Quick Summary: If you're looking to setup offshore development center (ODC), India is a popular destination. With a highly skilled workforce and cost-effective solutions, it's no surprise that many companies are turning to India for their development needs. In this article, we'll guide you through the process of setting up your own ODC in India.
The global economic turmoil and the increasing gap in opportunities vs. available IT resources in western countries have forced companies to look for trusted offshore outsourcing solutions that are cost-effective, viable, and sustainable for their IT needs.
The demand to set up offshore development center (ODC) has increased to meet the changing market needs. India has emerged as a favorite destination for companies in the U.S., UK, Canada, Europe, and Australia to set up an offshore development center.
Learn what makes India the top 5 offshoring destination in our Top 5 Nations to Set Up Offshore Development Centers- 2022 blog.
If you are wondering how a business can build a successful and scalable Offshore Development Center in India? This article is for you.
This blog will explore the step-by-step process of setting up a dedicated offshore development center in India.
But before we start, let us discuss why a business should opt for Offshore development teams.
Key Listing
- Choose the right location in India that best fits your company's needs, such as a city with a strong tech ecosystem or a location with cost-effective solutions.
- Follow the legal requirements and obtain the necessary permits to register your legal entity in India. Seek professional guidance to ensure compliance with Indian laws and regulations.
- Hire a skilled workforce and establish a strong communication and collaboration system to ensure successful offshore development center operations.
- Consider implementing agile development methodology for faster time-to-market, increased transparency, and collaboration between teams.
Why set up an ODC for your Software Project?
In today’s dynamic and constantly evolving market, businesses must constantly upgrade their systems, processes, and technologies to stay ahead of the curve. But doing this by expanding the in-house team can become an expensive affair, especially if you are a company in the US, UK, or any other western nation.
Hence, businesses across the globe are opting to outsource their development project, and here are some stats to back it
- USA outsources approx. 300,000 jobs every year
- 45% of companies plan to increase their outsourcing
- 24% of small businesses today outsource their operation to achieve efficiency
- 50% of Fortune 500 rely on trusted offshore outsourcing partners for their requirements
But why?
Well, here are the reasons why companies are opting to set up offshore development centers (ODCs) for software development. Besides being economical, offshore development centers provides you access to a global talent pool, reduce time to market & help build a global presence. By partnering with trusted IT outsourcing companies like Your Team in India, companies can easily steer through the challenges of entering new geographies.
Owing to these benefits, enterprises across the globe today are looking to start their offshore operations.
Offshoring your software development is an excellent way to gain a competitive edge in today's volatile market. But, location is a critical factor in the success of your offshore development center.
When it comes to choosing a suitable country for India, it tops the chart. Read on to know why offshoring to India is beneficial for your business.
Explore the benefits of setting up offshore development center in India. Read our detailed guide on “What is an Offshore Development Center (ODC)?”
Now that we have established the benefits of choosing India for your offshore development center, let us learn the step to building a scalable, agile, and flexible offshore development center.
Without further ado, let us begin.
15 Steps to Set Up an Offshore Development Center in India
Setting up offshore development teams in a foreign land can become a tedious task. Especially when you don’t know how or where to start.
But you need not worry; this section of our article will cover the step-by-step process of setting up an offshore development center(ODC).
1. Define the vision & requirements of your business
The first step to setting up a dedicated offshore software development center is understanding the IT infrastructure & software development needs of your business and defining the purpose of the Offshore Software Development Center. Following the below steps can help you create a better vision for your offshore team.
2. Outline the scope of work –
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- Define the project's purpose- Building a new product, building new features in an existing product, or upgrading it to better technologies.
- What features do you wish to build?
- What technologies do you wish to integrate?
- What tech stack do you wish to use?
- Whether it is a simple development or complex development with changing requirements?
Asking these questions would help you understand the project's scope and make informed decisions.
3. Define the term engagement
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- Whether it will be a short or long-term engagement?
- One-time, recurring, or permanent technical support?
4. Define the talent requirements
Detail the different experts required for the software development project at various stages of development.
It will help you choose the right mode of engagement with the hired team- Fixed Cost, Hourly Cost, Retainer Model, or Hybrid model.
5. Choose a development methodology
When setting up your offshore development center (ODC) in India, choosing the right development methodology is crucial. Agile methodology is a popular choice due to its iterative approach, which allows for flexibility and collaboration between teams. This methodology promotes transparency, continuous improvement, and faster time-to-market.
6. Choose a location
Today, India is a major IT offshoring destination. Though multiple cities in India have emerged as IT hubs in the past two decades, there is a vast disparity in the distribution of tech talent.
A tier 2 city becomes a more viable option when your software development project requires simple development, basic coding language experts, and a small team. Whereas, for a complex software development project with large team requirements, tier 1 city is the right choice.
Working with a reliable offshore development partner ensures that you find the right resources and IT infrastructure for your project at the best price.
Read our blog on ‘The Best Indian Cities to Hire Remote Developers’ to make an informed decision.
Factors that you must consider before choosing a location
- Ease of resource availability across tech-stack
- Per-hour rates of developers
- Government FDI policies
- Rules and regulations regarding data breaches and IP theft
- Political and geographical stability
- Available infrastructure in the location
This short checklist can help you save time and energy evaluating the offshore development company and making the right decisions.
Want to know more about how to evaluate your offshore partner? Read our blog- 2022’s Checklist To Hire Offshore Development Team, to get your answer.
7. Service provider evaluation
The third and one of the most critical steps is finding a reliable offshore development company that can help you build a reliable and talented team of offshore software developers. A trusted partner would navigate the local environment and mitigate the challenges while working with a remote team.
Here is a quick checklist for you to choose the right offshore Development company for your ODC
- Check for their industry experience, especially in your business domain
- Evaluate their development methodology