Benefits of Nearshore & Offshore IT Outsourcing
Although we at Pentalog tend to favor the nearshore solutions available in our service offer, some companies have specific needs more suitable to collaboration with an offshore-based team, mainly for two reasons:
- Cutting costs is their primary objective
- The activities they want to outsource demand a specific time difference to cover a broader range of working hours
In addition to the benefits of nearshoring, offshore IT outsourcing offers even more dramatic cost savings with the same quality level of resources. The time coverage (GMT+7) allows to carry out operations during the night, at daytime rates.
Within Pentalog’s global approach to IT outsourcing, Vietnam serves as the perfect complementary destination to our centers in Eastern Europe and Latin America. When development engineering activities are carried out in a nearshore location, the testing phase can, for instance, be easily transferred to our offshore Delivery Center in Hanoi. Such an outsourcing scheme allows you to minimize costs and optimize delivery time.
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One step beyond: progressive offshoring
Drawing on over 15 years of successful remote project management experience, we know how to help you determine the right schedule and organization for your projects. Going offshore can be done in several stages to ensure smooth transition and to achieve a high and sustainable ROI. When going offshore we will create a customized roadmap that best fits your situation. Take a look at the following example.
Step 1: Transferring your activities to Eastern Europe:
- English-speaking staff; most of our engineers also speak French or German
- 4 to 7 working hours in common, depending on where you are based
- easily accessible destinations: regular, short and direct flights, allowing for frequent visits
- up to 25% cost savings
Step 2: Transferring part of your activities to Asia:
- transfer of non-crucial activities, such as testing
- keep the same project manager based in Europe and the same local project director close to your premises
- benefit from the time difference when performing certain types of activities (testing, etc.)
- English-speaking staff
Step 3: Transferring all activities to Asia:
- full transfer including management activities
- keep the same local project director close to your premises
- 4 working hours in common, wherever you are based
- up to 40% cost savings
Our offshore delivery center in Hanoi is managed just like our nearshore delivery centers, systematically using agile practices and meeting ISO 9001:2008 and CMMI level 4 standards (read more about Quality Assurance with Pentalog) in a 100% English-speaking environment.
We’re very happy with the service provided by the QA engineers from Pentalog. Thanks to Pentalog, we have achieved a 70% of automated testing coverage for our APIs. The resources have integrated seamlessly with the internal team, leveraging Azure DevOps and MS Teams for collaboration. Moreover, the team is flexible and responsive, and they find new resources quickly.
Thanks to Pentalog's work, we have witnessed a decrease in the number of bugs. Their speed in communication and resource delivery is impressive.
Thanks to Pentalog's efforts, the time required to complete the IT team has been reduced from months to 2–3 weeks. We were able to quickly integrate efficient developers at a reasonable cost. The team's support has allowed our team to focus more on fundamental issues. In addition, their expertise and professionalism have led to a more efficient workflow.