Discover the comprehensive guide that provides detailed insights into the process of establishing your offshore development center in India. This includes a step-by-step breakdown of the necessary procedures, an in-depth exploration of the numerous advantages associated with this decision, and a thorough examination of the different operational models available for implementation.
The demand for offshore development centers in India has been rapidly increasing. The offshore Software Development Market reached a value of USD 122 Billion in 2024 and is projected to achieve USD 283 Billion by 2031, growing at an impressive CAGR of 10.13% from 2024 to 2031, as reported by Verified Market Research.
Nowadays, companies all around the world are looking for reliable offshore development centers. If you share the same perspective, read this article to examine and comprehend every facet of offshore development centers.
Read: Tips to Choose Offshore Software Development Team
What is an Offshore Development Center?
An offshore development center is a specialized facility or team situated in a foreign country that delivers software development, IT support, or other technology-related services for a company located elsewhere. Offshore development centers have become extremely popular in the global business environment as firms aim to utilize cost advantages and access a diverse talent pool. These centers provide numerous benefits, such as cost reduction, the availability of skilled professionals, and the capacity to concentrate on primary business functions.
Through establishing an offshore development center, companies can take advantage of the knowledge and assets of a dedicated team situated in a different geographical location, enabling increased flexibility, scalability, and efficiency in software development services. The concept of offshore development centers empowers businesses to expand their capabilities, expedite product development, and gain a competitive advantage in the marketplace.
Models of an Offshore Development Center
Below is an overview of three distinct engagement models, each possessing unique advantages tailored to accommodate various business scenarios.
Dedicated Team Model
This model entails the allocation of an offshore team, specifically for a client's project, which is suitable for long-term tasks or when there is a need for specialized expertise that may not be available internally. The dedicated team model operates as an extension of your in-house development team, working closely together to accomplish the client's objectives.
Pros: More control over resources, increased commitment, and seamless integration.
Cons: Less flexibility and more managerial work.
Project Based Model
This model involves engaging an offshore development center for a specific project or task within a set timeframe and budget. The project-based model is also referred to as the 'fixed price,' 'time,' or 'material' model. It is suitable for short-term projects with clearly defined requirements and deliverables. The ODC takes full responsibility for managing resources and delivering results based on agreed-upon milestones.
Pros: Estimated costs, minimal involvement of clients. Clear ideation of requirements.
Cons: Restricted flexibility, and quality issues if the offshore team lacks expertise.
Read: Nearshore Software Development
Hybrid Model
This model combines both a dedicated team and project-based approach, allowing for a more flexible way to collaborate on offshore development center (ODC) projects. In this model, a central dedicated team handles long-term projects, while additional resources are brought in for specific tasks or short-term projects as required. This allows you to adjust the size of your offshore development center based on project needs and timelines.
Benefits of Setting Up an Offshore Development Center in India
Here are some of the advantages of setting up an offshore development center in India:
Low Cost
By hiring proficient developers from other countries, offshore development centers provide a lower cost structure than traditional in-house development.
Access to Large Experienced Developers
Offshore development centers offer a wider range of talent compared to traditional development centers. By utilizing offshore development centers, you can recruit highly skilled and experienced developers, thereby reducing your overhead costs and bolstering your ability to invest in other areas of your business, ultimately accelerating your growth.
On-demand Setup
Offshore development companies can tailor your workspace to suit your specific needs, allowing you to have full access, authorization, and oversight of everything. Moreover, furnish the required details to the ODC partner, and coordinate the resources to accommodate your requirements.
Scalable and Agility
In order to stay competitive in today's market, businesses are looking for scalable solutions and agile processes. This includes reducing operational and infrastructure costs by utilizing offshore development centers.
Effective Resources Allocation
The offshore development center acts as a continuation of your internal staff, enabling you to expand your IT department more efficiently. Professionals in India, including designers, developers, test engineers, and other development teams, have a strong understanding of backend and frontend databases, software development, programming, and the use of testing tools to create high-quality software and mobile apps.
Diverse Innovation
Collaborating with teams composed of individuals from various backgrounds, cultures, and experiences brings together a wide range of perspectives and innovation. This diversity can often lead to the generation of ideas and creative solutions that may not have been possible within a more homogenous group.
Read: Benefits of Hiring a Software Development Company
How to Set Up an Offshore Development Center in India?
Establishing a highly efficient offshore development center in India can bring significant benefits to your business by enhancing productivity and tapping into a skilled talent pool.
Identification of Goals and Requirements
When you decide to select an offshore development company for creating a virtual office for your business, it is advisable to document the software requirements and your product's concept.
Specifically, you should clearly define the project requirements and at the very least provide a general project scope to decide on the most appropriate ODC approach for your needs. Once you have laid out your project plan, you can evaluate the benefits of offshore development and determine if it is the right choice for delivering your project.
Choose the Apt Offshore Software Development Company
Now that the project requirements are clear, it's time to build the team. It's essential to find a reliable offshore development service provider to receive the apt and trustworthy offshore services. Make sure to thoroughly research the different services offered by various companies for product development and choose the one that offers the best value for your money.
Setting Up an Offshore Development Team
The selected offshore development company provides you with a list of specialist developers based on your requirements, allowing you to select the most suitable and appropriate developers. Make sure to discuss your requirements to avoid any risks and mishaps.
Selecting Engagement Models
When working with offshore development centers in India, there are a variety of engagement options available. It's important to regularly communicate with your project team to ensure they are well-informed and not left in the dark.
Engagement involves keeping them regularly updated on the status of your plan, while still empowering them to complete the project. You can simply request regular work reports or organize weekly video conferences to stay connected.
Consider the Time Frames Of Different Zones
When you decide to establish a virtual workplace in India, dealing with the time zone difference is one of the most significant challenges that companies encounter. When you have an outsourced software development facility, you will have the authority to set the working hours and determine the responsibilities of your staff.
Consider the Development of Your Virtual Software as an Integral Part of Your Business
The team at the offshore software development firm should be regarded as an integral part of your organization. It is imperative to refrain from adopting an "us vs. them" mindset. In order to enhance communication and foster greater engagement, it is advisable to schedule regular meetings, video conferences, and briefings. Furthermore, introducing them to other departments within your organization is strongly encouraged. It is essential to keep them well-informed of significant announcements from your business and to afford them the autonomy to work without undue micromanagement.
Bottom Line
The offshore development center provides access to global expertise, allowing you to build customized software tailored to your requirements at a reasonable cost. With these factors in mind, you can set up an effective offshore development center in India.
Read: Best IDEs For Mobile App Development
Decipher Zone is an offshore development company with more than a decade of experience. Our offshore team has proficient knowledge of frontend and backend development. Get in touch today to learn more about starting to build a seamless and impeccable offshore development center.
FAQs
What is an Offshore Development Center?
Offshore development centers are specialized facilities located in foreign countries that provide software development and IT support for companies located elsewhere. Establishing an offshore development center allows companies to leverage the knowledge and resources of a dedicated team in a different location, leading to increased flexibility, scalability, and efficiency in software development and technology services. This empowers businesses to expand their capabilities, accelerate product development, and gain a competitive edge in the marketplace.
How to Set Up an Offshore Development Center?
Articulate the goals and objectives you seek to accomplish by partnering with an offshore development company.
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Choose an appropriate location considering factors like cost, time zone alignment, language proficiency, and the availability of remote teams.
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Comprehend and adhere to the legal and regulatory prerequisites of the selected location.
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Hire adept professionals for your dedicated Offshore Development Center in India to adequately address your core business needs.
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Utilize effective communication and collaboration tools to efficiently manage offshore development teams.
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Offer comprehensive training and onboarding for dedicated offshore software developers to ensure their understanding of the company’s culture, processes, and specific project requirements.
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Implement security measures to safeguard sensitive data and ensure compliance with data protection regulations.
What Does an Offshore Developer Do?
In an Offshore Development Center (ODC), offshore development teams excel in carrying out crucial tasks such as software development, rigorous testing, consistent maintenance, and robust support. The development teams play a pivotal role in delivering high-quality software solutions while ensuring cost-effectiveness and efficiency.