In our previous post we described what offshore development center is and also covered its benefits. Now it is time to compare the two software development collaboration models that look similar but are not really the same. So here we go.
Worldwide digital transformation offers brand new ways of making businesses, spreading frames of new lucky chances. Nowadays it takes little time and effort for companies to find skilled narrow field developers in various parts of the world and easily engage them into their workflow at any stage of the process. This employment approach is being effectively adopted in the IT domain, and the software development ground blooms in a new unseen way.
Companies are being creative in hiring their staff, the foundation for that is the project needs and final results.
It is true that both offshore development center and outsourcing software development notions are often used synonymously. Yet, they are clearly different and individual. Let’s learn when to use what to make the best of each.
In the case of IT outsourcing, remote developers are invited to boost the development process and launching of your project, increase capacity fast, and make it more budget efficient.This team is a part of your company as hired personnel during a project development life cycle only. Your partner is under the contract of fulfilling the goals in time. After the project launching is done, the team of experts start a new project arranged by your vendor. In this way, having an outsourced team employed is cool for separate projects like creating an app or a website, etc. The key point here is efficiency boosting.
In an offshore development center model, you are hiring a big team for longer than only one definite task. Even so, you might have to ask a local representative to build the team and do some organizational stuff about the office. You have no choice but to do your best in being dedicated compared to a temporary partnership, and the results will rely on your team’s actions and efforts. After your project is over, the choice will have to be made on your employees – to say goodbye or to go on with a new task. The key point here is budget saving.
Key points that make a difference to your business
We would like to compare the two models on the following core things.
As a rule, more devoted to the project are those developers who are a part of it, they show motivation and genuine interest in the outcomes, they succeed in being a part of a great mission. That attitude is captivated with the help of ODC partnership. It is true, you may be lucky to work with highly passionate and dedicated outsourcing developers too, but if we talk about general expectations, it is definitely ODC.
The service of software development is always costly, and making the expenses wise and optimal is alway a top priority for most companies. In case of not extended projects, a more cost efficient variant is likely to be outsourcing. When looking for lower rates it makes sense to hire experts from the whole world. Besides, you only pay for the job done instead of covering remedy days, retirement, etc. like you do for your in-house employees. Apart from all that, you save a lot on the equipment and office rental – your IT outsourcing partner is providing all that is necessary including maintenance.
The offshore development center means making investments in advance plus the time for setting up a team and fixing everything important about the office. Plus all the national days-offs and local employment policies. Anyhow, in the long term, you will surely get a higher financial reward from it.
You are not able to have full control and decision-making power on the team you are temporarily collaborating with. They can make changes in the team number and composition or even rearrange definite employees between different processes. Different types of offshore development centers, on the other hand, enable you with total supervision and leadership.
Common IT outsourcing is usually goal-directed. When the project tasks are achieved, the team ends its partnership with the current client and moves to someone else. That is why this approach works best in temporary projects or updating and transforming the existing ones. Besides, there might be language barriers and cultural differences with the development centers abroad.
Offshore development center benefits, on the other hand, refer to open processes in a better way. ODC as a commercial structure has strong corporate arrangements. Regular review cycles, for instance, when the open-ended work is being evaluated every month and then every year.
The investments are studied, and expenses, employees’ accomplishments, strategies, etc.
If you want to learn more about how to open an Offshore Development Center in Eastern Europe, then you can contact our ODC specialists, they will tell you everything in detail.
Setup your own ODC in Eastern Europe
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All in all, here is a short check up list of when each hiring model is better to use. The final choice is always up to you! It depends, first of all, on the kind of business you are – a startup or global company, the project scope and duration, as well as on the working style you prefer – focusing on tasks or values and strategies. Or whether you want to control everything or it is better having your partner responsible for decision making.
Traditional software outsourcing is the most popular and extended at the moment. It is chosen by businesses that can entrust their projects or separate tasks to third-party experts, without being involved in setting up fully developed IT departments. An alternative model is the ODC one. It is great for international companies and remote cooperation that lasts for years.
Here at ZenBit Tech we are offering development services worldwide. We are located in Ukraine, and no matter where you are – you will never feel the distance or language barrier, we’ll always be here to assist. We respect your time and vision greatly, our corporate culture is based on client-centricity, creative thinking, narrow field expertise, devotion and refined skills. Our partnership will bring to life your envisioned ideas and make your business grow.