Have you ever heard about an offshore development center? Wondering what offshore development center is? As software development increases all around the globe, offshore software development centers are being built to meet the demand.
In this article, we’ll take a look at offshore development center services, the meaning of offshore development center, the definition, how they work, and what the benefits are.
What is Offshore Development Center? What is ODC?
An offshore development center, or ODC, is a development company that offers all of the software development services you need to complete your projects. They are based in a different country and operate like a subsidiary or service center of your own business. Usually, the cost of living is much lower than in your country of origin, so the exchange or tax rates are far more favorable.
ODC is different from concepts like outsourcing. ODC provides services or products from another country, while outsourcing offers services and products from a third-party country. Geography might not come into play with outsourcing; they can be located in the same country or city as your business.
Outsourcing rates are not as favorable as offshoring rates, but they can still reduce development costs because there’s no need to hire full-time employees. Outsourcing is designed to increase productivity or take on tasks that a company may not want to employ full-time employees for. An ODC is typically used to reduce expenses, leveraging the cost difference between two countries.
Whether you offshore or outsource, you’ll be able to acquire a large talent pool of developers at a good price, saving money and reducing the time to market by cutting out lengthy recruitment processes.
What does an ODC do?
Some ODCs are highly specialized, and others provide more general services. This can include:
- Completing an entire software project from start to finish, including ideation, design, launch, and maintenance;
- Remote UX/UI testing an existing product with a client base or target market;
- Completing a specific phase of a project;
- Consulting with clients on their ideas and providing assistance with scoping and budgeting;
- Providing maintenance and support services after an app has been built.
The ODC may function like your in-house team and handle every aspect of development, or they might merely support your existing in-house team in key areas.
What are the benefits of an ODC?
There are many benefits and considerations of offshore mobile app development that you have to look at before deciding to use an ODC.
Some of the advantages include the following:
- Eliminating hefty recruitment and vetting fees;
- Saving the time you would have spent finding, hiring, interviewing, and onboarding in-house employees;
- The ability to reduce your software development cost through favorable exchange rates;
- The ability to access highly skilled and experienced teams that you may not be able to find locally;
- Saving the cost of equipment, software, administration, and HR;
- The ability to scale your project up or down with relative ease.
There are some disadvantages to consider as well:
- It’s important to choose an ODC in the same time zone, or you may have trouble communicating or tracking your project;
- Depending on where the ODC is located, there may be significant language barriers or cultural differences that can impact communication;
- It may be difficult to vet or verify the references provided by the ODC;
- If the project isn’t scoped correctly and terms set ahead of time, there may be legal issues in the event of non-compliance that will be hard to address.
In general, using a reputable ODC is a low-risk way of finding your software development team. You will have to do your research and weigh up your options carefully before making a final decision – don’t just opt for the cheapest company. Look for an ODC that understands your industry, has the right experience, and are good communicators. You need to find a good cultural fit for your business and not just a good price. Make sure that you do your research and ask a lot of questions before deciding.
What is Offshore Development Center? It’s the best place to start if you need a project developed at a great rate in a short time frame.