What Are the Benefits of Offshore Development Centers?

In recent years, software outsourcing has been seen as one of the best options for companies that want to reduce operating costs when the organization’s purpose is not mainly focused on the IT sector. However, with the increasing need for IT resources today, offshore development centers have grown to be the acceptable norm. 

The term Offshore Development Center refers to a software development center located in a country besides the company’s primary location. This center provides all the infrastructure, resources, and equipment necessary to run an entire software development team remotely. By doing so, the ODC can meet the increasing needs of the enterprise while staying flexible. 

Nine Enterprise Benefits of Offshore Development Centers

Organizations have benefitted from proximity to high-tech resources, lower costs, access to new markets, increased flexibility, and time-saving through lowered communication costs. Let’s dive into some of the merits of having an offshore development center.

Shorter Timeframe

Every manager has said at least a few dozen times, “So much to do with little time.” Delivering a project on time is complex as it is essential. And when you’ve too much on your plate, deadlines and targets are missed, and clients get upset. 

Thus, selecting an ODC can speed up application development, resulting in a decreased market time. Moreover, having a shorter timeframe for a development accommodates tighter competition, shorter product lifecycles, and increased demand for a rapid turn on investment. 

Reduced Salaries and Infrastructure Costs

Offshore development is often cost-effective. Depending on the company’s project characteristics, cost savings could be 40-80% with a well-managed ODC, resulting in cheaper labor without sacrificing quality or level of expertise. 

In addition, related operational costs such as recruitment, employee training, supervision, compensation, and infrastructure are decreased. You are just required to pay for your service, and everything else is ODC’s matter of concern. As a result, an enterprise will get highly competitive rates and increased profit margins with literally no overheads.

Quality and Innovation

Quality and Innovation are the concerns of an Offshore Development Company. And based on your business needs and requirement, you can hire highly professional personnel with high standards in custom software development.

Furthermore, choosing an offshore development service allows your business to access a wide variety of talents that are up to international standards. Hence, having other skilled, experienced, and well-equipped experts will not only lower costs but also bring out Innovation and the highest quality among its competitors. 

Dedicated Support Team

Every rich man’s mantra in life is to create a business that makes you money even when you are asleep. Offshore development teams literally work even when you are sleeping. In an organization with a local group that works day and night, the midnight organization rules would require the team to work additional hours.

However, an offshore team provides a decent time gap that allows some activities to overlap and catch up with demands and modifications that are significantly affected by real-time behavior. Thus, ODC offers your clients a taste of services like “always working” and “available 24/7” – similar to internet solutions used worldwide.

Shared Responsibilities

Most non-IT companies underestimate the risk management involved in custom software development. When an enterprise decides to outsource particular components, the involved parties come to an agreement on what needs to be accomplished, sharing the risk between them. 

However, managing the risks incurred by the software creation process can be effectively handled by the offshore center as part of the core duties. Project managers are answerable and accountable for the work of the offshore teams. Moreover, the enterprise is assured that they will apply the best practices to minimize the possible risks during the project.

Market Expansion

Suppose you want your business to reach the overseas market. ODC is a good way of business expansion as it increases reputation and sales by getting closer to a new market niche and understanding its customers’ needs better.

And not only does it bring your company closer to a specific market, but it also helps avail your products to meet customers’ demands. On the other hand, in instances where we have big local companies, ODC is a physical presence in the target market, thus reducing logistics costs. 

Focus on Your Core Business

When your company is not in the IT industry per se, dealing with one’s own IT department poses a tremendous operative cost when handled as a completely separate entity.

Most times, you will encounter a cost-benefit trade-off, such as your IT department not having enough skills or additional resources, hence having your options limited on how to implement a new feature.

However, leaving these complex tasks to an ODC cuts out major complications and frees up time to spend on more particular functions for your core business. 

Ease Recruiting

Recruiting and staffing are becoming challenging with the increasing demand for software development. However, ODC removes this problem almost entirely while enabling you to work with the best professionals worldwide – depending on your offshore software development of choice. 

Knowledge Retention

An Offshore Development Center ensures that all the knowledge shared during the project remains intact, even if there is a staff reshuffle, thus guaranteeing exceptional development services to the client for future reference.

Furthermore, the ODC has consistently completed assignments as promised and delivered solutions that meet and surpass clients’ expectations.


Offshore development centers have revolutionized the way companies conduct business online. Customers have begun to embrace online operations since they can always decide on the internet. Companies and entrepreneurs are aware of this and have invested in offshore development to keep up with these changes.

Although most of the advantages of working with offshore development centers are related to cost savings, diving further into the advantages reveals that it’s not just a matter of money.

Even if the expenses are the same, the competence and uniqueness that outsourcing software development provides allow you to concentrate on the organization’s primary goals, which are important aspects to consider.

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