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Winter is coming for startups… Smart offshore outsourcing reduces burn rate and enhances execution speed

Frédéric Lasnier
Frédéric Lasnier
Chief Executive Officer

This is not a news anymore. Grey clouds have overwhelmed the permanently blue sky of Silicon Valley and fast expands over East Coast and Europe. Journalists have been pouring articles about failing ventures into the columns of gazettes from everywhere.

VCs started to predict a severe downturn, just hoping that some of the unicorns will reincarnate at least in smartmules. It is what it is, investors only bet on miracles.startup-winter-is-comingWell, the worst is never certain and it seems that very early stage funding activity resists as of now. Later B and C series as well as urgent bridges seem to be more affected than seed and Series A. But we need minimum to end up with the 2 first quarters of the year to derive a tendency for 2016 and 2017. If finally the real number of falling unicorns is huge it might attack even the desire for seeding and series A. But lots of senior observers are going for this scenario.Anyway, rather than complaining I prefer to help my customers and beloved startupers to prepare for winter and take appropriate decisions. Just in case of. In French we say that “un homme averti en vaut deux”, something that I could translate by “forwarned is forarmed”.The two major budgets of startups are technology development and customer acquisition. Paying attention at smart outsourcing could generate efficient savings. Both of them are extremely sensible and lots of advisors say that companies should as much as possible keep them internally. But this is much too generic statement. Best IT outsourcing practices have positively changed over the last decade under the growing influence of agility combined with generalization of software factory management tools like Sonar and Jenkins. If you exigently respect Agile, in the majority of the cases you will quickly reach the internal productivity standard and will even improve overall quality by the application of truly industrialized processes. Isn’t that what industrialization means? Best quality at best cost?For the same budget you will likely be able to multiply the coding speed of your platform by between 2 and 4.For ops management, the savings can reach a factor of 10 to 15 if we talk of 24/7. Why? Because the most sophisticated companies can rely on multiples spots over the planet and propose what they call a “follow the sun” service. Concretely it means that your services are operated from offshore zones and only during usual working hours. Nobody is time shifted. For instance Pentalog ops everyday start in Vietnam, followed by Eastern Europe and end up in Latin America. That could lead to enormous savings… and could also contribute to quality improvement.If you are somehow interested with that kind of move, for both coding and ops, we’ll be very happy to help you assess the risks and valuate the gains for your startup. In addition to that all our 250 startups customers, as well as our 24 investments regularly provide testimonial to our prospective customers.You can also take a look at Pentalog TV on Youtube:

Jonathan Howell, CTO at Made.com (London):
Alex Gourley, CTO at BitGym (San Francisco):
Etienne Leroy, CPO at Sharalike (Boston):
Ben Berté, founder at Socrative (Salt Lake City):
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