What’s an Offshore Development Center?
It is an extended IT/development team that works from another country on your software development project.
What are the key benefits of having an Offshore Development Center?
1. Cost Efficiency
Most software development companies focus on delivering high-quality projects without exceeding the budget and opting for an offshore development center reduces development costs by as much as 60%.
2. No hiring woes
The talent of experienced developers can be leveraged without going through a cumbersome process of interviews and hiring. The best-in-class talents can be used to develop the desired software solution.
3. Extension of a business
An offshore development center can help to build a physical business presence in an offshore market at a minimum cost.
4. Core Competencies can be focussed
When a business delegates its IT operations to an offshore development center, it can focus and build on its core competencies. Thereby allowing the business to get the first mover advantage and edge over its competitors.
An offshore development center allows you to scale up and downsize your resource requirements as per project needs, shift roles & improve productivity.
6. Access to skilled expertise
An offshore development center can provide access to experts who are trained to develop bespoke software solutions and will perform the work assigned with the same accountability that an in-house team will have.
Studies conducted have shown that the global outsourcing market will exceed $400 billion in the next four years and this reveals the potential of the IT sector.
The computer software and hardware sector in India attracted cumulative foreign direct investment (FDI) inflows worth US$ 81.31 billion between April 2000-December 2021. Computer software and hardware make up 14.19% of the cumulative FDI inflows.
India is regarded to be a top destination for Offshore Development Centers in the last two decades.
So a question arises,
Why is India chosen as an Offshore Development Center?
1. Talent pool of India is large
India has one of the largest talent pools in the world.
The thriving software industry has been created by Indian education’s emphasis on Math & Science. India has one of the largest annual supplies of STEM graduates which is over 2 million and a 4.7 million tech industry employee base.
Offshoring to India can provide access to an efficient and large talent pool.
2. Communication Skills
When the offshore development team is able to communicate in English, language is not a barrier and India has the second largest English-speaking population in the world. This means that there are no hurdles in communication.
The offshore development team in India is flexible in the hours of working and has robust work ethics. They are adaptive and ensure the timely completion of the project.
4. Policies of the Government
The initiatives and policies taken by the Government promote India as a safe and secure outsourcing destination for worldwide resources. A stable political and economic environment provides hassle-free services to global clients.
5. High-Quality services
Indian offshore development centers provide high-quality services at an affordable cost. Consistent high-quality services are another reason for India to be a top choice at the global level.
When to set up an Offshore Development Center?
1. Build a Global presence
If you want to build a global presence, an offshore development center could help you. Hiring offshore developers provides an opportunity for enterprises whether small or medium to work with global talent.
An international network of professionals would help the company to build relationships and acquire investments across the globe.
2. An efficient Tech back up
Without the specialized skills and experience, an enterprise can easily run into speed bumps and experience downtime. There could be situations where an enterprise could find a lack of experienced talents or lose efficient ones which adversely affects the timely completion of the project.
Hiring an offshore development team could be beneficial in such situations.
An efficient ODC will help in creating backups for resources in a budget-friendly manner and will ensure the smooth completion of the project.
3. Scale up Business
Imagine your business is booming and your company happens to be a perfect fit for numerous potential clients. But your in-house team can’t handle all.
What’s the solution?
Hire an offshore development team that will provide the right resources to meet the expected as well as the unexpected traffic demands. They will address the challenges of capacity planning and will help the company to meet deadlines.
How can we select the right Offshore Development Team?
Here’s a checklist that you can follow to identify the perfect Offshore Development Team.
Before you select an Offshore Development Team, make sure to validate their experience with the latest technologies and past work history. The right partner will help you to stand out from the crowd with their expertise in various domains.
73% of the consumers say that case studies play an important role in the decision-making process.
2. Clear communication
Make sure of what you need to gain from employing an Offshore Development Team. You need to clearly define the goals, expectations, team size, talent level, and other relevant details to your offshore partner.
3. Evaluate cost-effectiveness and not cost
Accessing the best possible talents at an affordable price is important for the success of a business. There might be a lot of options available that offer services at a lower price but what matters is the quality.
So you need to evaluate the cost-effectiveness and not the cost. Case studies and reviews of previous clients can help you in this process.
4. Methodologies used in project execution
It is important to pay attention to the methodologies used in project execution. Different methodologies are used by different offshore partners. Make sure to choose the best methodology for your project execution. An agile methodology is a top choice these days.
5. International Presence
The offshore development companies that have an international reach could help businesses to establish a global presence. Moreover, such partners could help companies to curate a niche locally by providing market insights into that region.
Solutions to the challenges faced in opting for an Offshore Development Center
As many enterprises opt for Offshore Development Centers, they face some challenges.
What are the challenges and their solutions?
1. Quality of services
There are situations where there is a mismatch between expectation and reality. Businesses expect quality in the services but the skillsets of the offshore development team may not match the requirements of the clients.
There could be a delay in project delivery due to issues in work efficiency & effectiveness.
1. Follow transparent hiring while selecting an Offshore Development team. Make sure that they provide the right resources as per the project requirements.
2. Choose a partner who provides regular updates on the ongoing operations & must take corrective action wherever deviations are found.
There are situations where the hired team may have analytical competency but lacks language proficiency. This results in a communication gap between the company & the Offshore team.
Follow a robust selection process to get the right fit for the job. Besides selection, try to select an offshore team from English proficient countries. India has the second largest English-speaking population.
3. Cultural Barriers
When working with a diverse group you may experience cultural gaps & differences in working style.
The cultural compatibility of the offshore development companies at the corporate level, process level, and day-to-day interaction level needs to be checked. Try to understand the cultural diversity, beliefs, and emotional quotient of the team.
4. Time Zone
When the in-house and offshore team works in different time zones, collaboration might be challenging and it may lead to coordination issues impacting the overall performance level.
1. Following an agile scrum methodology can eliminate the need for close monitoring of work by the offshore team.
2. Have a flexible working environment where both the teams are ready to start early or extend working hours to discuss and make progress on the project.
How does Webdura work?
● Provides industry’s top-tier developers with a five-round interview process
● Flexibility to scale up and scale down based on your requirements
● Talents with experience in Modern stack and Agile process
● Strict measures to ensure NDA / GDPR compliance to protect data and business model
● Offices in Sweden, the US, and India
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