article image

What The Hell Are Overseas Development Centres and Why Should You Set One Up?

The need for software developers and engineers has risen dramatically in recent years. Google and Facebook, for example, have established offshore development centres in a number of nations. ODCs allow businesses to tap into a wide pool of competent developers outside of their native nation. It also allows them to gradually grow into global markets by recruiting locally rather than establishing a subsidiary.

Overseas Development Centres are what you need to skill up your software development muscle. If your organisation is experiencing a shortage of competent developers, establishing an ODC will ensure that you have access to a big talent pool. It also provides you with an advantage over competitors or other businesses.

Do you think that setting up your own overseas development centre (ODC) is too much work? Think again.

 

What is an overseas development centre?

Overseas Development Centres (ODC) refers to the setting up of an offshore centre where you have your in-house developers working for you. It is a practice adopted by companies aiming to improve the quality of their products and services.

One of the earliest adopters was Microsoft, which set up an ODC in Hyderabad, India in 1988. Since then several other large organisations have followed suit.

An ODC helps you in tackling the low talent pool at home, high labour costs, and other such factors which might be proving to be a hindrance to the growth of your company.

The business benefits associated with ODCs are many:

Low labour costs: The majority of companies set up ODCs with the aim of saving money. An overseas development centre (ODC) allows you to gain access to extremely skilled technical talent at a fraction of the cost of hiring staff locally. When you hire offshore developers, they charge you less than what it would cost if they were working from the same location as you.

Reduced risk: Setting up an ODC is a good way to mitigate risks that arise when a project is outsourced. You get to keep control over the project, rather than outsourcing it completely and potentially losing communication among your team members.

Flexibility in hiring: With an overseas development centre, you can hire a developer on an hourly/fixed-price contract as well as on a full-time basis.

 

Advantages of Setting Up An ODC

Setting up an ODC can help you cut costs and enhance productivity. If your startup is growing, you may have already exceeded the capacity of your current office infrastructure. Outsourcing some of your work to an ODC will help, but your business could end up paying more for the privilege.

Before you decide to call it quits on your ODC, consider setting one up yourself. Here are four reasons why:

Lower costs: A well-managed ODC in India can lower your operating costs by 40% as compared to a similar set-up in the United States or even Europe.

Large talent pool: India is home to a large pool of workers with skills ranging from software development to accounting and customer service. Plus they speak English fluently since it's taught at an early age.

Access to state of the art technology: India has built world-class infrastructure over the years and boasts a robust telecom industry that offers high-speed internet services and quality landlines at affordable rates.

Lower risk: You need not take any risks with an ODC because you don't have to commit any capital investment or long-term contracts.

Faster turnaround times: If you're based in one country and your contractors are based somewhere else, they can work while your team sleeps — or vice versa. This could allow you to get more done faster because there's no lag between shifts.

 

Why Your Organisation Should Consider Setting Up An ODC

The benefits of setting up an ODC are obvious. You get to expand your business and reduce costs all in one go. At the same time, you can also enhance your talent pool by tapping into the specialised skillsets available in other countries.

What’s more, you can position yourself to be a global organisation. That will help enhance your brand image and boost your competitive edge in the marketplace.

Now that you understand what an Overseas Development Centre is and why it’s important to set up one, start the process of having your own ODC.

 

Conclusion

Setting up an ODC will help you tap into a bigger talent pool, providing the organisation with better access to local developers that the competition does not. It is likely to provide many immense benefits for businesses in the coming years.

Setting up an overseas development centre isn't as hard as you might think. If your company wants to become a global player, you need to set up an ODC. Contact us and within 24 hrs we will help you in building your own ODC here in India.

 

We hope that this article provided you with the information you need to understand what overseas development centres are and how they can benefit your business.