Thousands of companies worldwide are saving money and getting their development work done faster through offshore development center services and management. But what is Offshore Development Center management, and how does it work? Don’t worry; we’ll get into the definition and the many offshore development center benefits in this article!
What is Offshore Development Center Management and Services?
Huge companies like Google, Uber, PayPal, Tesla, and others use an offshore development center (ODC) or multiple centers in multiple locations to complete specific tasks. But what is ODC exactly? Offshoring involves hiring employees in other countries to perform specific tasks or to complete entire projects. These companies use an offshore development center, meaning they do not hire employees themselves, even though the workers are at their full disposal. Once their task is done or the project is completed, they move on to other projects. Some common tasks for hiring an offshore development center include software development for apps or sites, testing, or maintenance.
Let’s dig into the benefits of this arrangement in more detail:
1. Cost-effectiveness
This is usually the principal reason people use an ODC. Outsourcing rates in countries like China, Ukraine, Poland, or India are much lower than in the US or UK. For example, a Ukrainian developer with mid-level skills might charge $30 per hour to work on your task. A US developer with the same skill level would charge $100 per hour for the same work. There are other cost benefits too. There’s no need to hire an office, an HR officer, a payroll officer, or even premises to work from. The developers bring their computers equipped with the latest software. No need to pay developers recruitment fees, bonuses, annual increases, or vacation time. If one developer leaves, the agency replaces them quickly and with minimal fuss.
2. Time to focus on key projects or business as a whole
You may want to hire a team of offshore developers to work on bug fixes or maintenance tasks while your core team focuses on building new business-critical features. Or perhaps you are the main team leader and want to spend time focusing on growing your business and finding leads instead of trying to manage a full-time team.
3. Access to expertise and additional equipment
You may find recruitment challenging if you are a start-up or a smaller IT company. Large Silicon Valley companies easily snap up all available developers in a specific area to manage their projects. They offer lucrative bonus packages or even equity to senior developers to grab the top talent for their business. However, you can attract as many developers as you need across all skill levels when you are offshore. These developers may also have access to better equipment and software than you can access on your own, which means you save not only money but also improve your company’s skills and equipment.
4. Scaling
Hiring a full-time in-house team can make it difficult to scale up or down. Recruitment takes time and effort when you need many developers quickly. Many employees have long contractual lock-ins and must wait three months before joining. Similarly, if you don’t need the services of your full-time staff anymore, you have to go through an expensive dismissal and downsizing process. This can be expensive and slow your business down. However, if you use an offshoring center, you can quickly add or remove developers. However, if you use an offshoring center or IT Staff Augmentation, you can quickly add or remove developers. Developers simply move on to other projects when you don’t need them anymore. Developers simply move on to other projects when you don’t need them anymore.
5. Shared time
Some companies use a team in one time zone to work on the part of a project, while a team on the other side of the world works on the other. This effectively shortens your time to complete a project by 50%.
What are offshore development center management and offshore development services? It’s the best way to save money and access the services and equipment you need with minimal effort and maximum results. Moving your development work to countries like Ukraine, Poland, or China can cut your project costs by half.
