When considering the opening of an ODC (Offshore Development Center), a product company must contemplate many issues, yet the most vital ones involve coming up with a clear method for creating such a dedicated center, i.e. what areas need the most attention from the outset, what structures should be focused on, and even more important: what partner company (in the overseas location) will assist in setting up and supporting such an endeavour.
An ODC is similar to a subsidiary of the company, with an office and team put together to work on the core IT product (therefore, not just some outsourced programmers). An ODC is a full-cycle system, from staff to managers all functioning together to realize the main business function in coordination with their colleagues from the head office.
The reasons for opening an ODC could be expansion of needed workers, separating projects, accelerating processes, and/or having a global presence. Some pertinent issues can include decentralization, IP & company documentation, functionality, communications, and the need for timely feedback from foreign partners. These are why any company needs to first consider all the pros and cons of going from just outsourcing to offshoring (ODC).
As the Customer, you should peruse carefully service companies and even have a tender among available providers. Look at the experience of the provider (especially with building ODCs), their reliability (checking references), their financial state (you don’t want to have troubles down the road), the business model (for starting up and supporting the ODC), and of course the availability of technical specialists (can this provider accommodate you in finding the right people).
Make sure the provider is up to date with expertise and software, and reliably gives such access to their customers. As well, estimate any and all risks that you could encounter with this or that provider, how efficiently they respond to your queries and requests, and how well they come up with a step by step plan that is specific to your needs. You should also meet the key players of this offshore provider face to face and see what real options they come up with (actually visiting centers/offices). Make sure this provider can support you in future expansion as well (not only today).
While on the subject of offshore development centers a good example of a company that provides all support for starting up an ODC (and beyond) is the Alcor Model. This model encompasses all the necessary components of what you may wish for in an offshore provider:
• Initial office search – a very important aspect of setting up in a foreign country is finding out what types of offices are available, at what price. On top of this, someone to help with negotiations and legal contracts;
• Office refurbishments – many offices will need redecoration or even restructuring to meet your needs;
• Procurements – once you’ve got the office, what about all those things needed to run it, from furniture to computers. As well, the key is to get some cost-savings in an ODC;
• Legal Advice – from hiring workers to local legislation, good legal advice is a necessary given;
• Finance / Accounting services – different countries have different financial and tax structures; therefore, some reliable accounting support is a must;
• Recruiting – to get the best talents, you need the best recruiters, then a provider that can settle everything from legal work documents to visas.
And last but not least, ongoing support of many operational processes. It doesn’t end when you move into an office and get set up; it’s a never-ending process of everything mentioned above. This is why a reliable partner is key to success in an ODC operation.