When it comes to digitalization, tight budgets and lack of access to talent pools are key reasons that make businesses take a step backward. According to a report by Deloitte, the cost and complexity of implementing new technologies are one of the leading obstacles to digital transformation for businesses, when 31% of companies surveyed in the report cited this as their greatest challenge. To resolve those tackling issues, offshore development center models come in handy.
If you find yourself interested in Offshore Development Center (ODC) models but don’t know where to start, this article is the right fit for you. Let’s explore the definition of ODC from scratch!
Offshore Development Center (ODC) models are a type of business model that allows organizations to build an offshore development team. This concept enables businesses to set up a remote development center that serves as an extension of their in-house development staff. The ODC model offers numerous advantages, including lower operational expenses, improved development efficiency, and access to a worldwide talent pool.
The ODC model includes a specialized development team that is solely responsible for the client's initiatives. The team is made up of highly competent developers, project managers, quality assurance engineers, and other specialists who operate from the client's location remotely. The ODC model enables businesses to capitalize on the benefits of a global workforce and have access to a pool of highly experienced developers at a lower cost.
Offshore models can be classified in a variety of ways. However, in this article, we will concentrate on the three most common offshore models: Build-Operate-Transfer (BOT), Dedicated Development Center (DDC), and Managed Services.
A prominent offshore development center approach is the Build-Operate-Transfer (BOT). A third-party service provider establishes a dedicated development center for the client under this arrangement. The service provider is in charge of establishing the center, supplying the necessary infrastructure, recruiting the team, and overseeing operations.
Once the development center is fully operational, the client can take over operations and manage the center on their own. The BOT model is popular among businesses that wish to build an offshore development center but lack the knowledge or resources to operate the operations on their own.
The Dedicated Development Center (DDC) approach entails the formation of a client-specific development team. The crew is solely dedicated to the client's projects and operates remotely from the client's location. The DDC model gives businesses more control over the development process and allows them to tap into the knowledge of a dedicated development team.
A third-party service provider provides a variety of services, including software development, project management, and quality assurance, under the Managed Services model. The service provider is in charge of overseeing the entire development process, from project planning through project delivery. This concept is popular with businesses who desire to outsource their entire development process and concentrate on their core business operations.
Offshore development center models are a fantastic alternative for businesses looking to decrease operational expenses while increasing development efficiency. When deciding whether to use an offshore development center model, there are several important factors to consider.
Cost savings are one of the key benefits of an offshore development center concept. Companies can take advantage of the benefits of a global workforce and have access to highly trained developers at a lower cost. Offshore development center models enable businesses to construct a distant development center that acts as an extension of their in-house development team, allowing them to cut operational expenses while increasing development efficiency.