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 collaborations, language skills and time zone proximity to our clients.
Read about how we choose our offshore and nearshore outsourcing destinations
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Offshore outsourcing to Central & Eastern Europe
With its huge IT talent pool and excellent infrastructure, Romania remains a leading destination for IT outsourcing, 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).
Poland is currently seen as a rising star of European IT outsourcing with its strong education system, highly-skilled developers and competitive rates.
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.
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
Mexico, Brazil 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.
Working with Pentalog helped us significantly, they responded really well to the urgency of the situation. After just one week we had found a qualified freelancer to undertake our mission. The platform gave us support and guidance right through the selection and administration process, so that the mission could run as smoothly as possible.
We were convinced by Pentalog’s approach: advice from a CTO to help us architect our solution, 2 freelancers and support to find funding. In addition, we were seduced by the price of courses but especially by the implementation time: 2 months instead of 5 or 6 months if we were on a development from scratch.
Working with Pentalog is very reassuring. As their CTO had worked with us on prior improvements to the app, I didn’t think twice about calling on them again when I found out that the first developer was unavailable. Four days later they had found someone equally competent and we didn’t have to worry about the admin side of things. The platform gave us support and guidance right through the mission from start to finish, to make sure it ran as smoothly as possible.