Portugal is no longer just a promising nearshore destination: it is becoming a strategic hub for the engineering challenges that will shape Europe’s future.

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