How to Set Up Your Own Offshore Development Center in 2023?

Setting up an Offshore Development Center (ODC) is an attractive proposition for many companies. However, it is not a decision that should be taken lightly. There are a number of factors to consider, such as cost, location, time zone, and talent pool.
An ODC can be a great way to get access to high-quality talent at a lower cost. However, there are a number of risks and challenges associated with setting up an ODC. In this article, we will explore the main considerations for setting up an ODC and offer some advice on how to overcome the challenges.

We are in the generation where every business is setting up New Heights. Irrespective of the nature there are so many things that businesses are considering to grow. The same is the scenario with development companies.

In earlier times usually, the companies were available in particular locations only. But now the scenario has been changed and offshore development companies are also in consideration. There are so many development companies around who look forward to setting up their own offshore development center.

They have so many questions in their mind regarding how they will be able to set up the same. If you also fall under the same agreement where you have no idea how you can set up your own offshore development center don’t worry and keep on reading till the end. This article will clarify all your doubts regarding the settling up of the Offshore development center. Keep on reading to know about it in detail!

About the Offshore development center:

Before we dive into any particular aspect it is important to know what the Offshore development center. Well, it is the office that is set up in a foreign country and has a team of software developers along with HR personnel and a project manager. There is a need for some employees as well. Do know it is a fully-fledged branch of the organization with its different geographical location.

It is in general considered as the technical representative office of the company. This simply means that the other branches are functioning under the same branch. As a result, it is the parent branch of the company. The team at these centers functions as the in-house team. They focus on bringing out more value to the company and following the core objectives of the business.

The needs of people are determined by the company and the nature of their work. After identifying the need there is a hiring going on at these centers. So that the workforce requirement must be fulfilled. When the requirement is fulfilled the center is all set to operate while working with all the working policies taken into account.

Operating models for offshore development centers:

In general, there are two models in which the Offshore Software Development Company operates including the customer model and the contractor model. These are as follows:

Customer model:

It is specially set up for large Enterprises that have different project needs. The team members are full-time employees of the organization. Also, they are focusing on generating more revenue for the business. They are also responsible for development, testing, and execution that is provided by the local expert. Overall the customer model is for those businesses that are in collaboration with the development center for a very long time and want them to be their first choice in case whenever they need a particular project to get fulfilled.

Contractor model:

Under this model, the employees are not the full-time employees of the organization. But they are someone who is in link with them on an hourly basis. It allows the businesses to save the overhead cost from the salaries. Also, as per the requirement companies can hire specific experts for the sub-projects. Also, in case they do not need the services any longer they can remove them from the team. But this model works with all the paperwork. It is important to set up the particular duration in which the project must get completed.

Conditions that indicate the need for offshore development centers:

There are so many conditions that directly indicate that there is a need to hire an Offshore development center. These are as follows:

Large project scope:

In some cases, it happens that the project scope is quite large. Unfortunately, the in-house team is not sufficient enough to handle the same. In that case, there is a need to get the Offshore development team available who have the required expertise for the project. There will be no need for businesses to suffer just because they don’t have enough resources available for project fulfillment.

A large and diverse team you need:

There is no doubt in the fact that when you meet more people you meet more mindset. The same is the condition when you have the Offshore development center available. People across the globe have different perspectives to solve the same problem. In that case when you have the Offshore Development team available. They will come up with different approaches for project fulfillment. The mindset they have is not similar to the mindset you are having in the office in-house.

Building up security-sensitive Software Solutions:

The chances of data breaches are very high. In case any of your rivals come to know you are working on a particular project they will try their best to get their hands on it. To keep yourself from the particular situation working with the Offshore Software Development Company can help. They will take care of every aspect regarding security. So that there is no point of confusion and the project will get completed with all the security. In case you find out there is any scope for a data breach you can discuss it with them. After discussion, they will take steps accordingly.

Tips to follow for building up the offshore development team:

In this section we will discuss the tips that you need to follow for setting up the Offshore Development Center team:

Understanding the aim behind developing offshore development centers:

The primary step needed to follow is to understand the aim behind developing it. There is a possibility that you are looking forward to expanding your business and that’s why you need the ODC. When you wish to expand your business, it is important to have a team sufficient enough in catering to your needs. If the required expertise is not met you will not be able to fulfill your agenda of having the Offshore team.

Your product vision:

Prepare a complete list of project requirements and have a clear-cut product Vision. Be ready to share it with the team you will be going to work with so they will be able to move ahead in the right direction. Have a virtual image of the product and get all the necessary tools, videos, images, and screenshots available to create a picture as needed.

Get into the right software development company to partner with:

When you have a clear vision about the product it is time to search for the right software development company to partner with. Discuss with them about your project needs and understand whether or not they are ready to work with it. It is advisable to search for a company that trusts in a long-term relationship so that it can be a good value for money and you can get your task done as needed. Ask them about the resources that are required for fulfilling the vision you have so that you can analyze whether or not they are the perfect choice for your project.

Choose the team:

When you are sure that this is the company you can partner with, this is the time for you to choose the team to discuss the project with. It is totally on you whether you wish to set up your own Centre or wish to start collaborating with an existing developer. Starting with the existing developer can be a great choice as it will help you to get an idea about the market insights and you can figure out things in a better way. Choose the team wisely so that there is no point of confusion later on.

Set up a communication channel:

After finalizing the team this is a time for you to set up a communication channel so that you can communicate with the team whenever needed. This must be the medium that is accessible in both areas so that there is no point of disturbance and you can get the developers as needed. If you are facing any problem in communication choose mail as one of the best ways to communicate with the team.


Setting up the center seems to be an easy task but in reality, it is not. One needs to be sure about various parameters that can help them to stay at the top of the list. It is important that you are paying attention to every parameter whenever finalizing the factors helpful in organizing your own offshore development center. In case there is any help reach out to the professionals so that you can start with the best services and approaches.


Setting up an offshore development center is easy with the right tips. If you are starting with it, be sure to stay updated with the market trends. Get an idea about the insights as well. By keeping the same in mind there will be clarity about the factors that are important to keep in mind. If you have anything specific in your mind, be ready to implement the same as well so that there is no confusion and you will be able to establish the offshore center as needed!

Also Read: 9 Steps to Avoid IT Offshore Failure