What is an Offshore Development Centre and how to set it up effectively?

In the digital landscape, companies are always seeking ways to stay ahead and maximize their capabilities. One effective solution is the Offshore Development Center (ODC), a specialized facility established by an external provider in a different location solely for software, product, or application development.

As ODCs offer a range of advantages, such as cost-effectiveness, access to a diverse pool of talent, 24/7 availability, and streamlined project management, they have become an invaluable asset for businesses worldwide. Join us on an enlightening journey as we unravel the core of ODCs and discover why they are imperative for enterprises in today’s competitive market.

Understanding Offshore Development Centres

What is an ODC?

A company can establish an Offshore Development Center (ODC) which is a dedicated remote facility where it outsources software development or other IT projects to a third-party service provider. Using this model, business can still retain control over the project. It also permits taking advantage of specialized knowledge and cost savings of the team which is in a different geographical setting.

Benefits of Establishing an ODC: 

  • Cost Savings: ODCs provide a cost-effective solution, leveraging the economic advantages of operating in a different geographical location.
  • Access to Global Talent Pool: Companies can tap into a diverse range of specialized skills and expertise from around the world, enhancing the quality of their projects.
  • Round-the-Clock Development Cycles: ODCs are a great enabler of continuous development cycles. Time zone differences allow for progress in a development cycle, even when the in-house team is offline.
  • Increased Flexibility: ODCs provide scalability and flexibility that allow companies to flexibly change their personnel and resources with the project requirements at hand.

Common Misconceptions about ODCs:

A common myth is that ODCs result in a loss of control. In fact, it is ODCs that promote collaboration and transparency. The second myth is that ODCs can only be beneficial to big companies while businesses of different scales can also take advantage of customized offshore development services.

ODC vs. Outsourcing:

Despite the fact that ODCs also involve external collaboration, they are different from traditional outsourcing models. ODCs are the extended team model and offer a dedicated work space with specialized skills. Unlike outsourcing that could be temporary and project-based, ODCs ensure continuity, integration and efficiency with clients’ operations because they provide long-term partnership.

Preparing for an Offshore Development Center

  1. 1. Identifying Your Organization’s Needs:

Understand your organization’s unique needs before engaging offshore development services. Specify on project scopes, timelines, and skills required. Knowing your needs, enables an effective collaboration with the offshore team, directing their efforts towards the achievement of your business goals.

  1. Selecting the Right Location: 

It is important to choose the right off shore location. Consider items like time zone synchronicity, similarity of culture, and affordability. The selection of a right location enhances communication and collaboration to ensure that the offshore team becomes part of your organization’s workflow.

  1. Building a Capable Team: 

Ensure that you have an appropriate team that aligns with your project goals. Assess the abilities, knowledge, and suitability of prospective team members. It is essential for the success of offshore development services- they form a competent and integrated team that will be harmonized with your in-house efforts.

  1. Legal and Contractual Considerations: 

Diligently address legal and contractual considerations. Develop strong agreements that address project scope, timeline, intellectual property rights, and confidentiality. Addressing these aspects in advance minimizes risks and builds groundwork for a safe and open partnership in offshore development services.

Setting Up an Effective Offshore Development Center

  1. Infrastructure and Technology Requirements: 

Invest in the right infrastructure and technology to keep your operation running smoothly. The IT systems, the networks, and other essential software applications. Effective collaboration and high-quality work are based on a well-equipped development center located offshore.

  1. Hiring and Onboarding: 

Carefully select team members based on their skills and cultural alignment. Streamline the onboarding process to integrate new members smoothly into your organization’s ethos. Effective hiring and onboarding practices foster a cohesive and productive offshore team.

  1. Effective Communication Strategies:

Create open communication lines that span physical barriers. Use video conferencing platforms, collaboration tools, and regular meetings to keep communication open and effective. A competent and well-structured communication strategy is fundamental for successful offshore collaboration.

  1. Project Management and Workflow: 

Adopt strong project management approaches to reduce work flow. Specify the roles and responsibilities and the project milestones. Implement agile approaches to respond rapidly to new specifications. A proper project management framework allows the development of the project in a smooth and coordinated manner.

  1. Quality Assurance and Performance Monitoring:

Put strict quality assurance systems to ensure that your projects are of the highest standard. Implement performance monitoring tools to evaluate and adjust on the progress and weaknesses of the project. Balancing of the quality assurance and performance monitoring is critical for always delivering high quality results.

  1. Risk Management and Mitigation:

Identify likely risks and formulate plans to address them. A proactive risk management plan allows flexibility in the face of cultural differences, time zone challenges, and unexpected disruptions to your offshore development center. Keep on reassessing and refining these strategies to be able to adjust to changing environment.


In conclusion, setting up an Offshore Development Centre (ODC) can be a game-changer for businesses looking to leverage global talent and achieve cost efficiencies. Companies can discover ODC opportunities in order to access the professional skills of people from all over the world and cut down on operating costs. The future of Offshore Development Centers seems bright as demand for remote and distributed teams grows. Advancements in technology and communication have made it possible for a business to work with offshore teams, thus increasing productivity and speedy project delivery.

For those looking to set up an offshore development center in India, Gyanmatrix should be your first option. We provide a full range of services including Salesforce and mobile app development, as well as e-commerce development. Our team of experienced professionals has the expertise and track record of delivering quality solutions that will enable to achieve your desired business growth. 

Contact Gyanmatrix today at www.gyanmatrix.com to discuss how we can support your business needs. Take the first step towards global expansion and success!