The worldwide economic crisis, as well as the widening gap between opportunities and available IT expertise in Western countries, has boosted the growth of Offshore Development Centers (ODCs). According to a recent Deloitte study, 59% of countries globally choose to outsource their requirements to India. The reason for this is probably a large abundance of tech talent in India.
What is an ODC?
An offshore development center, or ODC, is an extended, skilled, and integrated overseas workforce. This dedicated staff is usually headquartered in a foreign or offshore country and provides assistance to the company as requested. ODC will function as a subsidiary of a firm, carrying out certain functions. An ODC will hire dedicated developers, engineers, managers, designers, etc. to function as a separate arm of the company. Most businesses, regardless of their size, seek to establish an offshore development center in a location where living expenses are lower than in their own country.
Benefits of setting up your own ODC in India
Offshoring your development will always be a major business decision, thus the advantages must be substantial and quantifiable.
1. Growing Talent
Sangeeta Gupta, Senior VP and Chief Strategy Officer, Nasscom said in an interview with the Hindu “The increasing pool of graduates coupled with a maturing talent ecosystem is helping the growth of digital talent pool in the country despite the churn for the right talent.”
India has risen to prominence as the world’s ‘digital talent nation,’ with Indian IT leading the way. The country’s IT industry employed more than 5.8 million people in FY22, with 1.6 million of them being technically skilled.
The emphasis in an ODCs is on developing their hired talents’ abilities so they can provide the best solutions.
Indians have time and again proven their mark in software development and testing globally and it is one of the most stable industries in the country.
In India, developers, testing engineers, designers, and other experts are mostly familiar with front-end and back-end development technologies, the latest programming languages, design tools, and testing tools needed to create cutting-edge software’s or mobile applications.
Software development mostly happens in major cities and these metropolitan areas are notoriously expensive, therefore salaries, rent, rates, and practically everything else associated with running a business are inherently expensive. Compared to these developed countries India has a relatively cheaper cost of living.
On an average a skilled talent will cost around $60-$200 an hour depending on the requirement and then the additional cost for health insurance and traveling. Whereas in India, the average developer cost to hire dedicated developers is significantly lower even in tech-focused cities like Bangalore.
Besides the cheaper living cost India is also cheaper to build infrastructures and since many Indian ODC’s rely on remote talent, its even cheaper to setup an ODC in India. Managing remote teams has never been easier. You can communicate with anybody, anywhere, and at any time of day with instant messaging and video calling applications.
Your team in India will deliver excellent work at a lower cost leading to a steep growth in revenue and with the expenses down, your profits are bound to shoot way up.
How to Setup you Offshore Development Center in India?
1. Clear Vision
You must know why it is impossible to fulfill your software development requirements locally and what sort of skills you want before considering building an ODC.
Understanding your company’s and project’s IT infrastructure needs, as well as defining the ODC’s purpose, is the first stage in building up a specialized offshore development center.
Define your project’s goals: Do you need to create a new product, add new features to an existing product, or upgrade it to more advanced technology. What features would you like to add? Which technology would you like to incorporate? Is it a simple or a complex development with constantly changing requirements? Sharing a more comprehensive and thorough vision of your new product assures that you are on the right trajectory.
2. Choosing the right ODC
When you have the project requirements in place, you can start looking for a suitable partner to help you with your project development. Do your homework, study up on what different organizations have to offer in terms of offshore product development services, and choose the one that gives you the best value for your money. Make sure the firm understands your requirements and provides an optimized roadmap.
Despite the fact that India has developed a number of IT centers over the last two decades, there remains a huge discrepancy in the distribution of computer expertise. If you need simple development with, basic coding language skills, and a small team for your project, a tier 2 city is a much cost-effective option. But if your project is complex and requires a considerably larger team then a Tier 1 city is your best option.
3. Hire Talent Personally
Outline the various professionals required for the project at different stages of development. It will assist you in determining the best mode of engagement with hired team.
Your offshore development company will provide you with the portfolios of experts that are qualified for your project. Go over them and make an appointment for the interview. To analyze the experts’ abilities and talents, ask as many questions you can.
4. Manage Time-zones Differences
One of the most significant challenges organizations face when establishing a virtual office in India is the time zone difference.
Determine meeting times that are appropriate for the team, i.e., the team’s local time. Absences and undue strain on employees may result from working early in the morning or late in the evening. Also, keep in mind that restricting meetings/calls to vital and/or crucial topics allows developers more time to work on their projects.
Although Agile methodology is unconventional when it comes to dealing with time zones, you may use it to improve communication with remote teams, especially if you have many teams working on different product components in different locations.
Clear requirements and task assignment are essential. Because onsite and offshore teams frequently work with the same source code, a consistent version control system is essential, as is ensuring that everyone provides adequate comments on the sections he or she adds.
Effective, constant, and regular communication is crucial to the growth of any team, particularly an offshore team. It is vital to establish an open-door policy when it comes to communication. This is critical when dealing with an overseas workforce to bridge the physical distance for both you and your offshore employees. Encourage team members to contact you with any questions or concerns they may have, and pay carefully to what they have to say.
Conflicts of cultures are unavoidable. You’re dealing with people who have different beliefs and perspectives as they grew up in a different environment. Cultural differences should be addressed right from the start. Even the tiniest cultural variations may have a significant influence on your workflow, from fundamental politeness norms to professional ethics.
Thanks to the multitude of virtual solutions these days, staying in touch with your staff on a daily, weekly, or monthly basis is simple now. A weekly informal Zoom team meeting, a 10 min Skype catch-up, or a daily “huddle” may make all the difference. Staying in touch with your offshore employees, regardless of the technique you use, is critical to building a successful offshore team.
An offshore development center in India might be the first step toward reaching your company’s full potential. A dependable and trustworthy offshore partner, like eLuminous, a custom web application development company can assist you in attracting the right personnel, technology, and opportunities, allowing you to create a dynamic, scalable, and efficient offshore development center.