Outsourcing to Spain: Here’s what you should know

Why should you outsource to Spain?

You should outsource to Spain for its skilled talent, strong tech infrastructure, European time zone, and growing base of BPO providers across IT, HR, accounting, and customer service.

• Spain sits in the Central European Time zone, so it aligns with the rest of Europe.
• Its universities produce strong talent in IT, HR, and finance.
• Costs keep falling, which makes it viable for call center work.

Spain offers more than warm weather, museums, and tourist spots. In fact, it is also a rising outsourcing destination for firms in Europe and the United States.

The country has been hit by recessions before, which left its economy shaky for a time. Luckily, the outsourcing industry keeps helping the country rebuild. It employs skilled citizens and serves clients well.

As Spain’s BPO industry grows, its value to clients grows too. So read this guide on outsourcing to Spain to learn more.

Spain as an outsourcing destination

Spain is now one of the top outsourcing destinations for the US and Europe. For example, it features in the Tholons Digital Nations index. So outsourcing to Spain helps both client firms and the Spanish economy.

Like some Latin American countries, such as Mexico, Spain began to outsource manufacturing in the 1990s. For a time, manufacturing was one of the biggest drivers of its economy. If you compare regions, this guide to outsourcing to Latin America offers useful context.

Demand then fell from the 2000s and worsened during the economic downturn. However, that decline opened the door for a new player: IT outsourcing. So the sector grew steadily over the years.

In 2016, Spain ranked 46th in the Kearney Global Services Location Index. Rankings rise and fall. Still, the country keeps building its reputation as a solid choice.

Spain fast facts

• English proficiency. Spain has a moderate level of English proficiency, sitting in the mid-range across Europe.
• European Union. Spain joined the European Union, then the European Economic Community, along with Portugal in 1986.
• Aging population. Spain is among the countries with the most aging population in the world. People aged 65 and over make up a large share of its total population.
• Autonomous regions. Contrary to what many think, Spain consists of 17 autonomous regions with some self-governance, unlike in the US.
• Female entrepreneurs. Entrepreneurship is also a growing career path for women in Spain. Female entrepreneurs in the country have been on the rise since the 2008 economic crisis.

Why you should outsource to Spain

Spain has become a viable option for outsourcing for several reasons.

Accessible destination

Spain sits in Southern Europe. It welcomes millions of tourists each year. Tourism accounts for a large share of the country’s GDP and jobs. Still, Spain is more than a holiday spot.

The country is a strong fit for nearshoring across Europe. Its many international airports make access easy for neighbors. So teams can visit when needed. For a wider view, see how nearshore services support growing businesses.

Advanced telecommunications network

Spain is one of the innovation centers in Europe. The country has more than 180 startup accelerators across its regions. In fact, Madrid holds the most.

Connectivity is rarely a problem when outsourcing to Spain. The country ranked well for mobile and fixed broadband speeds in Speedtest’s October 2021 report. Most internet users there are aged 25 to 34. So they match the usual profile of outsourcing workers.

Access to a vast labor pool

Spain has long carried a high unemployment rate of 15.6%, among the steeper rates in Europe. However, global firms see this as a chance. So they tap the country’s talent pool for outsourced work.

Its people show a clear edge in tech and the sciences. For example, some of its biggest universities feature in the QS University World Rankings. So these schools produce skilled pros in IT, HR, accounting, and more each year.

Timezone compatibility

Spain follows Central European Time. So it stays in sync with the rest of Europe. This means clients can work with their teams during the same workday.

Spain is also only about six hours ahead of the United States. So outsourcing to Spain can suit US firms that hesitate to work with far-off destinations, such as India and the Philippines.

Disadvantages of outsourcing to Spain

Spain brings clear upsides. Still, outsourcing there has some downsides too. These include:

• Language barriers. As noted, Spain still has work to do on English proficiency. So firms should keep strong ways of communication with their teams.
• Lack of control over operations. Distance can make control feel harder. So this may worry firms that guard their brand and reputation closely.
• Decrease in expected quality. Cheap pricing does not always mean quality. The wrong provider can hurt the standard of your work and products.

Services you can outsource to Spain

You can outsource almost any business function. However, you get the best value by delegating the following to Spain.

Information technology

Demand for IT outsourcing in Spain is high. The country has strong promise as an innovation hub. In fact, it is a sought-after choice alongside Belgium and Poland, especially for software development.

Spain relies on IT in every part of its economy, from data protection to traffic control. So by outsourcing software development, teams share their skill in building systems that clients need. To compare markets, this look at key areas of IT outsourcing services is a good start.

Human resources

The Coursera Global Skills Report places Spain at a “cutting edge” level in fields such as IT and HR. So the country delivers well on HR outsourcing.

When firms outsource HR to Spain, they get a one-stop shop. As a result, their team handles recruitment, training, payroll, and staff management with ease.

Accounting

Outsourced accounting is also common among Spanish providers. Firms that outsource accounting to the country tap real skill in handling offshore accounts and markets.

Still, this does not just help those with Spanish accounts. It also helps firms manage local books and compliance better, since licensed accountants handle the work.

Customer service

Spain is a hot seat for call center outsourcing in Europe. Some of the largest call centers, such as Telus and Accenture, run Spanish offices to serve European clients.

Labor and resource costs keep falling in Spain. So it stays viable for call center work. What is more, teams there offer strong multilingual support for inbound and outbound calls. To learn more, see this guide to multilingual call centers.

Content moderation

Despite language differences, Spanish BPOs are reliable for content moderation services. So they suit firms with global content needs.

Outsourced writers and creators help build sites with optimized content in many languages. They can also refresh existing content and tune it to search engine standards.

Top BPO companies in Spain

Like most destinations, Spain has a wide range of BPOs for firms of all sizes. So clients can choose large or small providers based on function, team size, and flexibility.

The top BPO companies in Spain include established brands in accounting and HR services. In fact, they are known for fair pricing, strong teams, and quality work. Some even serve the largest brands in the world, such as Google and Cisco. If you weigh regions, this comparison of Eastern Europe and Asia can help.

Ready to outsource to Spain? Here are a few more things to consider

Outsourcing to Spain, or anywhere, always carries some risk. So the firms that succeed invest time in planning what to delegate.

Before you start, consider the following steps:

• Get to know outsourcing and the industry. Many free resources, such as articles, videos, and podcasts, cover outsourcing. BPO firms also publish helpful content to get you started.
• Talk to experts in the industry. It helps to speak with industry experts. So they can guide your next steps and help you decide with confidence.
• Look for the right service provider. Successful firms do not settle for the first option. Instead, they look for the most suitable provider for their needs.

If you want third-party advice, Outsource Accelerator can help. As a leading marketplace and advisory, it offers thousands of articles, hundreds of podcast episodes, and video content on outsourcing. In addition, it lists thousands of BPOs worldwide, including Spanish firms, in its directory.

Outsourcing in Spain still calls for care. Still, do not let that stop you from delegating work to the country for your gain.

Frequently asked questions

Is Spain a good outsourcing destination?

Yes. Spain offers skilled talent, strong tech infrastructure, and a European time zone. So it suits both US and European firms.

What can you outsource to Spain?

You can outsource IT, HR, accounting, customer service, and content moderation. So it covers a wide range of business needs.

What is the main benefit of outsourcing to Spain?

Time zone fit is a key benefit. Spain follows Central European Time, so it aligns with the rest of Europe.

What are the risks of outsourcing to Spain?

The main risks are language gaps, less control, and quality concerns. So choosing the right provider matters a lot.

Why do US firms outsource to Spain?

Spain is only about six hours ahead of the US. So it feels closer than far-off destinations like India or the Philippines.

Key takeaways

• Spain is a rising outsourcing destination for US and European firms.
• Its Central European Time zone keeps teams in sync across Europe.
• Strong universities supply talent in IT, HR, accounting, and more.
• You can outsource IT, HR, accounting, customer service, and content moderation.
• Watch for language gaps and pick the right provider to protect quality.