2013
2
aicep Portugal Global
Content
Education
6% Arts
9%
Science, M aths and Computers 7% Engineering, M anufacturing 22% Agriculture 2% Healthcare 16% Services 6%
Social Science and Law
32%
Higher Education: qualified workforce available
Students enrolled in higher education
institutions by field of study, 2010/2011
Source: INE – Statistics of Portugal, 2011/2012
High-Tech areas represent almost 30%
Number of total graduates in the main
cities in Portugal, 2010
2 886 15,585 7 149 29,025 5,948 2 748 2,129 2 899 4 365 4 370368.571 368.982 381.728 378.834 389.841 403.445 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Enrolled in higher education, 2005-2011
Source: INE – Statistics of Portugal, 2011/2012
A positive trend towards an interesting talent pool
Portugal is ranked # 2 in Migrant Integration Policy Index III 2011 out of 31 countries, European Commission
ATTRACTIVENESS FOR EXPATRIATES
WORLD CLASS EDUCATION
Life Science, Health and Engineering areas represent 40% of the total enrolled students in tertiary education, 2009/2010
POST-GRADUATE EDUCATION HUMAN RESOURCES PERFORMANCE
Portugal was ranked #2 in Human Resources growth performance
according to the European Innovation Scoreboard 2009
32,000 students 60 R&D facilities
15 Faculties PORTO UNIVERSITY
NOVA UNIVERSITY LISBON UNIVERSITY MINHO UNIVERSITY ALGARVE UNIVERSITY 24,000 students 54 R&D facilities 11 Faculties COIMBRA UNIVERSITY CATHOLIC UNIVERSITY 18,500 students 32 R&D facilities 11 Faculties AVEIRO UNIVERSITY 20,000 students 41 R&D facilities 9 Faculties 14,000 students 23 R&D facilities 16 Faculties 14,000 students 16 R&D facilities 20 Faculties 24,000 students 40 R&D facilities 12 Faculties 9,700 students 7 R&D facilities 7 Faculties Source: Conselho de Reitores das Universidades Portuguesas www.crup.pt
TECHNIC UNIVERSITY 24,300 students 55 R&D facilities 7 Faculties
Reference Universities in the country
Education & Labour Force
International Schools in the South
Lisbon area has a big diversity of International schools, offering foreign-language based education from pre-primary school until k-12 in several languages.
St Julian's School - www.stjulians.com
St Dominic's International School - www.dominics-int.org
German School (Estoril) - http://dslissabon.com/pt-pt
Carlucci American International School of Lisbon - www.caislisbon.org
Lycée Français Charles Lepierre - http://lfcl-lisbonne.eu/
International Preparatory School - http://www.ipsschool.org/
St. Peter’s School - www.st-peters-school.com (Setúbal city)
LISBON
AREA
Education & Labour Force
www.lyceefrancaisdeporto.pt
www.dsporto.de/ www.obs.edu.pt/
www.clip.pt/
International Schools in the North
Located in Porto, they offer foreign-language based education from pre-primary school until k-12 in French, English and German and a increasing number of students.
PORTO
AREA
Education & Labour Force
Source: INE, 1st Quarter 2013
Surplus of engineers:
•
Civil and construction•
Electronics and telecommunications•
IT (computer system designers / programmers)•
Mechanical, Chemical, Electrical•
Others (such as Environmental)Recognized skills:
•
Good command of the English language;•
Good level of academic qualifications;•
Ability to solve new problems / Adaptability;•
Commitment to workLabour Force Available
Education & Labour Force
Unemployment Rate
(Q1 - 2013)Portugal – Total
17.7%
Young People
(Aged between 16 and 24 )Portugal is a modern country, with an attractive employment market, a peaceful labour environment and flexible labour regulations, that offer various competitive advantages to foreign investors.
Hiring
Firing
Others
Employment contracts are not subject to any specific formalities (except when the law requires differently).
Trial period: from 15 to 240 days, depending on job specifications. Fixed-term contracts can be renewed during 3 years (maximum of 3 renewals).
Foreign workers, who are authorised to work as employees in Portugal, have the same rights and duties as Portuguese nationals workers.
Employment contracts celebrated with national members of European Economic Area do not require the written form.
The new Portuguese employment code simplifies and shortens disciplinary procedures and increases the legal security of the parts in dismissal processes.
During trial period, either part may terminate the contract without notice, with no right to compensation (if the trial period lasts more than 60 days, to cancel the contract the employer must notice the decision 7 days in advance).
Also, no compensation is due in case of dismissal with just cause (i.e., situation in which the employment relationship is impossible to keep).
Maximum working hours per day: 8. Maximum working hours per week: 40. Collective agreements allow up to 6 hours consecutive work, reduce or exclude resting hours duration and extend daily and weekly working hours to 12 and 60, respectively. Individual employment contracts can extend these values to 10 and 50 hours, respectively. Special working hours, shifts, night work and overtime work can be stipulated. National members of European Union countries do not requires working, residence or habitation visas/permits.
Source: Portugal Labour System – January 2011, Aicep Portugal Global
Overview
• Less 4 public holidays starting in 2013;
• Regarding holidays, the 3 extra days for attendance reward will be eliminated from 2013;
• The hour bank system during production peaks can be negotiated directly with the workers;
• Overtime work payment will be reduced by 50%and employees are not entitled to paid time off in lieu;
• Compensation for dismissal will decreaseto the average European Union level and a
threshold will be defined;
• Lay-off with new rules to reduce deadlines.
Labour Regulations
• English learning is mandatory since 2009 beginning at the elementary school;
• 80% of the students enrolled in high school also learn English;
• 63% of the students enrolled in high school learn French;
• Around 20% of highly qualified workforce has attended foreign language degrees;
Wide pool of multilingual skills
The country has made several efforts towards an
increase in the foreign languages learning at school
Language Skills
Non-Academic Language Schools are
available throughout the country
Italian Russian Spanish French Dutch German English Scandinavian Others Japanese Chinese Bulgarian Polish Romanian Ukrainian
PORTUGAL
Language Number of native speakers Scandinavian 1 837 English 31 410 German 9 576 Dutch 4 862 French 11 497 Spanish 13 714 Italian 5 338 Russian 4 878 Ukrainian 48 022 Romanian 52 898 Polish 1 280 Bulgarian 8 606 Chinese 16 785 Japanese 385 Others 6 974Source: Official Statistics SEF 2011, Ministry for Foreign Affairs
Native Speakers of the most common Foreign Languages in Portugal. A dominant presence of European eastern and southern languages.
Language Skills
Eurozone Portugal 0.126 0.105 0.121 EU-27 ELECTRCITY PRICES
Eurostat, Electricity prices for industrial, 2nd Q,
2011 (€/Kwh)
Eurozone Portugal EU-27
Eurostat, Labour cost per hour in euros (> 10 employees), 2011 566 € 1.202€ 1.462€ 444 1.801€ 1.447€ 877 € 748 € 1.398€ 763€ 327€ 310€ 232€ 138€
MININUM WAGES - 2012
Source: Eurostat, 2012Data as on 1st of January in European Union.
PORTUGAL
336€
No statutory minimum wage
Among EU Countries, Portugal is rather competitive
Office space in Lisbon non-CBD
# 11
REAL ESTATE RANKINGSCushman & Wakefield, 2012; 63 cities
# 19
Office space in Lisbon CBD LABOUR COSTS 23.1 27.6 12.1Competitive Costs
Source: Benchmark Survey 2011, Portuguese Contact Center Association
Average wages in Contact centers in Portugal
42% of the salary levels range
between €500 and €600/month. In
case of specialized centers, the
range moves up one level.
AVERAGE WAGE OF A SUPERVISOR
€/Month More than €1.200 Between € 901 and € 1200 Between € 751 and € 900 Between € 601 and € 750 Between € 500 and € 600 Less than € 500 Large center Specialized center More than €1.500 Between € 1.201 and € 1500 Between € 1001 and € 1200 Between € 851 and € 1000 Between € 700 and € 850 Less than € 700
For higher job positions – a
supervisor – the salary increases
by 30% on average.
AVERAGE WAGE OF AN OPERATOR
€/Month
Source: Benchmark Survey 2011, Portuguese Contact Center Association
Average Bonus in Contact Centers in Portugal
Most common
bonuses are
cash-related, sales
commission and
health insurance.
The differences in
bonuses between
operators and
supervisors are
relatively small.
No Bonus Others Health Insurance Mobile Gift voucher for other criteria Gift voucher for quality service Gift voucher for efficiency Gift voucher for attendance Sales commission Cash bonus for other criteria Cash bonus for quality of service Cash bonus for efficiency Cash bonus for attendanceOperators
Supervisors
AVERAGE WAGE OF
AN OPERATOR
€/Month
Average
IT Services Retail & Commerce
Postal Services Utilities Telecommunications Insurance & Travel Assistance
Banks & other financial entities
The monthly wage of an operator is around 736€, on average. On average, a supervisor gets 40%
more than an operator. On average, the most common
bonus is awarded according to service quality and efficiency.
MOST COMMON
BONUS OF AN
OPERATOR (
%) Others No Bonus Health Insurance Mobile Telephone Sales Commission Cash bonus for other criteria Cash bonus for service quality Cash bonus for efficiency Cash bonusfor attendance Source: Benchmark Survey 2012, Portuguese Contact Center Association:http://www.apcontactcenters.com/estudo/estudo%202012.pdf
Wages by Industry
Financial Incentives Fiscal Incentives Training Incentives R&D Incentives Internships Grants Job creation incentives Customized incentives package
Government Agency with dynamic approach focused on the client or investor;
Free of charges, flexible and streamlined services;
Single point of contact in all phases: pre-investment, incentives negotiation, settling in and after care;
Promoting a direct negotiation with investors.
Commercial Register Online
Companies can update or record formal acts online: 50% cost reduction and no need for physical presence.
Simplified Company Information Submitting financial and accounting
information required by public bodies in one step: filling of a single form, available online.
On the spot company
In January 2010, the average time to set up a company was of 35 minutes: this service enables to set up companies at a single contact point, without filling any application form.
GOVERNMENT SUPPORT
“The United Nations Public Service Awards granted Portugal with 1st prize in “Improving the Delivery in Public Services category in May 2011”.
According to the World Bank, in 2012 Aicep is in the TOP 10 (out of 189 countries) Worldwide Investment Agency in inquiry-handling to potential investors.
Government Support
Office Space Available
Source: Cushman & Wakefield, Marketbeat Portugal, Spring 2013
• Prime Rents: are expected to see further pressure to decrease as landlords compete for tenants.
• Vacancy rates 2012: 12%, the highest ever recorded
• Total Vacant Area (sqm): 545,000 (Lisbon, 2012)
• Space currently under construction: almost two thirds is pre-let.
The office market in Portugal is quite competitive and recorded a tremendous change: new or rebuild properties, eco-efficient construction, modern and design-oriented, close to public transportation.
Calls centers, financial services and technology are the most active sectors in terms of occupancy of new office space, as a result of growing availability of modern office space.
P ri m e rent (€ /s qm /m on th)
Source: Jones Long LaSalle, Portugal Market Pulse, 2012 Q4
The trend in prime rents has been clearly downwards in the last 7 years, in major Lisbon office areas.
Office Space
• Portugal has
450 companies
in the
shared services centres and call centers
industry, employing an excess of 30,000
people and representing around 2% of
GNP.
• A growing number of companies are
choosing Portugal to invest in this sector.
That’s why the industry is showing a
two-digit growth
over the last 4 years and is
expecting to keep this track on the coming
years.
•Portugal is already the chosen destination
of large and medium sized multi-national
contact center corporations who profit from
the existing installed expertise combined
with comparative lower installation and
running costs the country offers.
Shared Services and Contact Centers: Overview
• The Portuguese Shared Services
Centre Market is growing and the new
centres recently established in Portugal
prove that we remain competitive.
According to the latest IBM-PLI SSC
Monitor, Portugal represents
2%
of the
SSC market and is included in the third
wave location trend.
• The
country’s
language-skilled
workforce and flexibility has made
companies such as IBM BTO, Siemens,
Cisco and Alcatel to locate their SSC in
Portugal and by doing so, saving up to
58% of costs
in these divisions.
Shared Services & Outsourcing
The Outsourcing activities are growing fast across the country. Currently, this industry represents around € 900 Million (0.54% of GDP), still below the European average. It is expected an increasing employment through the creation of 10,000 new jobs and the value generated achieve one billion in productivity gains.
Source: Portugal Outsourcing
Source: Portugal Outsourcing, INE, IDC
Source: Portugal Outsourcing, IDC Outsourcing Value 2012 (Million €)
Expected trend in Outsourcing Employment in Portugal
Xerox office in Lisbon
Outsourcing services: Overview
Shared Services & Outsourcing
524
369
59 % ITBPO 41 %
BRAGA
Main cities attracting services in Portugal
AVEIRO
PORTO
COVILHÃ
LISBON
Largest cities in Portugal – Porto and Lisbon – concentrate the main services centers. But smaller cities are also attracting IT outsourcing activities and shared services, for their lower costs, dynamic and skilled local university graduates and higher office vacancy rates.
Contact Centre World Awards 2012
Portugal is top Performer in key areas of SSC sector, showing its value among other countries from EMEA Region and at worldwide level:
Source: Contact CenterWorld Awards
Bronze Medal Gold Medal
• ZON Portugal for
Technology Innovation; for Home/Remote Agents; for Community Service; for Contact Center Design;
• Optimus for Customer Service (Inhouse)
• PT Contact for Green Contact Center
Source: Contact CenterWorld Awards
Bronze Medal
Silver Medal
• Teleperformance for Outsourcing Performance, for Customer Services, for Large Sized Contact Center;
• Optimus for Technology Innovation
• PT Contact for Community Spirit
Source: aicep Portugal Global
Breaking News
Shared Services & Outsourcing
In 2012, Lusotechnip, Portuguese
subsidiary of the Group Technip,
reinforces his bet by Lisbon, and
opened a new engineering execution
center and training pole to serve
Brazilian and Angolan markets,
employing currently 110 persons.
Altran, French global leader in
innovation and high-tech
engineering, has opened an office
in Fundão, for a Nearshore
Delivery Center, focused in
information systems, telecom
network support and automotive
diagnosis.
Reasons for choosing the site location
Portugal Outsourcing – The Industry Association
Source: http://www.portugaloutsourcing.pt/en/Objectivos.html
MEMBERS
Portugal Outsourcing gathers the TOP IT and BPO companies in the country, with the objective of contributing for the development of the Portuguese Outsourcing Industry promoting best practices, stimulate the creation of competence centers and disclose the offer and the outsourcing activity in Portugal. It represents 85% of the BPO and IT market share.
For the first time,
Portugal is included in
the TOP 11 countries
as the best worldwide
destination to
establish Outsourcing
activities either in
offshore or nearshore,
according to the
consulting firm
Gartner.
http://www.portugaloutsourcing.pt/26
aicep Portugal Global
We are a Business Development Agency, focused on
the development of a competitive business
environment that contributes to the international
expansion of the Portuguese Economy.
Who are we?
Increasing the country’s competitiveness,
promoting large private investment and fostering
the internationalization of Portuguese companies.
Mission
Values
Focus on clients.
We serve our clients in accordance to their requirements
through various solutions and long-term relationships.
Selectiveness.
We direct our activity towards projects and markets that
make a better contribution to company competitiveness and the
sustainability of the Portuguese economy.
Excellence.
We seek to exceed expectations by means of a rigorous
approach, effectiveness, enthusiasm and a willingness to innovate.
aicep Portugal Global
About Us
aicep Portugal Global: how can we help
you?
1
Pre- Investment2
Incentives Negotiation3
Settling In4
After CarePromoting a direct negotiation
with companies, through which a tailored approach to incentives may be applied in order to define a global package that fully satisfies the investor's needs
Single point of contact
in all phases: pre-investment, incentives negotiation, settling in and after care
Government business entity, flexible, free of charges and streamlined services Dynamic approach focused on the client or investor