An offshore development center is an offshore office or other physical space where technical talent is open to expand software development, provide services or reduce costs. Offshore development centers are usually located in countries with abundant technical talent, cost-effectiveness, low cost of living and favourable business environment.
As the offshoring trend continues to grow, the need for ODC naturally arises. Offshore development centers are no longer a foreign concept to many companies. With excellent access to a large number of technical experts and its cost effectiveness, it is becoming the preferred option for software development.
However, like anything else, offshore development centers have their pros and cons.
Pros and Cons of ODC
Advantage
- Access to domain experts
Internal IT teams aren't supposed to multitask, so you may need to explore new areas of knowledge for upcoming software projects. ODC complements its in-house development team with IT professionals who specialize in specific areas.
- Reducing recruitment costs
Hiring software developers can be expensive, especially if your company is well located.In addition, technology and hiring costs should also be taken into consideration. With an offshore developlocal ment center, these costs are borne by the service provider, thus reducing all costs.
- Automatic scaling
Your company probably works in a situation of changing resource requirements. There may be peak times when additional staff is required to reach the maturity level of the project. Rather than working on management research in-house, it is more time efficient to hand it over to an offshore development center in India.
4.Worth
ODC has the potential to improve the quality of commercial models through increased engagement and visibility. In addition, development costs are lower due to reduced operational costs on the part of the service provider. It also reduces turnover and traditional challenges due to significantly higher retention rates.
- Improved security
The ODC model is well suited for security solutions. Offshore development centers not only isolate your software development team from the rest of the world, but also keep your software products and security updated and protected.
Cons
- Intellectual property rights issues
The threat of IP theft is widespread. Whether you choose ODC or traditional outsourcing, you need a solid intellectual property protection plan. This includes algorithms, code, data and business value. Additionally, access to corporate resources should be restricted to third parties to protect the data ecosystem from potential cyberattacks.
Also Read: How To Set Up An Offshore Development Center in India?
- Collaboration issues
Like traditional outsourcing, offshore development centers also have some collaboration concerns such as language barriers, time constraints, cultural differences and misunderstandings. However, if you can set up a collaboration system and appropriate communications such as chat, video calls, and meetings, the problem can be quickly resolved.
- Long-term commitment
When outsourcing a software development project, it depends on the company whether the business relationship is built for the life of the project or over the long term. Some companies even stop collaborating before the end of a project because they don't get the results they want.
Therefore, traditional outsourcing efforts vary from company to company. However, the ODC model requires all eggs to be kept in the same basket. In other words, you should be prepared for long-term commitments that can cause damage if not properly prepared.
- Expensive
Offshore development centers offer an opportunity to save money, but are very expensive compared to traditional outsourcing practices. In addition, you have to pay for overhead and infrastructure costs that are not included in your outsourcing costs.
Wrap Up
Finding the best offshore development center takes a lot of work. Still, there are important considerations. Ensure smooth communication, align goals, and Hiring offshore development team who understands the specifics of your industry, your development style, and the programming languages you use for your projects.
