Cost Factors to Consider for Offshore Development Center (ODC) Setup
Tags: softwaredevelopment, hiringdevelopers
Published: 2023-04-05 10:28:43

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title: Cost Factors to Consider for Offshore Development Center (ODC) Setup
published: true
description: In case you want to optimize your expenses, you may choose your offshore development company's destination based on the development cost structure that best fits your requirement. 
tags: #softwaredevelopment #hiringdevelopers
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# published_at: 2023-04-05 10:14 +0000
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<img src="https://www.cmarix.com/blog/wp-content/uploads/2022/07/Offshore-Software-Development-Benefits-Challenges-and-More.png">
The entire method of software development has changed drastically over the years. Previously companies had to invest thousands of dollars to build their in-house development team, which was not always efficient. Today, there are several offshore and nearshore development possibilities available. Additionally, with remote work rising due to the coronavirus pandemic, companies hire remote team members for their development requirements. 

Hiring remote works also means that companies are not reluctant to hire offshore developers for temporary or full-time projects to meet their company software development needs.

Most companies realize that building an in-house software development team can be very expensive compared to <a href="https://www.cmarix.com/hire-on-site-developer.html"><b>hiring on-site developers</b></a> for offshore software development company India. This scenario is more fruitful when the app or product only complements your main business product or if there is a minor requirement of the development staff after the product has been launched.

This scenario is more fruitful when the app or product only complements your main business product or if there is a very minor requirement of the development staff after the product has been launched. Since technology is changing rapidly, it is for your benefit not to distract your attention to software development or app-building entirely.

Thankfully for the large IT outsourcing market, offshore software developers can help companies looking for software development solutions away from their geographical domicile. Some regions provide expert development teams and a vast pool of talent, which is often too inexpensive. This reduces the expenditure of keeping an in-house team and provides a more affordable specialized offshore team for your development. Offshore development reduces the price of keeping extra staff while eliminating other expenses like payroll, bookkeeping, and health benefit costs.

<h2><b>When are Offshore Development Companies, the best alternative?</b></h2>

The world has adapted to an agile methodology for software and application development. The product starts to roll out with the client brief, research and development phase, beta testing, and the only part of the by-product is forming new codes. 

This method means that the cost of software development can be very high and unfeasible, especially if the plan is to depend on an in-house team for application development.

Medium to large scale companies and enterprises have enough budget to maintain an in-house team for product testing, delivery, and maintenance. However, this is mostly the case with companies that are not development based, like Facebook, Twitter, Apple, etc.

For companies that are not looking to focus entirely on software development as a mandate, it is quite a practical option to outsource their services. These companies can benefit from lower costs from offshore development center India.

Outsource development companies are experienced in specific runtime environments like Swift or JavaScript, which allows them to take care of jobs that require only these specific skills.

An offshore development company can provide you a setup to various Custom Software Development Services like:

<ul><li>UI/UX development</li>
<li>SEO content management</li>
<li>Project management</li>
<li>Design and development</li></ul>


Having a team working in a multi discipline environment can provide you with an extensive range and cost savings while delivering punctually. You can also invest some time training these developers to use your tools and allow them to adjust to your company environment and work culture.

Having an offshore software development company in India understand your product or brand can help build a healthy and long-term professional relationship. It would provide you with huge assistance and help you think for the long-run.

<h2><b>Choosing an Outsource Development Company and the Cost Perspective</b></h2>

With a massive rise in electronic hubs in Europe, India, and Southeast Asia, technology problems can be solved remotely by the specializations offered by these regions. The success of the rollout of a product comes down to one simple thing, choosing the right offshore development company in India. When it comes to the last election, the cost of the development is the final deciding factor. However, some other factors need to be looked into before you hire an on-site developer for your software development project, such as:

<ul><li>Expertise in a programming language</li>
<li>Project portfolio</li>
<li>Mobility between your office team and the offshore staff</li></ul>

Ideally, a significant factor for hiring a dedicated team for your product development is the lack of a language barrier that allows you to communicate throughout the development process.

Depending on the contract, you may need to cater for additional expenses like travel, testing, office space, and taxes. Some contracts might ask you to include a project manager to ensure the team does things in time and produces the desired results. A project manager is also the point of communication between you and your remote team of developers. This is incredibly convenient when the remote team of developers is working on an entirely different time zone, almost opposite to yours.

<h2><b>Benefits of choosing an ODC</b></h2>

Working with an offshore development company India has always proved to be an extensively cost-effective way to design, test, and launch. Companies like Dell, Samsung, Microsoft, and Amazon have launched several outsource development centers in countries like India, because of their specialized IT industry, like back-end, cybersecurity, and database design abilities. Some of the main factors that make all companies prefer offshore development companies over in-house teams are limited testing and automation budget limitations, expensive Developer Operations and legacy systems, and the inability to scale or convert between different platforms.

Eastern Europe has rapidly become a popular offshore development hub for most companies. The development costs between ODC hubs differ slightly. Luckily, the expertise and quality of <a href="https://www.cmarix.com/software-development.html"><b>custom software development services</b></a> provided by offshore development companies remain consistently high.

In case you want to optimize your expenses, you may choose your offshore development company's destination based on the development cost structure that best fits your requirement. 
With this knowledge in mind, IT companies may explore the option of ODC as a provider of both cost-effective and quality software development solutions. If not, you can always stick to traditional outsourcing and hiring freelancers for your work.