Offshore Development Center (ODC) has become a popular choice for businesses looking to expand their operations and increase their output. An ODC is a dedicated team of professionals located in another country, working remotely to support the company’s goals and objectives.

Unlike traditional outsourcing, an ODC offers a more integrated approach, providing direct supervision and collaboration. This article will explore the definition, purpose, and advantages of an ODC, as well as provide insights into setting up and managing one effectively.

Key Takeaways:

  • Offshore software development centers offer affordable software solutions.
  • When starting an offshore center, think about communication, legal rules, and time zone differences.
  • To manage offshore teams well, have clear processes, encourage good communication, and check performance often.
  • Challenges include language issues, problems with control, and keeping data secure.

What is Offshore Development Center (ODC)?

An Offshore Development Center (ODC) is a part of a company with a set up in another country. ODCs are made to use the skills and lower costs of the host country.

By making an ODC, companies can reach more skilled workers and get expertise that may be missing at home. This lets them grow their IT departments, cut expenses, and do better overall.

While traditional outsourcing involves delegating specific tasks to a third-party provider, an ODC functions as a dedicated team that works closely with the company, providing direct supervision and collaboration. This ensures better control over the quality of work and allows for seamless communication and coordination.

Key features-

  • Tailored to Your Needs: Security, team setup, infrastructure, and management are customized to fit your requirements.
  • Long-Term Focus: ODCs are designed to support your development needs over time, like maintaining and updating an existing product.
  • Flexible and Scalable: You can easily change the size of your team and adjust the project scope as needed.
  • Self-Contained: ODCs have all the necessary staff for administration, including tax, HR, and project management.
  • Dedicated to Your Business: The ODC team works only on your projects. This increases their commitment and encourages them to take initiative.

Offshore Development Center: Team Structure and Functioning

Let us explain with a simple example- Imagine you are a USA company wanting to speed up software development. Hiring offshore developers in India can help. India has many skilled workers at lower costs, which can save time and money.

Here’s how the teams are set up.

1. Client-Side Team

This team manages the project and ensures business needs are met. Key roles include:

  • Product Owner: Works with the offshore team. Shares the project vision and makes sure development aligns with business goals. They prioritize tasks.
  • QA (Quality Assurance): Checks the final product’s quality. They test it to ensure it meets standards before it’s released.

2. Offshore Development Center ODC Team

This team handles the actual development. They follow the client’s guidance. Key roles include:

  • Scrum Master: Helps the team follow agile practices. They manage communication between the client and the offshore team.
  • Developer: The main part of the offshore team. They code and build the product based on the client’s needs.
  • Technical Architect (TA): Ensures technical decisions are correct. They guide the technology used and make sure the system is well-designed.
  • Business Analyst (BA): Helps understand the client’s needs. They turn these needs into documents for the offshore team.
  • QA (Quality Assurance): Similar to the client-side QA. They test the product during development to ensure quality.

This setup allows clear roles and good communication between both sides, using the offshore team’s skills to complete projects smoothly.

Offshore Development Center Vs Outsourcing

There­ are difference­s between an Offshore­ Development Ce­nter (ODC) and in-house teams or othe­r outsourcing models. In-house teams work in the­ same physical building as the company.

An ODC works remote­ly from another country. This lets the company use­ more skilled workers from othe­r places and saves money. Traditional outsourcing give­s specific jobs to an outside company.

However, an ODC acts as part of the­ company team. The ODC team works close­ly with the company providing supervision and teamwork.

About 20 to 25% of outsourcing deals fail within two years, and 50% fail within five years. This suggests that using an offshore development center is usually a better option than outsourcing.

Content Source URL: Offshore Development Center