Ultimate guide for ODC (Offshore Software Development Center)
- The basics of ODC (Offshore Software Development Center)
- Purpose of an ODC
- Difference between Offshore development center and Outsourcing
- What are the benefits to set up an Offshore Software Development Center in India?
- How to set up an ODC?
- What are the mistakes that one needs to avoid for setting up Offshore development center?
- How to choose the right offshore development company?
- Why choose Agile Infoways as your ODC Partner?
With increasing demand for software development worldwide, offshore software development centers are popping up. Lots of industries are also looking for a trustworthy offshore development service. If you work in the IT field, the term ODC would be familiar to you. These ODC centers can be a preferred choice for every software centric business, SMEs, startup and various established enterprises. Well, before talking about ODC setup, let’s understand the basics of ODC.
The basics of ODC (Offshore Software Development Center)
ODC (Offshore Software Development Center) is a development office group that provides convenience of talent, resources, and software solutions. ODC centers are generally set up in countries with a rich pool of tech talent, reasonable price-quality and various business conditions.
Basically, it’s an organization that works in different countries with low average development cost compared with the head office. ODC includes a team of experts to minimize the liability. The list consists of: Web Designers, Front-end Developers, Back-end Developers, QA Engineers, Software Engineers, UX Designers, and Project Managers.
Besides this, the ODC comes with a high level of skill pool and basic management team. It helps to kickstart your software development cycle while keeping the pace and quality in check. The Offshore development center is known as, - Offshore Software development center, Offshore Delivery Center, Offshore development services, Offshore IT Development Center, Offshoring and Offshore team. The current stats of 2022 shows that ODCs are becoming full-fledged business units that operate overseas while owing to its benefits.
Purpose of an ODC
Setting up an ODC is kind of less expensive, faster and offers an efficient hiring inhouse team. There are no social benefits, no taxes and no hardware cost required. Moreover, it assists organizations in low total operational cost with raising and exploring the net earnings. One only needs to work efficiently with skilled offshore developers who have industry experience, and have knowledge of using tools and technology. ODC center takes care of everything from managing the requirement to the development phase and guaranteeing a productive team.
Difference between Offshore development center and Outsourcing
There are a lot of people who think that Outsourcing and offshore are interchangeable, but they are two distinct concepts. Let’s define each:
Outsourcing refers to obtaining certain services from a third-party company or essentially sourcing something such as accounting services or manufacturing services of certain input to another organization. It can be done to a company that is located anywhere around the globe.
Whereas, Offshoring refers to obtaining services from another country. Let’s say, when a car manufacturer in the US opens a factory in Thailand to design certain parts then they are offshoring.
However, both share the same interests such as getting access to a large talented developer pool with low development services, allowing enterprises to save funds and speeding up productivity in optimizing accounting, recruiting, human resources and other office budgets.
Know more about Outsourcing software development
ODC have capability to provide services like building a software development team based on project requirements, testing service and setting up separate ODCs for clients.
What are the benefits to set up an Offshore Software Development Center in India?
- Cost Reduction: ODC is placed in countries that have low living cost when compared to ones where head office is located. With this they can utilize the cost dissimilarity and reduce the cost in labor, materials while increasing sales and focusing on various factors.
- Expand Market to a Foreign Country: Being to another country’s marketplace is the best way to increase the sales volume, get closer to customers and understand the requirements. It helps to be physically available in the targeted market and at the same time reduce logistics costs.
- Cheaper Facilities: The offshore provider can set up an infrastructure so you don’t need to spend on IT infrastructure. The first most important thing you need to do is hire the members of the offshore team and speed up your process by keeping away from adding everything from scratch.
- Flexible Team structure: The majority of tech companies do not require the same resources all time. Therefore, the remote office model can be pretty flexible in terms of composition. Such kind of flexibility is impossible to attain solely on your in-house development team.
- Easy Kick-off: To build an internal development team from scratch it requires a lot of run-time overhead and tremendous cost. Here comes the role of offshore development center that helps in offering a fully-fledged product delivery team within a few weeks. No need to spend extra time on interviews, we help you choose the best fit for your organization.
- Access to Talent Pool: You can get high quality tech specialists from various countries and accept the challenge. Offshore development centers work as great solutions that offer access to a greater variety of software development specialists all over the world.
How to set up an ODC?
Choose a Location: There are a lot of destinations that attract IT companies such as Asia, Eastern Europe and many more can be chosen for their economic reasons. Apart from their labor cost, low operational cost, businesses need to pay attention to their technical requirements while adding cultural specifics of the nations.
Get a Trusted Partner: It’s necessary to take risk and create a win-win offshore development strategy. In this step, one needs excellent advice from local firms to structure your business with the local legislation. Find a trusted partner that helps to navigate through the local environment.
Start Hiring: Now as you have finally partnered with a service provider, you can lay the recruitment process. At this stage, the researchers can start analyzing and choosing the eligible candidate. They can provide the client with an analytical report on pay scales.
Find an Office: As the recruiters are selecting their IT talents for your company you can look out for the office space. Choose on the location, security system, parking, office planning and other equipment. Professional managers can suggest locations based on their needs.
Get Legal Support: You need to sign a lease contract, for that you need to consult your lawyer. They’ll help you get the best agreement terms. However, the process requires understanding deeply by following the proper law.
Making Procurements: One needs furniture and proper infrastructure to equip a new office. It covers security systems, computers, servers and other inner correspondence services.
Organize HR Payroll: A HR payroll and Accounting are an essential part of operational management that supports functioning of new offshore development centers. Keep a note that you need a person who is responsible to manage money transfer, salary payments and other transactions between ODC and head office.
What are the mistakes that one needs to avoid for setting up Offshore development center?
- Focusing only on Cost: There are ODC owners who only focus on cost. We know it's an important factor but it shouldn’t be the only criteria. If you concentrate on cost, there are chances it may lead to an inefficient team.
- Not have long-term goals: If you’re establishing ODC, then it's required to have long-term goals. As it’s the key to make your business successful. Additionally, you can make long-term objectives that can undertake crucial business decisions.
- Choose wrong partner: Choosing a wrong partner while setting up an ODC can bring a serious repercussion. Even an experienced and professional ODC can lack several things such as not handling technology stack, not having proper experience in emerging technology and more.
- Neglecting cultural diversity: It is an essential point that helps to streamline the ODC productivity. The proper understanding of cultural diversity can support in navigating the challenges associated with the local environment.
How to choose the right offshore development company?
- Start by defining your requirements
- Focus on demonstrable experience
- Investigate management capabilities
- Evaluate Cost-effectiveness and not costly
- Prioritise long-term goals and strategy
Why choose Agile Infoways as your ODC Partner?
Agile Infoways offers a reliable and trusted ODC partner that comes with a proven track record. We have the right talent, technology and expertise in building solid software products. We have established a robust army of individuals with the knowledge and skills to overcome complicated technical challenges. If you’re looking to get in touch with our sales representative, connect to our professional team for your next development project.
What are the key members in any Offshore Software development centers?
If you’re looking to create an offshore software development center, then one must understand the key members that one needs to run their center smoothly. Few of the major roles for any companies includes:
- Project Manager
- Account Manager
- Test Engineers
- Designer and Developers
- Usability Engineers
- Technical Writers
What are the ODC Engagement Models Options?
There are mainly three ODC engagement models that should be tackled. Have a look at them:
- Time and Material Model: When the project specification and scope vary, during this time you can go with this model.
- Fixed Cost Model: It’s appropriate for medium-sized and short-term projects that clearly define scope and specifications. In this model, the cost and timeline are well-established.
- Dedicated Resource Model: This model is for a longer period and a good option for a customer who can pay a monthly fee. It supports the team member’s wages while fulfilling their ambiguous requirements.
How to maintain an Offshore Development Center?
- Treat your in-house and Offshore teams equally
- Get a big picture across
- Ensure clear communication
How do dedicated offshore development centers work?
An ODC works under the same brand as head office and follows common corporate rules. Let’s say, an offshore team of IT specialists perform the core task and bring the same value to the business like various other in-house teams. Similarly, the ODC team is mostly composed of diverse specialists. Therefore, it’s up to the head office to decide the roles and structure of the offshore dedicated software development team.