2020 has seen a huge hike in companies going remote making it an obvious choice for businesses to go for Offshore Development Centres. A Statista report shows that the outsourcing market in the US in 2020 has been approximately $133 billion and will see a growth of 1.6% this year alone. The reason why ODC models are so common is because of their time and cost-effectiveness. It reduces the costs of maintenance, operations, and the time required for the development.
Outsourcing has a lot of advantages, whether you employ a single employee or an entire department to support you with your business ventures. Offshore outsourcing also gives you the flexibility to extend your experience and understand how various businesses work in countries other than the United States or the United Kingdom. In addition, those who do not have expertise in team management or development processes and have specific knowledge will receive help from people who are qualified in the management of such projects. This will improve the chances of finishing the product.
Let’s keep it simple and start by learning what we mean by an Offshore Development Center
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Offshore Development Center
The Offshore Development Center (ODC) is an office that can be located anywhere around the globe. It has a network of software development experienced professionals working for a company at a relatively lower cost. This office works to produce software for a business based in other regions of the world.
The ODC comprises a full workplace environment with all the resources required along with the technical expertise and appropriate skill set. Remote employees work under a local management team who report directly to on-site teams based in the company’s headquarters in some other country. The outsourced development team is made up of remote developers, UI/UX professionals, IT experts, testers, project managers, and several other positions with the necessary technical experience. The project manager of the ODC team is the one who stays in touch with the onshore team of the company.
Working closely with an ODC provider will improve the business performance and reduce infrastructure costs on a whole next level. While there is no one-size-fits-all solution to set up an ODC, you can make intelligent decisions with the help of professionals.
The global IT outsourcing market is expected to rise by $98 billion by 2024, with more than half of the businesses supporting third-party technology to address customer’s issues. These statistics are sufficient to demonstrate the increasing demand for ODCs. Asia is popularly known to be the outsourcing hub for IT companies. The Philippines and India are Asia’s most favored option, whereas China would be another preference, but costs somewhat more.
Benefits of Offshore Development Center
Now that we have a clear understanding of what ODC is like, let us look at what are the many benefits that make it so much popular amongst businesses of every type in 2020.
- Lower Development Cost
Development cost is significantly reduced making it one of the greatest benefits of the ODC model. Remote professional salary in many Asian and Eastern European countries is much cheaper than that you can get in North American and Western European countries. This attracts businesses to locate their ODCs in countries where the average cost of recruiting remote IT workers is much less than in countries where the businesses are headquartered.
- On-time Product Delivery
Another main advantage of using the ODC model is the quick delivery of the service or product. Working with the offshore development center has the advantage of using two separate time zones and overlapping those time zones. This helps to significantly reduce the time that is usually taken to market your product. Having a mixed development team will help you easily track your work to gain a competitive advantage over your competitors.
- Enhanced Productivity & Efficiency
The performance of ODC remote staff is way higher than that of on-site teams. A new survey showed that two-thirds of employers agree that remote employees are more effective than on-site employees. Thus, there was an efficient improvement amongst the ODC teams and a great deal of productivity was present. If you handle and manage your team effectively, then you can greatly improve the efficiency of your ODC team.
- Reliable & Competitive
Any ODC who has vast knowledge and experience knows how they can attract clients. ODC’s are highly reliable, knowledgeable, and undergo thorough evaluations and audits that allow them to stay on the top of their games. Quality service and satisfying customers are their primary target, and they do not stop until they provide what is required of them, even if it requires working on a project all over again.
- Increased Use of Collaborative Technologies
Collaborative technologies have been introduced to offer assistance to a vast number of people working together to achieve a collective goal. The massive rise in offshore development has fueled the need for collaboration solutions thus serving as a link between the business and its clients. These methods ensure seamless communication, time-management, agile methodology, and reduced costs. Trello, JIRA, and Yammer are among the most commonly used collaborative tools.
Why are ODCs popular with businesses these days?
Let’s suppose you are working on two projects: P1 and P2. In two months, you have to start P1 which is also your priority. For this, you need a few developers with certain skills, but you don’t have access to such skills in your in-house team. This is how you start to look for an offshore team that creates, designs, tests the product while concentrating on launching the product and business tactics.
It’s a convenient development model for companies who need a premium product but wouldn’t want to invest too much at the same time. One of the factors ODC is so popular with startups is that they usually start with a low budget. Also, you can scale up or down your offshore developer team at any given time.
Apart from being a budget-friendly choice, recruiting offshore developers gives small to medium-sized companies the opportunity to collaborate with global talent. It gives your company the chance to provide an international team of professionals and to create partnerships that, unintentionally, will allow your brand to come in a reputable image.
Trying to keep up with ever so evolving outsourcing patterns can be quite a challenge, but it can offer compelling opportunities once adopted. Selecting the ideal option can be a little overwhelming with the broad variety of choices available. While cost and quality are key elements to be considered, competitive factors such as performance, integrity, and reliability are also significant. By keeping pace with the ever-changing technological trends and adapting well, businesses will achieve success regardless of any obstacles that might occur in the future.
Offshore Development Centers (ODCs) are the preferred choice for almost all types of organizations today due to the availability of several choices for recruitment taking place in the market. Reduced costs, high quality, quicker time-to-market, high efficiency, access to a wide pool of talent, and no upfront costs are the main benefits of creating a remote ODC. Outstaffing is one of the most acceptable ways of recruiting that small and medium-sized businesses may select for their ODC solution.