6 advantages of offshore development center over outsourcing
In the business process, we are all familiar with the term outsourcing and offshore development center. Outsourcing is a process in which a company hires another individual or company to Handle business activity for you in case you don’t have expertise and skill within your organization.But it is not an easy work.
Outsourcing is continuously facing challenges today.The captive model that is used by some organizations was developed to regulate provide ownership but in most of the cases, it is seen as only regular outsourcing relationship.Due to this, it has taken away the expected
Another business model that is gaining a lot of popularity is offshore development center[ODC] It is the process in which is aimed at establishment and maintenance of the software, project management.It tests, develops and deploys the software offshore with the benefit of having a core team and dedicated infrastructure.
offshore development model is more economical than simply outsourcing the project.The team is managed by local project leader following the instruction and expectation of clients.An ODC commercial Structure means that the client pays the fixed cost on monthly basis with an agreement to deliver Either one large projects or set of projects.An ODC also has yearly evaluation cycles to adjust rates if needed, assess total quality, align investment with the company overall budgeting process.
With the help of offshore development center, a model business can manage this team as natural Extension of their own and gain more visibility and control over costs.
The advantage of ODC include:
- A dedicated core team
- A dedicated area or facility which houses your corporate brand and culture
- A dedicated HR program
- A dedicated infrastructure
- A dedicated education and training program
- Dedicated ed security policy which adheres to the standards and requirements
Other advantages that ODC has to offer are:
As visibility and commitment are getting better day by day in ODC model the supplier can offer an improved commercial model
The total cost of the operation is reduced in ODC and customer should benefit from this saving
As flexibility is one of the features of offshore development center it allows rapid adjustment and keep the work moving the time spent in BIDS and RFPs/RFI is eliminated allowing more focus paid on producing value
Team education enhance quality control and modify focus
Knowledge program is better managed and executed, retained across the team and client recognition
In Spite of the fact that outsourcing is facing lots of challenges today, it is still an important part strategy for many enterprises and start-ups. Choosing ODC might prove to be an effective way which can bring agility into outsourcing relationship and in turn deliver a greater value and build the long-lasting relationships from both sides. Most of the outsourcing suppliers have gone with offshore development center which helps them to seek longevity in a relationship they wanted to seek.