An ODC is essentially a remote office/branch of your company that is located in another country. This branch will usually consist of developers, testers, and other IT employees.
You should have an ODC for your company because it provides a way to keep costs down while still having access to high-quality IT talent from other countries. This way, you are also able to access in-country tax benefits.
Imagine that your company is in California, and you need to hire a new developer who isn’t located near the office anywhere within driving distance. You would have to either pay for airfare or try to set up a video call.
In both cases, you would have to pay for the travel expenses, which can add up depending on how long the developer is staying. With an ODC, you don’t have to deal with these costs and can work remotely with the developers in another country.
What is the distinction between an “offshore” and a “nearshore” ODC?
An offshore ODC is your typical branch located in another country. On the other hand, a nearshore ODC will be closer to you geographically but still offers many of the same benefits as an offshore one regarding cost savings and access to talent.
There are many reasons why using an ODC will benefit your company. A study conducted by “Deloitte” shows that up to 80% of your costs and time are saved when you have an offshoring relationship with another country. The remaining 20% is split between benefits such as better cultural understanding, faster development cycles, and a more competitive product.
Another common question when using an ODC is the potential loss of control over the 5th generation development process because you work with an external onshore team. But it depends on what kind of project/product it is and what our company goals are.
Because ODCs are located in another country, it is important to use strong IP protection measures to help ensure proprietary information does not leak out. It’s also crucial to perform routine audits and enforcement checks on your offshore workers when using outsourcing in order to maintain compliance.
What are the benefits of opening up an ODC?
One of the main benefits of working with an overseas development center is saving a great deal of money on your IT development and other outsourcing services.
You will be able to translate this savings into lower prices for customers-which means a greater chance at success in the marketplace since customers are drawn to cheaper products.
There are other benefits as well:
A lot of ODCs have the latest technology that is of great use when developing new products. This can help you keep a competitive edge over your competition while also reducing costs.
The process will be faster than local development, and offshore developers will have lower lead times. You will still need to factor in time zones, however.
The fact that there is a pool of developers opens up many opportunities for you – from having on-site support staff to offering training programs to improve the skills of your existing workforce. This also opens up other markets for you. You might be able to expand into new countries and sell products internationally by using your ODC as a base.
It is also worth mentioning that many talented developers are working for offshore development companies, which can help you create a more successful product and gain market share.
There will be some challenges in choosing an overseas development center, but they should not keep you from making the right choice for your company. There are quite a few benefits that you will be able to enjoy under the right circumstances.
Opening up an overseas development centre is worth considering, as there are quite a few benefits that you can enjoy. The most successful liquidation strategies are those that allow you to use your liquidated assets as you need. To do this, be sure to prepare ahead of time and avoid getting too enthusiastic about the potential savings until they occur. Once your ODC is up and running, it should be well worth all the required effort to start it.
It’s also worth noting that, once you’ve made a decision regarding the best ODC for your needs, you’ll receive maximum advantages from working with one. You’ll need to conduct a lot of study and due diligence to ensure that your demands are met and that you have faith in the service you’re receiving from the offshore development firm.