Offshore Development Center Pitfalls and How to Avoid Them?

An (ODC) Offshore Development Center is a business model that is customized and secure to solve IT-related challenges in a hassle-free manner. 

Companies of every size whether small or large can take advantage of the budget-friendly solutions offered by ODC.

And the success of the offshore development center is backed by stats. As per Statista, the global outsourcing market amounted to $92.5 billion.

Erupting as the new business strategy, the offshore development center has become a new gold rush that companies attempt to utilize so that they can extend beyond the national periphery.

You get highly skilled dedicated offshore developers without going through the tedious process of hiring.

Although setting up an (ODC) offshore development center has become simpler than before, it still carries its own set of pitfalls.

Working with the offshore dedicated team of developers working in different geographical locations makes collaborating complicated.

Let’s discuss the challenges of Offshore Development Center and how to overcome them:

Offshore Development Center Pitfalls and Solutions

a) High Initial Investment

When you set up an (ODC) offshore development center initially, you may feel it is a costly affair and it won’t prove to be fruitful in the long term.

You may or may not have to pay for the infrastructure and overhead expenses.


Although setting an ODC is not a zero-investment concept but it helps you every step of the way as you expand and grow.

When you have reliable offshore software developers in your ODC, they help you in maximizing long term ROI and planning for annual goals. 

They adapt their resources in a manner while contributing towards your business objectives.

Signing a contract with an (ODC) offshore development company for the long-term brings many strategic benefits to the table and addresses some outsourcing weak points you may experience with short-term partners.

Being a branch of your company, the offshore software company guarantees long term commitments. It also saves you from establishing IT infrastructure, payroll, legal compliance, security, etc.

b) Cultural Barrier Impacts The Overall Productivity

As per the research of Geert Hofstede, cultural differences are based on five major factors that are power distance, long-term orientation, individualism, masculinity, and uncertainty avoidance.

Every company has different cultural values. These definition is in terms of accountability, load balancing, and way of interaction, time management, and business etiquette.

Culture is usually one of the major pitfalls of the (ODC) offshore development center.

The cultural difference impacts interactions, communication, interpretation, understanding, productivity, comfort, and commitment.


In order to address the cultural gap, mutual understanding is a must. When you are looking for success by having your offshore dedicated team, you have to be aware of the way of approach of the remote team.

While doing business with a virtual team, it is important to understand them. This kind of emotional awareness leads to long-term business relations.

An effective remedy includes conducting sessions to make both you and the remote team aware of the cultural practices. There has to be a willingness, intention, and efforts from both sides. 

With the help of team-building exercise, allow the remote workers to share insights, and details about their culture, and geographic locations.

This decreases the culture related misunderstanding while strengthening the bond between the inhouse and ODC members.

c) Scaling is Impossible without Dedicated Developers


No entrepreneur wants to hear that the company’s growth as the roadblock is less staff.

Business demand keeps changing quickly, and even with the help of the best tools, it becomes challenging to stay on your toes.

It is a myth that offshore development centers have fixed dedicated developers, and there is no flexibility or scalability.


Good and reliable developers are difficult to find but having your own offshore development center means you get a lot of benefits.

By choosing this business strategy you can add or reduce offshore developers as per the project requirement and you can have full control over the same.

Your partner not only improves your speed to expand and retract offshore software development team size but can also change the mix of required skill sets.

d) Tracking The Work, Productivity And Performance

One significant challenge is having employees in the offshore development center that accomplish all the tasks on time, efficiently and as per the company’s standards.

For some remote developers completing the tasks is what makes sense. For others, it is important to be engaged in the project for a set number of hours.

It is a challenge to ensure if everyone in the team is using the time effectively. 


You should know about the quantitative ways to evaluate a remote worker’s contribution to the task or project. ODC has talented developers who are proficient in the most current tools and platforms. 

Take the help of employee productivity software to know about what the ODC team is up to during the workday.

Depending on what software you use, you can also get intermittent screenshots to know what the exact status is.

The productivity of an employee gives you quantitative data on how much time is spent on which task.


Advancement in technology, as well as globalization, has made offshore development centers an increasingly popular option for companies.

Having the potential to save cost, efforts, and money, it has become a viable option for many companies.

The challenges resolve when you have the right partner with you.

Establishing the best offshore developers team that is dedicated to working for you helps you reap long term benefits.

There is no reason to doubt that this model will continue to become popular over time as technology advances further.

Want To Grow Your Business With ODC? We Can Help You

Setting goals for your business and bringing the right resources helps in attaining the business goals.

Specific milestones offered by the ODC model helps in providing your clear deliverables, specialized skill set and a scalable solution for your business.

So, find the best fit for your organization and make your product the best it can be.

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