Offshore Development Centre (ODC) The Complete Guide
Offshore Development Centre (ODC) The Complete Guide:
An ODC is a development company that provides you with software development services but is located in another country. It is deemed that this type of company is a subsidiary of your main company. In comparison to the country where the holding firm is headquartered, the country where ODC is located has significantly lower living standards. The ODC model has been used by IT companies to offshore the design, development, and testing of their products. The demands of clients for products that can be deployed much faster, and the limitations of in-house resources such as cost, development time, infrastructure, and availability of specialized skills are the main reasons for companies to have an ODC. The IT company as the client will partner with an offshore provider to establish an offshore team in the country of the provider
Are you trying to boost your company's output, organize, and manage your operations in a quicker, more affordable, and more effective manner? Look no further—an offshore development center (ODC) could be the solution to your business's process problems. We will examine an ODC's definition, operation, and advantages in further detail in this comprehensive guide. Additionally, we will offer some advice on how to organize and lead an ODC team.
What is an Offshore Development Center (ODC)?
An offshore development center is an extended, integrated, and dedicated offshore team supporting a company located in another country. An ODC is a popular business model for different kinds of companies, including startups and enterprise companies. Various corporate processes and services, including the development and upkeep of solutions and software, project management, testing and migration, and technical or customer support, have all made use of this approach.
The term "ODC" refers to a software development business that offers you services but is based elsewhere. This kind of business is thought to be an affiliate of your primary business. Comparatively speaking, the country where ODC is based has far lower living standards than the nation where the holding company is based. The ODC model has been used by IT companies to offshore the design, development, and testing of their products. The demands of clients for products that can be deployed much faster, and the limitations of in-house resources such as cost, development time, infrastructure, and availability of specialized skills are the main reasons for companies to have an ODC. The IT company as the client will partner with an offshore provider to establish an offshore team in the country of the provider.
How is ODC Different from Outsourcing?
ODC is slightly different from software outsourcing. ODC provides services or products and is located in another country, while outsourcing is a service that offers certain services or products from a third-party company, and the geographical location might not be a critical factor. The main purpose of outsourcing is to increase productivity and focus on other important tasks while saving cost can be one of the reasons, but it is not the fundamental cause. On the other hand, ODC's primary cause is to help reduce the company's expenses by utilizing the cost difference between the two countries.
However, both ODC and outsourcing share the same interest: to get access to a large talented developers pool with lower costs for development services, which allows enterprises to save funds and speeding up the productivity in recruiting, optimizing accounting, human resources, and office budgets.
Forming a business partnership with an ODC provider yields a lot of benefits to your company. These are the advantages of having an ODC:
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One of the major advantages of having an ODC is cost reduction. By establishing an offshore development center, you don't have to spend on setting up office facilities and equipment, communications and IT infrastructure, and utilities because the offshore provider has already set up the necessary infrastructure. The provider can focus on hiring the members of the offshore team so a project start-up can begin much faster compared to starting everything from scratch.
Auto scaling your IT department:
Auto scaling is the process of dynamically allocating resources to match performance requirements. The number of resources that your company needs may fluctuate according to the requirements of specific projects. There are situations when projects need a large numbers of resources, and then there are times they require few resources. When those situations happen, you might have to switch and reduce resources or tasks in your in-house team, which may involve a complicated process of resources allocation. With an ODC, the allocation of resources will be less difficult because the offshore team can absorb the roles or tasks from the in-house team.
Leading ODC companies are efficient, lean, and reliable in their operations to attract clients in a competitive market. They have efficient evaluation and reporting procedures to be accountable and transparent with their clients. Real-time evaluation and development monitoring of the projects they are working on will be possible. If you are dissatisfied with the project's results, you can demand from the ODC to redo the project with no additional costs if your contract with them stipulates this.
Timely Delivery of Projects:
An ODC operates under optimized environments and implements streamline procedures to ensure your projects are completed on time. They strictly follow the project timelines that you set for them from planning, design, development, testing, and deployment. The seamless collaboration between the in-house team and the offshore team makes it possible for the project software lifecycle to have shorter timeframes.
Technical Support and Knowledge Retention:
ODCs offer continuous technical support during the entire lifecycle of the project as part of their customer satisfaction. Their approach to knowledge retention is preserving all the knowledge gained during a project's lifecycle. The retained knowledge can be further developed and improvised so you can use it for other projects.
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Access to the Best Skills and Technology:
The best ODCs employ highly qualified IT professionals with specialized skills in developing customized software for your targeted customers. Their offshore teams.
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Offshore development centers offer a cost-effective solution for custom software development. By setting up an ODC in a country where the cost of living is lower, companies can hire highly skilled professionals at a lower cost. ODCs also offer greater flexibility in project management and access to a larger talent pool. However, setting up an offshore development center requires careful planning and consideration. Companies need to identify the right country and find a reliable vendor to set up the ODC. They also need to be prepared to overcome the challenges that come with working with an offshore team. Overall, offshore development centers are a viable solution for companies looking to develop erp software without incurring the high costs of in-house
