Wednesday, November 30, 2022

What is an offshore development center?

When working on any new project, the company aims to spend as few resources and funds as possible, as well as to complete the project in the shortest possible time. This is especially true for startups, which, as a rule, have a very limited budget. For this, an alternative was created in the form of offshoring. We will talk about it in more detail.

There are special centers that allow you to perform offshore software development and achieve even greater success.

What is an offshore development center?

An offshore development center is a special place where various software development teams are located in an offshore country. That is, it is a separate office where specialists are gathered. They are managed by companies from other countries.

This method of work is used by different types of companies, both the smallest and the largest global brands. This is all because it is the most effective Project Management. This significantly reduces the cost of hiring specialists from other countries, their training, and providing the necessary technologies.

Therefore, an offshore development center is a workplace where a company will be located to work on software for a particular company. The location can be any. Usually, experts start with the cost of the place. The less developed the country, the more pleasant and favorable price for such services will be.

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How is this approach different from outsourcing?

Outsourcing is a slightly different concept. Companies resort to this technique when there is a shortage of specialists. For example, a company wants to scale and develop, but they do not have a lot of money to provide infrastructure. This is where outsourcing comes into play. There are several varieties of the outsourcing model, and when your company has certain requirements for a project, it is possible to outsource the work. It will be a fixed-price model based on a flexible methodology.

Let us consider in more detail the main differences using specific examples.


Outsourcing is the perfect option for you if you plan to start small and scale up to larger full-stack projects.

The creation of an ODC is better suited for long-term, reliable, and large projects that require special attention and a large number of relevant specialists.

Developer Commitment

In outsourcing, providers of such services work with several projects at once, among which is yours. That is, they work with different companies, most often at the same time.

ODC, in turn, has a slightly different approach. Here, specialists work exclusively on your tasks and projects. For this, a special office is being created, the work of which will be completely devoted to your company.

Team size

Outsourcing depends on the type of project. The more development requires specialists, the more of them will work. Therefore, the complexity of the work plays a key role in the number of specialists.

In ODC, you will need to hire a whole team to work and give the corresponding tasks.

Hiring principle

When working with outsourcing, the supplier has its team of specialists to whom tasks will be delegated. Developers will be able to start working immediately after receiving the assignment.

The ODC team will be formed based on the needs of the client and the company. For example, you need software engineers for a serious large project. Then the team will be dedicated only to them. That is, it all depends on the individual needs of the company.

To choose the right cooperation model, you need to analyze your needs, goals, and preferences and decide which option is best for you. For large-scale projects, it is better to choose ODC, for short-term and small-scale outsourcing. But the final decision is yours.

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