Companies that are interested in expanding the geography of their presence when opening new offices often face problems associated with hiring new qualified personnel and creating a favorable working atmosphere. The solution could be the creation of an offshore development center.
Based on the experience of Emerline, a technology partner in the implementation of innovative solutions, we are going to analyze what an offshore development center is, how it can help companies that are interested in scaling their business, and how to establish an offshore center so that it brings maximum efficiency.
What is an ODC?
The offshore development center is a software development company that delivers software development services with the required office infrastructure and manpower but is located in another country. What sets an offshore development center apart from other development companies is the reduced cost of services. An ODС can help you save on your software development project implementation expenses, especially those related to infrastructure.
Some may confuse outsourcing and ODC. What makes them different? Despite the lack of similarity in the final destination, the most important difference is location. ODC is a company that provides services or products from another country whereas outsourcing is a service that provides specific services or products from a third-party company. We can also say that offshoring is international outsourcing.
The offshore development center can be of two models:
- BOT (build-operate-transfer). A client hires a service provider for the ODC setup, and the service provider covers all costs associated with finance, staffing, and infrastructure. The service provider may profit from the center, but after a specific amount of time, the center is transferred to the client.
- Managed ODC. This strategy also implies the supplier’s involvement in infrastructure setup and administrative activities. A customer receives a remote ODC operated by the services provider.
The ODC Advantages
Partnering with offshore development centers becomes the top choice for many enterprises because of the benefits they bring.
- Lower infrastructure expenses.
- Staff and administration cost reduction.
- Compliance with your company’s policies.
- Expand the market to a foreign country.
- Access to the talent pool.
- High flexibility and scalability.
An Offshore Development Center Set up
To achieve much efficiency while choosing the path of the offshore development center, there are some steps to follow:
Step 1. Define Your Objectives and Requirements.
Before starting work on setting up an offshore center, you need to determine what needs your business has and what goals your company pursues. Only after setting goals and figuring out what your company needs, we can talk about whether a solution like ODC is right for you. For example, if your project is small and does not require continuous technical support and maintenance, the ODC may not be necessary.
Step 2. Delve into ODC capability to determine whether ODC is right for you.
Because ODC isn’t suitable for all types of projects, it’s critical to ensure that this engagement model meets your requirements. If the following points match your reality, ODC will be a good solution for your project:
- You require technicians with specialized knowledge.
- You require rapid expansion of your company.
- You want to save costs on infrastructure, operations management, and staffing.
- You need to create long-term collaboration and strict adherence to your business standards.
Step 3. Choose the Country for an ODC Setup.
Now, the question is which countries are best for offshoring development centers. Since many countries across the globe provide high-quality and budget-friendly offshore software development services, this is the list of things you should pay attention to while deciding on the best one for your company:
1. The ODC should have expertise in particular technologies.
2. Technicians should have high language proficiency.
3. A country should have a high level of IT sector development.
4. A company should pursue a strategy of hourly rates and developer salaries.
In recent years, Central and Eastern Europe have been playing a key role in offshore development. Countries such as Belarus, Poland, and Ukraine have already proven to be reliable suppliers of technology solutions with a rich talent pool of technicians with a proficient level of English.
Poland is placed 16th out of 100 countries in the EF EPI 2020, Belarus is ranked 40th, and Ukraine is ranked 44th. According to Clutch, the developer salaries are the following: about $1817/month is in Belarus, developers in Ukraine cost $2200 per month, and developers in Poland make about $2700/month.
Step 4. Choose a trusted ODC partner.
Since there are quite a few software solution providers, it can be difficult to find the right partner. When looking for the best one for you, what kind of expertise it has, what clients this company has worked with, and what feedback it received after the completion of the projects.
If you have an idea for a software product or want specialists to come up with an idea of how to improve your business, turn to a reliable partner. Emerline experts help companies of various sizes in various industries and are always ready to address the business challenges of your company. Book a free consultation right now!