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Spain has become quite the hot spot for North European countries to branch out company-wise, especially in terms of software development. Many Nordic Companies outsource software development in Barcelona.
Spain has a larger software development market and is known for its expertise in industries such as tourism, finance, healthcare, and technology. Spain has a growing startup ecosystem, with Barcelona and Madrid emerging as major hubs for tech companies. Spanish companies tend to place a strong emphasis on best practices in software development, which can be seen in their software products.
Barcelona became a digital hub for Spotify, Nestlé, Lidl, Allianz, MediaMarkt, N26, Facebook, Moodle, Microsoft, Siemens, Satellogic, Zeptolab, Bitpanda, PepsiCo, and many other companies. You can read about it here.
Nordic companies open software development hubs in Barcelona
There are several reasons why Nordic companies may choose to outsource software development in Barcelona.
Firstly, Spain has a large and growing market for technology and digital products and services. The country has highly educated developers and a favorable business climate, which can make this country an attractive location for Nordic companies looking to expand their operations.
Secondly, the winter blues, aka winter depression or conditional depression, is a very common disorder in Nordic countries. This typically results in a lot of sick days as well as a lack of motivation and productivity. While Spain is a large country with a varying climate, its most populous cities, such as Barcelona, Madrid, Malaga, and Valencia — to name a few — tend to see a lot more sunny days and warmer weather. This makes it an ideal relocation for companies in any country facing harsh winters.
Thirdly, Spain offers a more affordable cost of living compared to the Nordic countries, which can make it more cost-effective to operate a tech hub there. This can also mean that it is easier to attract and retain talent in Spain due to the lower cost of living and lower salaries compared to the Nordic countries.
Compared to Nordic countries, the cost of living, as well as salaries, is much lower in Spain. However, that means that even for less money, residents and non-residents working and living in the country can take advantage of a better quality of life.
There are multiple studies and reports that demonstrate how Spain comes in second in the world for having an exceptional work-life balance. This is largely due to Spanish culture and the prioritization of devoting more time in a day to self-care and leisure.
Also, Spain is known for developing innovative products and services. The Spanish culture also encourages a more relaxed and collaborative work environment, which can be beneficial for companies looking to foster creativity and teamwork.
Finally, opening a tech hub in Spain can also offer Nordic companies the opportunity to tap into the country’s pool of tech talent and benefit from the diverse perspectives and experiences of Spanish software developers.
Barcelona, in particular, has become a hub for innovation, paving the way for multiple exciting opportunities for both local and foreign businesses and investments. The city is also the top ecosystem for tech startups, including Typeform, Wallapop, Glovo, Badi, and more.
Nordic companies outsource software development in Barcelona
Nordic companies outsource software development in Barcelona for a variety of reasons.
1. Outsourcing software development to Spain can offer Nordic companies access to a large pool of skilled software developers at a lower cost than hiring locally. Spain has highly educated software engineers with a strong background in computer science and technology, and outsourcing to Spain can be more cost-effective than hiring full-time employees in Nordic countries. According to a report by GoodFirms, the hourly rates for software development in the Nordic countries range from €100 to €170, while in Spain, the hourly rates range from €60 to €120. The lower rates in Spain are due to the lower cost of living and lower salaries in the country.
2. Outsourcing to Spain can also offer Nordic companies the opportunity to tap into the country’s expertise in specific industries such as tourism, finance, and healthcare. Spanish software development companies may have specialized knowledge and experience in these industries, which can be valuable for Nordic companies looking to develop software products for these markets.
3. Outsourcing to Spain can also offer Nordic companies access to a more flexible workforce. Spanish software development companies often have experience working with international clients and can offer flexible working arrangements and project management methodologies to suit the needs of Nordic companies.
4. Outsourcing to Spain can also offer Nordic companies a competitive advantage by allowing them to focus on their core business operations while outsourcing software development to a trusted partner. This can help Nordic companies to reduce their time-to-market, improve their product quality, and ultimately grow their business more efficiently.
5. Spain is one of the top outsourcing destinations in Europe, with a large and growing outsourcing market.
6. A survey conducted by Statista found that the most commonly outsourced IT services in the Nordic countries were application development and maintenance, software testing, and IT infrastructure management.
Barcelona is often called the Silicon Valley of Europe—and that’s not just a tag! It’s the foremost tech hub in South Europe. 34% of all Spanish start-ups are based in Barcelona, while investment in the city’s startups in the same year grew by more than 55%, year on year. Marketplace, E-Commerce, and Mobile are the top three invested sectors in Barcelona this year, and each of them requires software developers.
There are several types of companies relocating their businesses to Spain. However, keeping the country’s exploding technology sector in mind, you can expect to find companies both large and small that are able to employ software developers or partner up with software development companies like Apiumhub.
Not only is there an established tradition of companies developing here, but there are new openings and possibilities everywhere. There are many startups trying to emerge in Barcelona and lots of developers moving to the city. This makes it special—it’s a very tech-oriented place.
The quality of life you can maintain in Barcelona and the comfortable climate is attracting more and more leaders in the tech industry. The salaries in major tech hubs like London and Berlin are higher, but the cost of living is much lower in Barcelona.
Overall, the outsourcing markets in the Nordic countries and Spain are both significant and offer a range of services to clients. While the Nordic countries are known for their focus on innovation and high-quality products, Spain offers high-quality solutions and a more cost-effective option for outsourcing services due to lower labor costs.
Outsource your software development in Barcelona
If you need help with opening or developing a tech hub in Barcelona, let us know, we can help, we have experience and success stories building fast-growing tech hubs in the city! And if you are searching for a software development partner in Barcelona, let’s talk, we would be happy to know more about your software project!