What is odc — offshore development center?

ODC — Offshore Development Center As the demand for software development increases worldwide, offshore software development centers are popping up and rising higher & higher in recent years.If you’re working in the IT industry then the term “offshore software development center” is probably not something unfamiliar to you.These centers become vị trí cao nhất choices for many enterprises due khổng lồ the benefits they bring.

So what is an Offshore Development Center?

If you have ever considered outsourcing your IT or software development projects, an offshore development center (ODC) might be an option for you.

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An offshore development center is a development company that provides you with software development services but is located in another country. It is deemed that this type of company is a subsidiary of your main company.The country in which ODC is located has much lower living standards compared to lớn the country in which the holding company is located. 

So how is it different from outsourcing?

ODC is slightly different from software outsourcing. ODC provides services or products and it’s located in another country while outsourcing is a service that offers some certain services or products from a third các buổi tiệc nhỏ company, the geographical location might not be a critical factor.The main purpose of outsourcing is to increase productivity và focus on other important tasks while saving cost can be one of the reasons but it is not the fundamental cause. On the other hand, ODC’s primary cause is to lớn help reduce the company’s expense by utilizing the cost difference between the two countries.

However, both ODC & outsourcing (especially offshore) chia sẻ the same interest: get access lớn a large talented developers pool with lower costs for development services, allows enterprises lớn save funds và speeding up the productivity in recruiting, optimizing accounting, human resources, and office budgets.

ODC can provide various services like building a software development team based on your requirement, project-based development, testing services, setting up separate ODCs for clients.

An ODC usually includes all sorts of specialists you might need: developers, QA engineers, project managers, hàng hóa managers, DevOps engineers, designers, copywriters, UX/UI specialists, kinh doanh specialists.They also have your back when it comes to additional problems like taxing, bookkeeping, HR management, & so on.

ODC Models

There are several development models that you can have a look at:

Software ODC trust: for clients who demand top-notch security levels in their thiết kế models. This mã sản phẩm is suitable for those whose software is one-of-a-kind và needs lớn be confidential.Software ODC classic: the most popular software development model employed by ODC. The mã sản phẩm includes a dedicated team who has the necessary technical skills to lớn be able khổng lồ deliver the project as required is supervised by a project manager. This kind of model is useful for projects that have a wide variety of tasks such as updating and expanding the older software, its support, migration lớn other platforms, or writing new code.Software ODC branded: the best option for businesses and corporations that want to lớn be extremely active, involve, and control the process and its development process.ODC Full form: also known as private ODC. This model allows customers to get their own development centers in other countries. The team employed is based on the client"s requirement that will plan, research, analyze, design, & manage tasks in close cooperation with the client"s headquarters.

Benefits of ODC

There are multiple benefits that ODC can bring. Here are some rationales behind it:

Cost reduction: lượt thích we have mentioned earlier because ODC is often placed in countries that have lower living costs compared to lớn the ones in which the headquarters are located. They can utilize the cost dissimilarity to lớn reduce costs in materials, labor, while increasing sales, or shift the main focus khổng lồ other factors.Cheaper Facilities: establishing an offshore development center in the center of the economy in a much cheaper country not only is beneficial khổng lồ enterprises in terms of reputation, & sales but also is likely to reduce office rent, maintenance, mạng internet costs manifold.Expand the market khổng lồ a foreign country: being in another country’s marketplace is a way to lớn increase the sales volume, reputation, get closer to lớn the customers, & understand their needs better. This is also a way lớn be physically present in the target market, at the same time reducing logistics costs. Large team with a different set of skills: if you want lớn set up a team of 50+ members, vendors can establish a separate office in which all your developers, PMs, QAs, and kinh doanh specialists will work here for your employee branding.Access to the Talent pool: having your company in a different country equals getting access khổng lồ the talent pool of that specific country to lớn enrich your company working cultures and enhance your skills in general. When job seekers see that they will work in a “foreign company’s office”, they will likely take the jobs.Improving confidentiality: ODC likely hosts several teams working on several projects side by side most of the time. It’s always a nice idea lớn ask your ODC lớn establish a separate office for your team.Product localization: If you want to reach the overseas market, ODC is a nice choice since it does not only bring your enterprise closer to lớn that one specific market but also helps in localizing your products. For example, you want to lớn bring your products khổng lồ Vietnam, then having your ODC there is a smart move since all of your developers are locals, they can help input đầu vào some ideas which localize your product for their market.

Risks

However, you shouldn’t overlook the risks lying in ODC. Have a look và thoughtfully consider:

Wrong choice of Location

If your aim is to lớn save cost, improve sales then have a look at your ODC’s location. You should avoid going khổng lồ small cities with too few specialists available in your specific domain & less potential.Have a look at the 2020 Global Talent Trends to get some insights about the future working environment landscape & the future of work in Europe, Africa, ASEAN, & so on lớn find the opportunity land.

Hardship with registration at a distance

Some countries are unfriendly to foreign business and pose certain challenges, legal & bureaucratic hurdles for setting up a new business. Having a network in that one specific country in which you will have your ODC is a good idea, someone there can give you some insights about how lớn register as a legal entity.

Challenges 

Along with benefits, of course, there will be risks and challenges. Here are some challenges that you might come across while having an ODC

- Hiring the chip core team without assistance: the process of recruiting the new team in the location of your ODC may be costly và ineffective if the foreign recruiters fail to understand the market & proper channels for candidate search. 

Remote team management challenges: 

Security risks: having a distant office is at risk of data leakage, raids of law enforcement officers and criminal groups Cultural differences: cultural differences such as language barriers, working culture, attitudes lớn communication, conflict management, communication channels are still there.In-house team vs them: there is a big difference between hiring an in-house team & a remote team. Will all of your employees be sitting in the office? Some of your employees will be remote for sure when it comes lớn ODC, but what are your main communication channels? Will everyone be in the same office all the time so that you can reach anyone you need once you hotline or e-mail them?Time Zones: This is one of the significant challenges you need to overcome when having an ODC. Most of the companies will help you khổng lồ schedule & warn developers if there is a specific request from the client to lớn make communication easierCommunication and management: when online communication is taking place, there is a huge loss since you can’t see someone’s facial expression or body toàn thân language. Therefore, clear & instructive communication is crucial khổng lồ compensate for the gestures. Make sure khổng lồ unified the means of communication & working styles. Team concerns: it’s necessary lớn inspire & treat the remote team fairly since they might feel lượt thích a second team. Occasionally visit them in their country if you can or invite them to the main office to lớn get lớn know each other better in person.Scalability: this is more like a benefit than a challenge. But since you have your ODC in another affordable country, you can easily scale up your team kích cỡ while still staying within your budget.

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How lớn set up và manage an ODC team

Select the right vendor by having a look at the vendor’s working culture, ask for their case study, and analyze the skillsets.Explore track records, referencesAsk other customers for their experience and advice.

When you’ve already done choosing your software vendor, talk to them about your organizational structure & culture. It is essential that you all work together in harmony, and they understand what is their responsibility, their roles, và distribute tasks equally as well as help each other.When hiring new employees, remember to create job descriptions for all vacant positions in order khổng lồ help them know their roles & responsibilities better. & pay attention lớn soft skills while interviewing your potential employees besides qualification và education.

Giving them clear instructions and a place on your project infrastructure. Your team members should understand what is their role, who they will communicate with, và whom they will come to lớn when issues occur. Individually they should know how to report problems và manage them as soon as possible. 

The next step is khổng lồ plan your ODC security measures: who can access which parts of the project, what is their responsibility, followed by selecting your methodology, communication channels, & communication frequency?How often your team should talk to lớn you, what is the due date & how they should deliver lớn you. Asana or Jira can be an option for you lớn set up a project-tracking & management suite.

If you have several teams, be clear about the responsibility areas between them, or blend different human resources on one part of the project if necessary. Offshore teams & in-house teams should be coordinated and cooperative, not disturbing each other.

By understanding the challenges, you will be well prepared for the upcoming when starting an ODC. By choosing the right vendor with the right skill sets and flexibility, your vendor can be your right hand.

Your ultimate guideline/checklist for running an ODC

To help you not to miss any points, here is the checklist you need to ensure the success of your future ODC.

Research the market & living standard of which country you want to have your ODC inPlan the facilities you will needRegister khổng lồ the local government as a legal entityFind & rent an office, if you have a big budget then the center of the thành phố is always the right choice, near the river area is also a good choiceInterior designRenovations in officeBuy & install furniturePrepare workstations and connect workstations khổng lồ the internetSet up security signal systemEquipment for your employees & office like printer, scannerPantry area, snacks, water, coffee machine, medicine boxHardware & software tools for developers’ workPurchase all required equipment & office supplies

Now moving on to the team:

Hire a vi xử lý core teamRecruiterHR managerAccountantLawyerDevelopersAny additional staff for your center’s daily functioning

Now to lớn inspire, unite & consolidate the team, you might want to:

Establish / Bring together your brandOffice branding, working cultureBranded T-shirts, cups, pens, notebooks, etc, depending on your budget và how much you want khổng lồ expand your business

These factors help in gluing the team together and increasing your employees’ commitment & job satisfaction.When your team is ready to lớn work, it’s time for you khổng lồ sit down to:

Plan corporate and cultural activities with HR ManagerPlan team-building activities và pizza partiesSet up a benefits package for your employeesPlan when is the right time khổng lồ give your team a visit

These steps can help keep talent loyal lớn your company.

Popular locations for your ODCsA - Asia

This is a region that offers a wide range of benefits of rapid technological growth và advancement. Most Asians have a decent cấp độ of English and at the same time, there are plenty of developers & software engineers in this continent.

Asia is deemed to be the next destination for outsourcing and offshore development because of the skill sets, convenient time zone, many of them have already become mature outsourcing markets.

India, an indispensable name in the IT industry when it comes to lớn offshore outsourcing or ODC. It’s the pioneer in the market & has been active since the 1980s. There are currently 3 million engineers in this country.China: country of billion residents. China has a much younger IT outsourcing and offshore development market. But there is an exponential growth within the past 5 years và promises further growth. Philippines: after India và China, the Philippines is the next most preferred country due to its strong work ethics, state-of-the-art infrastructure, and a large pool of talented resources.

B - Eastern EuropeEastern Europe has a large number of highly qualified professionals, with affordable development rates, and availability of all required infrastructure like high-speed internet access.

With convenient geography, small travel distances, and minor cultural differences, this region has always been an offshore destination.

Poland: with low living costs, cheap tech education, & a high màn chơi of English, Polish programmers are highly beneficial. The country has over 250,000 experienced engineers and developers.Ukraine: With more than 160,000 programmers across the country, the market growth rates exceeded 30 percent per year, it is expected that the labor supply in Ukraine will soon equal Poland.

TP&P giải pháp công nghệ is a leading software development company in Vietnam, it’s our pleasure to be your partner. We offer multiple benefits lượt thích hiring developers or any specialists you need (e.g., sale specialists, HR, accountants, sales, etc), accounting service, consulting, office perks, creating an appealing package of workplace benefits for your employees, & so on.

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With TP&P Technology, you will never experience any hardships with getting a development center setup and running.