11 July 2022

In the software Development sector, Offshore Development is getting extremely popular. The worldwide economic crisis, as well as the huge gap between possibilities and available IT resources in Western countries, has boosted demand for Offshore Software Development Centers (ODCs).

India is becoming one of the most popular countries for companies in the United States, the United Kingdom, Canada, Europe, and Australia to outsource IT services. According to Statista Indian IT Outsourcing revenue will reach $7.14 bn in 2022 and is predicted to increase at an annual rate of 11.80% and is expected to reach US$12.47 billion by 2027.

However, rising operating costs, a scarcity of qualified candidates, and increased competition in online and software development have driven firms to think outside the box to overcome these issues. To overcome these issues, outsourcing plays a major role, and it has fundamentally altered the way firms operate. In this article, we will walk you through the process of establishing an offshore software development center to extend your business in remote locations.

What Is Offshore Development Center (ODC)?

The offshore development center is an offshore location occupied by a specialized team that is responsible for the development and maintenance of certain software products and services. They assist in establishing a company’s presence in another nation, improving access to IT talent, and saving money. It includes developers, testers, project managers, designers, copywriters, and UX/UI professionals. It oversees software development and maintenance, as well as project planning, testing, migration, and other IT-related activities.

The Benefits of set up an Offshore Development Center in India

Cost Reduction

One of the biggest benefits of operating an offshore development center is cost reduction. It often has a lower cost structure than traditional in-house development. This is because ODCs are not typically burdened with the same overhead costs that in-house centers are.

Having access to a large talent pool

An offshore development center allows your company to tap into a large pool of talented developers who can help you scale your product faster. Onshore are often unable to provide the range of talent you need, which can delay or even prevent your project from moving forward With an offshore center, you can hire more developers without increasing your overhead or spending additional funds on recruiting. This can allow you to keep your overhead low and invest in other areas of your business that will help you grow faster.

Many professionals in India have excellent English language skills and college qualifications. As a result of establishing an offshore center in India, you would have access to experts.

On-demand Setup

Offshore development companies offer you to customize your workplace to meet your specific requirements. In other words, you’ll have complete access, authority, and control over everything. Simply provide the necessary information to the ODC partner, and they will organize the resources to meet your needs.

Highly scalable and flexible

Nowadays, the two most important components of a firm are scalability and adaptability. Every organization in today’s competitive business environment seeks scalable and adaptable processes in business. You may expand your firm at any stage with the aid of an ODC, and you won’t have to spend a lot of money on operations and infrastructure.

Effective Resource Allocation

An offshore development center serves as an extension of your in-house employees, helping you to grow your IT dept more effectively.

Read More Benefits of Outsourcing Software Development to India

Offshore Development Centre Checklist

Skills and Knowledge

It is critical to have a clear grasp of which nation provides the greatest service without spending your company’s cash right from the start. Along with India, the top IT outsourcing destination, there is a developing destination that is attracting the interest of many global organizations.

India offers a large pool of skilled software engineers that have a good IT background and are always up to date on the latest technology.

Working Profile

Overview of the company, background, and mission and core value of the organization, partners, future goals, and year of experience in this field by this you will have a better understanding of the firm and its operations.

Communication

Working with an ODC firm in a nation where communication is easy would reduce the load. Companies looking to save labor expenses might search for personnel in countries such as India who are fluent in English.

Delivery and Guaranty 

When considering working with an ODC partner, look at their track record of completing projects on schedule and ensuring you receive additional support such as bug resolution assistance. When you work with an offshore development company, you will save a lot of time and effort since they are prepared to assist you with future needs as they occur.

How to set up an offshore development center in India

Have a Focused Vision

When it comes to building an offshore software development center in India, there are several things to consider. You need to have a clear vision of what you want to accomplish and then look for the best partners to help you achieve your goals. Building an offshore center in India requires a lot of planning and preparation, so it’s important to take the time to understand what you’re getting into before you dive in.

Selecting the Best ODC Partner

If you’re planning to set up an offshore development center in India, finding the right partner is critical to success. Not only do you need a partner who can help you scale your business, but you also need someone who shares your culture and values. This will help you build a long-term relationship and increase your chances of success. Here are some essential factors to consider.

• Examine the ODC partner’s expertise.
• Inspect the company and provides timely and accurate responses to questions and support issues.
• Ensure the company is transparent in how it communicates and shares information.
• Your offshore development company is well-versed in the local market and understands your needs.

Hire developers with caution

When starting an offshore software development center in India, one of the first decisions you must make is who will be hired to work for your company. Hiring the wrong developers can cause your company to waste time and money while hiring the right developers can help you scale your business quickly. Additionally, communicate work tasks and roles with them.

Consider Time Zone Variations

Time Zone differences must be taken into consideration when setting up an offshore center. Time zone variations can be difficult to deal with, but you’ll be able to set your working hours and assign tasks to your staff. As a result, if you want your virtual team to function during business hours, you need to request it from the ODC.

Read More Managing Time Zone Differences When Working with Offshore Development Teams

Ensure that communication is consistent

Ensure consistent communication among the offshore development team across the globe – and locally too. This is a very important consideration, as it can have a big impact on team cohesion. Make sure that all of your stakeholders are aware of your choices. This will assist you in navigating the different blockages that arise during the development process.

Define the Talent Requirements

When establishing an ODC, you should constantly keep the talent’s needs in mind. Talent requirements are values that describe what you’re looking for in applicants. You can think about these as the “must-haves” that help you identify this potential talent pool. You should also choose the specialists who will be doing certain job duties.

Why should you work with Star Knowledge as your ODC partner?

Star knowledge is a trusted ODC partner with a track record of assisting numerous entrepreneurs and worldwide businesses in channeling the proper people, skills, and technology into developing great software solutions.

We assist you in leveraging your offshore development center and achieving the intended goals within the scheduled time and budget. We understand your offshore issues and offer round-the-clock support.

We can analyze your software risks and advise you to overcome them based on our 12+ years of expertise as an offshore software service provider. Feel free to schedule a call with us for your project requirements.

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