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Category Archives: Nearshore
Offshore outsourcing is a real change management issue. Regardless of the underlying reasons (economic, acceleration, recruitment difficulty, etc.) of an outsourcing project, there are certain pitfalls you should avoid. Here are the top 5.
1. Disregarding the internal HR issue
Whether we talk about IT, accounting or other type of outsourcing, the definition is the same: a provider/partner takes over an activity performed internally until that point. Not taking the internal HR component into account when organizing your outsourcing project is brushing aside any questions the persons in charge may have. The emphasis should be put on making them reflect upon these issues, explaining them the added value and expectations of outsourcing. The result? Make them support the change and avoid frustrations.
2. Considering the destination as futile
The destination country should not beRead more « How to fail your offshore outsourcing project in 5 steps »
Offshore Nearshore: the euro’s fall below $1.10 prompts East-European offshore companies to export outside Europe
Given the euro’s current price and as long as it continues to drop, most offshore IT service companies established in a EU country, whether they are members of the eurozone or not, will most likely tend to offer their services outside the EU. Although this may not have any consequences whatsoever on intra-EU relations, there are some exceptions to the rule. For the United Kingdom, for instance, the fall of the European currency brings commercial opportunities with it.
The relationship between the euro and the currencies of the former Eastern Bloc countries has been stable in the last period
In fact, the euro’s fall against the dollar has not affected at all its relationship with the currencies of the former Eastern Bloc countries. There are two reasons for this situation. First of all, after theseRead more « Offshore Nearshore: the euro’s fall below $1.10 prompts East-European offshore companies to export outside Europe »
Pentalog has made its decision to launch its first ops in South America by the beginning of 2015. The final place is not yet clearly defined. But the skill indicators meet to our expectations and the customers’ demand for South American engineering has been confirmed to Monica and me.
With that decision Pentalog is becoming part of the very exclusive club of IT consulting companies with facilities on all best coding spots of the world except India (Romania in the EU, Moldova in former USSR, Vietnam and Latin America).
This mix guarantees our customers a best in class technology provision together with a unique combination of time zones. They will benefit from a time shift range reduced down to 0-4 hours max, making Pentalog a WW agile enabler under the best cost conditionsRead more « Pentalog becoming a WW nearshoring operator with its future South American facilities »
The conflict between Russia and Ukraine may have long-lasting impact on European nearshore geopolitics
The occupation of the Independence Square, which was already foreshadowing the armed opposition in Eastern Ukraine, has been shaping Western clients’ intentions with respect to Ukrainian IT service providers since December 2013.
But the more recent invasion of Crimea, followed by the turmoil in Eastern Ukraine, is becoming a real game-changer since Ukraine is a high quality IT service provider that US, German and Scandinavian companies heavily rely on. In the last 3 months, I’ve answered on 3 occasions to the questions and doubts of clients worldwide who are very much afraid of what is to come. All three have in-production teams in Ukraine and one of them is even considering buying large IT companies in Romania, Poland or anywhere else in Eastern Europe, as long as those countries are NATO and EU members.
InRead more « The conflict between Russia and Ukraine may have long-lasting impact on European nearshore geopolitics »
Sie haben sich bereits prinzipiell dafür entschieden, Ihre Projekte auszulagern und z.B. in Rumänien entwickeln zu lassen, um auf hervorragend ausgebildete rumänische Software-Entwickler zurückgreifen zu können in Kombination mit einem eindeutigen Kostenvorteil gegenüber Deutschland. Fragen Sie sich nun, bevor Sie diesen Schritt endgültig gehen, ob Ihre Meilensteine auch mit Sicherheit gehalten werden, denn Sie haben von einer höheren Fluktuation in Rumänien und Moldawien im Vergleich zu Deutschland gehört?
Wie meistens im Leben kommt es darauf an, vorausschauend zu planen. Wenn man folgende Punkte bei der Projektdurchführung berücksichtigt, unterscheidet sich die Planungssicherheit nicht von Projekten, die in Deutschland durchgeführt werden. Pentalog unterhält nicht ohne Grund Niederlassungen in 5 rumänischen Städten und einem moldawischen Standort. Die örtlichen Gegebenheiten unterscheiden sich und Pentalog ist stolz darauf, Sie bei der Wahl des für Sie am besten geeigneten StandortesRead more « Ihre Termine sind sicher – auch im Nearshoring »
Offshore / Nearshore: Algeria, Tunisia, the engineers from unstable countries or experiencing turbulent conditions should also get a share of the global pie!
It was while talking to an Algerian service provider, in the middle of the hostage crisis created 2 months ago that I said to myself that if Pentalog were not able to operate anywhere in the world (there are places where clients don’t feel like going) and considering our business model based on the regular exchange, we might still wonder how to integrate politically unstable countries into our business mode.
I have found two valid and well-articulated reasons in favor of collaboration with these areas:
- the demand for IT skills in these countries is lower and thus much cheaper.
- the engineers in these countries should take advantage of technologies and their know-how in order to find remote employers through a more constructive and long-lasting relationship than with the ordinary Freelancing websites.
On theRead more « Offshore / Nearshore: Algeria, Tunisia, the engineers from unstable countries or experiencing turbulent conditions should also get a share of the global pie! »
It’s been years now since Pentalog has staunchly committed to responding to the needs of the market of both funded and unfunded start-ups. Thus we have been technologically involved in amazing adventures such as Coronis Systems (nowadays a member of the Elster group with a revenue of €20M), Dmailer (which unfortunately no longer exists), TraceOne (a booming business with a top secret revenue), Sensee, lentillesmoinscheres.com, 123TV in Germany, Beamyourscreen also in Germany, Nordnet (at present Orange), e-circle in Munich, our gold mines, Easyflyer, Virtual Fanatic, People Centric and Ecotravel, Isiom nowadays Ocea, a member of the Suez Lyonnaise Group (currently counting 500 people), Sinnovia, taken over by Ineo… counting probably about fifty people, with whom we have developed extraordinary international relationships, assisting them in R&D and maintenance,Read more « Startups: Pentalog, the anti-dilution solution, we have said it time and again! »
Pentalog plunges into 2013 with a strong recruiting program due to a number of fine orders or the extension of existing projects. However, given the extremely difficult economic circumstances at the start of this year, we prefer not to make goals for the entire year. We are up against a plummeting market. I have urged the Pentalog managers to prepare to face such challenges. Explanations…
After a year of strong growth (12% growth and sound profitability), but far from our objectives, 2013 begins for Pentalog and the IT sector under still high-risk conditions. The situation in France and Germany is far from flourishing. Yet we have just renewed the largest contract within the Group for the entire year 2013 even though this client faces a turbulent period! We have been very concerned about this renewalRead more « A strong start for 2013, decreasing margins and an upcoming reorganization »
The ISO audit has come to an end and Mrs Anghelescu has handed in her conclusions: the AFNOR auditor has confirmed the maintenance of our ISO 9001: 2008 certification for the following:
- our IT development activities (Pentalog France, Pentalog Romania, Pentalog CHI, Pentalog Ausy) and the Pentalog delivery center in Cluj, Romania, founded in July 2011, has been added to the ISO certification scope as it has rapidly and successfully implemented the good practices of the group.
- our recruitment activities (Virtual Fanatic France, People Centric).
Moreover, our auditor has identified or confirmed several strong points – requirements of the Standard which have been very well implemented:
- knowledge sharing and teamwork within all the projects
- risk analysis, identification and follow-up of preventive actions
- data analysis within the projects
No one really talks about it, I have also forgotten to do it, but, for some time now, the European financial crisis has been favorable for European offshore compared to its Far Eastern counterparts who faced, on the one hand, a rapidly growing geographic area, and the $ reference for the setting or indexation of engineers’ wages.
The Indian economy achieves an average annual growth of more than 5% while the Chinese, the Vietnamese, the Malaysians and other Singaporeans have ranged between 5 and 10 for more than 5 years! Obviously, university graduates’ wages are way ahead, showing upward trends between 12 and 25% per year depending on the country.
Meanwhile, Bulgaria, Romania or Hungary, more correlated to € and confronted with weaker growths, even sharp recession in 2009 and 2010 are content with increases