Establishing an Offshore Development Center: A Blueprint for Success 

Offshore development services are a unique, emerging form of IT outsourcing solutions that many are exploring to create dynamic software. Establishing an offshore development center gives you the opportunity to tap into an international talent pool, reap the benefits of new labor markets, and fuel digital innovation within your organization.  

Setting up offshore software development isn’t exactly a walk in the park — it requires savvy planning and the ability to adjust on the fly — but it isn’t a process you have to navigate alone. Below, we’ll detail some valuable tips and tricks you can use to accelerate your offshore development journey.  

What Is an Offshore Development Center? 

An offshore development center (ODC) effectively serves as your own remote software development wing located in a different country. In other words, it is an extension of your in-house team that is situated miles away, often in a country with a favorable economic client. An offshore development model offers you a dedicated team, infrastructure, and resources, all working exclusively on your projects. 

You can use a third-party offshore development service to expedite the process of launching your ODC, or you can embark on the endeavor independently, which, while challenging, can be supremely rewarding.  

Offshore Development Center Benefits  

Before we outline how to establish your own ODC, let’s recap the benefits of offshore software development as a whole. When you choose to outsource your development efforts, you’ll enjoy benefits such as: 

Increased Talent  

Offshore development centers open the doors to a world of exceptional talent. When hiring local talent, you are forced to compete with countless other brands to retain the best of the best, but when setting up an ODC, you’ll face far less competition, and you won’t be limited by local skill shortages, either; instead, you’ll be able to tap into a diverse pool of skilled professionals from across the globe, ensuring that you have consistent access to the greatest minds in the industry.  

Reduced Costs 

Setting up an offshore development center can also work to lighten the burden on your wallet, allowing you to see all of your projects through to completion without burning through your reserves, as offshoring is often far cheaper than hiring homegrown talent.  

The financial benefits don’t stop there, though; the money you save can go into other aspects of your company’s continued growth, like R&D, marketing, and scaling.  

24/7 Productivity  

Another perk that comes with an ODC is the ability of your business to run around the clock. Thanks to time differences, your offshore team can continue to work on important projects long after your domestic staff has clocked out for the day, ensuring your projects are done faster and effectively giving you a leg up on your competitors.  

The Ability to Scale 

Lastly (though certainly not the only other benefit an offshore development center can provide), there is the flexibility to scale your team up or down case by case per project requirements, which allows swift adaptation to market demands and changes. 

Moreover, you won’t have to retool your in-house team; instead, your core personnel will enjoy continuity and stability while the business gains access to the agility it needs to adapt.  

How to Set Up an Offshore Development Center  

If you want to create your own offshore development center, you’ll need to do the following: 

Set Clear Goals  

Before you jump into the waters of offshoring, take a step back to ask yourself what it is you are aiming to achieve. Whether that’s cutting costs, accessing specialized skills, expanding your operations, or something else entirely, clearly defining your goals will steer your decision-making processes in the right direction.  

Choose a Great Location 

Next, choose a location for your offshore development center, taking care to consider factors like the available talent pool, time zone differences, and political and economic stability. 

Brush Up on Legal Requirements  

Similar to the subject of political stability, navigating the legal landscape of a foreign country can be tricky. As such, make sure you brush up on local laws — especially employment regulations and data protection rules — and ensure that the country’s laws will properly protect your intellectual property rights.  

Set Up the Infrastructure 

Your ODC needs a robust infrastructure to function effectively, so whether you rent an office space or connect with a local provider, ensure the building aligns with your needs. From there, invest in technologies and tools that align with your in-house team’s setup for seamless collaboration.  

Build Your Team 

By now, you are ready to build a great team. You can set up your own HR wing to hire talent, but the more pragmatic approach is to partner with a DevOps consulting team that also works in IT outsourcing and offshoring, as they’ll be able to help with everything from recruiting to onboarding and workforce management.  

Establish Effective Communication 

With a decent chunk of your team hundreds of miles away, effective communication becomes more important than ever. Leverage video conferencing tools for regular meetings and ensure there are always clear backup channels of communication.  

Create a Project Management Infrastructure 

Guaranteeing that your offshore development center is able to thrive means you need a great project management infrastructure in place. Adopt a proven methodology like Agile and ensure your offshore team is up to speed on your preferred framework so that everyone’s goals and priorities are (and remain) aligned.  

Focus on Quality Control 

Don’t let distance compromise quality; implement rigorous quality control processes to ensure that your team’s output meets your standards, such as conducting regular code reviews and quality checks and establishing a strong feedback loop through which constructive feedback is shared and acted upon.  

Build a Collaborative Culture  

Even though your offshore development center staff will be located in a different country, you’ll always want them to feel like part of the team. Proactively build a sense of unity and collaboration between in-house and offshore personnel.  

Breaking Borders: Driving Innovation Through Offshoring 

An offshore development center can serve as a catalyst for innovation and drive your business forward. As you embark on the process, having a clear plan and an established set of objectives is critical. With a cohesive strategy and the support of a global outsourcing partner, you can reap the benefits of an ODC in no time. 

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