An offshore development center is a team of highly skilled professionals, usually, web developers and programmers working for your company located at an offshore destination. It is a dedicated team that works solely for your project as per your instructions. Unlike offshoring, you have a greater control over these development centers as you have a right to specify the hardware and software to be used in order to maintain same quality standards as in your in-house team. Offshore development centers are established on the grounds of relationship, trust, compatibility and shared goals between two companies.
Offshore development center offers a hybrid model of development that works in collaboration with your in-house development team. In case, you don’t have an in-house team, you can still have a dedicated offshore development center. Usually, many start-up companies prefer to operate only through offshore development centers by hiring expertise at a cheap rate.
Moreover, they help the start-up companies to keep their budget in control and deliver the project on time. They even offer a flexibility of small scale organizations so they are always prepared to accept changes and challenges. Many Asian countries like China, India, Philippines, and Vietnam serve as an excellent offshore destination for its US-based clients.
On the contrary, in-house development teams find it difficult to keep the budgets in control owing to high risk factor involved. Continuous technology upgrades and changing business-user requirements make it unviable for start-up companies to invest in in-house development teams. Though being under your direct supervision, in-house teams are capable enough to deliver high quality product for your clients.
In-house teams work directly with you and understand your business closely but they are marred by constant distractions. The result is they lose time and increase your cost of production; and not to overlook, the salaries paid to in-house team members is very high as compared to that in offshore development centers.
Moreover, being located in the developing world, their aspiration level is quite high and they are willing to give their best output provided they get a favorable environment for working. Make sure that your partner invests appropriate energy in retaining talent. Share this knowledge with your in-house team to facilitate better collaboration.
Furthermore, we have seen that risk factor involved in IT projects is quite high due to highly volatile market conditions. Development centers assist you in taking calculated risks involved in project failures so that it is not the end of the road for your business.
On the other hand, it is quite possible that your efforts to succeed in offshore market have yielded limited results through in-house team. Offshore development center makes it easier for you to increase your presence there. Local presence increases confidence of your clients and they are willing to invest in your services.
While there are numerous benefits with developing an offshore center, it involves certain risk factors. It is the responsibility of the team leader to mitigate these risks by intervening and developing favorable environment.
Starting afresh with an in-house development team is impractical owing to high investment cost and inexperience. If your long-term business goal is to have an in-house development team, then you must gain sufficient experience with offshore partner. Being a start-up company, offshore development center will offer you a win-win strategy for your business. Develop a hybrid model of operation wherein your in-house team works in tandem with the development team in the center. There need not be any time lag in exchanging critical information.
There is a procedure to select an offshore partner that suits your business requirements. But it is common to find that the performance of the vendor is not up to the mark even after careful selection. More so, it is the case with almost every vendor. Developing an offshore center is like a marriage, which needs continuous nourishment and exchange of ideas to make it successful. Offshore development center goals need to be aligned with your business goals.
Ultimately, customers judge your team not on the basis of their smooth operation, ability to sense business requirements and project management but rather on how well their products and applications meet their business goals. Quality and satisfaction are the biggest game changers to find acceptance among new clients.