Portugal is a country that has been strongly hit by the 2008 crisis, which in 2012 had an economy contracted by 3.2% and unemployment of 18% during the crisis. But the Portuguese country has managed to turn the situation around, and today its economy is growing at a rate of 2.5%, despite the emigration of 500,000 students during the crisis. Today 60% of them have returned to the country due to the renewed and strengthened Portuguese economy.

Some of the characteristics of this country at the moment are that it has a low cost of living and at the same time a high quality of it, being the fourth cheapest capital in Europe and the cheapest in western Europe. Some very notable characteristics are its good climate, its culture, and the cultural wealth of this country. After having briefly reviewed the characteristics of this southwestern European country, we are going to analyze more technical issues related to the outsourcing of services from this country. We will also analyze other political, legislative, and cultural aspects to take into account when we think about doing business with this neighboring country of the European Union.

Why Should Someone Work With Companies in Portugal?

The first reason to consider working with a company in Portugal, as is almost always when we talk about outsourcing services, is the cost and aspects related to the production process of the product or service.

The average salary in Portugal in 2025 is €1,540 -  €1,777 divided into 12 monthly payments, while the minimum wage is only €870. This is a great competitive advantage for the country to carry out outsourcing business. The salary of a Portuguese software developer is approximately 2 and 2.5 times cheaper if we relate the price to the salaries of these same professionals from Germany or Sweden. In those cases where you are looking for professionals with a Doctorate (Ph.D.) level of studies, the salary would be around €80 per hour, while in countries like Switzerland, it reaches €300 for a single hour.

Another issue to consider is that the square meter of an office in Lisbon stands at €222 per year. Comparing it with other prices, such as those in Berlin, for example, this would leave us with a price of € 360 per square meter per year or € 670 in Stockholm, Sweden. The above data also favors the ROI for our business, working with Portuguese companies. Do not forget that Portugal is a country of the European Union, so it is governed by the same laws and international trade agreements within Europe as any other country attached to the EU.

In addition, to conclude this section, we will talk about the 100,000 graduates provided by Portuguese universities, with more than half of these graduates in some type of engineering, mathematics, or some related discipline. In this country, there are brands such as Mercedes or Google, specifically the latter in the city of Lisbon.

What Do You Have to Watch Out for When Working With Companies in Portugal?

Portugal is a generally safe country and so are its companies, locally, there are only two factors that are not appropriate if you are going to do business with the Portuguese country, one is the problem with corruption and bribery, and the other is the increase in crime in the last 3 years, although as we discussed earlier, Portugal is generally a safe country to do business.

You have to be attentive to factors such as what is the quality standard, cultural and time factors, which can become especially important factors when working with IT companies in Portugal. For cultural reasons, it is advisable to clarify the deadlines rigorously, since in this country, due to its own culture, some terms such as "Tomorrow" or "Next week" are not always literally exact, but rather relative. It is advisable to establish standards to measure the performance of the process of creating a project as well, since, in Portugal, the style and the casual, informal, and close culture prevail more. This does not mean that your projects will not be completed within the agreed deadline, but the correct dates must be made clear since the culture of central Europe and that of the southern part of Europe may differ slightly in some aspects. Like these.

It is important to note that in the past, Portugal has been sensitive to economic recessions, being greatly affected, unlike other countries such as Poland, which can be an important factor to value.

How Reliable Are the Companies in Portugal?

Portuguese IT companies are generally as reliable as those of any neighboring country since luckily, this country is within the European Union and therefore shares European treaties with the rest of the countries that make up the union, in addition to having to be accountable to European institutions like other countries, this is an extra guarantee for doing business in the IT sector since unlike other leading countries in outsourcing software services that are not within the European Union This does guarantee certain aspects when trying to draw up outsourcing agreements in Portugal.

Due to this as a major factor and the absence of data that indicate otherwise, we can think that we can carry out IT projects in this country, as we abide by the same European standards as the rest, although as in all cases, there are companies whose objective is not to do business in which both parties win, to scam, something that should not be alarmed, since this occurs in all countries to a greater or lesser extent, to avoid these events, we will follow the rules that we have gathered previously and are suitable for any country.

We will only have to identify those companies that have validated experience and already work with other reference centers, to avoid possible bad practices and ensure that we can make the most of outsourcing services or products in Portugal, but without running the risk of fraud. Or a scam at a high level.

How is the IT Industry in Portugal Compared to Other Nearby Countries?

The first difference between Portugal with other neighboring countries, such as Spain, France, or Italy, is the salary, since in Portugal it is considerably lower than in Spain and Italy, and much lower than in France. When our goal is the economic benefit and we look to other countries for outsourcing services, this aspect should be highlighted as the most important.

On the other hand, Spain has one of the most important ICT markets in Europe, a sector that employs around 500,000 people and represents 3.3% of GDP in 2025, according to research from CaixaBank. In this country, there are more than 34,000 companies related to the IT sector. For example, some of them are Telefónica, Indra, Panda Security, Abertis, or Amadeus.

From another point of view, Portugal has 13,319 companies in the sector, employing 98,221 people, and with an annual growth of 5.3%, but 23.4% in the export of IT-related products or services. It also has a predominant startup ecosystem, but some of the most important points are the following:

• The fifth country with the highest number of PhDs in Science and Technology per 1000 inhabitants.
• TOP universities that have relationships with other very important institutions, such as MIT, the University of Texas, or Fraunhofer.
• Startup incubators: Second home, Canopy, Bela-I, Startup Lisboa, IPN ...
• The IT Outsourcing market in Portugal is predicted to be worth $1.2 billion in 2025 with a CAGR of 6.09% from 2025 - 2030, underlining the increased demand for IT Outsourcing in Portugal.

Conclusion

Portugal is one of the best destinations to carry out the outsourcing of services in Europe, since on the one hand, it has accession to the European Union, which facilitates the realization of business and commercial agreements, and also adds the guarantee provided by being a member of this group of countries.

On the other hand, its low costs and high standard of living make this southwestern European country a destination with a balance between reliability, prices, and trust, difficult to match within the continent, which allows better profitability, greater capacity. Investment and lower production costs.

In addition, to conclude, Portugal has a system that provides students with the necessary skills to train in the field of information technology, with important universities such as Aveiro and its relationships with other educational centers, such as MIT or the University of Texas, which provide qualified professionals at low cost and a high level of training. As a last note, we should say that it is advisable to take the necessary precautions when conducting business with companies in the Portuguese country since trust is high, but inconveniences can always occur, which, when working with companies with a long history and verifiable experience, we can reduce.

How the IT Industry in Portugal Will Evolve in 2025:

Compared to 2021 and years before, Portugal invests big time in startups starting in 2022. According to Euractiv, Portugal officials led by Economy Minister Pedro Siza Vieira announced the launch of the Europe Startup Nations Alliance (ENSA) that covers 26 European states and is meant to facilitate and support startups in each of the member countries. The program is even more ambitious since the Government invests €250 million in the Portuguese startup tech scene. 

The IT industry of Portugal in 2025 is performing well, powered by a skilled workforce, an advanced framework, and a developing startup ecosystem and innovation hubs in Lisbon and Porto.

Overall, Portugal has all the chances to become a leading European tech hub, or at least an emerging one in 2025, due to the announced Government support and qualified tech professionals.

Have you ever noticed how some websites and apps just feel easier to use than others? That's because of the UX/UI design - basically, the people who make sure everything looks good and is easy to navigate.

UX/UI design services are closely connected, but they are not the same. They are actually about different parts of the design and to be effective they must work together.

• UI (user interface) design concentrates on visual elements. It is all about how things look and work on a product, like colors, fonts, and buttons.

• UX (user experience) refers to the overall experience a person has with a product - how easy it is to use the product, how it makes the user feel, and whether it is possible to easily get what is needed from it.

According to research conducted by Forrester, a well-designed user interface (UI) can increase a website's conversion rate by 200%, whereas a better user experience (UX) design could raise it by up to 400%.

In this connection, the importance of UX/UI Design cannot be overstated. Nowadays users have high expectations for the products they use, if a product is not easy to use or enjoyable, users will quickly abandon it. 

UX/UI design can help:

• Enhance user satisfaction

• Reduce bounce rates

• Lead to higher customer retention and revenue

UX Design has also an important role in Inclusive Government Design, which makes government services accessible and user-friendly for diverse and marginalized communities.  

But how do choose the right UX/UI Company? 

1. Review the company's portfolio and make sure they have experience in your industry

2. Look for companies that understand your target audience to meet their needs.

3. Inquire about their design process: research, wireframing, prototyping, and testing.

4. Choose a company that maintains transparent and open communication and keeps you involved throughout the design process.

5. Read client reviews to check their reputation and client satisfaction.

6. A good design company should be up-to-date with the latest design trends and technologies.

Taking into consideration all these tips you will manage to select the right UX/UI Design Company that will help to achieve your goals. 

There are over 13,800 UX/UI Design companies on TechBehemoths platform. Check their profiles, their strong portfolios, and previous clients' reviews before you make a decision. With the help of smart filters, you can easily find suitable partners to deliver exceptional digital experiences. Alternatively, you can submit your project, and the system will find the best match on your behalf.

UI/UX design in the AI era

As AI tools evolve and become more capable of prototyping and designing layouts, the human/emotional aspect will become even more important. AI can't experience and tell and illustrate personal stories, while UI/UX designers can. This human/personal touch will become a valuable part of UI/UX work.

You can interact with the web in multiple ways: using text, voice, images, videos, VR, etc. All these require user interfaces adapted to different needs and scenarios. Professional design agencies should be able to deliver interfaces and UX for multiple interaction modes and devices like smartphones, VR headsets, smart glasses, etc.

The importance of UI/UX for your leads/sales

Lots of websites lose their visitors without a single click. Poor UX design is almost always the reason, and most business owners don't even know where the problem is.

On average, websites convert only 2–3% of visitors. This means the majority of visitors land on a site, browse for a few seconds, and leave without taking any action. Business owners express this as one of their most common frustrations.

How to solve this problem?

The answer is simple: make it easy for visitors to take desired actions on your website, such as viewing a product page or service, completing a purchase, or downloading a resource.

Your website should communicate effectively, guide users, and convince them to take a specific action.

Why your website doesn't convert

There might be multiple reasons, but here are the most common ones + some tips on how to improve your UX to convert visits into leads/conversions. 

1. The first seconds count

How to fix? Start with a clear value proposition that shows the benefits and answers these three questions right away.

2. No call to actions (CTAs)

How to fix? Your service/product and other important pages should have one primary CTA, and it should be: specific, prominent, smooth/short. Example: Get a free quote.

3. Poor mobile UI/UX

How to fix? Focus on mobile-first UX design, which means designing the mobile experience first and then adapting it for the desktop experience.

4. No social proof

How to fix? Place trust signals throughout the conversion path: client testimonials, reviews, awards, certifications, team photos, etc.

5. Complex navigation/structure

How to fix? Simplify your navigation and content structure by limiting menu items, using plain language, making contact options visible and accessible from everywhere, using proper visual hierarchy.

6. Slow loading time

How to fix? Optimize your web pages for speed, especially for mobile devices. Use modern image formats like webp, compress images, use reliable/fast hosting, minify JavaScript/CSS, don't usee too many 3rd party services.

7. Too long forms

How to fix? Use the minimum required number of input fields: name, email, and one open field. Don;t overwhelm users withh too many questions and options.

How to choose the right UX/UI agency?

Choosing a UX/UI agency is a business decision with consequences that show up months after the contract is signed. Most companies evaluate agencies based solely on portfolios and presentations, which are the things easiest to polish and hardest to verify.

What separates a good hire from an expensive mistake is usually visible before you sign anything. You just have to know where to look.

How to do research UX/UI agencies, the right way

Most users go straight to the portfolio, and that's ok, but it's not the whole picture. Here are the criteria that actually matter before you reach out to anyone.

1. Portfolio, look past the aesthetics

Good UX agencies solve different problems differently.

2. Research, visuals are not enough

Any agency can show you Figma files. Ask them to walk you through how they got there. If there's no mention of user interviews, usability testing, or data, the work is decoration, not design. 

3. Industry experience is useful, but not mandatory

For fintech, healthcare, or anything with compliance layers, prior domain experience saves valuable time. Sometimes, an agency coming in fresh can be the better bet, having a different perspective

4. Negative client reviews

A profile with an ideal five stars rating is worth questioning. 

5. Who's exactly working on your project

The number one complaint in the agency world is the bait-and-switch, a senior partner sells the deal, but junior interns do the work. Before moving forward, ask who's actually doing the work. Thirty minutes of reference calls can save you thousands in wasted fees.

6. Not all UX/UI projects are the same

Before you talk to anyone, get specific about what you're buying. UX covers a wide range of work, and the type of agency you need depends on what the actual problem is.

Here is a set of common UX/UI tasks to keep in mind.

How to shortlist the right agencies?

Many clients speak with 15 - 20 agencies and end up more confused than when they started. A practical approach looks like this:

• Start with a larger pool of companies

• Narrow it to around 10 agencies

• Shortlist 3-5 agencies

• Send the same brief to everyone

• Compare proposals and communication styles

• Choose one partner

A poorly scoped engagement can lead to a bad return/outcome. A bad agency hire costs approximately €115,000 when you calculate wasted fees, the cost of a redo, and months of lost market time.