What Is ODC — Offshore Development Center?
A business concept known as an offshore software development center (ODC) enables organizations to outsource their software development and other IT-related tasks to distant, offshore locations. ODCs can provide various services, like:
- IT assistance
- Website Administration
- Software Development
The locations of the offshore development centers are typically in nations with lower labor costs, such as the Philippines, Vietnam, India, China, Russia, and Eastern European countries. The ODCs function as an extension of your firm, with workers working for you while upholding the same mission and principles.
Is Outsourcing similar to ODC?
ODC might sound like outsourcing but there is a slight difference between the two. ODC provides services to clients from an offshore location, i.e., a different country, whereas, with outsourcing, services are provided from a third party where geographical location is not the concern.
The primary goal of outsourcing is to boost productivity and focus on other vital duties. Cost savings is one of the reasons for outsourcing, but it is not the primary reason. On the other side, ODC’s main goal is to help the company cut costs by taking advantage of the cost disparity between the two nations.
However, ODC and outsourcing (particularly offshore) have similar goals:
- Giving businesses access to a wide talent pool of developers at cheaper rates for development services
- Increasing the productivity of hiring,
- Maximizing accounting
- Best human resource allocation
- Minimize office budgets
ODC can offer a range of services, including creating a team of software developers according to your needs, project-based development, testing services, and setting up unique ODCs for clients.
Advantages of opting for ODC
Offshore development centers (ODCs) are a preferred method for businesses to outsource their development requirements since they provide a number of advantages, including the following:
- Enhanced Effectiveness: Project completion times can be sped up with an ODC since tasks can be assigned to the most qualified team members and resources.
- Cost reduction: ODC, as previously indicated, is located in nations with lower living costs than those where the headquarters are. They can use the disparity in prices to increase sales while decreasing labor and material expenses.
- Cheaper Facilities: Establishing an offshore development center in the economic hub of a significantly less expensive nation benefits businesses not just in terms of reputation and sales, but is also likely to significantly lower office rent, maintenance, and internet costs.
- Greater Quality: With an ODC team, you have total control over who is assigned to projects, so you can be sure that they are all of the highest quality.
- Better Resources: You don’t have to be restricted by hiring locally when you use an offshore development center to acquire the best resources for your project. Instead, you can access a low-cost global pool of highly skilled engineers. This can address issues with the lack of software engineers.
- Prioritize your core competencies: You do not need to waste time or resources handling your tasks when you outsource them to an ODC team. By handing over the non-core operations to experts, outsourcing enables you to concentrate on the parts of your business that matter.
- Enhancing Time Management: You will have better control over deadlines if a dedicated team of software engineers is working on your projects remotely. As a result, you may invest your time where it will have the biggest impact on your company. An offshore development center team may occasionally outperform their onsite counterparts in terms of performance.
Companies now frequently outsource their software development requirements to offshore development centers (ODCs).
We will provide you with all the knowledge you need to use ODCs in your projects. Let’s talk about the potential for outsourcing for your business!
Visit us at www.a2consultingllc.com to see how we can support the growth of your company.