OffShore Development Center
Rise in offshore software development requirement has given rise to the need for an offshore development center (ODC). ODC in recent times have become a need for software development and product development companies majorly due to its cost-effectiveness and access to the vast pool of technical expertise.
Our Offshore Development Centre (ODC) is actually your extended team, consisting of a dedicated team of professionals that’s located in a different country. We set up your ODC in India as the cost of living is lower, but India has excellent people with various skills in different fields. The ODC can also be considered a branch of your company, where the team’s only focus is working on your project. Simply put, it is a subsidiary of your company that operates in another country that we manage on your behalf.
You will have an entire team consisting of developers, analysts, testers, project managers, designers, UX/UI designers, HR and so on as per your requirement. The best thing about having an ODC is that you get the cream of talent because there is a huge resource pool from which you can create your team. Icing on the cake is that the team will already be trained by the Tecziq, so you don’t have to train them specially.
At Tecziq we create your ODC that has advanced equipment and infrastructure, which minimizes additional expenses on offices and equipment. You have the least of liability but maximum outcome.
How is Offshoring different from Outsourcing?
Reason why ODC and Outsourcing exists share the same interest for the main company: get access to a pool of talented and experienced team with lower costs for development services, thus speeding up productivity while reducing the cost related to infrastructure, recruiting, accounting, taxes and other liabilities. You can work with Tecziq on both Outsourcing as well as Offshore model and utilize our team of technical experts to achieve your business goals.
A picture is worth a thousand words and the difference between Offshore Development Centre and Outsourcing can easily be explained by the picture below.
Furthermore, the two can be differentiated based on some major points
Where is the work done
Offshore development centre (ODC) only is relevant in terms of international location so as to take the benefit of talent pool and cost, whereas outsourcing can happen locally as well as globally.
Difference of Objective
Outsourcing is mainly about specialization, Work is outsourced to an external entity that specializes on a certain activity whereas the main company focusses on the core business. On the other hand, offshoring is mainly focussed at minimizing the cost by taking advantage of the cost difference between the two countries and also getting hands on an experienced and trained work force.
Management and level of Control
Offshoring gives the main company greater control as compared to when outsourcing to a third party. Though being a separate entity at Tecziq your ODC will follow your company’s guidance. On the other hand, when project is outsourced the work is done independently to complete the tasks as per pre-decided timeline.
Offshore Development Center Benefits
As the ODC offshore uses its own infrastructure and the cost of the team is also less your company won’t have to worry about expenses for setting up the necessary infrastructure and saves a lot of cost in the long term with respect to team.
Quick to Start
The team already exists as well as the infrastructure is in place. The only time it takes is in finalizing the deal so as a result, the ODC project can begin much faster and cost you less than building everything from scratch – Less all liability.
Access a large pool of Talents
Apart from the cost factor ODC’s main purpose is to find well trained and highly proficient IT and supporting teams with proven IT competency, skills, and experience. As a leading ODC to our clients, we at Tecziq emphasize on honing our employees’ skills, making sure that they are capable of delivering the best solutions to you.
Full control over operations
Your ODC at Tecziq will follow the guidance from the main office giving you the ability to keep track of everything related to your team and projects. As ODC works as a subsidiary to the main company the work is planned in a way to synch and support the main office so the entire operation control is available.
Extended availability and technical support
In most cases ODC are placed in countries with some overlapping time which helps in communication and handling dependencies but the non-overlapping time helps in providing extended and continuous technical support to your clients.
Meeting delivery timelines
ODC teams even though are part of the main team they still work on the model where in main company is like and internal client and thus they deliver work on time because they operate under the project timelines and guidance set by the main office from the beginning to the end of the project.
Optimal Resource allocation and utilization
ODC offshore acts like an extended arm to the main office but with the flexibility of scaling up and scaling down at a much faster speed. As the resources required will vary from project to project so it is easier, cheaper and faster to manage allocation and utilization at an ODC.
Benefits can be seen in one-liners
- Skills selection from a wide array of technical people as per requirements
- Huge cost saving on infrastructure, salary as well as recruitment
- Eliminates huge capital investments
- Offshore development brings cost savings
- More availability by leveraging the time zone differences
- Flexibility to scale up or down as per business requirement
- Subsidiary with minimum obligations
- More cost effective compared to outsourcing in terms of bigger and long term work
More Control and visibility as compared to Outsourcing
What to look for in establishing Offshore Development Centre (ODC)
Establishing an Offshore Development Center (ODC) is a long term goal for any organization looking to grow. If done right it brings in a lot of advantages. Some of the basic things to look for in a Vendor / partner while establishing an Offshoring Development Centre.
The very first step is to identify and understand as to which country will offer the best solution. One of the top IT outsourcing destination in the recent times has been India with China and Vietnam also becoming upcoming destinations. India is most preferred because of large and varied pool of skillset available along with a long past experience of delivering. Team at Tecziq has an average experience of around 9 years who are being headed with a very experienced team at top with almost 2 decades of experience in delivering solutions.
Second step is to identify the company with which you want to enter into partnership. Look into the past history, as their past and present clients. As a general recommendation look at companies with around 5+ years of experience as they will be more familiar with utilizing suitable technologies for ODC projects. 5+ years of companies have three advantages (a) They are eager to grow and so will provide the best of service and will go an extra mile to keep you happy (b) They are more updated with the trends in the world of technology and if they have experienced resources then they are reliable (c) Older and bigger companies will not be too cost efficient due to extra overheads and bigger profit margins as compared to mid-size companies. At Tecziq we have combination of all of the above with experience, latest trend and technology knowledge and we are highly cost effective and Quality oriented.
Having a successful ODC is a lot dependent on easy communication. A country with no issue communicating in English and can provide overlap timings with your main branch will be the most efficient. Easy communication reduces delays and also makes the work more efficient and error free for the main branch and the ODC. All the team members at Tecziq are well versed with communicating in English and we have project managers and Account managers who work dedicatedly to see that ODC and any project is a success and no communication gaps exists.
Company standards and culture
Transparency, reliability, honesty and trust are some of the keywords for driving success of the ODC. Start with Outsourcing and a small work and then go to dedicated developer model with a company before moving to setting up a full ODC offshore. Small projects will give a clarity on the working culture and quality of work of the company. At Tecziq we have started small with multiple client for whom we now work as ODC. We believe it is all about building trust and delivering as committed for a long term relationship to work.
Right set on people
People make a team or break a team. It is imperative for the success of an ODC to have right set of people in the team. As main branch you have to work in tandem with the new ODC to identify that the people that are coming in team are dedicated, competent and committed workforce who will not only fit technically but also in the culture of the company. It is always the first set of core people where you have to set the culture and then it will pass on automatically. At Tecziq our ODC manager make it a point to understand your culture and work process so that everyone joining the team can be guided and moulded into that culture and has process adaptability since start.
Mutually beneficial relationship
Offshore development center is a based on mutual benefit of both the main branch as well as the partner company with whom the ODC is being set up. When creating ODC this should be clear that it has to be a win-win situation for both sides in terms of the contract so that both the teams are fully committed. An ODC albeit remote is still part of your organization. Team at ODC should be aware of the big picture and act accordingly, ensuring that both in-house and offshore teams work toward a common goal.
Business Model of an Offshore Development Center (ODC)
There is an initial commitment of a fixed number of resources but you can add or remove resources as your project requirements are modified over a period of time. You have a whole team at your disposal and we follow a simple pricing system. You will pay a monthly sum of money that covers the salary of each team member plus overheads. At Tecziq we utilize various ODC related tools for open and transparent communication, time tracking and reporting.
If as an organization, you are looking to grow your team then looking into establishing an ODC offshore is one of the best options. Though initially the thought looks daunting but with the model gaining popularity in the last one and a half decades the availability of infrastructure makes it feel like just having a team sitting in a different office next to you. Review Tecziq Solutions on DesignRush