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How to Setup an Offshore Development Center and Make It Work for You?

ODC or an offshore development center means an extended, integrated, and dedicated offshore team. Most commonly, such a team is looked for in a foreign country to give the organization a required support. ODC is supposed to act as the company’s branch, running specific business operations or projects. Besides, this model enables you to achieve valid technological potential at low operating costs, saving a lot of money on recruitment, infrastructure, maintenance, etc. 

Here are 7 steps to follow to build an ODC and benefit from it.  

7 Steps to Build an Offshore Software Development Center

Choose a Country

Eastern Europe and Asia both have a number of outsourcing locations that draw businesses for commercial reasons. Although prices are lower, technical expertise and educational attainment remain at a respectable level as the market stimulates so. Needless to say, businesses should pay attention to the cultural specifics of the chosen nation. Avoiding cultural differences and ethical dilemmas is essential for effective communication and remote team management of the software development center. 

Discover why it is worth outsourcing to Eastern Europe in the recent article

Find a Reliable and Credible Partner

In order to calculate risks and construct a win-win offshore development strategy, building an ODC involves extensive research. In this situation, you will require authoritative and expert consultation from local IT companies to organize your business in the new country and adhere to regulations. Consequently, working with a local partner will streamline your process.  

Begin Recruiting

As soon as you collaborate with a service provider, it is high time to start remote recruiting and find the necessary people. It means your researchers must examine the present labor market and come up with qualified and suitable candidates. Your talent acquisition specialists need to know the exact image of your perfect developer, so you can prepare questions for the interviewer and provide managers with as much project info as possible. Make sure to agree on pay scales as well BEFOREHAND. 

Set Up an Office

While recruiters look for the best candidates, you have to ensure them with the best location and office. Keep attention to details like parking lots, bicycle/scooter stations, security systems, work equipment, office planning, and so on. We advise contacting professional real estate managers who can help you remotely select a perfect space for your future team.  

Building an ODC requires signing many contracts, so local law consultation is a must. The first document will be a rent agreement, and layers will ensure that you receive the best possible contract terms. To succeed in these procedures, you or your team must be highly aware of national law and present exceptional negotiating competence. 

Purchase Equipment

As the contract is signed up, you need to start making procurement to furnish new space. Computers, seats, tables, servers, and coffee machines – the stock is up to you, but make sure you provide more than a bare minimum to come up with an attractive place. 

Process Transitioning

Transition management is the most important role in any organization that regularly performs offshoring or outsourcing activities. Transition management is a process of migrating knowledge or systems and operating communication between an outsourcing team and in-house staff. Thus, process transitioning has to include training, HR payroll, insurance, and other accommodation steps. 

Review top ways to organize and manage your remote developers in our previous article.

How Much Does It Cost to Build a Dedicated Offshore Development Center?

Fixed Price

This model is most suitable for short-term cooperation and small or medium-size projects with defined scope and specifications. The timeframe and costs get fixed before the project begins, and the client will be charged accordingly.  

Dedicated Resources

This model is used for long-term projects with vague requirements and scope. Within this framework, the client will have the whole team at their disposal and follow a simple pricing system. It means the client pays a monthly sum of money that covers each team member’s salary.  

How to Make the Offshore Development Center Work for You?

If you can ensure steady work, meet budget requirements, manage the team, and devote enough time, energy, and skill, the ODC model will work for you. It is a fantastic way to handle your offshore development, but let’s still review the pros and cons for you to define if the ODC solution fits your current project needs.  

Advantages of offshore development center:

  • Get great value: stable money maker for vendor companies with no management. 
  • Choose developers: get CVs, hold interviews, and select the best candidates. 
  • Train developers: accumulate project knowledge and set tools, culture, hours, etc. 
  • Work with a legitimate company raised in pro-environment and infrastructure. 

Disadvantages of offshore development center:

  • Manage everything: manager handles developers with no assistance from vendors. 
  • Fits not for smaller projects: the threshold for the USA is ~ $50.000 to have ~ 2 developers for at least ~ 3 months. 

The demand for software developers will only increase, and overseas specialists are most required for offshore development center services. Despite the clear advantage of lower cost and great talent pool, we still advise implementing wisely the solution that requires much time and energy. 

Summary

The offshore development center is a trend to solve your problems in a shortage of human resources. Sure, there are many software developers worldwide, but what about quality? Sometimes, you need to look overseas to find experienced and well-versed individuals. Thus, using the ODC model brings you a vast array of advantages to you and your corporate development projects. Solid technological potential under competitive prices is what everyone expects from ODC. 

If you would like to cooperate with Ukrainian specialists, make sure to contact us. We offer a free consultation to discuss your project development with new software. 

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