Why are the back-office and contact centers of international companies moving to cities in southern Spain and Portugal?

In response to this new paradigm, many back-office departments of companies from northern Europe are moving to other more pleasant and competitive cities, and this is not a coincidence.

It is clear that times are changing and many companies are adapting to what the market demands and are quickly reacting by opting for relocation, basing their strategic decisions on weighty reasons such as cost savings, the capture and retention of talent, the search for a better quality of life for their employees and all accompanied by a growing investment in technology, which facilitates communication between different cities or countries in which these companies provide their services.

For back-office, call centers, customer service, digital sales, purchases, etc., it does not matter where the staff is located as the contact with customers, companies or suppliers is always remote, either by telephone, online or hybrid.

The digital transformation of companies has led them to rethink their business models, which has caused a change in mentality in the processes used so far in customer service in its broadest sense.

That is why we are seeing European cities such as Valencia, Malaga, Alicante or Lisbon being highly demanded by foreign companies and talent to offer high-value services where increasingly global, multilingual and international companies are being established.

Many companies have understood that moving these departments outside their country means a significant optimization of costs within the company, besides other aspects of great importance related to motivation and the contribution of descisions for their employees.

• Regarding the economic aspect, the rents of office spaces in the aforementioned cities are much more affordable compared to others in northern Europe. In addition to the cost savings in the square meters of occupation, the cost of labor and social security costs also play a role, which can be much lower depending on the country to which the teams are transferred.

• And on the other hand, we attend to the human factor. Today, we see many companies that stand out for taking special care of their employees, their most valuable resource. It is clear that the work environment and quality of life have a great impact on employees and the company, generating almost always better results and greater profitability.

• The aforementioned cities – Valencia, Malaga, Alicante or Lisbon – are characterized by having a very pleasant climate throughout the year, with a wide range of leisure and culture as a beach or tourist destination where to enjoy cultural activities, museums, etc.

• The quality of their services – private hospitals and international schools among others -, their international communications with high-speed trains and international airports with fluid routes to northern Europe, make these destinations very pleasant for the location of departments of international companies.

We are seeing how with strategies for the relocation of these services, companies are achieving important cost savings and the increase in the motivation of their employees, whose mood directly affects the quality of the work.

What will be the next move?

If you are considering a change, transfer or relocation in your company, please let us know and we will be happy to advise you and explain how we have helped Transcom, Conectys,Teleperformance & TripAdvisor, to implant themselves in cities like Málaga, Alicante, Valencia , Lisbon, Oporto y Barcelona