The Buzz - Offshore Development Center

There is some buzz surrounding outsourcing software development to Asian hubs, and people refer to it in many ways – Business Process Outsourcing (BPO), Offshore Outsourcing, Offshore Software Development, Offshore Lab, Offshore Development Center (ODC), and more variations.

These variations reflect the reality that businesses are increasingly taking advantage of outside resources in many forms depending on their business needs or how their in-house teams are structured. In fact, according to a report by a market watch, despite the pandemic crisis, the global IT outsourcing market was estimated at $342.9 billion and projected to reach $410.2 billion by 2027. Changes in how workers engage with work during covid pushed companies to reconsider how best they can insource and outsource talent. For more and more SMEs, hiring people remotely or outsourcing is becoming a viable option to secure the right resources for success.

What is an Offshore Development Center?

While simply the word “outsourcing” has no geographical implications, Offshore Development Center (ODC) denotes hiring a software development company that supplies you with a team of dedicated developers or related services in a foreign country – usually locations with lower wage levels. But the word Offshore Development Center and Offshore Delivery Center can be used interchangeably.

And through the ODC model, technological service providers, especially in Asia and Eastern Europe, have enabled businesses worldwide to render business agility in a competitive world by fulfilling software development work, business operations, security audits, etc. Depending on the service providers/staffing agencies can be accounted for the entire project or just specific features or phases in the product life cycle.

The main benefits of this ODC outsourcing practice are access to a flexible resource pool and cost reduction, but why should you choose an offshore development center (ODC) as a solution to strengthen your business? And how do you ensure that your ODC is set for success?

ODC or Offshore Outsourcing Benefits

Thanks to ODC providers, instead of hiring and training people at a high cost, experienced engineers and developers would be assigned to complete security audits, software quality testing, and application development work – whichever line of work you need to be executed.

Specialized solutions such as software development using blockchain, software quality assurance and testing for the airline industry, and software testing automation for data analytics requires the right talents with the right skills. And for SHIFT ASIA, our niche is software products that demand high-quality development and product development teams that need extra hands for time-consuming test designing, execution, and even automation.

An example is a SaaS company based out of the US well adapted to a global delivery model with supporting resources spread out between the US, Japan, Vietnam, and India to take advantage of wage differences, localization capability, favorable governmental policy, and a bigger talent pool. To maintain the motivation of their engineers, they hired an in-house QA lead that worked with product teams and outsourced repetitive testing and security testing that would have been otherwise very expensive in US or Japan.

Often for products available in numerous languages/locations, owner companies decide to use multiple vendors to assess which company has the most updated technical stack and skilled resources with local language capability. Even in this case, as long as requirements are set right and there is someone to verify the output, it is almost easy to realize high-quality production while working with multiple vendors.

Well-managed ODCs offer cost savings, efficient resource allocation, increased internal team motivation, access to the latest technology, and many other benefits.

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