Category Archives: Nearshore

Pentalog becoming a WW nearshoring operator with its new South American facilities

Pentalog has made its decision to launch his first ops in South America by the beginning of 2015. The final place is not yet cleary defined. But the skill indicators meet to our expectations as well as the customers’ demand for South American engineering has been proven for 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

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A penny for your thoughts? 3 million Euros for ours.

I first considered writing this article in Romanian, but there are so many wonderful expressions in English that we can’t just translate and still capture their true meaning.

The question in the title is definitely not about somebody getting rich. Although, with the right amount of thoughts you share for a penny, you might actually get somewhere. The penny in the title is the symbol of human curiosity and shared thoughts are the engine of growth. “Chance favors the connected mind” says one of my favorite authors, Steven Johnson.

It is this curiosity that has pushed humanity forward, on so many occasions. But while people pay a penny to satisfy their curiosity, they are willing to pay a lot more when trying to build what they had in mind, in the right way.

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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.

In

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Pentalog sets up a branch office in Vancouver, Canada: Pentalog North Pacific

Thanks to Facebook, Pentalog’s future destination on the globe is Vancouver!

When I met Slava face to face for the first time in Montreal last September, we had actually known each other for more than 2 years. At that time, I didn’t know much about him as he was hiding himself behind a funny Facebook pseudonym.

In fact, without my Facebook community of Moldovan friends, whom I greet here, Slava and I would have never had the chance to know each other.

Slava’s kind comments on my posts soon revealed his good intentions, and one day he expressed, in a private message, his interest in our business model as well as his wish to join our company by setting up a Pentalog local unit.

It was on the occasion of one of my business trips

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Ihre Termine sind sicher – auch im Nearshoring

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 Standortes

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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 the

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Startups: Pentalog, the anti-dilution solution, we have said it time and again!

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,

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A strong start for 2013, decreasing margins and an upcoming reorganization

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 renewal

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ISO certification: welcome Cluj!

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

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The evolution of the €/$ exchange rate over the last 2 years is good for European IT offshore

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

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The Research Tax Credit: Many other countries have introduced it and encourage the outsourcing of technical activities

Everyone is familiar in France with the Young Innovative Company status or the Research Tax Credit, but who knows the Israeli Chief Scientist whose financing rate may reach 50% of the costs? Who knows that Turkey has launched a fabulous program aimed at reducing technology imports to half by 2023 to mark the centenary of Modern Turkey which focuses on a mechanism close to the RTC, less selective and more powerful as it is open to any web activity, to tax-free technology parks, exempt from social security tax that make it, together with France and Israel, one of the most attractive countries in the world for setting up web companies or R&D centers? Turkish universities are renowned, 2 of them being included in the Shanghai Top 100 ranking.

Who knows that Romania, a member

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10% organic growth in Q3 for Pentalog

Pentalog has reported an organic growth of 10% in Q3 compared to Q3 2011. This performance, more modest than we were accustomed to, can be explained by the fact that an important project was ended in our Delivery Center from Iasi (end of June). The number of commercial offers decreased as the crisis worsened at the beginning of the quarter before rising again in September. Besides, the Group faces a significant delay in developing a new, substantial contract (over 6 months). The cruising speed is usually between 20 to 30% and it is thus divided by almost 5. Q4 could descend even lower. Under these circumstances, the Group slowed the pace of its recruitments in order to maintain high occupancy levels and not reduce its profit in view of being financially ready to counterattack in

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