How to Set Up Offshore Development Center in 2024?

Setting up offshore software development center should not be a hard task for a business or a company. More and more businesses are opting for offshore software development centers with the help of offshore providers. More On-shore software developers are needed to meet the demand at present. This is as a result of increasing costs of labor and capital. The demand for offshore developers is even higher for the future. It’s estimated that in 2025, more than 2.5 million professional software developers will be needed.

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What is ODC?

Offshore Development Center (ODC) is a company located abroad with a team of technicians with an aim of providing services outsourced by a company located in the United State. It’s just like on-shore outsourcing but with a little difference. The difference is that instead of hiring on-shore programmers and technicians to help your business grow, you hire an offshore software company instead. Offshore development centers are preferable because they offer lower costs and better solutions for businesses.

Guide in Setting up Offshore Development Center

Understand Your Needs

One of the most important steps in order to start setting up an offshore center is to define your business’s goals. This step is important as it helps to set the right direction to set up your offshore center. Check the areas you want to consider outsourcing and also fix a budget. You need to study the areas you want to outsource thoroughly. Also, check the software skills and languages most needed in your business. It is important that you consider the skills of your team.

Is an ODC Good Fit for Your Company?

You need to check whether outsourcing is really ideal for your business. If it is, then you should know whether offshore software development centers will work for you. It is not enough that you want to start a business with offshore workers but you also have to consider the cost of setting up an offshore development center and how much it will take to run the center every month. You must factor in the salary of your employees, infrastructure and other operational costs before deciding on the type of vendor that will run your center. If you are using the C2C (cost-to-cost) model, you will pay the same price for offshoring as those who are pursuing a traditional mode.

Choose the Country for Your Offshore Center

It is very important that you consider the country where your offshore center should be located. Some countries will be more suitable for your business than others. There are a lot of factors to be considered in deciding the country for your offshore development center. Check whether the country has an existing development community that suits your business requirements. You also need to check and make necessary arrangements with ISP, Communication, and other important companies before choosing a country.

Perfect ODC Partner is Crucial

Once you have made up your mind that an offshore development center is the best option for your business or company, you still have a lot to do. You need to choose wisely the type of offshore partner that will manage your offshore development center. Here are some factors to consider when choosing an offshore partner:

What is the cost of the services offered by the company?
Which business approach will they use to handle the project?
What software languages will be used for your project?
How much does it cost to hire an offshore vendor?
Are the employees you are going to hire experienced in software development? What projects have they worked on before and how long have they been in the field of software development?

Control the Team Setup Process

This is one of the most important steps in setting up your offshore software development center. Getting involved in the team setup process can help you to understand how your partner will handle everything. You need to be present when they are interviewing and hiring new employees. Make sure that the employees you hire are qualified and skilled. You should also get involved in checking their previous projects and ensuring that they have acted professionally in all the projects they have worked on before. You should avoid hiring contractors or freelancers who might not be experienced in the field of software development.

Conclusion

If you want to setup offshore software development center, you will have to consider the following things:

What are the technical requirements?
Where will the project be delivered?
What kind of market share do you want to establish if you have an offshore software development center?
Is there a need for onshore software developers and technicians in your business or company?
Will your team grow or simply stay stable knowing that they can hire overseas programmers and technicians at any time?
Are you comfortable with the financial expenses of doing so and what kind of profit can be expected each month from such a business?

By considering these factors and all the steps discussed in this article, you will surely successfully setup an offshore development center.

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