Is test automation IT outsourcing part of your long-term strategy? The hourly cost is a bad indicator for savings

Benefits of IT nearshoring in Canada versus off-shoring.

The short-term costs contain a number of hidden expenditures. Consider the amount of rework, script maintenance, communication, expertise, proximity, and management costs that are often not included in your original budgets and result in overages and project failures. Don’t be misled by the low cost of the work; it is more likely to be unfit to deliver high-quality results.

The largest undisclosed cost is often rework. This usually results in additional unplanned spending amounting to approximately 11% of the entire project.


According to Forrester Research, 30% of project costs are for rework, and, according to Meta Group, 70% of rework is attributed to correcting requirements errors.

It is highly recommended to work with a trusted high-value IT partner that specializes in the Test Automation field. We will ensure you have a sustainable ecosystem to avoid rework and make it easier for your team to maintain and document your test automation solution.


Even though the hourly cost of Pegasie’s skilled resources is higher than offshore, the cost of communication, travel and rework still outweigh the benefits of offshoring. Our near-shore test facility can improve quality by 22% compared with other off-shore facilities. In fact, according to Gartner, if you look at the different levels of appreciation for different countries around the world, Canada comes first.


In Canada, it’s well known the Government Support and the Cost are higher, but it is offset by some special tax incentives in Montreal for our type of business.


Although near-shore outsourcing may appear to be a cost saving strategy, Pegasie Technologies contends that a North American near-shoring approach is a much more budget conscious scenario.



Pegasie’s onshore test facility offers proximity, visibility and metrics through a highly secured NAFTA common agreement. Trust in Pegasie’s unmatched expertise and proven test automation methodology for your long-term IT strategy.

Contact Pegasie for an assessment of your company quality processes and a roadmap that will help you speed up the test automation projects and lower the implementation costs.


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