BENCHMARKING METHODOLOGY

Pentalog is constantly doing benchmark studies of countries where there is a potential to establish offshore centers and which will further place Pentalog in an excellent geo-strategic position.

Many different points should be considered when studying the possibility of creating an offshore subsidiary in a low cost country. The following key elements will give a good overview of the main factors that should be assessed when deciding to launch a new subsidiary or a branch office in a new geographical area.

Political and Economical Situation

A review of the political and the economic stability of the country is indispensable, as well as understanding its recent evolution and perspectives. What types of investment incentives are offered to attract IT companies? Are there any other multinational companies established there? Also, we take into consideration the social security benefits offered to nationals.

IT Sector

We accumulate a complete study of the current IT market in the country: services and products, prices, competitors, etc. in order to assess both the local and outsourcing market potential of the country.

Geographical Position

Knowing how much time and money our clients will need to visit one of our offshore offices is a crucial question. Can the city be reached by a direct flight? How many flights are available per day or per week to this destination? The Time zone differential is also a key criterion for obvious reasons.

Availability of Human Resources

A great deal of research is done concerning the local universities, the IT courses that they have to offer and the number of graduates. We do an evaluation on the level of competency of these young IT students. Partnerships with Western Universities or Research Organizations are also very interesting. Finally an analysis is done on the cost of Human Resources.

Cost and quality of infrastructures

In our business, it is very important to have a reliable technical infrastructure e.g. Internet access, electricity supply, as well as modern office premises. The cost and quality of real-estate is also key factors determining if a country is an interesting and profitable destination.

Cultural environment

Understanding the culture and the specificity of a country is very important in order to communicate with, and manage human resources, but also to do business with local partners or negotiate with potential clients.

Legal and Administrative environment

What are the characteristics of their fiscal system; are there any particularities concerning administrative procedures and bureaucracy (company creation, are visas necessary and are they difficult to obtain, etc.?). Of course, local laws about business and IT are also part of our studies.