Nowadays, almost all types of business are familiar with outsourcing. Most of the businesses have already adopted this practice. Outsourcing your work means contracting out of a business, process non-core as well as operational functions to some other party. But it’s not that easy.
Outsourcing comes with continuous challenges that don’t usually businesses consider in terms of engagement purposes. And another difficulty is the captive model, used by some organizations. Though, the model has been developed for providing ownership and extra regulation. In several instances, this process is treated as the regular outsourcing relationship only. Due to this, it’s taking away the competitive benefits.
Another practice which has been existed since long is the offshore development centers. It tests, develops, as well as deploys the project offshore and provides the benefits of working with an in-house, core team and dedicated infrastructure. Along with the advantages of a core team, you can build external outsourcing relationships with the captive model that will act as your extension.
The new, updated model of offshore development is more economical than outsourcing the projects. In this, there is a project manager for managing and controlling the offshore development center team based on expectations and directions of their clients. With the commercial structure of these offshore development centers, clients pay a fixed cost every month to create their big project or a series of a project. Some of the offshore development centers have their yearly evaluation cycle to assess total quality, align the investment, modify rates, and conduct performance reviews with an ultimate budgeting process.
With offshore development center model, you can manage this in-house team as it is your own organic extension. You can also regulate expenses as well as acquire more exposure.
Below given some attributes of Offshore Development Centers:
Many businesses compare outsourcing with the BOT model, Build, Operate, and Transfer model. It’s true that BOT strategy is somehow similar to the offshore development center, but, there is a big difference in ownership.
So, what can you expect from these offshore development centers?
Value
Flow
Quantity
The principles of offshore development center should be built and followed strictly as there are some key areas in it, such as:
ODC Steering Committee
Outsourcing is an important part of business strategy for startups and enterprises. Now, companies are trying to find out more effective and new models to get combined benefits of the in-house development and outsourcing like deep process ownership and low costs simultaneously. Offshore developers can bring agility into your development process and can build a long-lasting relationship.
Ritesh Patil is the co-founder of Mobisoft Infotech that helps startups and enterprises in mobile technology. He loves technology, especially mobile technology. He’s an avid blogger and writes on mobile application. He works in a leading android development company with skilled android app developers that has developed innovative mobile applications across various fields such as Finance, Insurance, Health, Entertainment, Productivity, Social Causes, Education and many more and has bagged numerous awards for the same.