Offshore Development Centers: A Cost-Effective Way to Build Software Product

Offshore development center

According to the McKinsey analysis, finding people with the necessary workforce skills and the capacity to work productively remotely is becoming more challenging. That said, ironically companies still tend to hire, redeploy, release, and develop skills within their existing staff through concrete strategies that don’t really seem to stick or work.

Make of that what you will.

Investing in software development expansion is a costly measure. So it’s important to consider outsourcing and hiring external resources to save costs. Particularly when attrition is up, talent is preferring remote, costs and expenditures are high and competition is fierce.

In these cases, an ODC (offshore development center) can be a better alternative to traditional outsourcing. It offers greater operational management, cost-effectiveness, and IT competence.

In this blog, we’ll walk you through the types of engagement you can establish and the additional differences you might want to consider – between, offshore development centers and outsourcing.

Models of Offshore Development Centers

Offshore software development can be done in three different ways:

1. Full-Time Equivalent (FTE)

In this case, you’ll have a team that accepts full responsibility for the project’s completion. It’s ideal for long-term collaboration where the specific nature of tasks varies regularly.

2. Build Operate Transfer (BOT)

This concept necessitates the engagement of a remote team to complete project activities and establish processes from the ground up. BOT is the greatest option for startups and mid-sized businesses that want to retain intellectual property rights over the product developed by an offshore software development center.

3. Mixed engagement

This model allows you to hire extra IT specialists to handle duties that were not anticipated at the start of your collaboration. The more active your project is, the more relevant this model.

Furthermore, an offshore development center can work as a contractor or customer. In the contractor model, you tell the team-specific requirements, and they are fulfilled as a set of technical and managerial responsibilities.

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The remote team focuses on coding in the customer ODC model, while the main office performs the remainder. The extent of your tasks determines the type of model you use.

Offshore Development Centers Vs. Outsourcing: The Difference

Affordable outsourcing and offshore software development services are usually selected by businesses. In the first situation, you hire third-party workers to complete your project in any location, but an offshore development center is a self-managed team located in another country.

The following are the four significant differences between these two models:

The level of commitment

Offshore software development is a popular choice for software professionals who want to work on high-quality products. Unlike developers who work on a contract basis, they better understand the corporate service and are actively committed to the tasks at hand.

Scaling expenses

Outsourcing is usually a less expensive choice. However, offshore development centers are an intelligent way to grow your firm. Although the price is higher, the return on investment more than compensates for this modest premium.

Supervision of the team

Outsourcing gives you enough control over the executor instead of hiring a lone developer. On the other hand, Offshore development centers give you more effective tools for team management.

Tech talent is accessible.

While relying on the outsourcing approach, you can invest time and gain expertise to distinguish a good developer from a bad one. You’ll have a service provider with established connections to the best IT specialists in the country at the offshore software development center. You are not required to look for them on your own.

To Wrap Up

In the software and mobile app development market, offshore software development is becoming increasingly popular.

Why? The reason is simple. Businesses are willing to pay extra for the best quality final product.

However, even if you hire the best people, you can’t guarantee that your in-house team will be able to handle all of the new and forthcoming technologies equally well.

Offshore development teams are the ideal alternative for a cost-effective and high-quality solution. And, for that, you’ll need an offshore development center. The term “offshore development center” is more than a buzzword in the technology and software development sector. Building your offshore development center is a strategic decision that provides software stability and security.


Offshore Development Centers: A Cost-Effective Way to Build Software Product
Anup Mehrotra
Published on
April 29, 2022

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