Offshore Development Center (ODC): Why is it Matter to Your IT Company

The Offshore Development Center (or ODC) matters to IT companies. It’s basically a location where software engineers can test and develop applications. These are located in countries around the world. The advantages of developing applications in an ODC include lower costs and better access to local talent pools.

Read on to learn more about what it is and how it can benefit your IT company.

Offshore development center team member
photo credit: ThisIsEngineering / Pexels

What is an offshore development center?

An offshore development center is made up of a group of software developers who work in a foreign country, but for the same company. The ODCs are usually located in countries like India, China, the Philippines and Russia. They’re owned by the company that hires them and have a set of strict policies that ensure quality output from their workers.

The benefits of utilizing an ODC include:

  • Allowing you to focus on your core business instead of worrying about managing employees, maintaining servers, or dealing with other aspects of technology management;
  • Providing access to higher quality talent than would otherwise be available locally; and
  • Helping you enter new markets at a lower cost than if you were doing it yourself

How does an Offshore Development Center function?

An offshore development center is a specialized IT department that focuses on developing software and hardware products in countries with lower labor costs. The center has a local manager, who oversees its operations and hires highly skilled workers from the country where it operates.

The goal of an ODC is to take advantage of these lower labor costs while still providing quality services to your company’s clients. You can expect:

  • Faster turnaround times for new product releases
  • Less overhead costs than if you were to develop them locally yourself (including employee salaries)

Team of software developers

Benefits of having an offshore development center

Reduce costs

One of the main benefits of hiring IT professionals from an offshore development center is that it can reduce costs associated with travel and accommodation. You will also save money by hiring cheaper IT professionals from a lower-cost country. You can also expand your market by hiring IT specialists from the target country.

Expand your market to a foreign country

Offshore development centers can help you reach a new market and expand your customer base. They’re also an excellent way to increase revenue, reduce costs and time to market, improve product quality and generally grow your business.

Get On-demand Scaling and Tech Backup

Offshore development centers are a great way for your IT company to get the right talent, at the right price. When you have an offshore development center, you can scale up and down as needed and keep your costs down by using tech backup. You also don’t have to worry about getting stuck with under-qualified, over-priced recruits who can’t do their job.

Get Extended Hours of Work Coverage

Offshore development centers can help you deliver projects on time. They are available 24/7, 365 days a year, which means that you don’t have to wait until your next vacation or holiday season to get the help you need.

Offshore development centers offer extended hours of work coverage because they have access to all kinds of experts who are ready at any given moment with their hands on deck if needed by their clients or customers. So, you won’t have to waste valuable time waiting around.

Allows you to focus on the core business development process

With an ODC, you can focus on other business development processes like marketing and sales while reducing costs by outsourcing your IT needs. You’ll also be able to expand into new markets more easily since there are no language barriers to consider—you only need staff who speak English and the local language like Spanish or French.

Offshore software developer

Helps with Product localization

An offshore development center can help with product localization. When you need to localize your product for a specific market, hiring an offshore team can make this process easier. Localization can include a lot of things, including translating the content from English into another language, like Spanish or Chinese. Translators translate the text into their native language, then back again into English so you know how it will read in another country’s language (called “back-and-forth translation”).

Have Greater Control Over Operations

Offshore development centers offer greater control over operations in two ways:

  • You can control the quality of the product: If you are looking for an offshore development center that offers high-quality services, then it’s important to make sure that it has a good reputation and is credible in its field. This way, you will know that all your work is being done by professionals who have years of experience working with all kinds of software projects and are familiar with the requirements and deadlines.
  • You can control cost: Another important factor when choosing an offshore development center is its pricing policies. This includes not only salary but also other expenses such as travel costs (if required) for each developer or designer hired by your organization, accommodation costs, insurance coverage, etc.

Get Access To A Skilled And Diverse Talent Pool

An offshore development center allows your company to hire skilled developers, testers, or other IT professionals from around the world. They are usually available 24/7 as there are people working day shifts as well as night shifts. This means that they are always available when your business needs them the most. With this kind of flexibility, it’s no wonder why many companies are choosing to operate an offshore development center.

Deliver Projects On Time

An offshore development center is a great help to your IT company if you have multiple projects. It can help you deliver them on time, on budget and with the right scope.

In fact, an offshore development center can make sure that the software development project is completed in a timely manner and within budget constraints. The reason for this is because it has access to skilled professionals who are experienced in developing software applications or websites for different companies around the world.

Software development team


If you have an offshore development center, your company is not alone. There are many other companies like yours that are also experiencing the benefits of moving their services to an offshore platform. There are hundreds and thousands of ODCs worldwide operating in different countries and industries – from IT to finance and pharmaceuticals – making it a great opportunity for any business looking to outsource development work!