In today’s globalized world, many companies are opting for dedicated offshore development centers (ODCs) to boost their innovation, cut down operational costs, and improve the speed and quality of their product development. Building a dedicated offshore development center is a strategic decision for companies looking to scale their operations without the hefty overhead costs of setting up offices in high-cost locations. But, how exactly do you go about establishing such a center? In this blog, we will walk you through the essential steps involved in setting up a successful dedicated offshore development center.
Understanding Dedicated Offshore Development
A dedicated offshore development center is essentially an extension of your in-house development team, but it is located in a different country. It operates like a remote office but is entirely dedicated to your company’s projects, providing a team that is dedicated to your business goals and working exclusively for you. It can include developers, quality analysts, project managers, and other technical experts tailored to meet your project requirements.
The main appeal of such centers lies in cost-effectiveness, access to a wide talent pool, and the flexibility to scale up or down as your business needs evolve. This allows you to reduce time-to-market for your products while maintaining control over your development processes.
Step 1: Define Your Business Objectives
Before you even start setting up a dedicated offshore development center, the first and most important step is to define your business objectives. Understanding your project requirements, budget, timeline, and the specific skills you need will help you choose the right location and vendor for your ODC. For example, if you're looking to build a mobile app, you may need a team with expertise in mobile app development technologies such as Swift, Kotlin, or Flutter.
Deciding whether your center will focus on long-term strategic goals, product development, or short-term projects will also impact how you set up your ODC. Ensure that you align your objectives with the capabilities of the development center, so you have the right resources available to meet your needs.
Step 2: Choose the Right Offshore Location
Choosing the right offshore location is crucial when setting up an ODC. Factors such as cost, availability of talent, language proficiency, and time zone compatibility should all be considered. Many companies opt for countries with a strong technology infrastructure and a growing pool of software developers such as India, Ukraine, Philippines, and Poland.
In addition to considering the talent pool, it’s important to evaluate the country’s political stability, ease of doing business, and government policies toward foreign investments. These factors play a major role in the long-term success of your ODC.
Step 3: Select the Right Development Partner
While some businesses choose to build an ODC from scratch by hiring individual developers, others partner with third-party offshore development companies that specialize in setting up dedicated development centers. These companies often have the infrastructure, resources, and expertise to help you get up and running faster.
When selecting a development partner, consider their experience in working with businesses in your industry, the range of offshore development services they offer, and their track record of delivering successful projects. Look for a partner with experience in managing remote teams and a clear understanding of how to set up a dedicated team that aligns with your business goals.
Step 4: Build the Team
Once you have a development partner and location, the next step is to build your team. A dedicated offshore team should be composed of professionals with the necessary technical skills, experience, and domain knowledge. This team can include software developers, project managers, QA testers, business analysts, and other professionals based on your project’s needs.
Ensure that the team you hire is not only technically proficient but also culturally aligned with your company’s values. Communication skills, work ethics, and adaptability are essential when building a remote team that you will rely on for key projects.
It’s also important to choose a team that shares your business vision and can work autonomously while still staying connected to your onshore team. Building an ODC requires constant coordination between both teams to ensure seamless project execution.
Step 5: Set Up the Infrastructure
To ensure smooth collaboration between your onshore and offshore teams, it is important to set up the right infrastructure. This includes communication tools, project management software, and secure cloud-based systems to ensure data security and project confidentiality.
Popular collaboration tools like Slack, Microsoft Teams, and Zoom can help your offshore team communicate effectively with your onshore team, regardless of geographical location. Additionally, project management tools like Jira, Trello, or Asana can help keep track of tasks, milestones, and deadlines.
Book an Appointment with our experts to guide you in setting up the ideal infrastructure for your offshore development center.
Step 6: Establish Communication and Reporting Protocols
Establishing clear communication and reporting protocols is essential for the success of an offshore development center. Regular video conferences, daily stand-ups, and weekly reports can help ensure that both teams are on the same page regarding progress and any challenges faced.
It’s crucial to maintain transparency and create a culture of open communication to avoid misunderstandings and inefficiencies. Make sure you set clear expectations for project timelines, quality standards, and deliverables from the outset.
Step 7: Monitor Performance and Optimize Operations
Once your offshore development center is operational, it’s important to monitor the performance of the team regularly. Track metrics like productivity, quality of work, adherence to deadlines, and overall project success.
Based on the performance data, you can tweak your processes, improve workflows, and optimize team structures to increase efficiency. Regular feedback and training sessions will also ensure that your team continues to grow in their capabilities.
Step 8: Cost Management
When building a dedicated offshore development center, one of the biggest advantages is the reduction in costs. However, you should always monitor expenses to avoid overspending. Make use of a mobile app cost calculator to get an accurate estimate of your development costs for mobile projects. This tool can help you plan your budget more effectively, taking into account various factors such as design, development, testing, and deployment.
If you're interested in exploring the benefits of offshore development center services for your business, we encourage you to book an appointment with our team of experts.
Final Thoughts
Building a dedicated offshore development center is an excellent way to scale your business and leverage top-tier talent without breaking the bank. By carefully selecting the right location, development partner, and team, you can create an efficient and productive offshore team that works in harmony with your in-house team.
Moreover, by partnering with experienced offshore development companies offering offshore development services, you can streamline the process and avoid common pitfalls. With the right resources and strategic planning, your offshore development center can become a key driver of growth and innovation for your company.
