Offshore Development Center versus Outsourcing; what is the Difference?  

The rising demand for IT specialists is widening globally because better technologies are emerging. Hiring specialists is the sure and appropriate means of giving your business counterparts a competitive edge. For this reason, setting up an outsourcing or Offshore Development Center (ODC) is a solid winning strategy if they are fully tailored to meet your business goals.

Offshore Development Center versus Outsourcing; what is the Difference?   1

With ODC, managing software development practice is the best way of optimizing costs using the latest modern frameworks, tools, and infrastructures. 

Therefore, having a dedicated group of developers will scale up needs without interference. The team will seamlessly manage and integrate the software projects to a high end.

What is the Difference between ODC and outsourcing?

ODC is a software development company that provides products and services in different countries. Majorly, ODC is seen as the subsidiary of the more prominent company that takes an international approach. 

On the other hand, outsourcing is an approach to assigning software projects to a third party, and this involves two companies that agree mutually. Outsourcing involves one party taking full responsibility for the internal processes of another company. 

Consequently, outsourcing considers no regard for location, while ODC considers the international arrangement of setting up a development company in another country.

The primary purpose of ODC is to minimize the company’s expenses by utilizing development costs between different countries. Conversely, outsourcing helps increase focus and productivity on essential tasks and minimizes development costs.

Generally, ODC and outsourcing share a common interest: getting access to numerous talented software developers at a lower development cost. This helps enterprises increase productivity and save funds for their activities.

ODC Models

There are diverse development models which ODC typically works on to provide the best services and products in the long run. These models include:

  1. Software ODC classic. This model involves having a dedicated team with the requisite technical skills that can work and deliver the project in the manner it’s needed at the best form. The model is helpful for tasks like expanding and updating older software and moving them to advanced platforms.
  2. Software ODC trust. This model is best for clients who require high-security levels for their design models. It is also essential for clients who want confidentiality concerning their operations.
  3. ODC full form. The models help clients set up their development centers in different countries. The team employed will ensure that they research, plan, design, analyze, and manage tasks effectively with good cooperation with the client’s headquarters.
  4. Software ODC branded. The model is the best option for businesses and large corporations that need to be active and fully control the development process.

Advantages of Offshore Development Center

Offshore Development Center versus Outsourcing; what is the Difference?   2

Setting up ODC depends mainly on your industry set-up, advanced business models, and market for your products and services. All these frameworks create a viable environment where your company can exploit beneficial opportunities in the long run. 

Therefore, the following are the benefits of the Offshore Development Center.

Saving on development costs

When it comes to the amount of savings, ODC cannot disappoint you. A well-managed ODC is cost-effective while providing the best quality services. Additionally, a client will require little capital expenditure when working with ODC.

Shorter working timeframe

Working with ODC is the best way of speeding up application development for your projects globally without straining much. 

Also, ODC provides a great working environment with maximum space, equipment, and essential resources that enhances the market for services and products. 

Moreover, the shorter time frame improves the means of competing with other partners from the growing demands of investments globally.

Knowledge retention

Offshore Development Center is the safe and sure place where knowledge shared during the contracts remains intact without disclosure even when staff is changed. 

The ODC, at any time, takes all projects special and ensures they are completed and delivered within the time frame agreed. ODC ensures the assignments solutions meet and exceed the expectations of the client. 

Quicker access to expertise and scalability 

Utilizing ODC is essential in accessing talented and technical experts needed that are important in updating your software faster than in house team. Outsourcing through ODC helps you integrate with a scalable model that meets all demands that come along the way.

Adequate Technology expertise and innovation

Most ODCs have experienced and knowledgeable developers within multiple development arenas and advanced technologies. 

You can get the full array of services to consider for your software projects like AI implementation, custom software development, and web and mobile app development.

How to set up your Software development center

Setting up a development center needs a proper and appropriate mechanism to raise future expectations of delivering top-notch services and products. Therefore, the process involves the following ways;

Knowledge Transition

This is the stage a client sets and lists all requirements and expectations for the initialization of the project. The ODC should highly simulate the client’s environment that is favorable. 

So, the knowledge transition process must involve replicating the client’s approaches, company standards, and the ultimate culture.

There should be an appropriate security onboarding aspect to prevent unintentional exposure of project details and confidential information. Moreover, ensure you create orderly management that can help resolve issues based on the ranks given.

Appoint Key workers.

An Offshore Development Center is a crucial organization with different service functionalities. Therefore, having workers handle different tasks is indispensable. 

For example, an ODC must have a project manner and an account manager who can administer the project process. Other roles like designers, developers, technical writers, and software engineers can be filled.

Set execution target

This is an important stage of breaking down the expectations to desired milestones according to set metrics. Any outstanding information must be communicated to individuals and team members according to their responsibilities to avoid confusion when handling the project.


By setting up Offshore Development Center and using outsourcing processes, a company is on the verge of gaining much progress. In addition, the processes must be tailored to meet emerging business goals alongside projects specifications. Therefore, as a company or business owner, your decision on the development requirements you want and get the ultimate solution for your extensive projects.

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