European nearshore leader
Monica Jiman Deputy CEO
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Offshore outsourcing destinations

Offshore outsourcing destinations

There is a wide range of offshore outsourcing destinations which makes it difficult at times to make an efficient comparison between countries. Most of the offshore/nearshore offer originates in large geographic areas which offer different types of solutions to the specific needs and constraints of each company. Here is a brief comparison between the main countries which compete against Pentalog's current locations: the Maghreb (Morocco and Tunisia in particular) and Asia (India and China). The data are provided for information purposes only, and represent average assessments originating from different sources of information. These are only basic study criteria which are not enough to reflect a complete image of each country but are designed to offer a basic idea.

Advantages of the different offshore destinations

  China India Morocco Tunisia
Education and cultureDifficult to find senior specialists.
Education quality is questionable in certain cases.
Few English speakers and no French speakers.
Major famous universities. Few highly specialized fields and insufficient management education.Modern higher education which copies the French model.
30% of engineers are educated abroad.
Education is often considered to be too theoretical
The quality of higher education is internationally recognized.
Movement of employeesThe visa is mandatory.The visa is mandatory.The visa is mandatory.The visa is mandatory.
Renting offices in technoparksstarting from 10€/m2starting from 15€/m2starting from 10€/m2starting from 10€/m2
Political stability, business environment and country riskStable political system.
Active and stable growth.
Increasing amount of social tension due to growing social discrepancies.
Persistent vulnerabilities in companies, banks and local communities.
Stable democratic political system.
Active and stable growth.
Corruption and lack of transparency in the major banks and companies of the country.
Internal political stability.
Sustained growth.
Social tensions due to unemployment and poverty.
Risk of terrorist activities.
Political uncertainties and social and economic challenges to be met.
Economic indicators in 2009GDP: USD 4,985 billion
Growth: 9.1%
Inflation: -0.7%
Unemployment rate: 4.2%
GDP: USD 1,310 billion
Growth: 7.7%
Inflation: 10.9%
Unemployment rate: 4.1%
GDP: USD 91 billion
Growth: 4.9%
Inflation: 1%
Unemployment rate: 9.6%
GDP: USD 39 billion
Growth: 3.1%
Inflation: 3.8%
Unemployment rate: 13.3%
Offshore outsourcing destinations

China and India are undoubtedly a great breeding ground in terms of IT workforce. The two superpowers are driven by an impressive economic dynamism and capacity for innovation. Nevertheless, there are certain remarks which need to be made: India in particular suffers from high salary inflation and elevated employee turnover rate compared to its competitors. The country currently lacks senior-level specialists and technical experts in certain fields. As far as China is concerned, it faces a lack of linguistic capacities which renders the collaboration with European countries very difficult. When taking into account all the advantages and shortcomings of these two destinations, they seem to be a justified choice only in case of major long-term projects which require a great deal of local investment (recruitment, training, management).

As for the Maghreb, the geographic and cultural proximity (French language) of Morocco and Tunisia represent a major asset for outsourcing IT projects. These countries have been able to implement efficient actions for developing their infrastructures and training their future engineers. However, Morocco is beginning to face a shortage of qualified workforce which tends to lead to an increase in salaries.

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