Offshore Development Center

What Is an Offshore Development Center?

Developing high-quality software takes a lot of time, effort, and knowledge from software engineers. To meet the demands of software development and overcome talent shortage, many companies choose to work with an offshore development center (ODC), which was especially true during the height of the pandemic. Offshore development centers are now a popular business model that benefits all sorts of tech companies worldwide.

An offshore development center is a sort of office that operates in a location outside the hiring company’s country. The offshore development center model involves housing an IT/development offshore team overseas whose only job is to work on software development for their clients or a specific company.

Offshore Development Center 3

An ODC is responsible for setting up the right infrastructure required to complete the job, managing resources, and training the entire team. This way they guarantee the best working conditions to carry out their functions as a remote team of software engineers.

Companies choose to work with an offshore development center for several reasons. The main ones always include a reduction in both in-house costs and workload. Businesses are certain to find affordable yet knowledgeable talent without the hassle of long-term commitments, as these software developers in a dedicated offshore development center work on a contractual basis.

To create an offshore development center, companies usually look for places where the cost of living is low. It’s also important to choose offshore development centers that have political stability and an abundance of the required resources for software engineers.

Who Needs an Offshore Development Center?

Regardless of its type or size, any company can benefit from an offshore development center and offshore development center services. ODC is a viable option for both startups and large enterprises alike. Here are a few examples of companies that usually resort to this business model:

  •     Software companies
  •     E-commerce companies
  •     Fintech companies
  •     Data providers
  •     IT companies

These types of companies are quick to adopt the offshore development center model because they can help them scale quickly and help with global expansion. Companies gain access to a wide variety of experts at affordable rates who are up to short-term engagements with an offshore development center. They use offshore teams to handle R&D, customer support, product development, and more.

The Benefits of an Offshore Development Center

Offshore development centers provide a wide variety of benefits to their companies, from affordable costs to international talent to a reduced in-house workload. Having an offshore development office working on different projects also allows company workers to focus on the core business and other priorities.

  • Cost-Efficiency
    Companies usually set up offshore development centers in countries with lower costs of living. Countries such as Ukraine, India, Poland, Argentina, Chile, and other countries in Eastern Europe, Asia, and South America are very popular for establishing an offshore development center. With these lower development costs, companies can invest more into the work itself while gaining access to a quality team with an offshore development center. They allow for the development of high-quality software for less, giving them an enormous competitive edge over just an in-house team. An offshore development center also comes with the necessary infrastructure for the job. This means that companies save a lot of money by not having to invest in new technology and infrastructure as well as the cost of hiring and maintaining an in-house employee.
  • Skilled and Diverse Talent
    Certain businesses might not have the right type of talent in their current talent pool. An offshore development center fulfills this demand by supplying vetted professionals with the necessary skills, knowledge, talent, and business processes to get the job done. Offshore development centers are usually extremely knowledgeable, follow international standards, and produce quality work. Companies hardly ever need to invest in training and other educational resources when working with an offshore team at an existing offshore software development company.
  • 24/7 Support
    If a company sets up or partners with an offshore development center in a distant time zone, it helps ensure the continuous development of a project. While the in-house team is out of the office for the day, the offshore team continues their work. Companies then have the ability to complete their projects at a much faster rate while still maintaining a high level of quality in their work with a dedicated team at an offshore development center. They might want to choose an offshore development center located in a time zone where a few working hours overlap with their own. This way they guarantee a few hours to deal with any issues or questions that might come up from the offshore development teams.
  • Business Expansion
    Offshore development centers are a great way to test international business expansion. An offshore team can help companies set up a physical business presence overseas, expand their brand reputation, and get closer to the new local market with a remote team.
  • Focus on the Business
    By delegating software development projects to an offshore team, companies keep their in-house professionals focused on the real pillars of their in-house business priorities, business processes, or even on improving their core skills. If there are certain tasks that the in-house team can’t handle, they’re easily transferred to the ODC development team.

How To Ensure Productivity With an Offshore Development Team

It might be daunting to manage an offshore development center and make sure that they’re keeping up to the demands and tasks at hand. Luckily, it only takes a few adjustments to ensure that everything runs smoothly with an offshore team. A few of them include:

  • 1_soak_BDev_SRP_Numeros
    Having a Small Team
    A smaller team of skilled software developers facilitates visibility and communication. It’s a lot easier to manage and guide a smaller team for better results when dealing with an offshore team versus an in-house team.
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    Establishing Good and Daily Communication
    Regular communication is the key to ensuring that each project goes smoothly with the development team. Standardized methods of communication might include daily Zoom meetings or phone calls, daily communication via Slack as needed, weekly full team meetings, and so on between an in-house team, offshore team, and a project manager or managers.
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    Using Tracking Tools
    To plan, organize, and delegate tasks, companies should take advantage of task management tools like Jira, Asana, or Trello for the full development team.

Establishing milestones, defining roles and responsibilities, ensuring proper work documentation, and treating the offshore team as an integral part of the business also help companies effectively manage an offshore development team. 

Hire a Dedicated Offshore Development Center Today

Setting up or partnering with an offshore development center is a great way for companies to access a dedicated team of talented software developers, innovative resources, and better infrastructures at affordable prices. Companies may take advantage of their offshore software development team in a different time zone to create a 24/7 workflow and expedite development, making it an efficient business model.

An offshore development team can deal with a software development project so that in-house teams can be free to tackle core business assignments. Offshore development centers also help companies expand their business to new countries, serving as a way to get closer to the local market. Contact BairesDev today to learn more.

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