Technologies and Internationalization Opportunities
Insight - sep 2023
Technologies and Internationalization Opportunities
In the January 2023 edition of AICEP's (Agência para o Investimento e Comércio Externo de Portugal) Portugalglobal magazine, the organization released a study that reinforces Portugal's potential in the ICT - Information and Communication Technologies - sector.
According to INE data from 2020, the sector is made up of around 24,000 companies that employ more than 147,000 qualified employees, which corresponds to 3.6% of employment in Portugal. The sector is responsible for revenues of more than €21 MM, which is equivalent to 5.4% of the total turnover of Portuguese companies.
In geographical terms, the sector is clearly concentrated in the greater Lisbon area, which accounts for 64% of the area's turnover, followed by the North with 26% and the Center with 6%.
The country has been excelling in its supply of software, particularly business software. During the period under review (2015-2020), an increase of 10% to 15% was observed in the software and IT services segments, as well as a 21% increase in exports, mainly to the European Union.
The pandemic as a stage for digital transformation
The Covid-19 pandemic has led to a digital transformation that has created space for a new standard of information technology to emerge, called the "Third Platform" by IDC Portugal. This paradigm has enabled the development of technologies such as virtual reality, artificial intelligence (AI), robotics and 3D printing.
The future of IT in Portugal and worldwide
According to IDC Portugal, investment in digital transformation will accelerate between 2022 and 2025, representing more than 55% of total ICT investment. Industry decarbonization initiatives will be a key objective of digital transformation projects: 90% of organizations say they will reduce carbon emissions by the end of 2023.
Considering the skills of Portuguese talent linked to their ability to overcome cultural barriers, we highlight the possibility of internationalization to relevant markets within the Third Platform, such as Western Europe, the United States and Asia, thus making Portugal a thriving ecosystem for tech startups.
