Pentalog High Tech's Blog (14)

Customers are looking for a variety of new capabilities from IT outsourcers, ranging from their involvement in business outcomes to greater knowledge of the customer's area of business, according to a new report by Forrester Research. The most collaborative outsourcers will distinguish themselves by anticipating the talent they will need to serve major clients or industries. Today, companies have moved on to higher value business process outsourcing and to core activities like research and… Continue

If at this point one returns to the question of how big is global production sharing, the

answer clearly is ‘very big’. (Yeats, 2001)



Historically, companies in the United States, Europe and Japan have led globalization, because those countries pushed products and services into developing countries. As the business of offshore sourcing grows, globalization is beginning to become widely accepted elsewhere. With "nearshore" and offshore sourcing, the global equation has…

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A new report by Forrester Research has announced the growth in global spending on information technology at 9.3% (to $1,534 billion) in 2010. The report comes a month after Gartner, another IT research firm, estimated the growth of global IT spending at 5.3% in 2010. Both the research reports had one factor in common - that spending by companies and government will grow and they will increasingly be looking at outsourcing to reduce cost.

Much of the growth in the global software market… Continue

Motto: Innovate or die



Take a look to the pharmaceutical industry, where independent biotechnology research adds 100 gigabytes per day to the databases of the GenBank alone (the National Institutes of Health genetic sequence database, an annotated collection of all publicly available DNA sequences). No company can hope to keep ahead of such an outpouring by itself. As a result, hundreds of small, sophisticated firms have entered the field as potential suppliers of innovation… Continue

There’s no question that the most of offshored work ends up in India. But another country is stepping up. Maybe it is not a well-known fact to many, but Vietnam is becoming fast a center for information technology companies to set-up their offshore operations. Despite of the huge market share of India and China in offshore development, Vietnam is quickly emerging as a software outsourcing destination.

In 2009, GlobalServices named Vietnam’s Ho Chi Minh City among the top 5 outsourcing… Continue

Analysts say cloud computing represents a sea change in the way computing is done in corporations. Merrill Lynch estimates that within the next five years, the annual global market for cloud computing will surge to $95 billion. In a May 2008 report, Merrill Lynch estimated that 12% of the worldwide software market would go to the cloud in that period. According to a Tier1 Research server virtualization is currently being used by more than 70% of enterprises to reduce costs, and cloud computing… Continue

The implications that an anti offshore legislation will bring are enormous for the outsourcing industry and influence not only the United States, but also foreign nations. Offshoring has contributed to overall global economic interdependence and growth. In parallel, nations have entered into international trade agreements that seek to eliminate barriers to providing services across national borders. In recent years, the phenomenon of offshoring of relatively high-wage professional-service… Continue

In the last years African countries are ascending the list of competitive locations for global services. AT Kearney in the Global Services Location Index - which analyzes and ranks the top 50 countries worldwide for locating outsourcing activities bases its index on 43 measurements, grouped in 3 categories: financial attractiveness, people and skills and availability and business environment- noticed that the Middle East and North Africa are emerging as a key offshoring regions because of…

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Outsourcing is strengthening the economy, improving infrastructure and upgrading quality of life…We've heard it all. So does this industry ever face any failures? It surely does, especially when thinking at the economic realities nowadays. The pricing for information technology services market are changing in response to the current economic atmosphere and corporate America’s drive to cut costs.

The prices are being driven by competition from global IT services providers that are playing a… Continue

It is a reality that companies achieve cost savings from conventional outsourcing, most of them report a 20 to 50 percent average cost savings over the course of a long-term contract (the typical outsourcing engagement lasts for a number of years). However, the results they achieve depend heavily on the efficiency of the operation to start with. This includes making sure objectives are clear at the outset, paring the performance measures down to a small number of critical ones, shifting from… Continue

Central and Eastern Europe has established itself as a prime location for offshore and nearshore services, particularly for clients based in the United States and Western Europe. Russia, by far the largest country in this region, has the largest labor force and the biggest pool of educated talent. The country has a strong education base, with universities in Moscow, Novosibirsk, St.…

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“All lasting business is built on friendship.” - Alfred A. Montapert

Outsourcing was never just about cost, but also about delivering long-term business advantage. It remains a viable option for organizations to maintain…

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The strategy



Pentalog was nominated as the 458th company in Europe and Middle East for positive growth in 2008, according to Deloitte Technology Fast 500 EMEA. In 2009 Pentalog’s sales clearly raised above the EUR 10M to 13.5 M. But more importantly, Pentalog was able to generate profits which would typically be found in companies 2 or 3 times larger than us. The conclusion is that for 2010 we want to reinvest these profits wisely, without wasting them. We have some new… Continue

“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change”. Charles Darwin



2009 has been a year of significant budget and staff cuts to keep revenue from dropping drastically. With the volume of work remaining the same, organizations are faced with tremendous pressure to stay with limited IT budgets. Under the aspect of doing more for less, companies will choose to outsource in order to enable business growth -…

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