In 2020, the Information Technology industry continues to reach a higher level of globalization. Many businesses are now tending to build Offshore Development Center (ODCs). Today, this model is considered an upgrade solution for businesses, as it offers more benefits than traditional outsourcing. In this Tech Town article, we go into detailed instructions on how to set up an offshore development center and tips for working effectively with your ODC team.
What is ODC?
Offshore Development Center (ODC) is understood as a team of technology experts specializing in providing software development services for businesses but located in foreign countries. Simply put, it is a subsidiary of a company operating in another country.
The country where the ODC is located usually has a much lower cost of living than the country where the parent company is located. However, it is essential that the location to set up the ODC has the resources available for corporate integration.
Besides developers and testers, to reduce the workload for the main office, offshore companies also have a full team of management and technical experts, from project managers, designers, UI experts. /UX to customer management, personnel… Moreover, ODC also has its own advanced equipment and infrastructure, which helps to reduce the additional cost burden for offices and equipment.
If you’ve ever considered outsourcing software development or IT projects for your business, then ODC could be a cost-effective option for you.
Advantages of establishing ODC
There are many advantages when a business develops ODC abroad, in addition to cost savings, ODC also brings many other benefits for businesses such as:
● Minimize the cost of setting up infrastructure for businesses thanks to a team of experienced experts and modern, private infrastructure equipment.
● Abundant and highly qualified human resources. Professional ODCs pay great attention to the training and further development of professional skills of their staff to ensure the ability to provide the best solutions and services to their customers.
● Activities and work progress are well controlled by the ODC usually have to strictly follow the instructions coming from the main office. Their customers can also monitor and track the work progress, if anything is not right, the customer can negotiate or request a repair.
● ODCs always have continuous and enthusiastic technical support policies throughout the project implementation period.
● ODC teams are able to deliver projects on time and on time because they operate under optimal conditions and stick to the project timelines and guidelines set by the main office from start to finish. .
● ODC is like an extension arm capable of performing the tasks of the internal human resource group, effectively supporting enterprises in expanding the IT department. Without ODC, resource allocation would be a very difficult task.
Steps to set up your own ODC
The following are instructions on how to open an offshore development center. Follow these steps to create a win-to-win offshore strategy.
1. Choose a place
There are many IT outsourcing destinations in Eastern Europe and Asia that attract many global businesses for economic reasons. However, in addition to lower operating and labor costs, businesses should also pay attention to the technical skills and cultural specificities of countries. This is important for remote team management and effective communication to avoid cultural gaps or work ethics issues.
2. Find a reliable partner
Each stage in building an offshore development center requires in-depth study. It is necessary to estimate risks and create a win-to-win offshore development strategy. In this case, your business will need advice from local companies to structure your business and comply with local laws. That’s why a trusted partner is key to keeping you on track in your local environment.
3. Start recruiting
4. Find an office
While employers are selecting talent for your business, start looking for the office space where the future team will work. Decide on location, parking, security systems, office planning, seating, equipment,…
5. Get legal assistance
To sign a lease, your business will need to consult with attorneys. They will make sure that you get the best terms of the deal. However, this process requires a deep understanding of national laws and strong negotiation skills.
6. Office infrastructure equipment
To equip your new office, you need the right IT furniture and infrastructure. Including computers, software, security systems, servers, internal mail services…
7. Going into operation
This is the stage where you are ready to send out your job offer. The first employees will start their work, and finally your ODC is officially up and running!
8. Personnel salary calculation
Accounting and Human Resources are vital parts of operations management to support your new ODC. Your business needs someone responsible for paying wages, transferring funds between ODC and headquarters, as well as health insurance and layoffs.
Above are the detailed steps to start an Offshore Development Center, in case of working with a Vietnamese technology company like Tech Town, you just need to go to the second step and get all the support in subsequent periods in accordance with Tech Town’s ODC service policy.
7 tips for working successfully with ODC
1. Define the strategic vision of the product
In most cases when working with an Agile ODC team, it is important to determine the number of tasks to be completed in a day before starting the project. A well-crafted working strategy presents the team with a complete vision of the project. Within the scope of work, you should define all the work the team has to deliver, including deadlines, reports, and schedules.
2. Product development planning
To plan product development, you must divide the scope of work into time periods. Across the entire product roadmap, you’ll get the full details of what’s needed to realize the product vision. A product roadmap is a flexible tool, so timelines and functionality can change based on the pace of development, user needs, and other external variables, all all need to be noted. All members of the ODC team will have a clear picture of the product development process, this image will always appear in their thoughts and work.
3. Hold regular meetings
An ideal way to communicate with each other is to stay updated on each other’s activities and issues. Meetings are regularly held to evaluate demos, these are usually held at the end of each iteration, the demo is a presentation of the team’s results in the middle phases of the project. During demos, the product owner or project manager should provide constructive input to the team and ensure that it is documented in the demo report or presentation. Identifying the positives and negatives of the last iteration as well as developing solutions to them is essential for both parties.
4. Communicating Through Collaboration Platforms
Applications such as Trello, Slack, Zoom, JIRA… are more and more widely used thanks to the development of the offshore market. ODCs and product owners are more productive when they use the right collaboration platforms. As opposed to sitting in a room together, these technologies help keep everyone “in the same boat” despite differences in time zones and languages.
5. Ensure a seamless workflow
In addition to learning about the partner company, the business that hires ODC is also responsible for sharing information with the partner about its own business. When the ODC team starts working, they will feel comfortable and welcome as actual members rather than a hired organization because both parties have a mutual understanding of the organizational structure, work processes and products.
6. Consistent communication
Don’t give a task and leave it alone for a long time before testing it. Your business should also hold daily team meetings or actively participate in them. No one can be sure if everything will go according to plan, so we need to stick to the work.
Not caring about the development of the group can cause members to lose enthusiasm. Therefore, it is important to have daily talks about the development of the project. Having a lot of communication can be a waste of time, so it’s a good idea to hold a meeting every morning before the team starts to work to summarize and describe what was accomplished the previous day and the challenges faced. problems happened along with how to solve them today.
7. Keep an eye on work, but don’t “supervise” too closely
Finally and to be honest, no one wants to be “micromanaged” in their business. Some things may feel off-putting to you, but for engineers, it’s only part of the process that ensures future project success. Therefore, you should communicate any queries or suggestions that you may have in a positive way so that the engineers always feel appreciated.
Choose Tech Town – Choose the right ODC in Vietnam for your project
Tech Town is a technology company from Vietnam, specializing in providing technology solutions with the application of the most modern technology techniques such as Blockchain, AI, machine learning… Tech Town provides professional ODC services, has been working with partners from many countries around the world such as: Netherlands, Japan, Australia, United Kingdom, New Zealand, Singapore.
Tech Town is proud to be the unit that accompanies partners from the time when technology projects are just ideas until the product is completed and contributes to the success of the partner. Through customized products that are completed, completed earlier or on time as committed, accompanied by a tight support and warranty regime, Tech Town has become the technology solution of many customers. major partners in the world such as: QTS Australia, Nedcoffee Vietnam, Bliss Bank, Trung Thuy Group, Revollet International Limited, R-point, Bookmarkx, Rev Capital Fund,…
Contact your nearest Tech Town office if your business has any technological challenges.
● Address: L17-11, Floor 17, Vincom Center Building, No 72 Le Thanh Ton, Ben Nghe Ward, District 1, HCMC, Vietnam
● Contact: +84 81-716-0331
● Email: email@example.com
Japan Representative Office
● Address: 7F, Honmachi Minami Garden City 3-6-1 Kitakyuhojimachi, Chuo-Ku, Osaka, 541-0057, Japan
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TECH TOWN – TECHNOLOGY SOLUTIONS FOR YOUR BUSINESS
📞Phone: +84 81-716-0331
📍Address: Floor 6, Vinhomes Central Park, No 208 Nguyen Huu Canh, Ward 22, Binh Thanh District , HCMC.
– Japan Representative : Floor 7, Honmachi Minami Garden City, 3-6-1 Kitakyuhoji Machi, Chuo-Ku, Osaka, 541-0057, Japan
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– Canada Representative office: 100 City Centre Dr. Unit 206 – Level 1, Mississauga, ON, L5B 2C9