Posted on October 14, 2020 at 10:21 AM
As the term implies, offshore development centre (ODC) or services is self-explanatory but there could be several reasons for applying it. According to the Ministry of Information Technology, India accounts for 7% of the outsourcing industry when it is about technology. If you’ve experienced the Manchester United App on a mobile then you would also know that the technology partner for this venture is HCL, an Indian tech giant and this is a match made in heaven in terms of collaboration and a commitment across borders.
There are several reasons why companies around the world need to look at ODC as not just a viable option but also an opportunity to achieve comprehensive business objectives which might not be possible otherwise:
Trust is intrinsic in a business relationship with the right documents, such as a Non-Disclosure Agreement (NDA), and an understanding to fall back on. Relationships are built taking into account the process and the deliverable so rather than look at the short-term, it is essential to have a detailed plan in place for the variables to be put in motion. Experience and retention of clients would be a by-product of the workflow that is delegated and streamlined over time
The expertise in relevant and current technology also forms a major portion of the decision to deep dive into an offshore centre. There are approximately 700(Source: Wikipedia) programming languages but the technologies that one needs to concern with on general terms could be Micro services, DevOps, Flutter, IoT(Internet of Things), AI(Artificial Intelligence), Chatbots, to name a few.
If there is an ODC present then the hiring and onboarding of prospective developers could be taken care of rather than being tedious, cumbersome, and a time-consuming exercise. This also includes the time zones that the project would be carried out under, the communication or the lack of it if it is not in English as a common barometer, the cultural differences that might arise due to the sensibilities and the personalities involved.
This would be one of the prime reasons for taking the plunge given the vast differences in salaries that developers earn across the geographies which eventually makes it a viable initiative. When a vendor is willing to offer a Java developer for as little as $12/hour, you know you are headed in the right direction. Start-ups in particular would like to take this route to keep their burn rate or expenses in check and simultaneously utilize the money in more fruitful ways.
The Return On Investment (ROI) takes precedence over other factors but strained, limited budgets also provide an opportunity for more emphasis on Research and Development(R & D) as a vertical. Once the developers are a separated yet integrated entity, the process can be scaled several notches for better efficiencies and outcomes.
A few cons that could be associated with an ODC are if a partner steals the idea or if it ends up being a long-drawn-out process but the positives outweigh the negatives by a considerable distance. You can learn about this and a whole lot more on our webinar that is being hosted virtually on October 20th at 6:30 pm IST. Register now as there are only a few seats left. Join us in celebrating being a digital world where boundaries are not defined by differences in colour but in code and how we fulfil our respective destinies.