7 Tips to setup offshore development center

ODC or offshore development center means an extended, dedicated, and integrated offshore team. As the name suggests, this external dedicated team is usually located in a foreign or offshore country and gives support to an organization as required.

So how you can set up your offshore development center? Here are 7 important steps to follow.

1) Choose a location
There are many outsourcing destinations in Eastern Europe and Asia that attract companies for economic reasons. Nevertheless, apart from lower operational and labor costs, businesses should also pay attention to the technical skills and cultural specifics of the nations. This is vital for remote team management and efficient communication to avoid culture gaps or work ethic issues.

2) Find a trusted partner
Every new step of building an offshore development center requires some deep research. It’s necessary to estimate risks and create a win-win offshore development strategy. In this case, you’ll need solid advice from local firms to structure your business and meet compliances. That’s the reason, a local partner will make your job a lot simpler.

3) Start recruitment
When you finally partner up with a service provider, lay the first stone of the recruitment process. At this point, recruiters will start analyzing the current labor market and select the first eligible candidates.

4) Find an office
While recruiters are picking up offshore talent for your company, start the searches for an office space where the future team will work. Decide on the location, parking lots, security system, office planning, seats, equipment, etc.

5) Get legal support
To sign a lease contract, you’ll need to consult lawyers. They will make sure you get the best terms of the agreement. This process, however, requires a deep understanding of the national law and profound negotiation skills

6) Make procurements
To equip the new office, you need furniture and proper IT infrastructure. It includes computers, software, security system, servers, and phone systems.

7) Process transitioning
Transition Management is one of the most important roles in any organization that performs outsourcing or off-shoring. Transition management is the process of migrating knowledge, systems, and operating capabilities between an outsourcing environment to in-house staff or vice versa. Process transitioning will include training and development followed by service delivery.