When businesses want to hire multiple teams for a specific development project but still want to reduce costs, they need efficient solutions.
In the past, most companies turned to outsourcing companies to provide them with the right talent. However, more and more companies are also realizing the benefits of setting up dedicated offshore development centers (ODCs) in the outsourcing country.
Although ODC is not a new concept or recruitment model, few companies are aware of the many advantages of establishing an ODC. In this article, you will learn more about ODCHow to Set Up an Offshore Development Centersuccess.
What is an Offshore Development Centre?
An offshore development center is an extended team, usually specializing in IT or development, established overseas to handle your project. This offshore team is an extension of your in-house team and is tasked with whatsapp marketing service fast-tracking your project.
Typically, by setting up an ODC, the partner company operating in the offshore location provides this facility and assists in sourcing, directing and managing quality resources to improve productivity.
The benefits of setting up an ODC include:
- Reduce salary costs
Using OCM, you can hire talents at a lower salary level compared to sourcing local employees which also requires human resource costs.
- Attract more talent resources
You can set up your OCD in a country with a larger talent pool than your own. This allows you to hire more skilled and experienced workers.
Reduce infrastructure investment
Building an internal infrastructure to accomplish certain tasks and processes can be very expensive. By setting up an OCD, you can get the technology, physical and organizational structure and facilities that meet your requirements at a lower cost.
Opening an ODC involves several important steps to ensure you meet all requirements in terms of meeting your project needs and overall legal entity compliance. Here are all the steps to successfully setting up a center:
- Determine the right location
- Find an office
- Recruitment Experts
- Hire legal support
You can set up an ODC independently, but hiring a professional local agent can be more time-saving and cost-effective.
It is important to note that the ODC format is different from pure offshore outsourcing. With offshore outsourcing, you alsoHire a dedicated teamfrom faraway countries. But since you outsource them, the provider is the legal employer of your technical staff and they only contract with their technical staff for offshore development services
With ODC, your company owns the branch, pays the rent, owns the equipment, andEmployee Offshore Developerand administrative staff.
At this point, you may find that incorporating an offshore development center is not always simple and requires a proper investment of time and capital. The expenses may also for beginners, the technical difficulty increase once you contract a local provider to help you set up such a center. Nonetheless, in the long run, your expenditure on tasks and processes will be significantly reduced, your brand will have a presence in another country, and you will have the opportunity to expand in your industry.
Popular IT Companies Using ODC for Offshore Development
Many IT giants and tech startups have offshore development centers. Many of these companies call them R&D (Research and Development) centers. These branches operate under the same brand and therefore have the same corporate culture and adhere to the internal requirements of the in-house team. However, developers often enjoy a more relaxed working environment and flexible schedules.
Well-known brands with ODCs in different countries include Google, Amazon, Grammarly, Oracle, Samsung, People.ai, Lyft, Boeing, Snap, ABBYY, TemplateMonster, etc. They not only benefit from the lower hourly rates of local developers, but also gain intellectual property rights and increasing brand awareness.
These popular companies are very successful in ODC or R&D, but there are some risks that need to be noted. These risks include:
- Too many recruitment agencies involved
- Ignore office location details
- Incompatible with company policies
- No intellectual property agreements
Keeping these risks in mind and finding the right solutions to overcome them can be the difference between successfully establishing an ODC or R&D and failing.
Benefits of outsourcing services for R&D
Effectively managing business processes and investing in loan data quality IT solutions are the nervous system of most modern businesses today. To grow from a small startup to a large company with hundreds of employees, it pays to take business management and IT seriously.
However, many businesses don’t have the resources to manage these tasks effectively. As a result, they turn to outsourcing. But which tasks are most commonly outsourced to BPO service providers?