What is an Offshore Development Center?

Most companies are constantly looking for innovative ways to optimize their operations and reduce operating costs. This is especially true in the dynamic field of software development. One of the effective solutions is the use of offshore development centers (ODC). 

What is ODC?

What is an offshore development center (ODC)? It is a remote service for performing software development tasks and other IT services provided by a company in another country. Geographically, such companies are usually located in countries with lower operating costs and labor remuneration, which is beneficial to development companies because the final price of the product is reduced. 

By using an offshore development center, a company expands its internal team that performs specific tasks for software development, testing, maintenance, and support services. ODCs are created to mirror the working environment and standards of the parent company, ensuring seamless integration and consistent results. The big advantage of an offshore development center is the ability to leverage global development expertise and resources without significant investment in infrastructure and hiring.

The offshore development center model offers many benefits, including cost efficiency, access to more talent, and 24/7 operations. Understanding what an offshore development center is and how it functions can help companies make informed decisions about integrating it into their operations.

Key Members in an ODC 

To perform a quality software development service, ODC teams are made up of professionals and experts who fulfill various roles in the team. These can include:

  • Project Managers. Professional responsibilities: overseeing projects, ensuring timelines, budget, and quality of the software being created.
  • Software Developers. Professional duties: writing code for the digital goods being developed.
  • Quality Control Engineers. Professional responsibilities: ensuring quality testing of the software product, identifying and fixing bugs before pilot release.
  • Business Analysts. Professional responsibilities: generating customer requirements and translating them into technical specifications.
  • UI/UX Designers. Professional responsibilities: creating user-friendly interfaces for a better user experience.
  • System Administrators. Professional responsibilities: managing the IT infrastructure that is used for software development.
  • Technical Support Specialists: provide technical support for the development process.

Of course there are other people who work in it, but here we have enlisted only the most popular ones that work under the ODC model.

ODC models

Companies that operate under the offshore development center system can operate under different models depending on the specific needs of the parent company. The main ODC models include:

Dedicated offshore development center

The team is fully integrated and dedicated to a single customer, focused on solving the problems of a specific customer, and can customize the product more to meet the needs of the customer.

Shared offshore development center

The offshore development center team works with multiple customers. Resources are distributed evenly among the customers, for whom this model is a cost-saver.

Project-based offshore development center

Teams are formed for specific projects and disbanded after their completion.

Build-Operate-Transfer (BOT) ODC model

Another model that involves a third party whose responsibilities include: building an ODC team, managing the team, and then handing it over to the parent company. 

The Role of ODCs in Business

Offshore development centers enable businesses to remain competitive in the fast-moving digital marketplace. They provide flexibility, scalability, and access to a global talent pool. By utilizing these management models, companies can quickly adapt to changing market demands, innovate faster, and reduce operating costs. In addition, offshore development centers enable continuous software development cycles, allowing companies to release updates and new features faster.

Offshoring software development pros and cons

Offshoring software development Pros

The popularity of this resource management model has largely come from the qualitative advantages that an offshore development center brings. These include:

Time and financial cost savings

One of the key advantages. Lower labor remuneration significantly saves the company’s resources. The freed-up funds can be reallocated to other operational tasks, including shortening the product development timeline.

Business Expansion

Offshore development centers act as an extension of the parent company, providing additional resources and capabilities without significant investment.

International Expertise and Means to Scale the Company 

Offshore development centers provide access to a broad pool of talent from the international labor market. New professionals can perform non-routine tasks due to their diverse skills and experience.

Access to Pre-Selected Programmers

Offshore companies are set up to provide quality service. Therefore, the quality selection of job candidates is carried out as per the strict requirements of the company. This method helps to ensure that the experts who are part of the team are of high caliber.

Increasing the Quality of Local Expertise

Offshore development centers increase the quality of the local developer market, both regionally and internationally.

Technical Support

Offshore development center teams have a deep dive into the product, which ensures uninterrupted operations and quick resolution of technical issues.

Offshoring software development Cons

Security Risks

One of the major risks of using ODC. The process of safeguarding sensitive corporate information and company intellectual property becomes more complicated when working with a remote team. However, it is a solvable challenge.

Different Labor Day Schedule

Teams that work under the ODC model may be located in different time zones. Differences in time zones complicate the coordination of the management process and can cause communication delays. 

Service Quality Control

Ensuring uniform quality standards can be difficult when teams are geographically dispersed.

How is ODC different from outsourcing?

Nowadays there are several models of attracting third-party teams for software development. For example, offshore development centers and outsourcing. These two models are most often compared to each other, as both include the transfer of work to external organizations. However, the commonality between ODC and outsourcing ends there.

Offshore development center functions as an extension of the parent company, with dedicated resources and infrastructure that meets company standards. There is a deeper integration of the parent company’s corporate values.

In contrast, outsourcing typically involves using third-party vendors to perform specific tasks or projects without integrating them into the company’s internal operations. This distinction allows ODC to deliver a more consistent and controlled outcome than traditional outsourcing models.

How to choose the right ODC in Belarus?

This is a manageable task, as the right ODC in Belarus should have the following characteristics:

High Level of Expertise and Experience

Research the track record and experience of the offshore development center team in your area.

Talent and Knowledge

Ensure that the ODC team is composed of qualified and diverse professionals who will solve your professional challenges.

Developed Infrastructure and Accessible Technology

Assess the infrastructure and technology availability for the ODC team. Whether it is possible to meet the development objectives with these facilities.

Cultural Compatibility and Language Barriers

Explore the cultural compatibility between the parent company and the offshore development center team. How comfortable is it to work in the chosen symbiosis? Are there any communication problems due to language barriers?

Security measures

Check the ODC’s security protocols to protect your intellectual property and data. Information security is key to the stable operation of the company, eliminating all sources of threats to information.

Client Recommendations

It is possible to get real feedback about the services of a particular team of offshore development centers. It is necessary to contact past clients of the company or partners of the service provider. This will allow you to get a real characteristic of the quality of ODC services, based on the assessment of customer satisfaction and productivity of the development team.

By carefully evaluating these factors, companies can select an ODC in Belarus that meets their strategic objectives and provides high-quality software development services.

This comprehensive guide describes the main aspects of offshore development centers, highlighting their benefits, risks, and key points when choosing the right partner. By using an ODC, companies can improve their capabilities, reduce costs, and remain competitive in the global market.

Where to find offshore development center (ODC) services?

Offshore development center services become closer and more accessible for your business together with Spex.by – management and accounting services for IT companies.

We will help you to create a turnkey ODC Center and formalize all the processes for you. We also offer the following services:

  • Management;
  • Accounting & bookkeeping;
  • High-Tech Park;
  • Payroll;
  • Recruiting;
  • HR consulting;
  • EOR services;
  • PEO services;
  • Bank accounts;
  • Virtual office (domiciliation).

Together with Spex.by you will never be left alone with your management problems. We are always open and ready to help at any time. More than 100 international companies have already used our services. Join us, and delegate the standard tasks of recruiting, accounting, and management to concentrate on software development and create a real digital masterpiece.

Offshore development centers are an affordable, modern model of software development process management that will provide mobility and timeliness for production tasks. From anywhere in the world, with ODC your team will be enriched with international experience and cultural specificities of different countries. This will have a positive impact on the software product and overall team effectiveness.

How to contact us 

For more information or advice on issues related to offshore development centers, do not hesitate to contact us. We are here to help and support you.

Phone and email communication options are available for your convenience:

  • +375293664477 (WhatsApp/Telegram/Viber);
  • info@spex.by.
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