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Product Strategy

Low cost : a pay-off strategy for Pentalog


Article taken from “Loiret Eco” magazine, issue 7, October 2007, from Loiret CCIRead the article ((pentalog_cci_oct2007.pdf)THE LOW COST: A PAY OFF STRATEGY FOR PENTALOGSet-up in Orleans, Pentalog High Tech is the French leader in IT and low cost offshoring. And its GM is a European specialist in this respect. Frédéric Lasnier arranges foreign banknotes into his wallet: in a couple of hours he flies to East Europe, an area where his company develops. Founded in 1993, Pentalog is a SSII (network management, software publishing, business intelligence, Business Process Outsourcing …) whose fame is reaching beyond the original Orleans site: Germany, Belgium, Bulgaria, the USA, Kenya, Holland, Luxemburg and Switzerland … However, at the beginning, nothing anticipated the small communication company with an international future. ‘Until 2002 we subsisted’, confesses Frédéric Lasnier. In 2000, Pentalog was set up in Romania without any direct results. 2002 marked a change of strategy. We became aware that all jobs evolve under the influence of two joint actions, the importance that the web and globalization would have. We are starting to explain our customers that we can be partners in R&D and in software maintenance with lower costs than they are used to. This has transformed us progressively.’ As a proof: 5 set-up sites outside the head office (Bordeaux in France, Bucuresti, Brasov and Iasi in Romania and Chisinau in Moldavia), a turnover of €5m in 2007 (+60% in one year!), 160 collaborators and 150 customers. ‘With our customers we accomplish a business model that, due to costs that are two times lower than market’s standards, maximizes the leverage effect of their investment and provides us with a base for sustainable growth. Furthermore, we are the only ones in France and Europe to sell the competence of our collaborators in a transparent manner: Pentalog displays its strategy on-line.’ONE OF THE 10 CONSULTANCY COMPANIES IN ROMANIAThe risks to be copied? Frédéric Lasnier does not even conceive it: ‘Pentalog is always two or three steps ahead’. And that brings results! ‘In addition to a low-cost capacity that everybody will request from now on and commercial aggression, customers want innovating companies. Pentalog is one of those, it is a complete actor.’ This is why many numerous accounts and emerging companies bet on Pentalog: Lexmark, Loxam, France Télécom, Valéo … but also DMailer, world leader in USB flash memories that outsources 50% of its R&D operations to Pentalog, Coronis Systems, world leader in wireless OEM solution (15 trial-engineers are working for them in R&D), leader in bluetooth technologies, leader in automotive equipment (Pentalog provides functional tests for equipment). ‘We are one of the ten consultancy companies in Romania, we lured BRD (Group Societé Générale) here, Orange Romania and Elite (coffee leader in the Balkans). Finally, we are about to sign up our first Moldavian customer.’ It is no wonder that Pentalog makes people turn green with envy: ‘We are receiving many buy-out offers, but we are not willing to sell’ concludes Frédéric Lasnier.

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