| Local
+ Low Cost = Right Cost |
| Since
1999 Pentalog has been implementing an effective
service offer based upon the right mix of local
and offshore services, adapting to the customer's
specific needs in each case.
Thanks to a different offer orientation than conventional
IT services firms and despite its small size,
our company has managed to assert itself as an
international-one (sales in the USA, Bulgaria,
Morocco, Kenya, Romania, Belgium, the Netherlands,
Germany, Switzerland...). |
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| 1.
Objective: Right Costing Model |
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Zoom in
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1.1
Establishment choices
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| The
locations chosen by Pentalog High Tech aim at
offering our customers the best quality and best
price at the same time. In other words, all establishment
opportunities are analyzed according to the cost
and quality levels. |
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1.1.1
Low-cost-oriented branches
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Bucharest
(Romania), a comfortable city to reach
(3 hour flight from Paris), has become
a major European nearshore destination.
Our staff there is 100% franco-anglophone
and we enjoy a high capacity to mobilize
teams of all sizes within a very short
time. This branch is the reactivity tool
of Pentalog High Tech's low cost policy. |
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Brasov
(Romania) is a " high standard "
province town.
95% of our team there is French and English-speaking
and there are also many German-speaking
people due to historical reasons linked
to the city and the region.
Brasov is Pentalog's offshore development
basis. This branch enjoys better price
conditions than Bucharest and is within
only a two hour drive from the Bucharest
airport.
Brasov is the head-office of Pentalog's
Offshore Business Unit. It is the most
appropriate site for remote control, R&D,
third party applicative maintenance and
generally speaking for long term involvment.
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Chisinau (Republic
of Moldova) is the best location in terms
of price competitiveness. It is the European
French-speaking city that offers the most
favorable price conditions.
A bit more far away from Western Europe
than the other branches in Romania (one
connecting flight from Paris), this site
is perfect for long-term contracts (fixed
price or time and material) with small
teams (up to 8-10 persons) and BPO (Business
Process Outsourcing).
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Iasi
(Romania) is located close to the border with the Republic
of Moldova, 130 km from Chisinau and 410 km from Bucharest.
Iasi is the most polyglot city in Romania and the biggest
university city after Bucharest. Iasi can be reached by air
plane with only one stop from, London, Frankfurt or Paris.
There is a direct flight from and to Vienna.
The Iasi office offers the following services: remote software
development, applicative maintenance and R&D outsourcing.
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Sibiu
(Romania) is located in Transylvania (140 km from
the Brasov office and 280 km from the Bucharest office).
It is one of the most prosperous cities of Romania.
Foreign investments there (mostly German and Austrian)
belong to the highest-ones in the country.
Sibiu can be reached by air plane with direct flights from
Munich, Stuttgart, Düsseldorf and Vienna.
The Sibiu office is dedicated to projects in the field of embedded systems.
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Hanoi
(Vietnam), the country's capital city, has over 3 million
inhabitants and benefits from high-level academic infrastructures.
Vietnam is the 150th member of the World Trade Organization (WTO).
Jet lag: + 5h in summer, + 6h in winter (Paris time).
The city enjoys booming industrialization and and attracts a lot of
foreign investors. |
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1.1.2
Local sites (close to customer)
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Orléans: Pentalog is located near Paris (one-hour-drive)
with a 20 programmer and project manager
team who benefit from valorizing experiences
which help them prepare for coming evolutions.
Orléans is a two-hour-drive away
from Roissy Airport, one hour from Orly
Airport and one hour from the Paris railway
stations. In other words, Orléans
is alsmost a nearshore destination for Paris…
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Frankfurt (Germany): in 2008 Pentalog High Tech opened a sales
office in the European financial capital. This branch,
"Pentalog Deutschland GmbH" leads Pentalog's
expansion in the German-speaking area, in accordance with
the head office's international development strategy. |
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1.2
Reducing marketing and production management
costs
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| Sales
force is very expensive in the IT services sector.
They account for 20 to 30% of the turnover without
contributing the client's satisfaction. |
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| Since
2001 Pentalog has banked on a web-based sales
strategy, without any additional sales force.
Business canvassing is based on the website referencing
www.pentalog.com carried out internally (30% of
the news customers come from connexions via search
engines) and electronic canvassing (70% of our
new business). This web policy now accounts for
80% of the company turnover. |
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| After
sales services are based on a production management
system putting all the necessary information at
the client's disposal. |
| Commercial
productivity gain is passed along to the selling
price. |
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| As
a result, between 2001 and 2005, Pentalog High
Tech achieved a 45% saving on sales costs and
an average annual growth of 13%, while the whole
sector was going through a crisis. |
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1.3
Cohesion
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| This
"Right Cost" policy is subject to the
agreement of the shareholders (80% of our French
employees are part of them).
Our management model is based upon that of the
anglo saxon consulting firms. Many employees are
shareholders of the company, controlling almost
60% of the capital. This partnership policy is
the financial expression of our "spirit".
Each member of the team is personally involved
in the future of our business. |
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| 2.
Creed |
| Very
simply: We believe we are Europe's children, whatever
the sad thoughts that sometimes animate the media
and the minds of French society. This is our identity. |
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| We
totally disagree with any attitude considering that
certain countries are only there to provide screwdrivers
to others having a superior conception and management
vocation (France, Germany...). The richer Eastern
developing countries will get, the richer we will
be. |
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| We
hate to hear speeches about helping Eastern countries
with education and development and refusing to
let those countries enter our markets at the same
time. In our view this is called neo-colonialism. |
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| 3.
Our future: becoming a European company |
| Defending
our employees and partners in the scope of a European
policy on the commercial as well as production
levels is very important to us. |
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| To
us, the conventional model of IT consulting companies
acting as nothing more than manpower providers
with time and material contracts seems declining
and less motivating for the customers as well
as the collaborators. |
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| The
widening of our customer base beyond regions and
national borders is the only valid answer to the
fear raised by globalization. |
