What is the offshore development center (ODC)?

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If you are interested in the types of offshore development centers, their main benefits and how to avoid common mistakes and the possible risks when creating one of your own, please read our little investigation below. 

Who are you? A startup trying hard to find perfect software developers for your project? Or a company aiming to transform your main platform to promote further progress? What if your enterprise has already won the global market and it is high time to adopt some cool digital solutions so that the range of your offers extend and the market status is empowered? Each of the cases above come to one common answer – you should definitely consider an offshore development center model. 

Let’s define an offshore development center. It is an IT business setting that offers software development services but is located abroad. It is assumed to be a minor and collateral to your main business. 

Eastern Europe has become a popular destination when it comes to hiring IT experts as the US and European ones are not so freely available due to the high wages and the number of professionals in narrow spheres of IT. Creating a remote development team in one of the countries with a poorer economy means easier tax regulation policy and a vast variety of talents. 

You may be wondering, are ODC and software outsourcing the same?  Not really. ODC is about a different location, out of the main office state. Outsourcing is just a third party business that may be situated in the same country. Their main goals are different too, OCD is for budget saving while outsourcing services are meant for productivity boost. One common purpose of these two models is reaching a huge talent pool.

Who Needs an Offshore Development Center? 

Offshore software development centers are really great for various types of technology businesses, depending on what is wanted. The top point is the deliberate choice to work on the product they created and contribute to global innovations that change our world for better. 

Innovative tech startups usually need narrow field IT experts. It’s not easy to hire ingenious experts onshore, and that’s the reason why managers tend to search for dedicated development teams abroad. The choice results in reaching global talent and taking what is best for your project.  For example, the well known startups like Grammarly, Ring, People.ai etc. hired Ukrainian developers for offshore collaboration. 

A dedicated ODC is also a cool chance for already existing technology companies. With not enough resources found in one area, it’s challenging for them to grow and spread into the new markets. That is why, some of the global corporations such as Reddit and Oracle, reached foreign software engineers. BigCommerce, by the way, proudly went public with their remote team in Kyiv.


Mistakes in Setting Up Your Own ODC 

Although offshore development center benefits are numerous, tech businesses should think well before building one of their own. Unclear pricing, scattered services and dragged out recruitment – they are like hidden stepping stones that only good caring hands are able to avoid. 

Some providers deliver turnkey assistance for businesses creating ODC. In this case, you would have to do lots of consultations with lawyers, accountants, and economists whose opinions will most likely contradict. Try to stay away from such an unnecessary fuss by finding an expert team that is perfectly competent in operational management. You’ll be provided different kinds of help in one place and enjoy fast and effective business solutions. 

The cost-effectiveness of your remote development team is guaranteed by an adjustable pricing policy. For example, you take the services you need and pay only for those you actually used. The invoice must have accurate and detailed information about the prices, otherwise it is better to find a new offshore IT services provider. 

Try to avoid the following oversights and confusions when setting up your offshore structure. 

  • Inflexible company rules

Your collaborative arrangements may be good for internal teams, but your remote developers live abroad and have different public holidays and days of rest calendars. That is why, be flexible and clear out the details about vacations and other important days with the offshore team in advance.

  • Involving more than one recruitment agency is wrong. 

Though it may seem a smart move for making the recruitment process faster, it has proved to be falling. In the end, the candidates receive lots of spam about one interview from different spots. Your reputation as an employer will not benefit from this, believe me. 

  • Tuning out office location specifics 

Some very important things are often ignored before signing the contract like day-and-night access, light, soundproof, air quality, etc. A real estate manager will be of great help here for checking everything.  

  • Direct revenue

Opening visas is one of the legal policies affected by the contract with your offshore engineers. US embassy rules are quite strict and the chance that he/she gets a travel visa to America are vague because of the direct income. 

  • The absence of IP rights deal

Even though you chose developers you can trust, there must be a non-revealment part signed in your contract. Every kind of intellectual property should be legally protected from the very start. IT lawyers will help you in making a detailed and clear agreement to avoid any confidential data leaks in future. 

  • Never neglect employer branding. 

Having much respect for Brand is naturally an optimal choice to speed up your engagement. If you call attention to your business as a nice place to join, it’ll captivate more talents. The crucial thing is to realize that remote employer brand campaigns must be custom-fit to the targeted IT people.


ODC partnership benefits 

You might be curious about the other advantages – if any – when we take the budget-saving and talent pool aside. Setting up your own offshore development center also leads to the privilege of having a personal brand, strict intellectual property rights, and devoted engineers. 

Having a personal brand is crucial when we enter a new market. This refers to the power of employing an IT team straight to your company and under your own rules, culture and corporate habits. Software businesses that build up their own brand get better access to talents. Hence, a remote development team works at your bounds in Ukraine and no go-betweens are needed. 

The offshore development center means so much space for freedom and self-government. Your own brand status gives complete authority over the team and development workflows. The fact that no third party is involved secures your IP rights. 

When you manage your team in person, face-to-face, they are all engaged and more devoted. Your remote development team will give an amazing commitment just like your internal team. With their ingenious vision, Ukrainian software developers will become a great part of the company. 

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

Tell us a vision about your own future ODC

So what is an offshore development center? Freedom and safety, first of all. No doubt, ODC is a perfect solution for businesses that want to pound the pavement out of the outsourcing model. 

Set up our own offshore software development office with ZenBit tam. You will enjoy the benefits of our partnership! Don’t hesitate to leave us a message! Have a nice day and stay safe!

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Dmitry Broshkov
Dmitry Broshkov
CEO of ZenBit Tech