The Offshore Development Center model has become increasingly popular in recent years, as companies look for ways to reduce costs while still maintaining high levels of quality and service.
For those who are unaware of the term, an offshore development center (ODC) is a facility where software development and other information technology (IT) services are delivered by a third-party provider to their clients.
ODCs typically provide a comprehensive suite of IT services, including application development, maintenance and support, systems integration, infrastructure management, and testing. They are often located in countries with lower labor costs, such as India, China, and the Philippines.
In this article, we’ll look at some of the key reasons why companies set up ODCs, as well as how these offshore development company function.
Read Also: Why Choose Offshoring Over In-house Hiring?
Types of ODC
The most common type of ODC is the captive center, which is owned and operated by an IT service provider. These centers are typically established in countries where the provider has a large base of clients.
The other type of ODC is the joint venture, which is a partnership between an IT service provider and a local company. Joint venture ODCs are less common than captive centers, but they can be found in countries where the IT service provider does not have a large base of clients.
Benefits of an Offshore Development Center
There are many benefits associated with setting up an offshore development center. These benefits include:
One of the primary benefits of an ODC is that it can help businesses to save costs. By outsourcing work to an offshore provider, businesses can avoid the need to hire additional in-house staff. Additionally, they can benefit from lower labor costs to build an app.
ODCs can also help businesses to improve their efficiency. By outsourcing work to an offshore provider, businesses can avoid the need to manage and coordinate work internally. Additionally, they can benefit from a larger pool of talent.
Access to a larger pool of talent:
ODCs can also help businesses to access a larger pool of talent. By outsourcing work to an offshore provider, businesses can tap into a global pool of resources. This can help them to find the best talent for their needs.
By outsourcing your development to an ODC, you can reduce the risk of project failure. If a project does not meet your expectations, you can simply discontinue the project without incurring any sunk costs.
An ODC can help you get your products to market faster and improve your overall competitiveness. With an ODC, you can quickly scale up or down as needed, without incurring the same costs as a traditional in-house development team.
How does an Offshore Development Center Function? Tips to Setup One
There are many advantages to setting up an ODC, including cost savings, increased efficiency, and access to a larger pool of talent. However, there are also some challenges that need to be considered, such as managing communication and cultural differences.
Here are some tips on how to set up an offshore development center:
Define your goals and objectives.
Before setting up an ODC, it is important to first define your goals and objectives. What do you hope to achieve by outsourcing work to an offshore vendor? Are you looking to save costs, or are you seeking to improve efficiency and access to a larger pool of talent? Once you have defined your goals, you can begin to look for vendors that can help you achieve them.
Conduct a vendor assessment.
Once you have defined your goals, you will need to conduct a vendor assessment to find the right provider for your needs. There are a number of factors to consider when assessing vendors, including their experience, price, and ability to meet your specific requirements.
Manage communication and cultural differences.
One of the challenges of managing an ODC can be communication and cultural differences. It is important to establish clear communication channels and expectations from the outset. Additionally, it is helpful to have a plan for managing cultural differences. This may include providing training for your staff on how to effectively communicate with offshore team members.
Set up processes and procedures.
Another important aspect of setting up an ODC is to establish clear processes and procedures. This will help to ensure that work is completed effectively and efficiently. It is also important to document these processes and procedures so that they can be followed by all team members.
Monitor progress and performance.
Finally, it is important to monitor progress and performance on an ongoing basis. This will help you to identify any issues or areas for improvement. Additionally, regular monitoring will allow you to make changes to your processes and procedures as needed.
ODCs can offer a more seamless delivery of services. Because the IT service provider is responsible for all aspects of the ODC, including staffing, infrastructure, and delivery of services, there is often less need for the client to be involved in the day-to-day operations of the ODC. This can lead to the more efficient and effective delivery of services.
When done correctly, an ODC can be a cost-effective way to get access to skilled IT resources, while still maintaining control over the project.
Looking out for offshoring your IT projects?
QSS Technosoft Inc. offers a full range of end-to-end software development solutions that help businesses accelerate their digital transformation journey. You can offshore our team of passionate and experienced software developers who are experts in the latest technologies and trends. Additionally, we follow a customer-centric approach to ensure that our solutions meet your specific needs and requirements.
We are proud to mention that our work has been recognized by leading B2B reviews and research platforms like GoodFirms, Clutch, MirrorView, and many more.
Some of the reasons why you should choose QSS Technosoft as your offshore development partner include:
- A team of passionate and experienced software developers
- Experts in the latest technologies and trends
- Customer-centric approach
- Robust and scalable software solutions
- On-time and on-budget delivery
- Proven track record of success
- Flexible engagement models and availability to work in different country’s time zones.
If you are looking for an offshore partner to help you with your digital transformation journey, then contact us today.