Plus a lot of talent is wasted in IT consulting jobs. There are very few pure software development companies around (and no Google/MS/IBM dev centers around), yet there are plenty of good hackers!

4 schools in Lisbon pumping good graduates. There's a small scene building up around the town.

It's a really a nice kept gem. Give it a few more years and it should hit the headlines.

Some important projects have decided to be located in Portugal http://living-planit.com/aboutus.htm

-- MV