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1 PORTUGAL A NEARSHORE OUTSOURCING DESTINATION London, October 14th 2010
2 Portugal, a Nearshore Outsourcing Destination Guilherme Ramos Pereira Case Studies General Secretary Associação Portugal Outsourcing 2 Portugal, a Nearshore Outsourcing Destination
3 Portugal, a Nearshore Outsourcing Destination Although Portugal is not referentiated as a potential nearshore Outsourcing services provider in the international radar, during the past few years several global multinationals from different sectors have chosen Portugal to locate relevant shared services centers to provide ITO and BPO solutions to both internal customers and third parties customers. 3 Portugal, a Nearshore Outsourcing Destination
4 Portugal, a Nearshore Outsourcing Destination Some examples: 4 Portugal, a Nearshore Outsourcing Destination
5 Management Consulting, Technology and Outsourcing 2010 / Not available BPO Services 100 FTE s, wide range of skills/qualifications An European bank and a shipping company - Availability of highly qualified resources - Competitive salaries - Language knowledge - easily available - Competitive facilities costs 5 Portugal, a Nearshore Outsourcing Destination
6 Insurance and Asset Management 2005 / Not available ITO Services 2010: 300+ FTE s AXA businesses within 12 different countries, from Mexico to the Persian Gulf - Advantage of Portugal s geographical positioning - Large available number of highly skilled professionals - Language knowledge & skills - Acceptance of cultural diversity - Competitive rates in the European market 6 Portugal, a Nearshore Outsourcing Destination
7 Information Technology Year & Value of the investment in Portugal 2007 / 50M ITO Services 2010: 118 FTE s Cisco s 4 Operations Centers in Portugal provide support to all European countries (plus Angola & Mozambique) Exs: -Hercules Center -over Cisco Sales Account Managers + all Top Cisco Partners in 16 countries -Inside Sales Supercenter Cisco Partners - Quality and Skills of labor supply: strong linguistic & digital literacy - Quality of the communication infrastructure - International Air Connectivity - Labor Policy Employee protection and local labor laws - Cost effectiveness cost of labor competitiveness - Government support overview of government incentives and grants to foreign investment - Recognition of Portugal s high use of renewable energy 7 Portugal, a Nearshore Outsourcing Destination
8 Information Technology 2008 / 2008 implementation budget = 10 million; 2009/2010 = 4.2 million/year ITO Services 2010: 600 FTE s Growth of 240% in the in the past 2 years 106 countries/16 languages, most varied industries(oil companies/media/retail/banking services) - Capacity to quickly create teams which are able to speak several languages - Geographical proximity to Europe's main decision making centers - Strong cultural alignment 8 Portugal, a Nearshore Outsourcing Destination
9 Information Technology 2006 New contracts in Investments in the existing contracts in 2009 and 2010 ITO / BPO Services 2010: 300FTE s British Petroleum, Unilever and an IT Company(non-disclosure agreement- not IBM) - Multi-Language speaking capabilities - Easy recruitment of workforce - Low cost vs. other Europe alternatives -HighqualityofDeliveryvs.SLA -Good accessibilities and stable social climate. 9 Portugal, a Nearshore Outsourcing Destination
10 Information Technology 1990 to date (major investment in 1995: Portugal chosen to provide multilingual international support) 2006: Premier Field Engineering was created Values not available ITO Services 2010: 70 FTE s(vast majority are Senior Support Engineers) Customers and partners in Portugal and EMEA Region 4 languages - Overall very good level of English and possibility of finding resources that speak multiple languages -LowcostoflaborwhencomparedtotheEuropeanaverage - Availability in the market of deep technical resources, spanning multiple Microsoft Product expertise - Maturity of the local market and subsidiary 10 Portugal, a Nearshore Outsourcing Destination
11 Information Technology 2005: launching of Global Shared Service Accounting & Finance 2009: launching of Global Shared Service Human Resources and Governance & Controlling Delivery Center Values not available ITO / BPO Services Total planned for September 2011: 530 FTE s (80% Gradutes, 23 nationalities/17 languages) Siemens will provide services to 60 Siemens in 2011 (13 European countries) - Language Skills: very good (English + wide range of European languages) -Government Support - Labor Pool: large recruiting base, with skills (Graduates and resources with international learning experiences) - Good infrastructures - Very good Education System: very close collaboration with the top universities - Cost: good - low growth rates help controlling costs (keeping competitive) - Very good Political and Economic Stability, Good Global and Legal Maturity -Good Data and Intellectual Property, Security and Privacy 11 Portugal, a Nearshore Outsourcing Destination
12 Managed Print Services & ITO Mid 2010 / 1 million - ITO Services - Additional services planned for Q3/Q : headcount and profile characterization. Total FTE s planned for Sept 2011: 250 Global and national organizations: Fiat, a global pharmaceutical company, a global mobile phone manufacturer, and national telecomm providers (non-disclosure agreements) - Availability of highly qualified resources with competitive salaries - Several languages knowledge easily available - Competitive facilities costs 12 Portugal, a Nearshore Outsourcing Destination
13 PORTUGAL A NEARSHORE OUTSOURCING DESTINATION London, October 14th 2010
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