How to Setup an Offshore Development Center in India?

Quick Summary:

Outsourcing has been present on the market for a long time. Collaboration with an firm and setup an Offshore Software Development Center in India was initially intended to save money and time, but later start-ups, entrepreneurs, and established businesses realized that outsourcing could improve productivity and speed time to market by allowing companies to focus on their core competencies.

An extended, specialized, and integrated offshore team is referred to as an offshore development center or ODC. This dedicated workforce is typically based in a foreign or offshore nation and offers the organization help as needed.

ODC will operate as a corporation’s subsidiary, carrying out specified tasks. From a business standpoint, most organizations, regardless of their size, contemplate establishing an offshore development center in a country with cheaper living costs than their home country.

Not only do offshore software development companies hire dedicated developers, but they also have certain key personnel. A notable example is to Setup an offshore development center in India. You can also work with companies that specialize in offshore development. Some of the crucial participants to maintain the development process are listed below.

Key Members to Setup an ODC

It’s critical to identify the key stakeholders in the offshore development center alongside offshore vendors as you set up the center. Some of the key players are listed below.

Roles Description
Account Manager Responsible for managing customer relationships and ensuring that all of your demands are met.
Project Manager Responsible for the entire project, including planning, executing, and ensuring that all necessary resources are available.
Designer & Developers Responsible for the software’s design, implementation, testing, and upkeep.
Test Engineers Responsible for examing the project’s integrity, quality, and even non-functional requirements.
Usability Engineers Performs a test to assess your project’s usability or user-friendliness.
Graphic Designer Responsible for creating the visual and graphical concepts or language to promote the distinct brand of a product.
Content & Technical Writers Create content for the software or website, as well as for instructions.

Why is ODC required?

Setup an ODC in India is less expensive, faster, and more efficient than hiring an in-house IT team. There are no taxes, no social benefits, and no hardware costs. Furthermore, the offshore development center may readily scale to meet the client’s needs.

It assists the organization in lowering total operational costs, thereby raising and exploding net earnings. You only need to work efficiently with your Skilled Offshore Developers, who already have industry experience and knowledge of the tools and technologies needed to construct the apps.

Everything is taken care of by the offshore development center, from managing the requirements to the development phase and tracking to guarantee that the team is productive.

Let’s look at the advantages of ODC in India now that we know why it’s required.

Benefits of ODC in India

India ranks first when choosing a good location for offshore development. Here are a few of the causes for this.

Benefits of ODC in India

Affordable Operational Rate

Because of the low cost of living, establishing an offshore development center in India is viable. You don’t have to spend a lot of money paying employees and covering other costs.

Big Talent Pool

India has a vast pool of developers who are both competent and experienced. As a result, finding the correct fit for your needs will not be a problem. You’ll be able to identify the ideal match for your specific needs that will provide value to your company.

Market Expansion

ODC is a way of expanding the business sales volume, reputation, and gaining new customers. It allows the company to gain the better insights in the needs of the new cusomers.

Various Technology Expertise

In India, developers, designers, testing engineers, and other experts are familiar with front-end and back-end databases, top programming, design tools, and testing tools needed to create software or mobile apps.

On-Demand Setup

You have the entire freedom to set up your office according to your specifications with an Indian offshore development service firm. Put another way, you have complete authority, access, and control over everything. Specify your needs, and the offshore development business will put together a team to meet them. Aside from that, there are numerous more advantages to picking India for offshore product development. Make sure you make the right decision.


India may be an ideal offshore software development location due to the numerous cutting-edge advantages provided. In India, you can be sure of the instant availability of resources dedicated to your needs, as well as a slew of other advantages. It is cost-effective to establish your ODC in India. The following is an estimate of the app development costs.

Country Average hourly rate Ease of doing business (out of 100) Political Stability (- 2.5 to 2.5) (According to the world bank report 2020)
India $20 71 -0.86
Pakistan $25 61 -1.85
Philippines $28 62.8 -0.79
Vietnam $40 61.8 -0.07
Ukraine $41 70.2 -1.16
Poland $50 76.4 0.57

Offshore Development Center Checklist

It is difficult for entrepreneurs looking for quality services to evaluate which service provider is the finest. To assist you in selecting the best offshore development businesses. Consider the checklist below:

Offshore Development Center Checklist

Skills & Knowledge

You should be aware of which country delivers superior services without draining your wallet when choosing a corporation that will partner with you with its committed engineers. For business processes, India will be an excellent choice.

The pros you choose should have the necessary abilities and knowledge of the most up-to-date technologies or platforms. Experts with a lot of experience consistently deliver high-quality results.

Look for Compatibility

Examine the most promising bargain for your firm before deciding on the company. It’s best to go for a risk-free contract that includes a wide range of services. This gives your company a significant competitive advantage.

Reliability & Quality Standards

The two primary criteria that constitute a robust offshore development firm are consistency and trustworthiness. You may put your trust in someone who has certificates and accreditations.

Dedicated Workforce Strength

Because the outsourced team will eventually be working for you, please keep track of their talents, development center resources, professional expertise, and experience. Examine their prior clients’ testimonials to aid you in making the best option possible. They should be driven by a desire to do something unique.

Minimal Cost

The financial parameters are one of the most crucial elements to consider. This will answer any of your queries about the hidden costs, the payment plan, and other concerns. Flexible pricing may allure you, but don’t allow it to dictate your outsourcing partnership.

ODC Technology partner

Discuss these issues with your technology partner.

  • Pricing models proposed
  • Agreement cost, exception cost based on performance metrics, price stability
  • Time accounting
  • Milestone management
  • Taxes
  • Payment schedule
  • Credibility

What is the measurement scale for an offshore company’s credibility and reliability? A thorough background check on work efficiency is required.

Many outsourcing businesses in India have a paper trail of information about their project, credibility, and capacity. Take a look at the outsourcing company’s comments and evaluations.

There must be credible production procedures with a track record of meeting deadlines and staying within budget. You can also use social networking sites like Facebook, Twitter, and LinkedIn to find out more information.

If the offshore company’s credibility is thoroughly investigated, it may be possible to find the ideal employee while saving money and gaining experience.

It is not required that the pricing you receive is the best price. It is preferable to weigh the various possibilities before deciding on one.

Quality Assurance

Quality in software development refers to both people and processes. When the correct individuals are in charge of all projects, such as defining the requirements, outlining the procedure, and ensuring quality, you obtain the most significant results.

Check for Communication Gaps

There are two essential things to bear in mind when working with your ODC partner. The first is the language barrier, and the second is the time zone difference.

When you operate with an outsourcing partner, you’re collaborating with people hundreds of miles away and in a different time zone than you. It’s also worth emphasizing that there’s no language barrier preventing communication.

If you have a good communication plan, you can start a conversation with the team.

Delivery & Guarantee

When deciding to work with an outsourcing company, look at the vendor’s track record for completing projects on schedule. Make sure they get additional support, such as bug-resolution assistance. It will save you a lot of time and work if you engage with proficient offshore developers that are ready to help and assist you with future needs as they arise.

Pros & Cons of ODC in India

A business that saves money has a better chance of competing. Alternatively, they may decide to reinvest those savings into the business to expand and create additional local jobs, often in higher-skilled positions. The top benefits and drawbacks to setup an offshore development center in India are listed below.

Pros Cons
Cost Reduction Remote Management Challenges
Access to the immense talent pool Cultural Barriers
Control over operation Legal barriers
Continuous Technical Support Security Risks
Timely delivery
Effective resource allocation

“Looking for a reliable ODC partner in India?”

Contact Our Offshore Development Experts for client-friendly, solution-driven ODC business solutions

How to Establish an ODC in India

Now, after all this country study and selection, let’s get down to the business of launching an ODC project.

How to Establish an ODC in India

Choose the Right Company

Once you’ve completed your project requirements, you can start looking for the proper partner to help you develop your project. Conduct extensive research and learn about the many offshore product development services organizations. And choose the one that gives you the best value for your money. Always check to see if the company has prior expertise working with and setting up ODCs in India. Also, be sure that an offshore software development business is registered under local regulations, understands your needs, and guarantees it will provide the necessary resources to convert your idea into reality.

Company Transparency

To avoid future problems, each team member must understand their duties and responsibilities from the start.

Hire your Team Carefully

An offshore development business can provide you with the resumes of qualified individuals for your project. Make sure you’re not solely concerned with their education and technical abilities. Don’t forget to look at their soft skills as well.

Detailed Development Process

When starting a project with ODC, make sure to have a thorough development plan in place that covers the project’s strategy, outline, and features, as well as the project’s timetable.

ODC Security Measurements

It’s crucial to establish a clear line between which parts of the project will be examined and authorized by which person.

Consider Time-Zone Difference

Firms’ primary challenge when establishing a virtual office in India is time zone. With an off-shore development center, you have complete control over your team’s working hours and job responsibilities.

If you want your virtual workforce to work at the same hours as your offshore development business, you can do so. You can communicate with your specialized development team early in the morning or late at night to manage this discrepancy.

Team Management

If necessary, the offshore development team and the in-house development team should work together.

Region to Consider

It’s a good idea to consider the region where you’ll be Setup an Offshore Development Center in India. Probably, you won’t be able to find all of the developers you need in some locations. As a result, locations such as Bangalore, Pune, Ahmedabad, Chennai, and Indore are advised for your ODC.

Cost and Payment Structure

Regardless of which developers you’ve worked with in your ODC, Web, or mobile app development projects. It is critical to ensure that they are knowledgeable in the field. Furthermore, the contract should include a payment structure or timeline and a payment method. Furthermore, the entire amount to be paid for the project and the payment plan must be specified.

ODC Engagement Models Options

It all begins with your company’s operations in sync with the ODC. The engagement models of ODC are an essential topic that should be tackled. The following models are among the alternatives accessible to you:

ODC Engagement Models Options

Time & Material Model

This model is advised when the scope and project specifications are likely to vary.

Fixed Cost Model

This engagement type is appropriate for medium-sized, short-term projects with clearly defined scope and specifications. Before beginning the project, the cost and timeline are established.

Dedicated Resource Hiring

For longer projects with ambiguous needs, this is a good option. Customers pay a monthly fee that supports the team member’s wages.

Wrapping Up!

Setup an offshore software development center in India relieves you of the burden of building up infrastructure, managing your staff, and dealing with administrative, legal, financial, and other overheads. Aside from that, it allows you to tap into global abilities, allowing you to construct desired software for your company at a low cost.

have a unique app Idea?

Hire Certified Developers To Build Robust Feature, Rich App And Websites

Need Consultation?

Put down your query here...

    Ronak Patel

    Ronak Patel, the CEO of Aglowid IT Solutions, is a NASSCOM member and a published writer in top tech publications like DZone and Hacker Noon. With a background as a full-stack developer, he brings a wealth of technical expertise. Ronak's marketing acumen complements his technical skills, ensuring the delivery of innovative IT solutions that excel in the market.

    Related Posts