ODC vs Other Engagement Models: How to Set Up Your Own ODC

When it comes to offshore software development, there are a few different engagement models to choose from. One of the most popular is the offshore development center (ODC). 

But what is an ODC, and how do you set one up? In this article, Saigon Technology will compare ODCs with other engagement models and show you how to set up your own ODC.

What is an Offshore Development Center?

An offshore development center is a remote facility where software development takes place. ODCs are usually located in countries with lower labor costs, such as India or China. Companies use ODCs to reduce the cost of software development projects.

How to Set Up Your Own ODC

There are a few key things to keep in mind when setting up your own ODC. Here's what you need to do:

1. Choose the right location

You'll want to choose a location that is conducive to productive work and has a good quality of life. India, China, and the Philippines are all popular choices for ODCs. 

There are a number of  factors to consider, these include:

• The cost of living in the country
• The availability of skilled workers
• The time zone difference between your home country and the ODC country
• The legal and political stability of the country
• The cultural fit between your company and the country

2. Find a trusted partner

Once you've chosen the right location for your offshore development center (ODC), the next step is to find a trusted partner who can help you set up and manage your offshore development team. This partner should have experience in setting up and managing ODCs, as well as a deep understanding of the local market. They should also be able to provide you with a dedicated team of developers who are skilled in the technologies you need.

3. Set up the infrastructure 

After choosing the right location for your offshore development center (ODC) and a trusted partner, you'll need to set up the infrastructure. This includes everything from renting office space to setting up communication and collaboration tools.

Here are a few things you'll need to take care of:

• Renting office space: You'll need to find a suitable office space for your ODC team. Make sure to choose a location that's convenient for your team and that has good infrastructure.
• Setting up communication and collaboration tools: You'll need to set up communication and collaboration tools, such as email, chat, video conferencing, and project management software.
• Hiring staff: You'll need to hire staff for your ODC, including managers, developers, testers, and support staff.
• Training staff: Once you've hired your ODC team, you'll need to provide training on your company's processes and tools.
• Setting up quality assurance: You'll need to set up a quality assurance process to ensure that the software developed by your ODC meets your quality standards.
• Setting up security: You'll need to set up security measures to protect your company's data and intellectual property.

4. Get legal support

Before you can start operating your ODC, you'll need to get legal support. This includes getting the necessary visas for your team members and ensuring that your ODC complies with local laws and regulations.

You'll also need to sign a contract with your offshore development partner. This contract should outline the scope of work, deliverables, timeline, and cost.

Get in touch with a lawyer who specializes in setting up ODCs to get started.

5. Organize HR payroll and support

Once you've set up your ODC, you'll need to take care of HR payroll and support. This includes setting up a payroll system for your team members and providing them with benefits, such as health insurance.

You'll also need to provide training and development opportunities for your team members. This will help them stay up to date with the latest technologies and keep them motivated.

Hire the right people: Look for experienced software developers with the skillset you need. It's also important to find team members who are culturally compatible with your company.

=> Read more: Hire Top-rate Offshore Developers At Saigon Technology

Manage expectations: Be clear about what you expect from your ODC in terms of deliverables, timelines, and quality.

ODC vs Other Engagement Models

The first thing you need to consider is whether an offshore development center (ODC) or other engagement model is the best fit for your company. Other engagement models include Onshore and nearshore models. There are pros and cons to both models, and you need to decide which one is best for your specific needs. 

Onshore outsourcing is when you hire a company that is based in your country. This type of outsourcing can be more expensive, but it can also provide you with more control over the project.

Nearshore outsourcing is when you hire a company that is based in a nearby country. This type of outsourcing can be less expensive than onshore outsourcing, and it can also provide you with more flexibility.

=> Read more: Software Development Outsourcing

If you choose an ODC model, you will have a dedicated team of developers who work in your time zone. This can be a great option if you need to have a lot of control over the development process. However, it can also be more expensive than other models.

On the other hand, if you choose another engagement model, such as staff augmentation, you will not have a dedicated team of developers. Instead, you will work with a provider who will provide you with the resources you need on an as-needed basis. This can be a more flexible and less expensive option, but it may not give you as much control over the development process.

Things to Consider Before Setting Your ODC

ODCs can be a great way to cut costs and improve efficiency, but there are a few things you need to keep in mind before setting one up. Here are a few tips:

• Define your goals and objectives: What do you hope to achieve by setting up an ODC? Make sure your goals are realistic and achievable.
• Do your research: There's a lot to know about setting up an ODC, so make sure you do your homework before getting started.
• Find the right partners: It's important to partner with reputable and experienced companies when setting up an ODC.
• Put together a solid plan: Once you've done your research and found the right partners, it's time to start putting together a plan. This should include everything from choosing a location to setting up your office space.

Final Thoughts

ODCs can be a great way to save money and improve efficiency in your software development process. However, there are some things you need to keep in mind before setting one up. Make sure you do your research and understand all the costs and risks involved. Once you've done that, follow the steps outlined in this article to set up your own ODC.