In today’s world of digital transformation, remote working is no longer a novel concept. People can now work from anywhere they want due to the wonders of advanced technology. Not only workers but businesses are also starting to benefit from this new concept. Offshore development centers (ODCs) are one way for a business to take advantage of remote working and the advantages it provides. In recent years, ODCs have become a popular business model in the software development industry, used by not only large corporations but also small and middle-tier companies. The Vietnam offshore development centre is an ideal option at this point. If you’re considering setting up an offshore development center for your business, here is a quick overview of what they are and how to get started.
What Is an Offshore Development Center?
An offshore development center is a dedicated team of software developers, designers, QA engineers, project managers, and other specialists located in a different country or region. There are many offshore outsourcing countries to choose from, and Vietnam is becoming a popular IT outsourcing destination because of its low-cost, quality, and reliable software development services.
The ODC works exclusively for the client company and is responsible for developing, maintaining, and supporting its software products or applications.
ODCs are similar to outsourcing companies but with a few key differences. In outsourcing, the client company contracts another company to do the work for them, and the outsourced team can work with multiple clients simultaneously. ODCs, on the other hand, are entirely dedicated to the client company and work exclusively on their projects.
Benefits of Having an Offshore Development Center
There are many advantages to having an offshore development center, such as:
Cost Savings
As mentioned above, ODCs offer significant cost savings compared to traditional in-house teams. This is because the client company can hire a team of talented developers at a fraction of the cost they would have to pay for an onshore team.
Access to A Large Talent Pool
By setting up an offshore development center, companies gain access to a large talent pool of skilled software developers, designers, and other specialists. The ODC can provide access to specialized skills that are in high demand but scarce in the client’s home country. For example, if a U.S.-based company needs a team of AI or machine learning experts, they can set up an ODC in India, where there are thousands of engineers specialized in these fields.
High-Quality Service
Companies setting up an offshore development center often benefit from high-quality service due to the extensive experience their remote developers possess. Furthermore, it’s easier for companies to find experienced developers in certain countries than in their own country or region.
Scalability
Another benefit of ODCs is scalability. Companies can quickly and easily scale their development team up or down according to their needs. If a project requires more resources, the ODC can quickly hire additional developers to join the team. Similarly, if the workload decreases, the company can reduce the team size without worrying about severance payments or other employment-related expenses.
Flexible Work Hours
One of the most attractive benefits of having an offshore development center is that it allows companies to take advantage of flexible working hours. The ODC is located in a different time zone, which allows the client company to work on their project around the clock without having to hire extra staff.
Simple Steps to Set Up an Offshore Software Development Center
Building an offshore development center can be a complex process, but the following steps can help guide you through the process:
Step 1: Define your Needs and Requirements
The first step in setting up an ODC is to define your needs and requirements. Key factors to consider include your budget, the number of team members you require, the skillsets you need, and the location of the ODC.
Step 2: Choose the Location
Choosing the right location for your ODC is critical. Here are some of the factors you need to consider:
- Time zones: You may want to consider setting up the ODC in a location that is within a few hours of your home country’s time zone to facilitate communication.
- Language: You may want to set up the ODC in a location where the local language is widely spoken or in a country where English is commonly used as a business language.
- Cultural proximity: You may want to consider a location where the business culture is similar to your home country.
Step 3: Find a Reliable Service Provider
Once you have defined your needs and chosen a location, the next step is to find a suitable service provider to set up your ODC. Look for a provider that has experience in setting up ODCs and has a proven track record of delivering quality services.
Step 4: Hire the Development Team
Once the ODC is set up, the service provider will help you find the right talent for your team. Look for skilled professionals with the right experience and expertise, and ensure that they can communicate effectively in English.
Step 5: Manage the ODC
Finally, you need to manage the offshore development center effectively. Establish clear communication channels and regular reporting mechanisms to ensure that the ODC team is aligned with your goals and objectives. You should also provide feedback and guidance to the team regularly to ensure that they stay on track.
Creating an offshore development center can be a complex process, but with meticulous planning and execution, it can be a rewarding experience for companies seeking to expand their operations into new markets. Whether you need to hire skilled professionals or establish communication channels, the right service provider can make the entire process easier and more efficient.
With the right approach, an offshore development center can be a powerful tool for companies to extend their reach into new markets. But note that the success of an ODC ultimately depends on how well it is managed. By taking the time to consider the key steps in setting up an offshore development center, companies can ensure that their ODC will be a successful venture.
