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:

  • A dedicated facility with house relevant corporate brand and culture
  • A dedicated core, in-house team for the offshore development practice
  • Has a dedicated infrastructure, as software as well as hardware is aligned with a company
  • Dedicated security policy, adheres to the standards  
  • A dedicated HR program
  • Has team adaptability to increase or decrease as necessary without making any changes to the budget

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?


  • The complete operation of team and infrastructure will get decreased with these offshore development centers. Also, the clients would get profit from all these savings
  • Visibility and commitment are involved in it and the suppliers are able to provide a better commercial model
  • Improvements in the considerable retention rate will result in a reduction in the conventional  attrition
  • Suppliers would get more engaged in knowing about the outputs, so more value will be produced, meeting the prime objectives of a client


  • The time spent in BIDS and RFPs will be eliminated by allowing focus to be given to producing certain value
  • The core principle of the offshore development team is the learning curves that will get reduced over time  
  • The flow of productivity will get maintained by this type of employment flexibility


  • Suppliers can prepare for the work efficiently, get good in resource coordination, their capacity will get enhanced, and demand will also get better comprehended
  • Benefits such as team education and cultural integration will enhance quality control as well as modify the focus
  • Information transfer will be managed as well as executed better

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

  • For tracking the ongoing work, it’s necessary to ensure that the cultural mentality is getting utilized as well as maintained and for these changes, quarterly inspections will take place
  • Yearly evaluation should take place for business planning and strategic technology

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.  

Author's Bio: 

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.