As technology advances, businesses increasingly rely on IT outsourcing to access narrow and specific expertise. According to Grand View Research, the business process outsourcing market is projected to hit $525 billion by 2030, indicating the growing reliance on offshore development models. For long-term, complex projects like Big Data initiatives or AI/ML development, establishing an offshore development center (ODC) has become a strategic solution since this model ensures continuity, deep domain expertise, and the ability to manage iterative and complex development cycles.

In response to the steadily growing demand for offshore software development — with its market expected to reach $112.6 billion by 2030 — this guide outlines time-tested practices for setting up an ODC and provides expert insights to overcome common challenges.

What Is a Dedicated Offshore Development Center?

To put it simply, an Offshore Development Center is an office set up in a foreign country that houses a team of technical specialists and optionally, functional departments, as well as any other required employees. It is essentially a full-fledged branch of an organization in a different geographical location.

What is an offshore development center

An offshore software center can be considered as a company’s technical representative office. This means that it functions under the same brand and shares the parent company’s corporate policies. The teams in the ODC basically function as in-house teams, bringing value to the company and following its core business objectives.

Although a company’s head office determines the final structure of its offshore office, Offshore Development Centers typically include the following roles:

  • Project Managers
  • Team Leads
  • Software Engineers
  • Front-End and Back-End Developers
  • QA Experts (Manual and Automation)
  • Web and UI/UX Designers
  • Tech Writers
  • The HR team and other office departments such as recruiting, marketing, etc. (optional).
Olexandr Boyko: Delivery Director at SPD Technology

Olexandr Boyko

Delivery Director at SPD Technology

“Having operational staff in Offshore Software Development Centers is optional. You can delegate accounting, legal support, HR payroll, and recruitment functions to a local vendor. Besides, it is beneficial to have a vendor as a partner as they can provide you with additional insights on the specifics of doing business in that country and help you with legal compliance.”

The offshore software development model is very appealing for both start-ups and well-established IT companies, as it enables them to set up a business presence in another country and have lower expenses at the same time. 

Benefits of Building Your Own Offshore Development Center

The results of the 2023 Deloitte Global Shared Services and Outsourcing Survey show that 97% of respondents seek cost reduction as a key objective for their outsourcing initiatives. However, there’s still a shift from cost-focused goals toward the search for strategically and technology-enabled operations. In fact, over 75% of respondents stated that they are broadening their scope of services to include more knowledge-intensive processes. The ODC is a perfectly suitable option to accommodate these objectives.

The benefits of your own offshore development center

Lower Cost of Software Solutions Delivery

Cost reduction is a top reason to use outsourcing services in the first place, according to the respondents of the Global Shared Services and Outsourcing Survey. In addition to the opportunity to pay lower employee salaries for the same level of expertise, you can expect savings in other expenditures such as payments for office rent, IT infrastructure-related expenses or even taxes. This results in a reduced price tag for your software product’s development.

Access to a Wide Talent Pool

Operating in a country with a developed offshoring market, you can tap into a massive talent pool of skilled IT professionals. When a country becomes a well-known offshoring and outsourcing hub, it attracts even more professionals capable of working with the latest technologies. It, in turn, increase your chances of setting up a top-tier development team. 

We, at SPD Technology, have numerous success stories of providing highly specialized talent to our clients from different parts of the globe. In one of our cases, we developed a B2B Legaltech Solution for a LATAM Startup, significantly strengthening and dramatically expanding their business presence in the LegalTech market of their region.

IP Rights Protection

Some other offshore development center benefits also include lower risks associated with intellectual property (IP) rights. In the dedicated development center model, you will be required to collaborate with a third-party organization only while setting up your ODC, and no outsiders will have access to the product during the development process.

Control and Engagement

Every expert in the ODC will be a part of your team. They will act just like your in-house team, the only difference being their location. You can set up your management processes exactly the way you find reasonable, and expect higher employee engagement into your project since they have a strong attachment to your company. Speaking of visibility, you can set up reporting processes under your requirements, and keep your finger on the pulse of the project.

Offshore Development Center vs Dedicated Team: What Are the Key Differences?

Although both the terms are often used interchangeably, there are some distinct differences between the two — let’s break them down!

Setting up a dedicated development team means hiring external specialists to boost the development and deployment of your software solutions, quickly scale up the project, and achieve higher cost-efficiency. These experts continue to be the employees of your offshore software development partner and work with you only for the duration of a certain project. Your partner is responsible for meeting the deadlines and achieving targets. When the project is completed, the development team moves on to the next project, tackled by your provider.

Thus, hiring an outsourced team is a great choice for one-time projects, for example creating a website or Proof of Concept and MVP development. Just like we did in one of our cases, creating a computer-vision powered API for an Israeli-based pet care mobile solution. 

In an offshore development center-based model, you are the employer of the entire team, as they are a part of your company. Nonetheless, you may need help from a local technology partner to form the team and set up an office. Your attitude will need to be more committed as compared to the scenario when people work with you on a temporary basis, and the results will depend on your team’s efforts. Let’s compare the two approaches on the following key points. 

Offshore development center vs dedicated development team

Commitment

Being part of the project, software developers who work for product companies typically show more dedication and interest in the outcome of the project. With the Offshore Development Center approach, you have higher chances of attracting people with a product mindset who thrive on being part of something great. That said, you may come across outsourced developers with a high level of engagement too, but you can certainly expect more commitment from employees with an ODC.

Cost Efficiency

The remote dedicated team option is probably more cost-effective, but with the limitation, your project is not going to scale much. The ODC requires up-front investments and additional time to assemble a team of experts and set up a properly functional office. However, in the long run, you can expect a higher Return On Investments (ROI) from it.

Management

You do not have any direct influence on the team of your outsourcing partner. The PMs on the side of your service provider can change the team composition or shuffle particular team members between different projects. With an ODC, you are in complete control of the management and decision-making.

Offshore Development Center Models

Now, let’s compare the two most common engagement models for opening an ODC, each of them has its distinctive advantages for different business scenarios. 

Dedicated Development Center (DDC) Model

With the DDC model, the ODC operates as a subsidiary of the parent company. All the offshore team members are full-time employees of your organization, the only major difference being that the business unit’s operations are based overseas. This kind of ODC includes an on-site group of senior employees to make all the key decisions and manage the office. The development, testing, and execution are provided by local experts. 

  • In a DDC model, an organization sets up a dedicated development center in a foreign location, often referred to as an offshore development center (ODC).
  • The client has full control over the team, project management, and tasks. The offshore team works exclusively on the client’s projects.
  • This model is more suitable for large enterprises. For instance, General Electric established its India-based ODCs almost three decades ago.

Build-Operate-Transfer (BOT) Model

An offshore software development center built according to the BOT (Build-Operate-Transfer) is a business arrangement where a company (the client) partners with a service provider to establish a dedicated offshore development center. The name of this ODC model corresponds to each of the stages of its setup. 

Built-operate-transfer offshore development center model
  1. Build. The stage involves establishing the physical infrastructure, recruiting skilled personnel, and creating the necessary operational and technical frameworks.  
  2. Operate. During the operational phase, the ODC is fully functional, and the service provider manages its day-to-day operations. The client, while maintaining some level of control, relies on the service provider. 
  3. Transfer. At this stage, the ODC is fully transferred to the client, usually after the established unit has proven its effectiveness and all the operations are running seamlessly. 

With this approach, you can focus on the marketing of your product or working with your in-house teams, while the ODC will perform a certain part of your product development.

  • In a BOT model, a service provider establishes and operates an offshore development center on behalf of the client for a specified period.
  • The client benefits from the provider’s infrastructure, resources, and expertise during the “build” and “operate” phases.
  • After a predetermined period or project completion, the client has the option to transfer the operations and team to its own entity or continue with the service provider.
  • Although this model is more suitable for start-ups, as well as small and mid-sized companies, it can be leveraged by large corporations as well.

New to software development outsourcing? Feel free to read our guide on 6 Tips to Help CTOs in Outsourcing Product Development.

When Do You Need to Set Up Your Offshore Development Center?

In this section, we will discuss the most common scenarios, when the ODC model is the best fit.

When do you need to set up an ODC

The Project Scope is Large

For a minor project, like creating a simple mobile app, you can easily go for another tactic, for example, opting for project-based mobile app development services. However, when you are building something massive that requires continuous support and updates, for example, an enterprise application for a Fintech industry leader, you may find the ODC approach more suitable. After assessing the project requirements to define the project scope, time, and cost estimates, set up a dedicated offshore development center, and follow your goals!

You Need a Large and Diverse Team

As mentioned previously, if you require 40 or more experts in your team, you should certainly consider setting up an Offshore Software Development Center.

Olexandr Boyko: Delivery Director at SPD Technology

Olexandr Boyko

Delivery Director at SPD Technology

“While developing a complex solution, you are likely to be working with diverse, and sometimes hard-to-come-by Machine Learning, Data Science, and Cybersecurity experts. It would be a good idea to follow the ODC model and have those experts under one roof, which could be problematic with the other outsourcing options.”

You Are Building Security-Sensitive Software Solutions

When your project contains substantial security-sensitive data, such as financial information or personal customer information, a data breach can entail devastating reputational and financial consequences. Hence, if you have a security-sensitive project and require a powerful cybersecurity team, the Offshore Development Center model could be a better fit than the other outsourcing approaches. Nevertheless, you can also have an in-house cybersecurity team as an alternative.

Where to Establish an ODC in 2025

Often, the financial cost of building your offshore dedicated center will primarily depend on your employees’ salaries and rental costs. However, you still shouldn’t be guided by financial aspects only. When choosing the best destination to run an offshore development project, consider such factors as: 

  • Geographical proximity to your headquarter 
  • Time zone differences 
  • Cultural compatibility
  • Infrastructure and connectivity 
  • Political and economic environments 
  • Legal regulations for foreign investment 
  • Cost beyond labor. 

Now, let’s take a look at the most popular regions, suitable for opening an ODC.

Asia

Among the Asian countries, India remains the prime destination for offshore development center services. According to Statista, the size of the IT outsourcing market in India is projected to reach US$10.51 billion by the end of 2024. Additionally, India remains the country with the most competitive salaries for software solutions developers.

Another top IT country in this region is China. The revenue in its IT outsourcing market is expected to reach US$28.76 billion in 2024. There are predictions that this number will increase with an annual growth rate (CAGR 2024-2028) of 9.74%, resulting in a market volume of €38.13 billion by 2028.

Eastern Europe

This region is a reasonable alternative to Asia, with more than one million IT experts available. Ukraine and Poland have the biggest talent pools in this region, with Ukraine alone having nearly 1000 software development companies, according to Clutch.

Poland is a great place to open ODC, as it has approximately 525,000 software engineers available to take on your project, according to the Future of IT 2023 Report, and its IT outsourcing market is projected to reach US$3.05 billion in 2024.

Ukraine is a standout country in the Eastern European region, with approximately 363,000 IT specialists, and additionally 25,000 IT experts graduating every year.  While the annual average salaries of software developers in the US constitute nearly $120,000, in Ukraine you can find experts with the same level of expertise in the $60,000 salary range. Additionally, Ukrainian software engineers have abundant experience in working remotely and operating as part of ODCs, and 70% to 80% of them (according to the number of different surveys) have an intermediate to advanced level of proficiency in English.

How to Set Up an Offshore Development Center

Now that you know the answer to the question “what is ODC”, it’s time to figure out how to build one. Setting up an ODC is a multifaceted process, requiring phased approach and attention to multiple factors. While the process may differ for diverse companies depending on their business objectives, we offer to focus on several points that are common for everyone.

How to set up an offshore development center

Identifying Core Goals and Specifying Functions

Identifying core goals while setting an ODC goes beyond general objectives like cost reduction or filling up the expertise gap. To grab the full potential of an ODC, businesses must decide whether the center will handle specific functions such as software engineering, AI/ML solutions development, Big Data processing, or data analytics. This brings clarity for understanding required technical expertise, expected scalability, and necessary technology. The example of goals are reducing time-to-market or providing 24/7 operations.

To clearly outline the goals, we recommend conducting stakeholder meetings, workshops, and strategy sessions. This will not only allow businesses to get a detailed needs assessment but also prioritize those needs based on ROI. As a result, the ODC becomes a value-driven enterprise and not just a function-delivering department. 

Selecting the Right Location

For an ODC, location selection is critical to tapping into talent while balancing costs and operational needs. The specifics include evaluating the local IT ecosystem, availability of skilled professionals in niche areas like AI/ML or data analytics, language proficiency, and cultural compatibility with the parent organization. Time-zone differences also play a vital role as, for example, regions like Eastern Europe are preferred for their strong IT presence and manageable time overlap with Western countries.

We recommend investing time into thorough research and benchmarking to successfully choose the preferred location. The research must be focused on the analysis of industry reports, talent availability, and cost comparisons between different countries or cities. Another crucial aspect to focus on is the legal environment in the countries of choice as data security, tax benefits, and intellectual property protection laws can contradict or, on the contrary, be beneficial for your requirements. 

Choosing the Engagement Model

To regulate the relationship between the parent company and the offshore team, it is vital to choose the fitting engagement model for an ODC. You need to determine whether you want to work according to a dedicated development center model, a BOT model or any other type of outsourcing. 

To choose the right model, we suggest assessing the organization’s level of control, flexibility, and budgetary constraints. Involving stakeholders is essential here to assess how a specific engagement model will fit into each of these factors. For example, during a collaborative assessment, stakeholders may choose the dedicated team model as it provides full control over the offshore team and is ideal for long-term projects requiring deep integration with the parent company’s processes. On the other hand, if stakeholders decide to focus on deliverables rather than daily oversight, they may opt for a BOT model.

Establishing a Governance Model

An ODC requires a robust governance model to manage processes, ensure alignment with organizational goals, and maintain operational efficiency. Specifics include defining reporting structures, decision-making protocols, and performance evaluation frameworks. A well-defined governance model ensures clear communication between onshore and offshore teams and aligns the ODC’s activities with the parent company’s strategic vision.

From our experience, the governance model can be established by creating a clear hierarchy of responsibilities and accountability. This includes appointing project managers, defining escalation procedures, and implementing KPIs to measure success. Plus, we would also recommend setting up a steering committee with representatives from both onshore and offshore teams as this can significantly contribute to smooth governance and issue resolution.

Setting Up Infrastructure and Tools

To make the collaboration between an ODC and a parent company seamless and productive, stakeholders must take care of infrastructure and tools. This includes state-of-the-art IT infrastructure, secure data environments, and project management tools. In case you want to realize AI/ML or Big Data projects, specifics may be more demanding and involve specialized hardware, cloud platforms, and analytics software.

The best approach here will be to evaluate the technical and operational needs of the ODC to see what investment it requires. From our experience, this evaluation is best done during continuous meetings with stakeholders. During these sessions, you will most likely find out the specific investment you need to make in secure networks, VPNs, and compliance with data protection laws alongside project-specific tools for coding, testing, and analytics. Additional tools that require budget allocation might be Jira, Slack, Microsoft Teams, or similar to ensure seamless collaboration and progress tracking.

Partnering with a Local Facilitator

The cooperation with a local facilitator can simplify the process of setting up and managing an ODC. Facilitators assist with navigating local laws, hiring talent, and establishing infrastructure. They are especially useful in regions with complex regulatory environments or when entering a new market without prior experience.

To make sure your ODC goes through a smooth establishment, we recommend looking for a facilitator with a good reputation. Here, industry networks or referrals can help to find the suitable one. To ensure this, we suggest evaluating the experience of candidates, checking their track record and expertise in the specific region and industry. Once you choose an ideal facilitator, define the scope of the partnership with them and establish clear agreements to outline expectations, service levels, and confidentiality.

Offshore Development Center Challenges & Risks

The right vendor can help you avoid the risks and challenges mentioned in this section, however, you should still be aware of the most common roadblocks you may face.  

Contradictory Pieces of Advice

Opening an office in a foreign country usually requires that you consult with several law firms, accounting specialists, and financial advisors. At the same time, they may provide you with contradictory information. To protect your business from the risks of misleading advice, you should find a vendor that has proven experience in the region’s IT industry to avoid this potential problem.

To navigate these legal, financial, and regulatory contradictions, we opt for:

  • Engaging with local law firms that specialize in international business law to navigate legal requirements, necessary licenses, and local regulations.
  • Collaborating with accounting and tax professionals who understand the local tax laws and help navigate corporate taxes, employment taxes, etc.
  • Familiarizing yourself with local employment laws and regulations, including hiring practices, employee rights.

Recruitment Challenges

Hiring the necessary IT experts in the regions known for their IT talent, such as India or Eastern Europe, often stumbles upon a competitive job market, making it difficult to attract and retain the most suitable candidates. Plus, when it comes to finding professionals with niche expertise in areas like AI/ML, Big Data, or IoT, the recruitment process can become dramatically time-consuming and resource-intensive since these technologies evolve faster than IT specialists become proficient in it. The process becomes even more complex because of language barriers, differing qualifications, and assessing candidates’ technical proficiency and cultural fit.

In case of any challenges connected to the recruitment process, we suggest:

  • Partnering with local recruitment agencies or facilitators who have a strong understanding of the talent market to accelerate the search.
  • Offering competitive salaries, benefits, and career development opportunities to attract top-tier talent. 
  • Using targeted recruitment strategies, such as leveraging university partnerships or hosting hackathons, to identify skilled professionals early. 

Management Challenges

Time-zone differences, communication barriers, and the complexity of aligning the offshore team with the parent company’s culture are unique challenges connected to managing an ODC. The failure to navigate those can result in misaligned goals, lack of visibility into the team’s activities, and loss of productivity issues. 

To ensure effective management, we advocate for: 

  • Using platforms like Slack, Microsoft Teams, and project management tools like Jira to bridge the gap between onshore and offshore teams.
  • Conducting regular check-ins, virtual meetings, and team-building activities to foster engagement and alignment. 
  • Assigning dedicated project managers or liaisons to oversee the offshore team and ensure smooth coordination. 
  • Documenting processes and setting up clear performance metrics to further enhance accountability and transparency.

Need more actionable tips for remote software development team management? Find them in our detailed guide! 

Legal Challenges

The legal regulations and business policies of a foreign country can be a major obstacle in Offshore Development Centers setup and operations. These obstacles include navigating local employment laws, ensuring compliance with tax regulations, and protecting intellectual property. Once failed to comply with them, businesses risk to face penalties, operational disruptions, or reputational damage.

To mitigate legal challenges, we encourage businesses to:

  • Engage local legal experts or consult with specialized legal firms to understand and comply with regional regulations. 
  • Draft straightforward contracts that cover IP protection, confidentiality, and non-compete clauses is essential. 
  • Ensure compliance with international standards like GDPR or specific industry-related ones to safeguard operations. 

Security Challenges

Just like with any outsourcing and offshoring arrangement, you should always be aware of possible security issues. They primarily revolve around protecting sensitive company data and intellectual property as they are a frequent target of data breaches and cyberattacks. 

To prevent security issues from happening, we suggest:

  • Implementing robust cybersecurity measures, including VPNs, encrypted communication channels, and regular security audits. 
  • Limiting data access to authorized personnel only and setting up two-factor authentication to add an additional layer of protection. 

Cultural Differences

Even under best-in-breed management and communication approaches, different cultural values are always a challenge when people from different countries work together. The most common issues that come up because of such differences are miscommunication, misaligned expectations, and reduced team productivity. For example, an offshore team can interpret feedback or deadlines differently based on their cultural norms. 

In order to navigate cultural differences, we prefer to:

  • Conduct training for soft skills to foster mutual understanding and respect to cultural sensitivity.
  • Encourage open communication and provide opportunities for cross-cultural interactions (for example, virtual team-building activities or exchange visits) to bridge gaps. 
  • Document processes and expectations clearly to mitigate differences in work styles.
Olexandr Boyko: Delivery Director at SPD Technology

Olexandr Boyko

Delivery Director at SPD Technology

“For instance, if you are from the US and want to set up an R&D center in Ukraine, Poland, Romania, or any other Eastern-European country from a cultural perspective, it could prove to be a better idea than opening an ODC elsewhere. While there still may be some bumps in the road, the possibility of friction associated with cultural differences will be dramatically reduced.”

Why Building an Offshore Development Center with a Trusted Vendor Is Wise

Dealing with a bunch of challenges connected to development outsourcing at once can be extremely difficult for a business, particularly when its primary focus is on industry-specific tasks and IT functions are not a core competency. This is where a vendor becomes of help as it can help manage multiple issues that may come up. 

Cost-Effective Setup and Management

Vendors have pre-established expertise in sourcing talent, setting up infrastructure, and navigating local regulations, which eliminates the need for businesses to invest money in unfamiliar processes. However, those are not the only factors that contribute to cost-effectiveness. Since ODCs are usually set up in countries with developing economies, the specialists often require lower wages, and local taxes may be beneficial for opening businesses (e.g. lower overall rates and tax incentives for foreign investment). This can considerably reduce operational and compliance costs while also ensuring top-tier services.

Reduced Operational Risks

Building an ODC independently in a foreign country comes with risks such as compliance issues, talent retention challenges, and unforeseen cultural or economic hurdles. Once partnered with a vendor, you gain the help in mitigating these risks by offering local expertise and proven processes. Vendors are well-versed in regional laws, employment regulations, and industry standards, ensuring that the ODC operates within the legal framework and adheres to best practices. 

Reduced Management Overhead

Managing an offshore team can be resource-intensive, requiring significant time and effort to oversee recruitment, compliance, infrastructure setup, and ongoing operations. However, with a trusted partner, local to the country where the ODC is located, you will have access to local specialists, proficient to cover each of these factors. In case of project supervision in particular, vendors often offer dedicated account managers or project leads, who act as a bridge between the onshore and offshore teams. This streamlined communication reduces the burden on the parent company’s management team while ensuring that the ODC remains aligned with business objectives.

Consider SPD Technology as Your Offshore Development Partner

With 18+ years of experience and more than 100 projects completed, we helped many international clients to outsource experts for covering the most sophisticated development needs. Our team is known for: 

  • Proven Expertise in Offshore Development Centers: Our skills and methodologies ensure seamless integration of the offshore team with your organization, delivering tangible results aligned with your objectives.
  • Expertise in Technology and Innovation: We excel in cutting-edge technologies, including AI/ML, Big Data, IoT, and blockchain, enabling us to drive innovation for your projects.
  • Proven Track Record in Delivering Business Value: By focusing on your unique challenges and goals, we deliver tailored solutions that optimize efficiency, reduce costs, and maximize ROI.
  • Focus on Data Security and Compliance: We know how to ensure compliance with GDPR, HIPPA, OFAC, and PCI DDS, as well as set up role-based access, 2FA, and other protection methods to guarantee your data is always safe. 
  • Commitment to Long-Term Partnerships: SPD Technology believes in building collaborative relationships with our clients and fostering open communication, providing consistent support and adapting to your evolving needs.

Setting Up an Offshore Development Center for Pitchbook: Our Success Story

PitchBook, a global leader in investment data and analytics, required a trusted IT partner to help them create the foundation to support its vision of delivering high-quality, data-driven insights to the investment community. The company turned to us for creating a hub for executing their project and it resulted in a decade-long, fruitful partnership. 

Business Challenge

PitchBook aimed to enhance the capabilities of their investment platform with AI/ML and data analytics to provide more precise and predictive insights helping investors make informed decisions. The project required continuous innovation, handling vast and complex data sets, and maintaining scalability and security. To execute the project, we needed to assemble a skilled team from scratch to address these needs and find a strategic solution.

SPD Technology’s Approach

The project scope was so large that after a thought evaluation and several strategy sessions, PitchBook decided to set up a dedicated ODC with us. We were honored with such a trust, and designed an ODC to function as an extension of PitchBook’s core team, integrating seamlessly with its operations and objectives. Key steps in the process included:

  • Team Assembly: A diverse team of AI/ML specialists, data analysts, and software engineers was recruited to address PitchBook’s technological demands. The team brought a deep understanding of data science and algorithm development.
  • Infrastructure Setup: The ODC was equipped with the necessary tools and technologies to handle large-scale data processing and AI model training. A particular attention was paid to securing a working environment with 2FA and role-based access.
  • Agile Development: We used Agile methodologies to ensure flexibility and responsiveness. This approach allowed us to establish iterative development and continuous integration.

Value Delivered

The establishment of the ODC delivered allowed our team to be fully focused on developing the advanced system capabilities for PitchBook, including working on AI/ML models, enabling precise data analysis and ensuring predictive insights for its platform users. Such a form of cooperation proved to be fruitful so that we continue to work on several projects with the client to this day.

Fabrice Forget: Chief Product Officer, PitchBook

Fabrice Forget

Chief Product Officer, PitchBook

“We feel very lucky to have found SPD Technology as our partner. Over the last 10 years, they have totally surpassed our expectations, and day after day we have received incredible value from the team. Here is the secret sauce, just put together your best ideas in your requirements and there is nothing they can’t do!”

Conclusion

Establishing an Offshore Development Center is an effective strategic move for your business to harness global talent, reduce costs, and accelerate project timelines and to grab opportunities with advanced technology, such as AI/ML, data analytics, IoT, and more. Benefits of setting up an ODC are lower development costs, access to global talent, IP right protection, and overall control over projects. Building an offshore developetn center is a strategic-wise decision for large-scale projects requiring continuous support, updates, and diverse expertise, such as enterprise applications or security-sensitive software solutions. 

Still, to be fully prepared for setting up an ODC, it is important to know what challenges to expect. The most common are contradictory pieces of advice as well as recruitment, management, legal, security challenges and cultural differences. However, the whole process becomes much easier, when done with a trusted partner.

SPD Technology can become your partner, as we can open an ODC for you via the BOT model or help you build an Offshore Development Center via the Dedicated Development Center model, leveraging our powerful recruiting department. Get in touch with us today to start building a powerful and compliant offshore development center! 

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FAQ

  • What is an Offshore Development Center?

    Offshore Development Centers are dedicated and often remote facilities that serve as an extension of a company’s onshore development team. It is a model commonly used in the IT and software development industry to leverage cost advantages and build remote teams making the best choice in a global talent pool.