Offshore Development Center - What is ODC 2025

If you are a startup or small or medium-sized IT business, then this blog post is for you. In this article, you will learn how to reduce your costs simply by relocating your business branch.

This might be a strange and hectic perspective for you. But believe me, this is very trending, easy, and positive reinforcement. This approach is known as an offshore development center (ODC).

An ODC is a dedicated remote team that helps businesses achieve their development goals while capitalizing on several advantages.

Let’s unleash the offshore development team in more detail.

Important Learnings In this Article

What is an offshore development center (ODC)?
Are ODC and outsourcing the same thing?
Why You should opt for an offshore software team or ODC
What Obstacles Might You Face When Managing an Offshore Development Centre?
Best Locations to Setup an ODC
Things You Should Not Miss For Successful ODC Establishment

Preface for Offshore Development Center

An offshore development center is a software developer and IT professional team located in a different country from the company that hires them. ODCs are typically established by businesses that want to reduce development costs, gain access to a larger talent pool, gain specialised expertise, or shorten the time it takes to sell their products and app services.

These offshore development center teams are essentially establishing infrastructure and hiring resource management to ensure that operations run smoothly in various locations. These teams are providing services to either single or multiple clients.

Offshore Software Development Center can provide a wide range of services that include software development, testing, QA, maintenance and support. As technology advances, they also start offering their services in artificial intelligence, machine learning, DevOps, and data science.

What is Dedicated Offshore Development Center (ODC)?

A dedicated offshore development center (ODC) is a remote team or facility set up by a company in another country to exclusively work on their software development projects. This setup allows businesses to leverage the expertise and cost advantages of a skilled workforce in a different location, often in countries where labour costs are lower.

The ODC operates as an extension of the company’s in-house team, working on tasks such as software design, coding, testing, and maintenance. It’s a strategic approach for businesses looking to expand their capabilities, access specialized talent, and manage development costs effectively. The dedicated nature ensures that the team is focused solely on the client’s projects, fostering a deeper understanding of their goals and requirements.

Now, let’s explore the types of ODC in the following section.

Types of Offshore Development Center (ODC)

Each ODC type offers unique advantages, and choosing the right one depends on your business objectives. Here are some of the most common types of ODCs:

1. Software ODC Classic

This sort of ODC, which is the most popular, entails employing a team of engineers who will work only on your software projects. From inspiration to design, development, testing, and deployment, the team will be in charge of the whole process.

Key Points for Software ODC Classic

Ideal for: Software companies requiring extended development teams for specific projects.
Benefits: Access to experienced software developers, faster time-to-market, enhanced scalability.
Use Case: A software firm looking to outsource software development, quality assurance, or maintenance tasks to a dedicated offshore team.

2. Product Engineering ODC

This category of ODC is perfect for companies who want assistance with all stages of product development, from concept to launch. The team will collaborate with you to comprehend your product vision before creating and carrying out a plan to launch it.

Key Points for Product Engineering ODC

Ideal for: Companies focused on product development and innovation.
Benefits: A dedicated team with in-depth product knowledge, streamlined development, consistent product evolution.
Use Case: When a business wants to maintain and continuously enhance its product while keeping development costs in check.

3. Build-to-Scale ODC

This kind of ODC is intended to assist companies in scaling their software development activities. The team will collaborate with you to identify your needs and create a plan for new developer hiring and training, as well as the introduction of new procedures and tools.

Key Points for Build-to-Scale ODC

Ideal for: Startups and growing businesses aiming to quickly scale their development efforts.
Benefits: Rapid team expansion, cost-efficient scaling, access to a diverse skill set.
Use Case: A startup experiencing significant growth and needing to rapidly build a larger development team while maintaining quality and cost control.

4. Build-Operate-Transfer (BOT) ODC

An ODC provider and a company enter into a long-term collaboration under this sort of ODC. The supplier will work with the company to build up and run an ODC before handing over ownership of the ODC to the company after a predetermined amount of time.

Key Points for BOT

Ideal for: Businesses planning to establish a subsidiary in a foreign market.
Benefits: Start with minimal risk, gain operational knowledge, transition to in-house operations when ready.
Use Case: Expanding your business to a new location, such as outsourcing to India and eventually establishing a physical presence there.

5. Managed ODC

This sort of ODC is perfect for companies who wish to hire a professional to manage their ODC on their behalf. The supplier will be in charge of providing the required infrastructure and support, as well as employing and managing the necessary personnel.

Key Points for Managed ODC

Ideal for: Businesses looking for end-to-end project management and delivery.
Benefits: Reduced administrative overhead, peace of mind, project success.
Use Case: When you want experts to manage the entire offshore development process, from planning to delivery.

Now the next question that may arise in your mind is whether we have done the same things when outsourcing projects. So, are outsourcing and ODC the same thing? If not, what is the difference? Let’s find out.

Are ODC and Outsourcing the same thing?

No, ODC (Offshore Development Centre) and outsourcing are not the same; ODC is a dedicated development facility located in another country typically used for ongoing projects, whereas outsourcing involves contracting work out to an external organisation, possibly without a long-term focus.

Here, ODCs have no direct influence over these outsourcing firms.

The key distinctions between ODCs and outsourced services are listed in the following table:

Features	Offshore Development Centres (ODCs)	Outsourced Services
Definition	A dedicated team of developers and other IT professionals who work remotely for a company located in another country.	Contracting a third-party company to provide services that would otherwise be performed in-house.
Scope of work	ODCs are typically used for software development and other IT-related work.	Outsourced services can be used to outsource a wide range of services, including IT, customer service, and accounting.
Level of control	Companies have a higher level of control over offshore development centres (ODCs), as they are essentially their own remote teams.	Companies typically have less control over outsourced services as they are contracting with a third-party company.
Location	They are typically established in low-cost regions like India, Vietnam, Mexico, China, the Czech Republic, and others.	They can be hired across the globe.
Infrastructure	With an ODC, you (the company that established its offices) are responsible for designing, building, and maintaining the infrastructure. ODC remote Staffing models do not include any financial resources for office space, equipment, or hiring tech talent.	Owners of businesses are not required to maintain buildings, offices, or other infrastructure.
Cost	ODCs can be more cost-effective in the long run, but there are upfront costs associated with setting them up.	Outsourced services are typically less expensive upfront, but there can be hidden costs associated with managing the relationship with the third-party company.

I hope you now have a clear understanding of offshore development centers (ODCs) and outsourcing services. Now, in the following section, we will discuss how ODC can assist you in growing your business.

If you are planning to outsource, you can follow these tips to develop a successful outsourcing strategy.

How ODC Can Take Your Business To the Next Level

ODCs have become increasingly popular for businesses looking to take their operations to the next level. Whether you’re aiming to reduce costs, gain access to a larger talent pool, tap into specialized expertise, or expedite product development, an ODC can be a game-changer.

Here’s how it can elevate your business to the next level:

Cost reductions: One of the main benefits of ODCs is the potential for cost savings. Companies might save a substantial sum of money by outsourcing their development work to an ODC because labour expenses there are often much cheaper than in industrialised nations.

Global talent pool access: ODCs provide businesses access to a pool of talented developers from across the world. For businesses that are having trouble locally locating qualified developers, this is extremely advantageous.

Around-the-Clock Development: It is something that ODCs can offer, which may help businesses get products to market faster and fulfil deadlines.

Scalability: ODCs are extremely scalable, allowing businesses to simply grow or decrease their development resources as necessary. This is especially advantageous for businesses that are growing quickly.

Business continuity: By offering a backup plan in the event of unforeseen occurrences like natural catastrophes or political instability, ODCs may assist businesses in achieving business continuity.

Focus on core business: By taking care of a company’s development requirements, ODCs may free it up to concentrate on its core business operations.

Access to new markets: By giving businesses access to local knowledge and skills, ODCs may assist them in expanding into new markets.

Innovation: ODCs may expose businesses to fresh viewpoints and ideas, which can help them develop and stay one step ahead of the competition.

But do offshore development centers (ODCs) always help your company? Let us look at the lines that follow to discover the answer to your question.

What Obstacles Might You Face When Managing an Offshore Development Centre?

While ODCs offer numerous benefits, addressing these challenges proactively is key to successful collaboration. Here are some common obstacles you might face

1. Communication Challenges

Language Barriers: Working with teams from different linguistic backgrounds can lead to misunderstandings. Clear and concise communication is crucial.

Time Zone Differences: This is one of the significant challenges you need to overcome when having an ODC. To make communication easier, the majority of businesses will assist you in scheduling and alerting developers if there is a specific request from the client.

2. Quality Assurance

Over the past three years, it has become clear that many workers still prefer to work remotely. As a result of fewer training sessions, employees’ productivity was impacted. Even though the rules of this equation are evolving, you still need to make some quality compromises. However, you can address this problem and raise their output by offering training.

Quality Control: Ensuring that the offshore team maintains the same quality standards as your in-house team can be challenging. Implementing robust quality control measures is vital.

Code Ownership: Balancing code ownership and accountability between onshore and offshore teams can be a complex task. Clarity in responsibilities is essential.

3. Data Security

Data Privacy: Protecting sensitive business data and intellectual property is paramount. Ensuring that the ODC partner follows stringent data security protocols is crucial.

Regulatory Compliance: Adhering to international and local data protection regulations can be a complex task. Failure to comply can result in legal issues.

4. Project Management

Coordination: Effective project management, resource allocation, and task tracking across geographical locations can be challenging. Utilizing project management tools is essential.

Scope Creep: Managing project scope and preventing scope creep is critical. Frequent changes in project requirements can disrupt timelines and budgets.

5. Talent acquisition and retention

Retaining employees is one of the trickiest tasks because these nations have guards protecting their workers. Therefore, you are unable to use the hire-and-fire method. Not only that, but you also need to cover their costs for hikes, insurance, and other expenses.

Team issues: Since the remote team may feel like a second team, it is important to motivate and treat them fairly. Invite them to the main office so you can meet in person and get to know each other better, or occasionally travel to their country if you can.

Scalability: This is more of a benefit than a problem. However, since your ODC is in a more affordable country, you can easily expand your team size while still staying within your spending limit.

Worth exploring: How To Manage A Software Development Team?

6. Legal and Contractual Issues

Contractual Ambiguities: Ambiguities in contracts and agreements can lead to disputes or misunderstandings. Legal due diligence and clear documentation are essential.

Intellectual Property: Defining ownership and usage of intellectual property developed by the offshore team can be a sensitive issue that requires careful legal consideration.

These are a few of the difficulties an ODC may encounter. Now explore the best countries where you can establish these offshore development centres (ODCs).

Best Countries and Locations to Setup an ODC

If we talk in the context of the USA and the UK, then India is at the top of the list of countries to establish offshore development centres (ODCs), followed by Ukraine, the Philippines, Mexico, China, Vietnam, the Czech Republic, Romania, Brazil, and others.

Here are some of the top countries and locations to consider

Country	Popular Locations	Advantages
India	Bangalore, Hyderabad, Pune, Chennai, Delhi-NCR	Large talent pool, cost-effectiveness, strong English-speaking workforce.
Ukraine	Kyiv, Kharkiv, Lviv, Dnipro	Skilled IT professionals, competitive pricing, proximity to Europe.
Poland	Warsaw, Krakow, Wroclaw, Gdansk	High-quality services, cultural compatibility with Western Europe.
The Philippines	Manila, Cebu City, Davao City	Proficient English-speaking workforce, cost-effectiveness.
Vietnam	Ho Chi Minh City, Hanoi	Competitive pricing, young and tech-savvy workforce.
Romania	Bucharest, Cluj-Napoca, Timisoara	High-quality IT services, proximity to Western Europe.
Mexico	Mexico City, Guadalajara, Monterrey	Proximity to the United States, growing IT industry.
Bulgaria	Sofia, Plovdiv, Varna	IT expertise, competitive pricing, EU membership.
Costa Rica	San Jose, Heredia	Stable political environment, bilingual workforce.
Czech Republic	Prague, Brno	High-quality software development, proximity to Western Europe.

The main reason to establish ODC in these countries (mostly in India and Vietnam) is that there is stability in government and companies. In addition, you will also get employees at affordable prices. The best thing about these nations, particularly India and China, is that they have a sizable population, which always boosts your market and reduces the likelihood of experiencing a decline in the market.

After exploring the best locations for setting up an ODC, learn how you can make your offshore development centres successful.

Worth Reading: Best Countries to Outsource Software Development in 2025

Things You Should Not Miss For Successful ODC Establishment

Study and evaluate the country’s purchasing power parity, government stability, standard of living, and law-and-order situation before deciding to set up an offshore development centre there.
Plan the facilities and building structure according to your research.
Complete the business / ODC registration process with the appropriate authorities in that country.
Choose an authentic and easily accessible location for an offshore development centre. so that the commute for your employees is hassle-free.
Make sure your workplace satisfies all fundamental requirements for the comfort of your employees. in order to increase their level of productivity at work.
Ensure the setup of your security signal system.
Your team should be comprised of every member you need, including a manager, an assistant, a junior, an assistant, an intern, an accountant, a lawyer, a developer, a janitor, and a helping assistant.
To prevent your team from feeling drowsy, your office should have a positive work culture.

The aforementioned elements can help you increase team cohesion, employee commitment, and job satisfaction. Once you have finished all of these tasks, it is your turn to coordinate corporate team-building activities with the HR manager. so that devoted workers can continue working for your business and your team’s productivity continues to rise.

The next section will discuss how to establish the ODC. Let’s proceed.

Systematic Steps to Establish an Offshore Development Center

Define Your Objectives: Start by understanding your specific goals and what you want to achieve with your ODC.

Select the Right Location: When deciding where to locate your ODC, there are several things to take into account, including cost, time zone, and cultural compatibility. ODCs are frequently found in countries like India, the Philippines, and Eastern Europe. You can explore our blog on ‘Why Outsource to India?‘ to understand why it’s the perfect destination for your Offshore Development Centre (ODC)

Choose the ODC Type: Based on your objectives and the nature of your project, select the ODC type that suits you best.

Find a trustworthy partner: After deciding on a site, you’ll need to select a trustworthy partner to assist you in establishing and running your offshore development center ODC. There are several businesses that specialise in ODC setup and administration, so do your homework and pick one with a solid reputation.

Make a detailed plan: Create a detailed strategy outlining your objectives, timetable, and financial constraints before you begin configuring your ODC. This will help you stay on track and avoid any unpleasant surprises in the future.

Make the appropriate hires: It’s time to start employing people for your ODC after you have a plan in place. Make sure to select professionals with relevant experience who are familiar with your industry and the technology you use.

Finance infrastructure: Infrastructure for your Offshore Development Center ODC, such as office space, computers, and software, will also require investment. It’s important to understand that your ODC has the tools necessary for success.

Effectively manage your ODC. Effective management of your ODC is crucial once it is operational. This entails laying out specific guidelines, giving frequent feedback, and addressing any conflicts that may develop. Tools like project management software and video conferencing platforms can facilitate seamless communication.

Evaluate and Adapt: Continuously assess your ODC’s performance, make necessary adjustments, and adapt to changing market conditions.

Setting up an ODC can be a lot of work, but it can be a great way to save money and get access to a wider pool of talent. By following these tips, you can set up an ODC that is successful and meets your business needs.

How to Choose the Right Offshore Development Team

Specify what you need. What are the project’s particular requirements and objectives? What technologies do you require the ODC to be knowledgeable about? How much can you spend? You may begin to reduce your selections after you have a firm understanding of your needs.

Make your research very well: Once you’ve narrowed down your selection of ODCs, spend some time carefully researching each one. Examine their case studies, read testimonials from previous customers, and do team member interviews. This will enable you to learn more about their qualifications, background, and culture.

Location: It is one of the important factors in establishing the ODC. The ODC is located in what city? How many time zones separate you from the ODC? For teamwork and communication, this is crucial. For instance, if your ODC is situated in India, then you can get the highest advantage as there are people who always work here and are very good at English communication.

Price: What does the ODC cost? Ensure that the quotation you receive is comprehensive and includes all charges, including hourly rates, project management fees, and travel costs.

Experience: Does the ODC have any prior experience with initiatives like yours? Do they employ a group of knowledgeable and experienced developers?

Search for ODC communication: Do they have the ability to comprehend your needs and demands? Do they respond to your questions?

Check Out Your Company’s Culture: Is the ODC’s culture a good match for your company’s culture? Building a solid working connection depends on this.

Speak with the ODC staff: Set up interviews with the team members who will be working on your project once you have reduced your selections to a few ODCs. This is a fantastic chance to get to know them and evaluate their qualifications.

Sign the agreement: Once you’ve decided on an ODC, make sure to execute a contract outlining the work’s parameters, budget, schedule, and payment conditions. You and the ODC will be protected as a result of this.

About Invedus – Your Offshore Software Development Partner

Are you looking to supercharge your business with offshore software development services while considering setting up an Offshore Development Centre (ODC) in India? Invedus is your go-to partner, offering a comprehensive range of solutions to meet your needs and drive your business to new heights.

At Invedus, we’re more than just an offshore software development service provider. We’re your dedicated partner in success.

Here’s why choosing Invedus as your ODC partner can be a game-changer for your business:

1. Unlock Top 3% Talent Pool

With Invedus, you gain access to India’s vast talent pool, renowned for its expertise in IT and software development. Our skilled professionals are ready to turn your vision into reality, providing you with an edge in the competitive market.

2. Cost-Efficiency

We understand the importance of cost savings. By choosing Invedus for your offshore development needs, you’ll benefit from our cost-effective services and efficient resource allocation. Your investment goes further with us, allowing you to allocate your resources more strategically.

3. Trusted Expertise

Invedus boasts a team of highly skilled and experienced developers, project managers, and IT professionals who can take on a wide range of projects. We’re known for delivering high-quality results, helping you achieve your goals effectively and efficiently.

4. Smooth ODC Setup in India

Setting up an ODC in India can be a complex task. Invedus simplifies the process for you. We provide expert guidance, helping you navigate legal, regulatory, and logistical challenges with ease. You can rely on us to establish your offshore development dream team while you focus on your core business operations.

5. Around-the-Clock Development

In a global business landscape, time is of the essence. Invedus can offer you around-the-clock development services with teams working in different time zones. Accelerate your product delivery and meet tight deadlines with ease.

6. Proven Success Stories

We don’t just build teams; we build success stories. Our track record speaks for itself, with countless businesses achieving their goals and reaping the benefits of offshore development. Invedus is your bridge to offshore excellence.

7. Risk Mitigation

We’re committed to minimizing risks. Whether it’s addressing challenges in communication, ensuring data security, or managing project scope, Invedus takes a proactive approach to risk management. Your project’s success and continuity are our top priorities.

8. Business Continuity and Innovation

Invedus offers a business continuity plan that acts as a backup in the face of unforeseen occurrences like natural catastrophes or political instability. Our approach also encourages innovation by exposing your business to fresh perspectives and ideas.

9. Focus on Core Business

By entrusting your development requirements to Invedus, you can free up your time and resources to concentrate on your core business operations. We take care of the technical aspects, so you can focus on growth and innovation.

10. Access to New Markets

Invedus not only provides offshore development services but also gives you access to local knowledge and skills. This can assist you in expanding into new markets, leveraging our deep understanding of the Indian market and culture.

Invedus is where dreams meet development. We turn your business objectives into achievable milestones, combining the benefits of cost savings, top talent access, and top-notch development. Whether you’re a startup, an established enterprise, or a software-focused company, Invedus is the partner you need to elevate your business to the next level of success.

Choose Invedus, and let’s embark on a journey toward excellence, innovation, and unparalleled results. Your vision, our expertise – together, we make the perfect team.

Team Included in ODC

The following are the key members, their tasks, and job roles within an Offshore Development Centre Team.

Software Developers: The planning, creation, and testing of software applications are within the purview of software engineers. They collaborate closely with the client business to comprehend their demands and provide solutions that address them.

Testers: Testers are in charge of testing software programs to make sure they are error-free and suit the needs of the client business. To find and disclose flaws, they employ a range of testing tools and procedures.

Project managers: Project managers are in charge of supervising the whole software application development process. In order to define the project’s parameters, develop a schedule and budget, and monitor progress, they work together with the client company.

Business analysts: It is the job of business analysts to collect and evaluate business needs. They collaborate with the client organisation to comprehend their requirements and transform those requirements into technical specifications.

Quality Assurance Engineers: Quality assurance engineers are in charge of ensuring that software programs are of the highest calibre throughout the whole development process. They work together with other ODC members to identify errors, report them, and develop and use quality control procedures.

To Put it Short

In upcoming years, Offshore Development Centers (ODCs) continue to be a pivotal solution for businesses seeking cost-efficient access to global talent, enhanced innovation, and accelerated project delivery.

With a range of ODC types, including Software ODC Classic, Product Engineering ODC, and Build-to-Scale ODC, businesses can find tailored models to meet their specific needs. ODCs are not merely a trend; they’re a strategic choice to propel businesses forward in an increasingly competitive world.