What is an Offshore Development Center (ODC)?

1. What is an Offshore Development Center (ODC)? The increased market volatility and the economic downturn have forced businesses to adopt stringent budget cuts and rethink their modus operandi to build resilient and flexible business models. Today enterprises are actively looking to move their software projects to Offshore Development Centers, so their in-house resources can focus entirely on their core business activities. But before we dwell on why businesses worldwide opt for Offshore Development Centers, let us find out what they are. What is an Offshore Development Center? An Offshore Development Center is the extended IT/Development team built overseas to work on your software development project. This team acts as an extension of your IT team and helps you fast-track your project. A partner company in the offshore location offers this facility and assists in acquiring, mentoring & managing high-quality resources for best productivity. Offshore Development Center is also known as – Offshore Software Development Center, Dedicated offshore Development Center, Offshore Delivery Center, Offshore IT Development Center, offshore development services, Offshore Team, and Offshoring. How does an Offshore Development Center Function? One can better explain the functioning of an Offshore Development Center through an example. Suppose you are a company based out of the USA, developing a software solution, and wish to reduce your time-to-market to gain the first mover’s advantage. Hiring an ODC in countries with a lower cost of living could be your answer to achieving this goal without much cost implication. Offshore Development Center allows you to own a team of highly skilled software engineers and programmers overseas who dedicatedly work on your software development project. So, the offshore development company is responsible for infrastructure setup, resource management, mentoring, and training of the hired team. By hiring an offshore team of highly-skilled engineers and programmers on a contractual basis, you enjoy the benefits of owning talented resources without the commitment of long-term engagement, as you can easily dismantle the team once the project is over. In 2022, offshore development centers (ODCs) are becoming full-fledged business units operating overseas, owing to their benefits.

2. Benefits of an Offshore Development Center 1. Cost-efficiency Delivering high-quality projects without exceeding budget is software development companies’ most prominent challenge. Hiring offshore development services can reduce development costs by as much as 60%. Setting up an ODC in a developing country like India benefits businesses in many ways. It is a major tech destination and ranks among the top 10 countries for offshore IT projects. It offers a massive talent pool across technologies. It has a lower cost of living, which results in lower labour and infrastructure costs. It has favourable government policies toward the IT sector. 2. Specialized Skills Tech demand plays a critical role in the digital economy of a nation. A nation with an affinity towards certain technologies is bound to have a higher supply of tech experts in these technologies and vice-versa. This creates an imbalance in the distribution of resources across the globe. An offshore development center helps balance the market by providing technology specialists that may not be available or are limited in your local geography. 3. On-demand Scaling and Tech Backup While building a software product, enterprises hire specialists and uniquely skilled resources to create quality solutions. Losing a resource like this could adversely affect the timeline and quality of the solution. An Offshore Development Centre aids in creating resource backups for your in- house teams. These backups are maintained at a much lower cost of ownership and can take over the responsibility of the project, ensuring zero downtime. This enhances your organization’s resilience and thereby helps mitigate risks. 4. Extended Hours of Work Coverage An offshore team working across borders operating in a different time zone ensures that your project development continues even in your off-hours. Your quality team can easily review the work completed this way with a feedback mechanism in place. This way, companies ensure zero lag or delay in the project. Thereby fast-tracking the overall project development lifecycle. 5. Business Extension Offshore development centers are a great way to expand your business presence and offerings overseas. An ODC helps you create: a physical business presence in an offshore market with minimal cost commitment.

3. allows localizing of your products and solutions to tap the potential customer base in new markets. helps create brand affinity amongst the local businesses. 6. Focus on Core Competencies With an offshore development center in place; businesses can delegate their IT operations to the offshore team and focus resources and time on building their core competencies. By setting up an offshore development center, businesses can speed up their product’s time-to-market, providing them with a first movers advantage and edge over their competitors. Starting an ODC can get tricky as there are certain challenges that you may face while you set up your offshore development center.