Understanding Offshore Development Centers (ODCs) in Software Development

Offshore Development Centers (ODCs) have become popular in the software development industry, offering companies access to a wider talent pool and flexibility. ODCs allow businesses to work with a team of skilled developers located in a different country or region. This collaboration offers access to a vast pool of talent and enables companies to leverage the benefits of a global workforce.

This article will take a closer look at ODCs in software development. We will discuss what they are, the various types of ODCs, and how to set them up.

1. What Is ODC In Software Development?

“In software engineering, offshore custom software development consists of offshoring the software development process in a country where production costs are lower, thus decreasing budget spending.” –?Wikipedia

An?Offshore Development Center (ODC)?is an offshore team of integrated talents that offers software development services for the company but is located in a foreign country. Simply put, it is a subsidiary of a company that operates in another country. The land where the ODC is located usually has a much lower cost of living than where the mother company is located.

However, setting up an ODC requires having resources available for integration. To reduce the primary office workload, offshore development companies usually have specialists in various management and technical aspects apart from programmers and testers. These people range from project managers, designers, testers, and UI/UX specialists to account managers, HR teams, etc.

Moreover, ODC tends to have advanced equipment and infrastructure, which minimizes additional expenses on offices and equipment.

To better understand the concept, Savvycom will give you more information about Offshoring in Offshore Development centers.

Offshoring refers to “obtaining services or products from another country. For example, when a car manufacturer in the U.S. opens a factory in Thailand to make certain parts, they are offshoring.”

? Work Location:

From these definitions, it appears that, in essence, offshoring only takes place internationally.?Offshoring is usually international outsourcing, but there are cases where a company is offshoring without outsourcing.

For example, IBM can offshore work to its Indian offices. Still, since both the people sending the work and doing the work belong to the same company, they’re offshoring and not outsourcing.

? The Objective:

Offshoring aims at minimizing the cost, taking advantage of the cost difference between the two countries.

? Level of Control:

Though being their own established entities, ODCs follow the company’s guidance. Hence, a company will have greater control when hiring an offshore team.

2. Key Members in An ODC

As you establish an offshore development centre, it’s important to carefully discuss and identify the key members of the OCD with an offshore vendor. An offshore team should include these major roles:

• Account Manager?– Responsible for managing relationships with particular clients and ensuring that all your needs are fulfilled.
• Project Manager?– Responsible for the entire project, from planning to execution, ensuring that all the required resources are covered.
• Designers and?Developers?– Responsible for your software's design, installation, testing, and maintenance.
• Test Engineers?– Check the integrity, quality, and even non-functional requirements of your product.
• Usability Engineers?– Perform tests to evaluate the usability or user-friendliness of your product.
• Graphic Designers?– Create visual and graphical concepts or language to promote a product’s unique persona or brand.
• Content and Technical Writers?– Create instructions and content integrated into the software or website.

3. Offshore Development Center Models

Discover and learn more about the most popular ODC models and how they function:

? Contractor ODC Model:

The central office sends specific requirements to the contractor or the offshore development center in this model. Then a team will be selected based on those requirements.

This team will then be responsible for a wide range of managerial and technical tasks, including analytic and system design, updating software, writing new code, and so on.

This model is suitable for small companies.

? Customer ODC Model

A custom team is also selected in this model based on the customer’s specifications or the main office. Still, the main office will cover many more tasks than in the Contractor OCD Model, ranging from product research and analysis to team management. The OCD team will focus mainly on coding.

This model is recommended for big companies that can handle many tasks.

In summary, Offshore Development Centers (ODCs) offer companies access to a wider talent pool and a more flexible workforce.

Check out our latest article on Offshore Development Centers (ODCs) in software development. This comprehensive guide covers everything you need to know about setting up an ODC, from what they are to the different types of ODC models and how they function.

Read more at Offshore Development Center (ODC): The Ultimate Guide.