A decade ago, outsourcing projects was one way to make budget cuts. But nowadays, with the increase in the demand for IT resources, more and more companies are considering Offshore Development Center (ODC) to carry out different activities and set up a business for success.
An offshore development center helps businesses streamline their operations to improve customer service or adopt automation. This has become a standard move by tech companies to enjoy a competitive advantage.
So before we get into the advantages of having an ODC for your business, let’s quickly understand what an offshore development center is.
Offshore Development Center
An offshore development center is the extension of your business outside the base country. Major enterprises and startups have adopted this business model for customer support, project management, testing, and more.
ODC isn’t only popular with educational services for essay help services or to hire professional essay writers. Many IT companies choose to establish an offshore development center to overcome in-house services limitations and deliver results faster.
ODCs offer reliable and scalable services to clients of global repute such as Google, Oracle, and other Fortune 500 companies. In fact, according to Statista, the offshore market size has spiked to 88.9 billion US dollars since 2017, which is an all-time high.
Our Offshore Development Centers Restricted to IT Firms?
The concept of offshore development centers is popular among many businesses for reducing operating costs, increasing productivity, and leveraging top-quality offshore resources and competent talents. Moreover, since the services are not limited to tech specialists, this business model is suitable for global industries, including healthcare, beauty products, and academic services.
Key Benefits of Having an ODC for Your Business
Offshore development centers are widely prevalent for several fruitful reasons. So if you are a business owner in two minds about adapting to an offshore development business model, it’s your lucky day. Here are the benefits you can achieve by engaging with offshore development:
1. Massive Reduction in Costs & Operational Expenses
Cost is a primary concern for all businesses. Offshore development allows you to make budget cuts from hiring new workers prospects. You don’t have to invest in building new infrastructure or get new utilities – everything is taken care of by the offshore professionals.
Imagine the amount of time and money you would have to invest in building new infrastructure and buying new equipment. But with offshore software development, there’s no time to waste on infrastructure expansion. Your projects can take off quickly, and you can reinvest the infrastructure amount on the business aspects.
Even though the professionals would be with similar or higher academic qualifications and professional expertise, there will be a significant difference between their salaries paid to professionals abroad. With lower salaries and budget-friendly resources, businesses will get to save a big piece of the pie.
2. Ease of Recruiting Global Talents
Offshore development centers shine a lot in terms of hiring and staffing. Hiring competent talents is getting demanding by day across the globe. Companies need to invest heavily in the recruitment and staffing process to find the best professionals across all domains.
However, with offshore development centers, businesses can eliminate high costs for hiring a supremely skilled team of workers for distinct projects. You get to work with a diverse group of qualified professionals with expertise in a wide range of technologies and domains.
So, if you are not convinced about the whole idea of having an ODC, this factor alone should encourage you to have one, especially if you are looking to work with a culturally diverse team.
3. Opens Doors to Innovation and Quality
Quality and innovation are two primary factors in today’s market due to emerging technologies.
Each project demands specific standards for delivering quality and innovative output. However, since technology is changing with time, most IT companies find it difficult and expensive to stay up to date with the changes and train their employees to develop new skills. Besides, it’s almost impossible and beyond budget to access every new resource.
Because of this, having an ODC allows businesses to leverage the best resources in the market without making heavy investments. In addition, most offshore development providers have accomplished and trained professionals, making it easier for you to meet your clients’ demands in the most quality and innovative way.
4. Ensures Faster Solutions & Saves Time
Different time zones can be a bane and boon – it depends on how you look at it. An in-house team has countless work, which often overlaps with the limited work hours. Some projects require more time and effort to meet the given deadline, which can become a challenge if you don’t have enough team members.
Having an ODC and a team that works with a time difference of 5-6 hours can be somewhat advantageous. Once one team completes one chunk of work, the ODC team picks up from where it’s left and raises issues so the other team can work on it the next day – and the loop goes on. That way, the project runs under a 24-hour development cycle and gets completed within the given timeline.
5. Possibility of Seamless Business Activities
Running a business has its benefits and challenges. You find yourself multitasking, trying to give your best effort to all sectors most of the time. And if you are not skilled enough in IT per se, managing software technologies and implementing the right features may become a challenge.
If you choose to have an offshore development center, you are not restricted by these limitations. Instead, you get the opportunity to focus on the primary sector of your business while the professionals with the right skills and knowledge tackle the tasks related to their domain.
6. Minimum Risk Factors for Maximum Profits
Another benefit of choosing ODC is managing and mitigating possible risks associated with the business. It’s only normal not to have all the necessary skills to reduce risks and ensure faultless operations.
While working with an offshore development service provider, the business owners get to decide and agree on different parts of the project and the risk factors associated with them. Risks are managed and mitigated by offshore development centers as that’s their core part of the business. They use the best resources and apply fruitful techniques to reduce the possible threats.
7. Increased Chances of Auto-scaling Your Resources
Businesses don’t require the same resources or team of workers for every project. It varies based on the nature of the project – some may require a greater amount of resources to work while others may demand higher qualified and skilled professionals.
At some point, you may choose to shrink the existing team or switch job roles to make things more operational. However, such changes can drastically affect the performance of associated personnel, especially your in-house IT team.
Autoscaling can become a lot easier if you opt for offshore ODC. This is because top-ranked ODCs have adequately skilled professionals who can adapt to any recourse demands for any projects without any fuss. Also, they have the expertise to meet the projects’ needs quickly without compromising the quality.
Offshore development centers make it easier for businesses to focus on core areas, improve quality, provide 24×7 customer service, increase sales, and generate more revenue.
Although most businesses tie up with ODCs to reduce costs in today’s market, by digging deeper, you’ll find many factors that make ODC a valuable option for a business. You can save costs and get professionals with unique expertise and specialization while focusing on the core goals, which is something to consider for thriving in this competitive market.