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How to set up an offshore development center for your business?


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There is a rising demand for offshore software development centers in recent years because of the cost-effectiveness and the availability of tech experts in the market. By building your own ODC offshore development center, not only will you be able to reduce your costs, but you can also improve your software quality anytime with your own human resources. So how to set up an offshore development center for your business? 

How to set up your own ODC?

As a manager or a business owner, you already know the definition of an offshore development center. So follow these steps to know how to open your own ODC. 

  1. Find the right location

Everyone wants the most cost-effective solution for their business. If you have looked for the most popular outsourcing destinations in the world, you will find plenty of offshore development center services provided by companies in Eastern Europe and Asia. The main reason is that these areas offer lower operational and labor costs. In addition, these countries are known for their excellent technical skills and cultural specifics. That allows you to remotely manage the team and communicate efficiently without culture gaps or work ethic issues.

It’s important to have a good location in the world for your ODC
  1. Choose a trustworthy partner

Before building your own offshore development center, you need to do some important research. By estimating all the risks and creating a win-win offshore development strategy, you will have a strong ODC. With that said, you should ask for advice about the structure of your business as well as the local legislation from local firms. As long as these firms that you work with are trustworthy, they will help you navigate through the local environment.

  1. Start the recruitment process

Once you already find a reliable partner, you need to start the recruitment process. If you don’t know how it works in other countries, don’t worry, because your partners will be in charge of analyzing the current labor market and help you select suitable candidates on behalf of your company.

  1. Find an office

As the recruitment for IT talents is in the good hands, you can start looking for an office space where your future team will work. You need to consider every factor before making a decision, from the location, security system, parking lots, office design, seats, equipment, etc. Depending on your needs, you can choose a beautiful location or an economical one. You should consult professional real estate managers for the right locations.

  1. Get legal support

You might get excited when you find a dream office. However, don’t forget to consult lawyers before signing a lease contract in order to get the best terms of the agreement. As this process requires a deep understanding of the national law and exceptional negotiation skills, you must not ignore it or compromise the cost over the quality of service.

  1. Make procurements

The next step is to purchase furniture and proper IT infrastructure. Obviously, a good ODC must come with computers, software, security system, servers, as well as inner correspondence service. These are crucial features that you need for a successful setup.

Recruit some members for your team when the office is ready
  1. Recruit and welcome members to the office

When the office is ready for your team, it’s time for you to send some job offers. You know your ODC is on when the first employees have their first day at work. Don’t forget the onboarding of newcomers because it’s an important step to let them understand more about the culture and policies of your company. 

  1. Organize Accounting and HR departments

The most important department for your offshore development center is undoubtedly the IT department. However, your office can’t be complete and run effectively without Accounting and HR departments. As a manager, you understand this better than anyone else. A good and reliable operational management system can support the functioning of your new center. These people are responsible for salary payments, money transfers as well as health insurance and leaves.

Some important notes that you should not ignore

There are some common mistakes when setting up an offshore development center that you should avoid. Firstly, don’t try to speed up the recruitment process by involving several recruitment agencies. When your potential candidates get spammed with one agency and realize that they get the same JD and interview invitation, it might spoil your image.

In addition, don’t forget to promote your company as a nice workplace. These brand campaigns should be done even before the recruitment process to attract more talents. Also, make your company policies adaptable as your offshore development center is located in another country with its own law and national holidays.

Hopefully, you have got useful information on how to set up an offshore development center. If you are still struggling to launch your own, Omatech can help with our excellent offshore development services. Check us out!