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5 Benefits of choosing Offshore Development Center in 2019

Offshore development center (ODC) has become a very popular model of software development team hiring. If you haven't learnt fully about it, here's a quick read to know, learn & implement. Read ON!
ODC in Software Industry Hiring

Offshore development center ODC has become a very popular model of software development team hiring. Numerous types and sizes of companies that need the services of software development are extensively using the services of ODC teams nowadays. The total global market size of the outsourced services in 2018 was about $85.6 billion, in which a sizeable share accounts for the offshore development center services, according to Statista information.

Let’s have a deeper perspective on the ODC IT outstaffing services, the major benefits of offshoring teams, and where to hire developers for building efficient ODC teams.

What Is Offshore Software Development Center?

Offshore development center ODC is a software development office located in the countries where the pool of software development experts and specialists is large and the cost of the software development is comparatively low. This office or software development studio works for the software development of a company that is located in other parts of the country.

The ODC consists of a complete workspace with all required infrastructure and the technical experts with the required skill sets. The remote employees work under the local managers who report directly to the on-premises teams located in the headquarters of the company in another country.

Offshore development center consists of remote developers, testers, IT specialists, UI/UX designers, project managers, and other roles with the desired technical background to work on the software development projects professionally. There are two major ODC models that companies use the most commonly nowadays. They are customer ODC model and contractor ODC model.

Top 5 Benefits of ODC Professional Staffing Services in 2019

More than 80% of the big 500 corporations worldwide use offshore software development models for fulfilling software development needs, according to a latest research report. It has become one of the most popular offshore software development models for medium and large organizations. The newer models are evolving for working with remote teams in the form of offshore development centers.

The major benefits of ODC staffing services in 2019 are explained below.

1# Reduced Development Cost

Low-cost software development is the most important benefit of using the ODC models of remote staffing. The remote programmer salary in many countries in Asia and Eastern Europe is much lower than the same in North American and Western European countries. This attracts companies to locate their ODC in those countries where the average cost of hiring for remote IT jobs is much lower than in the countries where the companies are located. The average cost saving through ODC models ranges from 40% to 60% of the original cost in the developed countries like the USA.

#2 Access to a Large Tech Talent Pool

Finding the right tech talent in countries like the USA, UK, and Canada is very limited due to a substantial shortage of software development specialists as compared to the demand in the market. Many companies, especially the small businesses end-up with the employees with insufficient technology skills on resume. The ODC model solves this problem for all sizes of companies. The countries in Asia and East Europe have a large pool of tech talent that can be easily hired for the ODC in those countries. You have access to a large pool of tech talent in those countries and hire the most suitable candidate for your remote team.

#3 Improved Efficiency

The efficiency of the remote workers under ODC is much higher than the on-premises teams. It has been found in the latest survey that 2/3 of the employers believe that remote employees are more productive than the on-premises. This improved efficiency of ODC teams results in the increased productivity of the company. If you adopt the most effective ways of how to manage remote teams efficiently, you can increase the productivity of your ODC team significantly.

#4 No Upfront & Infrastructure Charges

Another very important advantage of using different models of ODC is that they don’t require any upfront investment for the infrastructure, workspace, and tech talent hiring. You just contract with the right service provider and onboard a dedicated software development team for your project. Thus, it is the most suitable for all sizes and types of companies.

#5 Faster Product Delivery

Faster product delivery is another major benefit of using ODC models of remote staffing. When you work with a remote ODC, you have the advantage of using two different time-zones and the overlap time of those time-zones. Thus, you can easily reduce the time-to-market of your software product. If you have a hybrid team of software development, you can fast track your project to achieve the competitive edge on your competitors.

Is remote work the future of software development? Yes is the answer because it offers great advantages to all types of companies and all sizes of businesses.

ODC in Software Industry Hiring

Different Sources of Hiring IT Specialists

The hiring of IT specialists has become a highly technical and full-fledged profession governed by different strategies, campaigns, company branding, and many other features. Thus, the ways of hiring IT specialists have also changed drastically. The major hiring sources in 2019 are mentioned below.

#1 On-Premises Hiring

On-premises hiring is the traditional way of hiring. In this source of hiring the local newspapers, digital media, social media, and other sources are used for the advertisement of the job openings. A full process of screening, scrutinizing, short-listing, interviewing, offering, and onboarding is done through traditional methods or with some modern tools. This is a long and costly process governed by local and international rules.

#2 Outstaffing Hiring

Outstaffing is one of the most attractive hiring methods used by almost all types of companies across the world nowadays. Many ODCs are also formed under this hiring process. Contractor model of ODC is the major example of the popularity of outstaffing in which the dedicated teams along with the software development infrastructure are hired for the remote company.

#3 Freelancers Hiring

Hiring a freelancer through different freelancing websites is another very attractive and cheap method of tech talent hiring. This is the least reliable source of tech talent hiring in which the control over the team is almost negligible. You are fully dependent on the attitude and work pattern of the freelancer.

#4 Outsourcing

Outsourcing is a method of handing over a complete business process to the third party. The control over the management team is high, but the control over the development team is comparatively low. The cost of this method is very high and only affordable for large corporations and big companies.

Which Hiring Way Is the Best for ODC in 2019?

If we analyze the major factors of the above hiring methods, we can easily make a judgment about which method is the best fit for developing the offshore software development center. The main features, pros, cons, and suitability of the hiring method for developing ODC are mentioned in the following table.

ODC in Software Industry Hiring

Final TakeawayOffshore development centers (ODC) are the top choice for almost all size of companies nowadays owing to the availability of multiple options of hiring in the marketplace. The reduced cost, high-quality, faster time-to-market, high-productivity, access to a large pool of talent, and no-upfront cost are the major benefits of establishing a remote ODC. Outstaffing is one of the most suitable modes of hiring that the small and medium-sized companies can choose for their ODC solution.

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Any facts, figures or references stated here are made by the author & don't reflect the endorsement of iU at all times unless otherwise drafted by official staff at iU. This article was first published here on 21st June 2019.

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