A THREEFOLD BUSINESS MODEL :
NEARSHORING/OFFSHORING, MULTI-SHORE CONSULTING AND CLOUD COMPUTING
Pentalog support its clients to 100% at all levels in software development and information systems maintenance and operation. On the other hand, experienced Pentalog R&D teams and embedded technologies specialists provide software and electronic product companies with cutting-edge services.
We have therefore become one of the very few IT service providers offering a threefold, complete, on-demand service range tackling the whole scope of issues that companies have to face when it comes to IT systems and software development:
We have built up a talent pool of over 800 people (80% of them are based in nearshore locations, 10% in offshore locations and 10% in Western Europe) specialized in a total of 12 verticals and technological expertise areas.
The size of our client companies is of little importance. We are equally interested in providing services to startups and to large multinational businesses. In any case, Pentalog seeks medium, long and very long-term partnerships with its clients.
In order to reach this level of global offer, the foundations of our business model have evolved towards three major fields of expertise: offshoring/nearshoring (as our main business area), consulting (a historical activity since the company was founded) and cloud computing (our newest field of expertise). All our services are always delivered along with close international customer support (in 2011 Pentalog invoiced services to 10 countries, but operations took place in 25 different countries).
Organization and management of overhead costs:
Since it was created in 1993, Pentalog has remained a lean company, putting great efforts in reducing and optimizing transverse functions that do not directly benefit clients. In order to minimize their bearing in the company's cost structure, we have developed extremely efficient sales, management and recruitment processes.
For example, Pentalog only needs 3 sales consultants to have our 800 engineers provided with projects, while typical IT services companies generally need 1 sales person for 15 workers. Put simply, Pentalog has developed web-based sales processes revolutionizing the consulting and outsourcing business sector. The commercial department of Pentalog is 50 to 70% less expensive to that of an average European IT services company of the same size. In 2011 Pentalog achieved a 26% organic growth, which is 9 times higher than the average growth in this business. All the production tools have been streamlined in a software development cloud accessible to our clients. For example the IP telephony system has been fully insourced.
This best-of-breed organization allows us to put the emphasis on high valuation of our human resources, by means of:
- a high salary policy resulting in low attrition rates,
- a proactive in-service training policy,
- budget allocation to social activities,
- investing in the economic and social environment of our office locations throughout the world.
All these measures contribute to a better balance within the group and reinforce sustainable, high quality client relationships.
3 models of collaboration with Pentalog
- 1) Offshore/nearshore (Romania, Moldova, Vietnam): for the development of management applications, software for publishers, web-based business platforms or for the development of embedded software for electronic products
In order to comply with the principle of software development industrialization, Pentalog focuses on two essential aspects: quality and cost. The ultimate objective of industrialization consists in achieving maximum, sustainable quality, at the lowest possible price. The industrialization of software development therefore demands the implementation of a continuous improvement loop. That is why Pentalog got all of its production, management and commercial facilities ISO 9001-2008-certified. All the projects are regularly audited and presented each month to the management committee (joint evaluation of KPIs). Some of the projects are led in a CMMI 2 to 4 framework (not certified). (see all Pentalog's quality certifications)
For offshore and nearshore IT projects (the standard model at Pentalog), we seek medium or long-term partnerships with our clients, thus sustaining their benefit from technology cost reduction. A dozen clients have collaborated with Pentalog for 7 years, 2 clients for more than 10 years and one client for 17 years. They all consider that Pentalog offshore/nearshore delivery centers helped them focus on their own growth in a more efficient way, while benefiting from the financial leverage generated by low cost industrialization models.
- 2) Multi-shore Consulting: Pentalog Institute innovates by offering high-end consulting services at low costs.
Pentalog Institute recruits consultants both outside and inside our group, among our 800 employees and in all the countries where we operate. The team however is entirely European, as it is currently composed of French, Romanian, German and Moldovan people. They are experts in technology consulting (technical expertise and choices, architecture) and business analysis (banking, telecom, e-commerce, supply chain) as well as in ergonomics and management of complex projects.
The concept of multi-shore consulting means that the teams also operate from offshore locations, traveling as often as necessary. This vision brings two positive consequences with it:
- a 30 to 50% cut in consulting service prices
- easier sequencing between the design/architecture, and industrialization / development phases, since consultants and developers are located on the same Pentalog production site. The risks and the costs are therefore reduced and the client enjoys shorter delivery time of its products and solutions.
- 3) Cloud Software Factory: the most modern method to work with an IT services company
Cloud Software Factory brings together all the engineering, technical and human resources needed to develop or operate software solutions or web platforms, at the best price and quality, under the best security conditions. The development tasks are performed in the cloud, which is also available to the client's developers. Likewise, integration and tests are performed in the cloud, delivery and operation take place in the Pentalog managed Cloud as well. This constitutes a continuous delivery framework. Pooling technical and telecommunication purchases, together with producing and managing at low-cost locations, enable us to operate in the most competitive conditions on the Cloud computing market. All the Cloud Software Factory resources (both technical and human ) can be leased via flexible offers based on a full on- demand model.