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Setting up a Dedicated Offshore Development Centre - The Basic Principles

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James Eddie
Setting up a Dedicated Offshore Development Centre - The Basic Principles

To get work done, you need to hire developers who can do that work in the most efficient way possible, and you will also have to invest time and resources into guiding them as they do it. In order to ensure that your development team does their best work and delivers your product on time and on budget, it makes sense to set up an offshore development centre (also known as an outsourcing development centre) where you can house all of your software developers in one place. Here are the basic principles of setting up an offshore development centre to achieve maximum efficiency and success in software product development.


Step 1. Choose your partner

Identify one or more offshore software development companies that you want to be your partners for outsourcing software product development. Note that there are hundreds of factors affecting your choice, but if you follow some basic rules, it will make things easier for you in terms of risk mitigation and communication.

Historically, Indian firms were considered most prominent as offshore software development vendors, because they had been actively building their capabilities in outsourced software product development since early 2000s (some of them even before then). So while India still remains industry leaders in outsourced offshore software product development services , other Asian countries, especially China and Philippines, have emerged as viable alternatives.


Step 2. Define the project and all its elements

In order to successfully outsource software product development, it is important to first define your project and put all its elements on paper. It is vital to write down each individual step of the process and include timeframes for completion. This process of formalising details will help alleviate any issues you have in defining your project at a later date. Additionally, there are many different languages and countries that specialise in software product development; ensure that you research which countries would work best for your needs so you can focus on making more informed decisions moving forward.


Step 3. Establish trust

With such projects there are several obstacles that must be overcome. These include: management of offshore software development company, management of offshore outsourcing software development company, application with certain legal peculiarities and significant costs of management. Establishing trusted business relationships, mutual identification and confidentiality all must be handled before true value can begin to flow between parties. There is also a direct effect on accounting, tax reporting and bookkeeping. How to get around these issues depends on many factors, but one thing remains clear - it's not easy or fast to establish trust in international business transactions by conventional means.

Also Read : India Is Top IT Outsourcing Destination In 2022! Everything You Must Know To Outsource To India



Step 4. Establish good communication

One of the biggest issues in outsourcing software development is getting developers who speak your language. In order to do that, you need to make sure that you establish an effective communication channel from day one. At Bodalgo, we use GIT for project management, and either Basecamp or Trello for daily or ongoing discussions (as required). You will find that most offshore software development companies have some kind of web-based platform these days too, with many providing screen sharing facilities.


Step 5. Keep it transparent

This step is perhaps one of your most important. When you are engaged in offshore software development and want to ensure that quality is not compromised, you need to work with an offshore software development company that follows stringent quality procedures. In addition, when using an offshore software development company, ask for feedback at each milestone or phase. Communication can be improved and clarified by setting forth what information must be passed back and forth between all parties before proceeding to more costly activities in order to avoid rework due to lack of communication or misunderstanding of requirements. Keep it transparent! In addition, keep one thing in mind: working with developers from different cultures has its benefits – but also its challenges.

Also Read : Why Is India Preferred For Software Development Outsourcing In The World?

Step 6. Learn from mistakes, both yours and your partners’

You’re going to make mistakes. You might choose someone who seems like they know what they’re doing, only to find out that they don’t deliver on their promises. Or maybe you won’t handle some project that comes your way in quite a satisfactory manner. This is all okay. What isn’t okay is if you keep making those same mistakes time and again. The best thing to do is learn from them and move on – but unfortunately, it isn’t always that easy or simple.


Step 7. Have realistic expectations

When outsourcing product development, it’s easy to get wrapped up in dreams of low costs and high quality. On both counts, you will be disappointed. In general, Indian developers are very smart and have learned to do more with less (i.e., less time and fewer resources), but that doesn’t mean they can simply read your mind—you need to communicate clearly if you want them to perform at their best. You should also keep in mind that outsourcing is not just about saving money, it’s also about speed—getting your project done quickly.


Step 8. Make sure you have compatible business cultures

Outsource software product development and offshore outsourcing software development means you have to make sure that your business culture is compatible with that of your offshore outsourcing vendor. Step 9. Make sure there are not visa issues: This can be tricky, as visa laws vary across countries in Asia. Usually, if your business was started by Americans or if you've been using American programmers, having to deal with visas should not be an issue. If they want their money fast, then they will go through a lot of trouble to get their visas approved so that you can send them funds via ACH (Automated Clearing House) transfers without delay.


Also Read : Why Offshore Outsourcing Still Remains The Best Bet for American and European Firms


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