What is an Offshore Development Center (ODC)?

Offshore development centers are teams of professionals operating in different countries. They are functional in differing time zones. Also known as ODCs, these teams comprise software developers, IT experts, and/or other such professionals. Through their expertise, businesses receive tailor-made solutions or assistance, without having their own physical centers across countries. Take into consideration that preferring these centers for outsourcing processes is useful for companies, startups, or other ventures, irrespective of their size or scale. Whether they are large-scale, small, or mid-sized, companies in diverse sectors can flexibly expand their operations in overseas locations. 

What is an Offshore Development Center?

An offshore development center or ODC is a group of IT professionals and software developers functional in a different country. They operate in a varied time zone. Such a center is managed by a software development company. In order to outsource software development and IT operations. Typically, they are established in locations that prove to be cost-effective for these companies. 

• Note that an ODC works through professional teams.
• The center undertakes the entire infrastructural setup relevant to specific operations.
• Also, it looks after the management of resources.

Main Characteristics of An Offshore Development Center

There are 3 main characteristics of offshore development centers that make them useful for businesses. They offer customized services to meet their particular requirements. Their services are both scalable and flexible. Besides, such centers support certain business operations in the long term. 

Customized for a Company’s Needs

The services of an ODC are customized for companies that require them. They may require infrastructural setup, composition of teams, management of projects, or others. In accordance with the specific operations they need, the service is tailored.

Supportive in the Long Term

ODCs operate in a manner that supports the operations of businesses in the long term. This is because one of its purposes is to expand their capabilities for development over a time period. Particularly when they require professionals to regularly upgrade or maintain their products/systems, these centers are of use. 

Scalability and Flexibility

A crucial characteristic of an offshore development center is that it provides scalability to a brand or business. It can scale its development team as per its requirements. This is dependent on the evolving nature of its work. Besides, the center ensures flexibility while using its services. 

How does an Offshore Development Center Work?

An offshore development center/ODC works through a team of professionals/software developers. Prior, though, the software development center is set up in a specific location to fulfill certain objectives, as decided by its parent company. After establishing and setting it up, its team collaborates with businesses that require its services. 

• Through collaboration with clients, this team of professionals undertakes projects.
• It contributes to these projects during different time zones, depending on the country. 
• Via continuous communication, these professionals manage projects until they are complete.
• While managing projects, teams can carry out processes such as reporting and quality assurance.

Which Companies Rely on ODCs?

Several companies rely on offshore development centers for specific operations or needs. Mainly, these companies operate in sectors like e-commerce, fintech, manufacturing, information technology, and healthcare. Take into account that depending on the particular sector, their requirements differ.

• For banking or financial firms, payment-related processes/systems are managed by ODCs.
• An IT business depends on these centers for developing, testing, and maintaining software.
• In the e-commerce sector, they help manage backend operations, app/web development, etc.
• For healthcare businesses, ODCs look after systems for medical information. 
• In the manufacturing industry, they are responsible for inventory management and automating other processes. 

How does an Offshore Development Center Benefit a Business?

An offshore development center benefits a business or company by broadening the scope for expansion. Moreover, it works as an important backup for key resources that an organization needs for its functioning or day-to-day operations. Including these, there are 4 significant advantages of an ODC, adding to business growth in multiple ways.

Ensure Value-Worthy Software Development

When a business hires an ODC or offshore development center, it is able to obtain cost-effective services. Investing in the services minimizes development expenditure to a considerable extent. This benefit is vital for ventures or startups looking for software development processes on a budget. 

Work Continuity over Extended Hours

Through an ODC, an organization can receive the advantage of continuous functions when its standard hours are over. Since an ODC operates as per a different country’s time zone, it is able to contribute to the organization’s projects during extended hours. This speeds up the completion of the project, reducing the scope for any delays.

Functional as a Backup for Resources

A company’s association with an offshore development center by reputed companies like Kodehash enables it to function as a backup for specific resources. This is beneficial when a particular project is going on. For such a project, access to resource backup ensures consistency in project-related operations for on-time completion. 

Overseas Expansion of Businesses

For certain businesses, ODCs are advantageous when overseas expansion is an important goal to fulfill. Centers like these are able to create the physical presence of those businesses in offshore markets. Note that for localizing their offerings, low costs are typically required. However, as customers invest in these offerings, companies are able to earn surplus profits. 

When to Prefer an Offshore Development Center?

One should consider an ODC or offshore development center when operations in global markets are vital, but the budget for the same invites limitations. Through such a center, expanding to these markets, selling products or services, and gaining profits is possible. 

• Besides, ODCs are preferable for extended development requirements.
• They are apt for accelerating time-to-market through the distribution of work, especially when time zones differ.

On a Final Note

ODCs or offshore development centers are vital for businesses. Irrespective of their size, they can outsource IT, technical, software development-related, and other operations. All in all, they can experience the ease of operating in overseas locations through the expertise of professionals at these centers.