According to Statista, revenue from the IT Outsourcing market is projected to reach US$541.10bn in 2024. This figure is expected to show an annual growth rate (CAGR 2024-2029) of 8.48%, resulting in a market volume of US$812.70bn by 2029.
There are three offshore development models, including nearshore, offshore, and onshore. Among other types of outsourcing, onshore accounts for a huge percentage, within 40% over nearly a decade. In today’s blog, we will explore the concept of Offshore Development Centers (ODCs), highlighting their key advantages and why companies decide to outsource software development to ODCs.
1. What Is Offshore Development Center (ODC)?
An ODC (Offshore Development Center) is a software development center located in another country that can help reduce the in-house cost and workload significantly. Offshore development centers are usually located in India, China, the Philippines and Vietnam where the cost of living is much lower. Besides, these countries also have political stability and available resources that are suitable for setting up and integrating the process of an ODC.
2. 5 Key Benefits of Choosing Offshore Development Center
2.1. Cost Reduction
Cost-effective is the main benefit of an offshore development model.
As mentioned above, ODC is often placed in countries with lower living costs in comparison to where the headquarters are located. This is how businesses can dissimilarly utilize the cost of recruitment, maintenance, infrastructure, and other benefits for full-time local employees.
For example, the remote programmer’s salary in many countries in Asia and Eastern Europe is much lower than the same in North American and Western European countries. With the same number of skilled professionals in the team, the costs incurred are much less. When you can build software for less, you sell it for less and it gives you a costing edge!
| Region | Average Hourly Rate (USD) |
| North America | $60 – $120 |
| Western Europe | $50 – $90 |
| Eastern Europe | $30 – $60 |
| Asia | $20 – $50 |
2.2. Improve Quality With The Best Talent
Choosing the offshore development center service allows you access to a wide variety of talents around the world with the latest technology so that international standards are still balanced by the quality of the projects. The efficiency of the remote workers under ODC is much higher than the on-premises teams.
If you adopt the most effective ways of how to manage remote teams efficiently, you can increase the productivity of your ODC team significantly.
In case your business is not IT-focused, dealing with your IT department can require tremendous operative costs just to handle a completely separate area.
Thus, if your IT department is not that good in software technologies, having other experts who are experienced, skilled, and well-equipped will not only reduce your cost but also bring out the highest quality possible.
2.3. Market Expansion
If you want to reach the overseas market, setting up an ODC overseas boosts your company’s local reputation. Being present locally makes your brand more trustworthy and accessible to new customers, increasing sales.
Not only does it bring your enterprise closer to a specific market, but it also helps to localize your products to meet the demand of customers in that market. An ODC helps you adapt your products to fit the local market’s needs and preferences. This makes your offerings more relevant and attractive to local customers.
An ODC, especially when integrated with large local companies, acts as a physical presence in the target market. This presence helps in minimizing logistics and shipping costs associated with sending products or services from your home country. By reducing these overheads, your business can operate more efficiently and competitively in the new market.
2.4. 24/7 Dedicated Support
Continuous day and night work is possible and using the disparity in the time zone, the job can be done efficiently. The work is performed simultaneously with the help of offshore development activities, and with a high rate of productivity, the work can be completed sooner.
If you only have a local development team, the midnight execution would require your team to work additional hours. But with an offshore team that has a decent time gap (i.e., 4-6 hours) that enables for some overlap but also has some working hours outside of your local time, you can address problems that arose at the end of your business day and work on them outside your business hours.
Working with an offshore software development team in a separate time zone facilitates the execution of a 24-hour development cycle. This enables you to rapidly catch up with demands and modifications significantly impacted by real-time behavior, typical for globally used internet solutions.
2.5. Easy To Manage And Scale
Another advantage of working with an offshore development company is that they ensure that all remote workers arrive on time and complete their work. This removes the worry of managing people from a distance. While you sleep, the management team oversees operations and provides you with simple, clear reports.
You can easily adjust the size of your development team based on your needs. Whether you need to reduce team members or change roles, you can do so without exceeding your budget. This flexibility is much harder to achieve when hiring and managing staff directly.
3. Choose InApps Technology As Your Offshore Development Company.
Recognized by Clutch as a top provider in Vietnam and Southeast Asia, InApps has completed over 200 successful projects with a 70% client retention rate.
Why set up ODC with us?
- Cost-Effective: Competitive pricing models and flexible scaling ensure efficient resource use and cost savings.
- Global Talent: Access to over 500 top-tier talents skilled in diverse technologies like Java, NodeJS, Python, and more.
- Client-Centric: Transparent communication, regular reporting, and a focus on long-term partnerships ensure client satisfaction.
- Comprehensive Services: Offering custom software development, dedicated ODC teams, and IT staff augmentation tailored to client needs.
- Innovation: Continuously adopting the latest technologies to provide cutting-edge solutions.
Let’s create the next big thing together!
Coming together is a beginning. Keeping together is progress. Working together is success.
