What is an offshore software development center?

Answer 1

An Offshore Software Development Center consists of a team of software developers based in Another Country who are solely focused on developing software applications for a company. The ODC acts as an extension of the internal development team but is located where there are lower labor costs, such as India, Poland, and the Philippines, rather than in the same country as the company. ODCs are different from traditional outsourcing arrangements because ODCs become part of company culture and are aligned with company processes and tools, yet offer significant advantages in terms of cost savings (40-60% lower than traditional development prices).

By allowing companies to utilize global resource pools of skilled professionals, ODCs provide a means for companies to accelerate project timelines through dedicated efforts, as well as to scale development teams as needed. For these reasons, ODCs serve well for companies looking to establish developing capacity over the long term while maintaining control and close communication throughout the process. ODCs also provide an advantage to startups developing their own products, as well as larger companies that have more complicated applications and are focused on reducing their cost of operations.

Answer 2

An offshore software development center is a facility or team located in a different country from the company that is outsourcing the work. This type of outsourcing is often used by companies looking to save costs by taking advantage of lower labor rates and/or a more favorable exchange rate in the country where the development center is located. It can also provide access to a wider pool of technical talent and help companies to scale their development teams quickly.