How to Scale Up your Business with an Offshore Development Center?

Adaptability is about the powerful difference between adapting to cope and adapting to win. – Max McKeown

Business growth and expansion are the priorities when the business is emerging. However, entrepreneurs usually struggle to devote their in-house resources to each and every area of their business, potentially becoming overwhelmed by the quantity of work which is required to grow the enterprise.

This is where businesses find themselves in a rapid growth trajectory.

Ready to Scale your IT Company?

How to Scale Up Your Business with an Offshore Software Development?

The offshore development center is the key to scale your business. It helps you utilize the latest technologies available to get the best out of your software, website or mobile application.

So to fully understand what an ODC is and how it can help you, we’ve put together a few subtopics that hold the most valuable information that you need to know.

What is an ODC?

The term offshore development center (ODC) stands for an integrated, extended, and dedicated offshore team. Simply put it is as a subsidiary or a branch of a company whose main operations are running in another country. 

For software development solutions, ODCs are becoming more popular due to their affordable developer rates and easy availability of talented developers.

Note: It is important that the locations you choose to set up your ODC must have enough talent so that it matches with the integrity of your company.

Why Outsource?

Wondering how to improve your software quality & bring down the development cost at the same time? Collaborate with an offshore development center (ODC).

The offshore development model has been proved as a highly effective tool that gives you greater visibility and predictability throughout your development process. So, outsourcing your development needs will be the right choice for your company.

All businesses have risks, we get it. But with a reliable offshore team, the risk can be greatly outweighed by its benefits. Aside from being cost-efficient, ODCs can be more convenient than you think. 

Unlike in-house teams, offshore development companies have their own established entities, so you will be free from the burden of constantly managing them.

You’d better ask yourself these two questions before you choose to invest in offshore development: 

  • “Do I really need an Offshore Development Center?”
  • “What benefits would I get from an offshore development company in India?”

Why Do You Need an ODC?

Why Do You Need to Outsource?
Source – Google Images
  • It’s Cost Effective.
  • Provides Flexibility is the Terms of Resources.
  • You will Get Quality Services.
  • Advantage of Time Zone Difference.
  • It allows you to Focus on Core Business Activities.
  • Shared Responsibility Mitigates the Risks Involved.

Benefits of Working with an Offshore Development Center in India

  • Nowadays, if you want to hire qualified IT professionals then it will leave a huge dent in your budget. However, in India, the salaries of IT professionals is comparatively lesser than their counterparts in the US and other developed countries.
  • Outsourcing will give you an opportunity to work with the best offshore technology partners and skilled manpower. The offshore outsourcing companies focus mainly on innovation, quality and are continuously on the lookout for improvement. Thus, if you hire them, you stand a chance to get strong expertise with a highly experienced team of professionals.
  • With the release of the bill termed “IT act 2000” India has been rated as the most excellent investment potential destinations within the world. With government support, it has been able to build several IT parks. In fact, the government has even permitted 100% foreign equity
  • Offshore Development Center comes equipped with all the basic infrastructure. Hence you will simply act and begin your project without having the need to develop any other infrastructure.
  • The time ideally taken for development reduces considerably. As work allocation happens at a different location and task accomplishment takes place at a different location.

What is Offshore Software Development?

What is Offshore Software Development?
Source – Google Images

In simple words, offshore software development is a process of developing your software by a team located in a foreign country. 

Offshore Software Development has emerged as one of the most successful business strategies in today’s world. It has become a necessary strategic tool for companies to gain a competitive advantage.

Is your Small Business too Small for Outsourcing?

No, it isn’t. No business is too small for outsourcing. This is a huge mistake that most business owners make when it comes to trusting offshore software development.  They feel, taking the help of remote teams is too expensive and therefore everything is reserved for big companies.

Well, technology advances have now made outsourcing a lot more accessible to businesses of different sizes and it has always been responsible for boosting businesses regardless of their types. You get access to the talent pool of professionals from across the globe and this helps in reducing the workload and stress.

Having an idea about when to outsource is as important as knowing what you have to outsource. Every company is different and so are the situations. When you want to grow or expand your business without allocating more resources in-house, that is the right time when you should opt for outsourcing.

Outsourcing has the Power to Boost any Business

After understanding when to outsource, it is time to identify key activities that you can outsource that is sure to make a huge impact on the productivity level.

You should always have the right reasons for outsourcing. Outsourcing a project or a task just because your team of developers is not willing to do is a big no-no. Outsource only when the in-house team is too occupied with other projects or lack the expertise that is required to complete that particular task.  

Here are the Three Types of Tasks you can Easily Outsource:

  • Repetitive Tasks: The tasks that don’t require specific knowledge but take a lot of the working hours of your employees like data entry, inventory, dealing with accounts, etc.
  • Tasks that Demand Specialized Knowledge: Projects or tasks that demand knowledge can be successfully outsourced to the external providers having the right type of skill set.
  • Highly Technical Tasks: Sometimes, you get projects that are very technical and your in-house team will not be able to give optimum results to the clients. In that case, outsourcing is a must.

Checklist to Use while Choosing a Reliable Technology Partner:

  • Skills and Knowledge: While selecting an offshore development company, you must know which country offers the most effective service without draining your company’s pockets. Among other countries, India is one of the top outsourcing destinations for business processes. The country’s booming BPO industry-inspired Universities to offer training programs that cater to workforce demand.
  • Work History: To get a lot of customers most outsourcing companies create a boast of their success. To measure one’s success and experience look for honest feedback from the clients on credible websites like Good firms, App Futura, etc. Portfolio and ranking can come in handy once you got to imagine the level of the company’s qualification. This knowledge enables you to make better-informed decisions.
  • Good Communication: The key factor is effective communication for all organization  Find an offshore company with good communication to avoid the hassle of language barriers. Both teams should discuss issues and should come to an understanding of how to work together. With this advantage, miscommunication is less likely to occur between the client and the vendor. 
  • Cheap Offers: Double-check to be sure that if you need so many services which they are offering. Always keep in mind that outsourcing companies will offer you as many services as they are able to provide in order to earn extra money.

After you have finally identified what to outsource and decided which technology partner to collaborate with, here are a few steps you must follow to ensure things turn out the way you are expecting them to.

6 Steps to Effectively Outsource Software Development

6 Steps to Effectively Outsource Software Development
Source – Google Images

Step 1

Specify everything in writing. Drafting a contract that specifies the exact responsibilities is the key to safeguard your company’s interest. Be very specific with your intentions. Make sure the vendor understands exactly what you actually need so that there is no misunderstanding. Never leave anything for assumptions and clarify everything that comes to your mind.

Step 2 

If the project requires product knowledge, it may take some time before the provider to speed up so don’t push them in the first one-two weeks. Respect the learning curve and wait for a while.

Step 3

Offshore software development will certainly revamp your company. This is really exciting but it requires strategic planning. Start preparing your staff, workflow and company structure in advance. You may have to outline processes around the tasks that will be in-house and determine how the team flow will change.

Before you consider outsourcing as a strategy, ensure you know the answers to some of the questions. Who will spearhead the plan? Will it have any effect on the in-house team currently present? How will the cost be saved? How will the cost start and how will it end?

Step 4

Reliable offshore development partners commit to a certain level of quality and performance standards but it is your choice to define what they should be. Prioritize the benchmarks and metrics that matter to you. Depending on which task you are outsourcing, your KPIs i.e. key performance indicators will vary.

Before deciding yourself, ask the outsourcing agency to list down the KPIs. Finally, come to a mutual agreement about how often the company will keep you updated with the ongoing process.

Step 5

Instead of outsourcing the complete project, start with a couple of tasks, that requires less investment. This approach will surely help you observe how effective outsourcing development team is. Good companies will complete the tasks within the deadline and will always want to prove their worth.

Step 6

Manage the offshore development team efficiently and ensure they are doing the job you’ve hired them for. If you are tempted to micromanage tasks, then learn to delegate.

Also, hold your remote company accountable every week, month or quarter, as per your needs. Trust the virtual team and they will surely deliver more than your expectations.

If you are still wondering why to outsource, check out the;

Advantages of Offshore Software Development

Advantages of Offshore Software Development
Source – Google Images

1. Low Labor Cost:

Number one is that it’s so amazingly affordable to hire somebody overseas. People from other countries can ask lower pay for their work than your in-house employees. These people are typically highly-educated, they speak English perfectly. 

The challenge for them is that it could be really difficult to find good work in their own country. We commonly hear about the job that offers high pay but asks these people to leave their families for months. Imagine, how thankful these people would be having a job with higher pay without leaving their native country and families.

2. Time Zone Difference:

Another benefit of offshore software development is the time zone advantage. While you are sleeping, your offshore developers will be working hard to get the tasks assigned complete before you wake up. 

For example, a US-based company when works with an offshore software company in India, there will be a time zone difference of 12 hours. And theoretically, this will ensure that the project was developed utilizing 24 hours of the day. In short, that’s a perfect way of time utilization. 

24/7 availability enhances the agility of the business and gives it an edge over its competitors. Isn’t that cool? 

3. On-Time Delivery:

Offshore development center professionals will always strive & adhere to their deadlines. So, do not worry about late deliveries. They must have enough flexibility in resource utilization to focus efforts where – and when – they’re needed most.

4. Knowledge Retention:

Offshore Software Development will guarantee that all knowledge shared during the course of the project remains within the center.

Your offshore team invariably has complete responsibility to finish the assignments. On top of that, it’s their responsibility to keep the information secure and deliver solutions that will meet and exceed your expectations.

Words for Wise:

Before you set up an offshore development center, it would be beneficial for you to have a relevant business case to justify the ODC.

Follow your employees on LinkedIn or Twitter to know more about their working experience and core technical skills. Moreover, it will help you to strike up a friendly relationship with your workers.

Add Value to your Growing Company with Offshore Software Development

Outsourcing is a time and tested model for those who are willing to grow their business. Outsourcing has already proved its worth by becoming a hit among the business owners as many giants have utilized outsourcing and reaped the benefits.

Although, outsourcing auxiliary services and choosing the best offshore software development partner does require an initial outlay when it comes to time and resources, but this investment is repaid via increased productivity, less stress and boosted profits that outsourcing brings with it.

All of which adds up to build rapid and sustained business growth.

Bottom line:

Use the aforementioned tips and tricks that are very useful in order to succeed in outsourcing your technical assignments to different countries of the globe. 

In case you are having any doubts about your project or need to get recommendations from experienced developers we are here to help you at any time.

With us, you will never experience any hardships with getting an ODC setup and running. How it works? Hire Offshore Team from us & set up your ODC today!

For any query, drop your requirements at info@yourteaminindia.com & our team will get in touch with you shortly!

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