In the IT industry, ODC is the acronym for Offshore Development Center. ODC is a type of outsourcing that can be found in various locations provided by many offshore development providers worldwide. ODC is employed in offshore software development, testing, and deployment.
In recent years, ODC is an innovative business model that has been widely used by most large companies remotely. ODC works as a platform when sharing newly acquired data, skills, and knowledge. This aids in understanding how IT firms perform their global tasks. ODC has many benefits for IT companies around the globe.
Why ODC is advantageous for IT firms:
- ODC model is highly cost-effective.
- Large projects can be accomplished in a short period.
- New skills and knowledge can be easily accessed wherever you are.
- Time-efficient while reducing potential bugs and eliminating errors.
- All tasks are outsourced right after the capacity assessment of different ODCs.
- Everything can be readily available. No need to create new infrastructure to carry out a project.
- Guaranteed satisfaction in results without extensive training required.
Moving to offshore development
Currently, ODCs are a widespread practice that many enterprises for software development service providers are gradually shifting from their in-house development team or conventional outsourcing. Such strategy allows them to save by outsourcing some of their in-house tasks while maintaining their team performance in completing their operational tasks.
Role of ODC when outsourcing a dedicated team
An ODC is a software development hub situated in a country with a pool skilled IT dedicated team and affordable operating costs. This provides offshore software development services for different countries in another part of the globe, where keeping an in-house development team is quite expensive.
For ODC, they employ diverse specialists like programmers, testers, project managers, designers, copywriters, UX/UI specialists, and other IT skilled workers that you may be looking for offshore.
Your remote development team can also assist you in resolving common issues that you encounter like handling taxation, HR management, bookkeeping, and related tasks. They assist your company to manage mundane tasks so your in-house team can focus more on priority projects.
How ODC models can optimize your tasks
#1 Contractor ODC model. This model is used for small business enterprises. Through this model, an ODC creates a full team based on the project’s needs while managing daily operations and ad-hoc tasks.
This model is very helpful for different tasks like upgrading and expanding obsolete software, providing support, creating new codes or migrating your existing systems to other platforms.
Using an ODC, the head office outlines an overall plan, where the team executes all the analytic and system design specifications before the actual coding.
#2 Customer ODC model. In this model, the client’s roles are more diverse. This is the reason this is widely used by large firms or those big companies with limited background about ODC. It is used by companies that need in-depth analysis, system design, and well-crafted management plan.
The Offshore Development Center provides the needed staff like developers and specialists to execute the specified project tasks. The specialists in the central office are focused on product analysis, research, design, testing, and project delivery. The ODC teams are in-charge of coding.
Why ODC is vital
The rationale for seeking an ODC varies. Most companies consider the following objectives.
- Adopting a legal entity in another country
- Reducing overhead costs
- Recruiting a group of specialists with a diverse skillset
- Ensuring security measures for operational purposes
Achieving market visibility, establishing rapport to the existing customers and prospects, and providing their immediate needs is critical to make any business successful.
Big companies always do their best to be physically visible to their potential customers while minimizing logistics expenses as much as possible. Also, launching an ODC in a country with a huge market is a good approach to boost the sales volume.
Reducing expenses. ODCs are created in areas with lower development costs and office maintenance expenses as compared to the firm’s home country operational maintenance costs.
Recruiting a reliable group of specialists. An offshore service provider can assign a separate office designated for you to establish staff branding when setting up a group of 50+ employees. This is the location where all your developers, project managers, and quality assurance and marketing specialists can collaborate.
Ensuring security measures are intact. The vendor’s created office houses different teams while working on different projects simultaneously. In case you have a confidential project in a competitive niche and want to keep all available information private, then it is highly advisable to require the vendor to have a separate office designed for them.