OFFSHORE IT OUTSOURCING DESTINATIONS

There is a wealth of choices in terms of IT offshoring destinations and the value chain for outsourcing services has evolved dramatically. India might be losing some of its preeminence as the preferred IT outsourcing destination at global level.
Every year, consulting companies release global or regional outsourcing country and city rankings with shifting results, which makes it difficult to draw efficient comparisons.

Pentalog’s global delivery center locations approach and choices is the result of continuous watch, not only taking into account cost arbitrage but also with a view to long-term collaborationslanguage skills and time zone proximity to our clients.

Read about how we choose our offshore and nearshore outsourcing destinations

Offshore outsourcing to Eastern Europe

With its huge IT talent pool and excellent infrastructure, Romania remains a leading destination that is cheaper than Poland or the Czech Republic, while the Republic of Moldova makes a big difference in terms of labour costs associated with a high level of technical skills and outstanding foreign language capabilities (English, French).
Bulgaria is currently seen as a rising star of European IT outsourcing with its strong education system, relatively low costs and EU membership.

Discover Pentalog’s nearshore and offshore IT delivery centers in Eastern Europe: RomaniaMoldova

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Offshore outsourcing to Asia

Despite high salary inflation and attrition rates, China and India remain a great breeding ground in terms of IT workforce. The two superpowers are driven by an impressive economic dynamism. Yet the lack of senior-level specialists and technical experts in certain fields, as well as missing foreign language skills as far as China is concerned renders collaboration with Western countries difficult.

IT outsourcing destinations

Offering the lowest wage and telecom costs, the Philippines and Malaysia have become serious alternatives to be considered in Asia. However, lower-level workforce make those 2 countries more suitable for BPO activities than IT engineering.

Read about Pentalog’s offshore delivery center in Vietnam

Offshore outsourcing to Africa

The geographic and cultural proximity of Morocco and Tunisia are a major asset for French speaking companies’ IT outsourcing projects. These countries enjoy a powerful infrastructure as well as excellent engineering skills. However, both are facing a shortage of qualified workforce which tends to lead to wage inflation.

Egypt is considered to be on the rise, being recognized for its large multilingual workforce, solid infrastructure and competitive cost structure. However its position in a politically volatile region currently facing turmoil and threats may back off this trend.

Offshore outsourcing to Latin America

MexicoBrazil and Argentina are America’s current IT Outsourcing rising stars. Latin America enjoys a large labour pool in a politically and economically stable environment associated with a westernized culture. Those countries feature a skilled, multilingual workforce and a platform for serving both North American and European businesses. Shared time zones with the USA and Canada make them all the more an attractive service hub.

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