What is Offshore Development Center, and How Does it Work?

product designer analysis vr glasses for system de 2022 06 08 21 13 49 utc1 What is Offshore Development Center, and How Does it Work?
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The demand for software development has dramatically increased worldwide since the pandemic. However, to construct resilient and adaptable business models, businesses have been forced to adopt improved revised strategies like offshore development centers (ODC) due to the increased volatility of the market and global demand for technical experts. The IT outsourcing market will generate close to $396.3 billion in total revenue in 2021, up 9.8 percent from the previous year. An extended IT/Development team will be set up offshore to work on your software development project. This will make finding specialists with the necessary expertise, scalable technology resources, security, and other issues more manageable. in addition to allowing you to cut costs that aren’t necessary

What is ODC?

The Offshore Development Center (ODC) is an integrated business model appropriate for small and large businesses. ODC entails setting up a dedicated remote team of IT professionals to increase the on-premises team. You can hire highly qualified overseas programmers and engineers to work hard on your software development project. Contracting with an offshore company allows you to quickly scale up or down depending on the project’s requirements, allowing you to reap the benefits of having talented resources without making a long-term commitment. An offshore development business model also provides a dedicated delivery center with all necessary resources, including infrastructure setup, software developers, design, quality assurance, security audits, business operations, and more.

ODC models and Their Differences

When creating a large-scale project that requires ongoing support and updates, such as a Fintech enterprise application, setting up an ODC will be more appropriate. After defining the project’s scope, duration, and estimated costs, it is recommended to establish a specialized offshore development center. When several projects are linked or long-term, large projects, using an offshore development model speeds up delivery. In the ODC model, all you have to do is keep an eye on the quality of the work and supervise it. Nonetheless, the model provides a faster, less expensive, and more productive alternative for rapidly putting your company’s output into production.

In addition, if your project requires particular technical expertise, setting up an ODC is thoughtful. Admittance to specialized specialists runs short more often than not, so you want to invest arduous amounts of energy to get technical specialists according to the market prerequisites. Finding experts in Artificial Intelligence, Data Science, Machine Learning, and Cyber Security is difficult, especially when developing a complex solution. An enormous pool of cross-functional teams with a wide range of specialized skill sets is an offshore development center.

There are the most common ODC business models:

  • Contractor Model

This is an offshore development center model in which a business hires IT professionals to work on specific projects. A remote team manages the entire project, from planning to development, testing, and finally, implementation. 

  • Dedicated Offshore Model

This model provides dedicated IT, infra, network support and highly qualified professionals for the client’s project.

  • Shared Model

The infrastructure, network support, and resource are shared in this model.

  • BOM (Build Operate Maintain) Model

This model follows the client’s needs from beginning to end.

Benefits of ODC

  • Cost-Effective 

The main advantage of an offshore development center is how much less money is spent on infrastructure, hiring, training, equipment, and other things.

  • Better Scalability 

The nature of the project and the requirements will determine how many resources your company needs. Because the offshore team can work under the tasks assigned by the in-house team, an ODC model will simplify the process of allocating resources.

  • Improved Security 

Physical and information technology infrastructure that is safe and has all the facilities needed to accommodate ODC of various capacities. When compared to conventional outsourcing methods, the ODC model is more secure. To ensure high-end data protection, your team will be isolated in a separate office, and the software and security will be updated.

  • You Focus on Your Goals

The ODC model helps you establish a physical presence in an offshore mark at a low cost while allowing you to concentrate on essential business functions.

How to Establish Offshore Development Center?

There are a few tips that might be a handful if you consider to set up ODC:

  1. Prioritize your company’s vision and needs and the project’s scope of work.
  2. Choose the right location, which will include suitable number of IT professionals, rates, expertise, level of English that fits your requirements
  3. Conducting in-depth research on the company’s portfolio and previous projects will help you select the appropriate offshore development service provider.
  4. Choose the most matchable ODC model.
  5. Your vendor should be utterly familiar with the requirements, including soft skills, technical expertise, professional experience, and other factors.
  6. Find an office space with every one of the conveniences for different abilities to set up tasks rapidly.
  7. Establish a communication and operation infrastructure that keeps the offshore team in the loop.
  8. Make sure you get the best agreements and support from a lawyer.
  9. To overcome the roadblocks at each stage of development, maintain consistent communication.

To Sum Up

Your company can save money and time by setting up an ODC, allowing you to concentrate on your core business activities without worrying about human resources or other issues. In addition, it will overcome obstacles and expand your business. However, you must be familiar with many processes and subjects you can face while establishing your ODC. To avoid it, find an experienced and professional vendor to support you from the idea to the ready-to-go office. 

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