What Drives Tech Professionals in Portugal? Market Observations and Talent Trends

Author: Catarina Leirinha

Catarina Leirinha, Talent Acquisition Specialist in ITDS Portugal, holds a degree in Organizational Psychology and has been working in Recruitment since 2018, with a growing passion for IT since 2021. She specializes in sourcing new talent for ITDS, primarily in the Development area, and has a particular interest in legacy technologies like Cobol and RPG. Joining ITDS in January, Catarina hails from central Portugal and embraces the hybrid work model, valuing the balance between city life and the calm of her village. She draws inspiration from nature and animals, which fuels her creativity in finding the best candidates for our clients.

As Portugal continues to strengthen its position as a key European tech hub, understanding the expectations and motivations of local IT professionals is becoming increasingly relevant. The country’s growing ecosystem (fueled by foreign investment, nearshoring projects, and an active startup scene) creates both opportunities and challenges in attracting and retaining top talent.

This article outlines key trends observed among tech professionals in Portugal, based on evolving candidate preferences, project dynamics, and wider market signals.

1. Flexibility as a Core Expectation

Workplace flexibility – whether in terms of location, schedule, or engagement model – has become a standard expectation across the tech industry, and Portugal is no exception.

Remote and hybrid models remain in high demand, especially in roles that are infrastructure-independent. Many professionals view location-independent work not as an added benefit, but as a given. Flexible hours also play a role in how professionals manage their time and productivity. The ability to align work schedules with personal routines is often associated with increased engagement. 

Additionally, B2B cooperation models have gained momentum. These arrangements offer professionals more autonomy and allow them to structure their work around their own financial and tax preferences.

2. Compensation and Market Alignment

Portugal remains attractive for IT outsourcing due to its highly skilled workforce and relatively moderate cost of living. However, compensation expectations have evolved in line with global remote work trends.

Professionals with international exposure increasingly benchmark offers against wages in markets like Germany, the Netherlands, or the UK. For this group, salary transparency and market alignment are perceived as signals of trust and professionalism.

While non-wage benefits such as private healthcare or meal cards are valued, they rarely offset concerns related to base salary competitiveness.

3. Learning, Growth, and Impact

Many professionals are looking beyond immediate financial gain and place high importance on the opportunity to grow, upskill, and contribute meaningfully through their work.

Structured development initiatives – such as access to certifications, mentoring, or tech community involvement – can enhance the perceived value of a role. Similarly, exposure to diverse or international projects is often seen as an indicator of professional growth potential.

4. Team Culture and Psychological Safety

Even in remote-first environments, team culture and interpersonal dynamics are critical. Professionals tend to prioritize environments where collaboration, respect, and transparency are part of the daily experience.

Structures perceived as overly hierarchical or bureaucratic may discourage initiative. Conversely, flat organizational models and agile team setups often appeal to individuals who value autonomy and ownership.

Feedback culture, peer recognition, and awareness of mental health topics are additional factors that influence long-term satisfaction and retention.

5. Stability Coupled with Stimulation

Portuguese IT professionals often look for a balance between stability and intellectual challenge. Long-term engagements are welcome, provided they continue to offer learning opportunities and do not become stagnant.

In some organizations, strategies such as rotating roles, exposing professionals to new technologies, or offering diverse project scopes have proven effective in maintaining motivation over time.

Clearly defined performance expectations and transparent career development frameworks are also regarded positively.

Contextual Considerations: The Portuguese Market

Local market dynamics further shape the talent landscape:

Lisbon and Porto remain the primary hubs, but high competition for talent in these cities encourages companies to offer more flexible work setups and regional variations.

Lifestyle factors (including climate, cost of living, and cultural familiarity) often influence professionals’ decisions to stay in or return to Portugal.

Multilingual communication and international project exposure are welcomed, particularly when paired with a respectful understanding of local customs and expectations.

Conclusion: Trends Worth Monitoring

The Portuguese IT market reflects a broader shift in how professionals define meaningful work. While salary remains important, other factors such as flexibility, growth potential, team culture, and purpose increasingly shape career decisions.

Organizations, whether local or international, operating in this space may benefit from observing these trends and adapting their approaches accordingly. Continuous dialogue with tech talent, data-driven insights, and localized understanding can all contribute to building more resilient, engaged, and future-ready teams.