What is ODC (offshore development center), benefits, models and how to set up an Offshore Software Development Center in Vietnam

Offshoring is an excellent software development strategy, particularly when it comes to cost reduction. When it comes to Offshoring, we can’t help but mention offshore development center, which is a type of outsourcing model that involves putting together an off-site team to work on a software development project. Besides, most projects won’t necessitate the kind of dedicated resources that a development team based in another country would. Hence, ODC is a frequent practice in large organizations. So, what is ODC? In this article, ArrowHiTech will give you a comprehensive overview of ODC. Let’s explore with us right now!

What is ODC? 

An ODC (also known as Offshore development center) consists of a development team with the office infrastructure and employees that includes administrative and support staff to complete the development process. A project manager (PM) is responsible for monitoring the offshore development center. In terms of infrastructure, working with an offshore software development center can help you save up to 60% on your software development project execution costs. Simply speaking, when it comes to software development projects, ODC is a secure and perfect location. Because it comes with methods that are specialized and tailored to the needs of any project. 

what is ODC

In general, ODC is considered as an offsite extension of your organization. Because the team composition and infrastructure installation are tailored to the client’s requirements and methodology. 

Besides, the main objective of offshore development centers is to offer scalable technology resources so that you can avoid unnecessary costs. Typically, the client company has direct oversight of offshore development center services through a project manager who interfaces with the team members responsible for implementation. 

What are Offshore development center models? 

#1. Contractor offshore development center model 

The first is the Contractor ODC model that is particularly well suited to the needs of small businesses. In this strategy, the main office will transmit requests or precise needs to the offshore development center. And, the contractor on the other side will choose a suitable team based on their requirements. Then, the chosen team will be in charge of a variety of responsibilities ranging from managerial to technical. Specifically, they have to design systems, update software, create new code, and so much more. 

#2. Customer ODC model

Coming to the second one named Customer ODC model. This model is widely used by big enterprises because they are large enough to handle a huge number of jobs. With this strategy, based on the customers’ needs or the main office, they will choose the right team. In this instance, however, the client will be responsible for far more tasks than those who choose the Contractor OCD Model. For more details, this can include everything from product research to analysis to team management, with the OCD team focusing primarily on coding.

#3. Software ODC trust 

This model is effective for people who require the highest degree of security. For instance, those whose program is unique and so requires rigorous confidentiality. 

what is ODC benfits

#4. Software ODC classic 

Software ODC classic is another name for the Contractor model, in which a committed team of qualified and certified individuals collaborates under the direction of a project manager. Plus, this offshore development center model is useful for projects that require a wide range of responsibilities. Specifically, updating and expanding older software, providing support, migrating platforms, or writing code.

#5. Software ODC branded 

In case you are seeking a ODC model that allows you to involve in and control the entire software development process, this is the option to choose. 

#6. ODC Full form

As previously stated, ODC Full form is also referred to as a private ODC or the Customer ODC model. 

Great benefits of Offshore development center

  • What is ODC if not a model that allows you to concentrate on your core business while outsourcing software development? Hence, they ensure stability throughout the project lifespan and scalability as the client’s demands change. 
  • An offshore development center is quite similar to a new office branch of a corporation, only it is located in another country. Its key benefit is that it speeds up development for large projects, particularly when more than 30 people are engaged. 
  • Moreover, for most businesses, outsourcing a software development project entails relinquishing some influence over the project’s direction and execution. However, with ODC, you will have complete control of every operation of the project. With offshore development center services, on the other hand, you have direct contact with the project’s execution team. In fact, having more control over a project means that resources are allocated efficiently to ensure the project’s success. In the end, this also means that project milestones are delivered on schedule.
  • Plus, an ODC is a specialized office setting with all of the amenities of a traditional workplace, including network security built in. As a result, moving your work off-site has no impact on the project’s security or efficiency. 
offshore development center model

Affordable cost

  • Furthermore, it also enables you to hire the best and most affordable developers from around the world. Vietnam is known as one of the most popular outsourcing destinations for successful software development projects. The reasonable cost of living in these places makes it easier to hire talented developers. However, product quality is the complete opposite of price, your project will be of the highest quality, helping you get the best outcomes. 
  • ODC helps your business localize your product well. If you want to bring your items into the international market, ODC is a good option. It not only brings your company closer to a certain market, but it also aids in the localization of your products to satisfy the needs of clients in that area. 

Risks and Challenges of ODC (Offshore development center)

Challenges of ODC

#1. Management 

With any project, you need to hire project managers, recruitment workers, office administrative staff, as well as developers, engineers, quality assurance testers, UI/UX designers, and other professionals. Hence, you must consider whether it is all worthwhile, particularly in terms of expense. So, hiring an affordable Vietnam offshore software development center like ArrowHiTech will surely help you achieve your objectives more effectively. 

#2. Communication

Because offshore development centers are a location where people can work remotely. As a result, if not handled appropriately, cultivating efficient communication between the client organization and the offshore workforce can be problematic. Thus, you will also need a dynamic project manager who knows how to handle remote teams. 

Using an ODC, on the other hand, allows for excellent communication between team members because they are all working on the same site. ArrowHiTech supports effective communication for successful projects by bringing together coders who speak English as a common language. 

#3. The differences of culture

No matter how well the client organization’s system is replicated at the offshore development center, differences in cultural values and business models will always be evident when working with foreigners. It implies not that they are wrong but people in different locations approach business in different ways. As a result, you need to attempt to create an integrated system that keeps the project’s identity while adapting to the unique aspects of doing business in that place.  

offshore development center

#4. Challenge of Legal 

If you are planning to launch a branch of your company in another country, you will need to examine the legal landscape and see if the country’s business rules are advantageous to your company. 

Risks of ODC 

#1. Security

For many firms, one of the most crucial aspects of offshore development center services is how to keep information secure despite the distance. Because there is a possibility of sensitive information being leaked. So, in order to reduce this danger, it is critical to incorporate network security into the offshore software development center’s architecture. Furthermore, you must keep in mind that storing all of your resources in a single location does not really protect you from all security threats. What matters is that you do a security risk assessment ahead of time and take steps to address the specific security concerns that your offshore development center faces. 

#2. Choose wrong location

Most importantly, you should look at the placement of your ODC carefully if you want to save money and boost sales. Besides, you should avoid visiting small towns with a scarcity of specialists in your field and limited potential.

How to set up an Offshore Software Development Center in Vietnam? 

Step 1. Knowledge transition 

In this stage of the project, you as the client need to establish a list of expectations and needs for the project’s completion. The IT infrastructure of clients should be accurately replicated by an offshore software development center. As a result, a replication of the client’s standards, techniques, and overall culture should be part of the knowledge transition process. In particular, only through a formal business agreement can an ODC be established.

Moreover, in order to avoid unintended disclosure of confidential information and project specifics in general, there should also be a security onboarding component. Thus, you should create a hierarchy for dealing with concerns and obstacles at work. In addition, each member should be aware of how and to whom to report any issues that arise in order for them to be resolved quickly. 

Step 2. Appoint key workers 

As we mentioned above, Offshore development center services include functionalities that make them feel more like an extension of the corporation than a separate entity. As a result, its structure frequently reflects the anatomy of the client’s company. However, it can’t lack some key workers. No matter what project, there must be a project manager who is in charge of the project’s whole life cycle, from planning to execution. The project manager also serves as a link between the organization and the members of the offshore development center, making them crucial to the project’s success.

As soon as you assign a project manager and an accounts manager to handle the project’s administrative aspects. After that, you will need to fill other positions including: developers, designers, software engineers, and technical writers. In particular, one advantage of having an ODC is that it allows you to swiftly scale your team up or down depending on the project’s current demands. 

Step 3. Set Execution target 

This stage is where the above-mentioned expectations are broken down into measurable milestones based on specified measurements. Moreover, to minimize any confusion during the project, the deliverables should be conveyed to the team members and specific tasks allocated. On the other hand, you also need to give each member in your team some time to adjust to their new surroundings. Following that, you must determine the project’s timeframe, as well as how to keep track of and report progress. Best of all, this could be accomplished by providing written reports, holding stand-up meetings, and so on. Before the project begins, you must make sure to finalize all of these aspects.

Common locations for offshore development centers you should know

#1. Vietnam offshore software development center 

In case you are looking for a location that includes a lot of ODCs with affordable cost, let’s consider Vietnam. Because the market is still relatively new, and many businesses consider Vietnam as a destination to do software development outsourcing business now and in the future. With 30-50 percent lower operational costs than India and China, Vietnam is a top choice for you. 

#2. India 

When it comes to offshore outsourcing or ODC, India is a household name for anyone. It is the pioneer in the global market, having been in operation since the 1980s with currently 3 million engineers.

#3. Philippine

The Philippines is one of the most favored countries when coming to the topic of ODCs. This is owing to its strong work ethics, cutting-edge infrastructure, and big pool of skilled workers. 

offshore development center benefits and models

 #4. Eastern Europe

Eastern Europe comes with a huge number of highly trained experts, low development costs. And, the necessary infrastructure, such as high-speed Internet connection. Besides, this location has traditionally been an offshore destination due to its favorable topography, short travel distances, and slight cultural differences. 

  • Poland

Polish ODC programmers are very advantageous due to low living costs, inexpensive tech education, and a high level of English.

  • Ukraine

With over 160,000 programmers across the country and annual market growth rates over 30%, Ukraine is also one of the best choices if you are seeking a perfect ODC. 

Want to work with ArrowHiTech – the reliable Vietnam offshore development center? 

Are you looking for a reputable ODC that can provide you with a high quality product with a reasonable price? Let’s consider ArrowHiTech. For more details, we formed a super-team from our pool of experienced developers within a week of starting the project. We have worked on a huge number of projects, forming specialized teams and putting in place the necessary infrastructure to support the development of mission-critical software. If you have a great idea in mind, don’t hesitate to fill out our CONTACT FORM about your possibilities and receive a cost-effective package that meets your requirements. With over 14+ years of experience in Offshore development center service, we will surely give you the best advice.