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How Offshore Development Center Can Help You Build Your Dream Offshore Team

Software Development
March 20, 2024
Offshore Development Centers

Establishing a high-performing offshore team in today’s globalized world has become more than just a strategic move, it’s now a key to success. As businesses strive to harness top talent from around the world while optimizing costs, Offshore Development Centers (ODCs) emerge as powerful allies in this endeavor. 

These dynamic centers of expertise offer a pathway to building your dream offshore development team. A team that collectively combines diversely skilled professionals and cutting-edge technology to propel your projects to new heights. Today we’ll look at the transformative potential of ODCs and see how they can revolutionize your approach to team building and project execution.

1. Basics of Offshore Development Center

The concept of an Offshore Development Center (ODC) is not new, particularly in the era of the Internet revolution. Many large companies have established offshore development services with the aim of building an efficient team in countries where operational costs are lower compared to their home country. If you’re still wondering what is offshore development center, an ODC serves as a strategic solution for companies looking to save costs on taxation and resources in their home country.

Overview of the Offshore Development Center concept [_newwavesolutions]
Basics of Offshore Development Center

While also creating employment opportunities in the countries where they establish these centers. However, it’s crucial to ensure that the chosen foreign location offers a skilled workforce with the necessary technical expertise. For a better understanding, consider a US-based software company facing high taxes and labor costs. By setting up branches in countries like India, China, or Indonesia, where operational costs are lower and there’s a pool of skilled talent, the company can reduce expenses significantly.

In these countries, the branch office can hire local talent at competitive salaries, resulting in cost savings for the parent company. Moreover, the government policies in these countries often encourage foreign investments, making them attractive destinations for setting up offshore development centers. Ultimately, this approach enables companies to develop software more affordably while also benefiting from tax deductions and other incentives offered by the host country.

2. Advantages of Using an Offshore Development Center

The advantages of utilizing an offshore development center for building your dream offshore team are rounded up below: 

2.1. Access to a Pool of Talent

Offshore development centers (ODCs), such as a Vietnam offshore development centre, open the doors to a diverse talent pool from around the globe. Whether you aim to build your offshore team in India or set up a Vietnam offshore software development center, ODCs offer a fantastic range of skilled professionals ready to help.

2.2. Cost Savings

Choosing an offshore development company can be a smart move for your budget. With lower labor and operational costs in offshore locations, businesses tapping into Vietnam offshore development centre services can enjoy competitive pricing while still keeping high-quality standards.

2.3. Time Zone Advantage

With offshore development centers in different time zones, you can enjoy 24/7 productivity. This means your projects can keep moving forward around the clock, leading to quicker turnarounds. Companies that build offshore teams gain a real advantage in efficiency and responsiveness.

2.4. Focus on Core Competencies

By outsourcing non-core tasks to an offshore team, businesses can concentrate their resources on core competencies and strategic initiatives, while the offshore team handles the rest.

2.5. Access to Specialized Skills

ODCs often have expertise in specific technologies or industries, giving you access to niche skills that might not be available locally. This makes it easier to build your offshore team in India or Vietnam with a strong focus on specialized technologies.

2.6. Risk Mitigation

ODCs help you mitigate risks by diversifying talent and operations across various geographical locations. This approach reduces the impact of local disruptions or challenges. Businesses utilizing Vietnam offshore development centre services can rest easy knowing their operations are more resilient thanks to this geographical diversity.

3. What an Offshore Development Center Can Offer

From website development to quality assurance, customer support, and beyond, offshore development centers (ODCs) offer a myriad of services to meet the diverse needs of businesses. Let’s look at some of them in detail:

3.1. Website Development

Transforming your digital presence starts with an engaging and user-friendly website. An offshore development company can serve as an extension of your team, offering access to international expertise and skillsets. Alternatively, businesses can engage an established Offshore Development Center to ensure the quality and efficiency of their website development projects. By leveraging the resources of an ODC, businesses can achieve their digital objectives with confidence and precision.

3.2. Web App Development

After websites, the most prominent tech product in today’s world is Web Apps. Offshore Development Centers are well-equipped to handle web app development projects, offering cost-effective solutions without compromising on quality.

Development of web applications in offshore settings [_newwavesolutions]
Web App Development

With a focus on intuitive user interfaces and seamless backend integration, ODCs ensure that each web app delivers exceptional performance and meets the unique needs of clients. By partnering with an ODC, businesses can unlock the full potential of their digital initiatives and stay ahead of the competition.

3.3. Software Maintenance and Support

When you turn to software development offshore services, you also get comprehensive software maintenance and support services to ensure the ongoing success of client applications. This includes proactive monitoring, regular updates, and timely bug fixes to address any issues that may arise. With dedicated support teams available round-the-clock, ODCs offer peace of mind to clients, knowing that their software is in capable hands and will continue to perform optimally.

3.4. Quality Assurance Ensuring

Quality assurance is paramount in the software development process, and ODCs prioritize thorough testing and validation to uphold the highest standards of quality. Through meticulous testing protocols and robust quality assurance frameworks, ODCs identify and address any potential issues before they impact end users. By focusing on continuous improvement and refinement, ODCs ensure that each product meets or exceeds client expectations.

3.5. Consultation

ODCs serve as trusted advisors, offering expert consultation services to clients seeking guidance on technology-related matters. From project scoping and requirements analysis to strategic planning and solution architecture, ODCs provide valuable insights and recommendations to help clients achieve their business objectives. With a deep understanding of industry best practices and emerging trends, ODCs empower clients to make informed decisions and stay ahead of the curve.

3.6. Other Scopes

Beyond traditional software development services, ODCs offer a wide range of specialized capabilities to support diverse business needs. This includes product sales and distribution, customer support and engagement, and project management and coordination. With a flexible and adaptable approach, ODCs tailor their services to meet the unique requirements of each client, driving innovation and delivering tangible value across the board.

4. Steps to Build Your Dream Offshore Team

Building an offshore team involves several steps to ensure success. Here’s a comprehensive guide to help you establish and manage your offshore development center or team:

Steps to Build Your Dream Offshore Team
Steps to Build Your Dream Offshore Team

Step 01: Define Your Goals

Clearly outline your objectives, budget, timeline, and the specific roles you need to fill within your offshore team. 

Step 02: Choose the Right Location 

Research offshore locations based on factors such as cost-effectiveness, language proficiency, cultural compatibility, and timezone alignment with your home office. For example, a Vietnam offshore software development center or build-offshore-team initiatives in India offer cost-efficient solutions.

Step 03: Select a Reliable Partner

Whether you’re establishing your own Offshore Development Center or partnering with an existing offshore service provider, it’s crucial to choose a reputable company with a proven track record. Look for expertise in your industry to ensure the best results for your offshore development center setup.

Step 04: Define Roles and Responsibilities

It’s also crucial to clearly define the roles, responsibilities, and skill requirements for each team member. This clarity enhances the recruitment process and ensures that you assemble a team with qualifications aligned with your project goals and objectives.

Step 05: Recruit Talent

Utilize various channels such as job boards, recruitment agencies, and online platforms to source and hire skilled professionals for your offshore team. Conduct thorough interviews and assessments to ensure the candidates meet your requirements.

Step 06: Establish Communication Channels

Implement effective communication tools and channels to facilitate seamless collaboration and information exchange between your onshore and offshore teams. Regular meetings, video conferences, and project management tools can help keep everyone aligned and informed.

Step 07: Provide Training and Onboarding

Offer comprehensive training and onboarding programs to familiarize your offshore team members with your company culture, processes, tools, and project requirements. Clear guidelines and documentation can also help streamline the onboarding process.

Step 08: Foster Team Collaboration

Encourage teamwork, collaboration, and knowledge sharing among your onshore and offshore team members. Foster a supportive and inclusive work environment to promote synergy and productivity.

5. Challenges You Might Face to Establish Your Dream ODC Team

Now, that you know the steps involved in developing a dedicated offshore team, let’s look at the challenges that may come in the way.

5.1. Cultural Differences

One of the most common challenges when establishing an offshore development company is managing cultural differences. There will be certain miscommunications, and misinterpretations due to the cultural differences between the parent company and the ODC. Bridging cultural gaps is crucial to successful collaboration, whether you build your offshore team in India or Vietnam.

5.2. Language Barrier

A language barrier is another common issue when setting up offshore development centres. The different language used by the parent company and ODC staff often creates miscommunication. Investing in language training is one way to solve the discrepancies and foster effective collaboration across borders.

5.3. Time Zone Differences

When working with an offshore development centre, time zone differences can create hurdles in scheduling meetings, coordinating tasks, and maintaining real-time communication. Misaligned work hours may lead to delays in decision-making, response times, and project progress, particularly if you build-offshore-team operations in different continents. Consequently, overall productivity will be compromised. 

5.4. Communication Tools

Effective communication and collaboration depend on reliable communication tools and platforms. Inadequate infrastructure, technological limitations, and language barriers may hinder seamless information exchange and coordination among team members.

5.5. Effective Project Management

Managing projects across geographical boundaries requires stable project management practices. Balancing priorities, coordinating tasks, and ensuring alignment among distributed teams are a bit tough and can hamper timely delivery.

5.6. Intellectual Property Protection

Protecting intellectual property (IP) is a sensitive but critical issue when working with an offshore development company.  Employees at your offshore development centre may inadvertently or intentionally disclose sensitive information to outsiders, compromising IP rights. To mitigate risks, strict protection measures and usage terms for IP are essential.

6. How Established Offshore Development Centers Can Help

Establishing your dream offshore team is a really pretty challenging endeavor, but having the support of an already-established Offshore Development Center can make all the difference. These centers offer readily available resources and experience to streamline the team-building process and ensure the success of your offshore initiatives.

With an established ODC by your side, you gain access to a pool of seasoned professionals who are already accustomed to working in such environments. The center has already trained them to mitigate the challenges you may face when creating a team independently. One such reputable Offshore Development Center is Newwave Solutions.

Benefits of established Offshore Development Centers [_newwavesolutions]
How Established Offshore Development Centers Can Help

It is a leading Vietnam offshore software development center with over 12 years of experience and a dedicated team of more than 300 professionals. With expertise in Mobile App Development, QA and Testing, Software Maintenance, Game Development, UI/UX Design, and innovative Emerging Technologies like Blockchain, AI, and IoT, Newwave Solutions is well-equipped to help you build your dream offshore team without any hassle or delay.

7. Extended Development Center (EDC) vs. Offshore Development Center (ODC)

When choosing between an Extended Development Center (EDC) and an Offshore Development Center (ODC), it’s essential to understand their key differences.

7.1. Control and Management

  • An EDC acts as an extension of your in-house team, offering greater control and direct oversight. This setup is perfect for businesses needing close supervision and real-time collaboration.
  • In contrast, an ODC operates more independently, allowing the offshore team to manage daily tasks while still aligned with your business goals. This requires strong communication but reduces management burdens.

7.2. Cost and Scalability

  • EDCs are typically more expensive due to higher operational costs in onshore or nearshore locations. They are ideal for companies that value proximity and integration over cost.
  • ODCs, often located in countries with lower labor costs like Vietnam or India, are cost-effective and highly scalable, enabling businesses to quickly adjust team size according to project needs.

7.3. Talent Pool and Flexibility

  • EDCs provide access to local or nearshore talent, ensuring cultural alignment but limiting diversity.
  • ODCs offer a broader global talent pool with specialized skills, making them ideal for tech-heavy projects.

8. ARCTEC JP & Newwave Solutions Launch an ODC in Vietnam

In early 2024, ARCTEC JP and Newwave Solutions proudly announced the opening of their new Offshore Development Center in Hanoi, Vietnam. This collaboration marks an exciting step for both companies, combining their strengths to create innovative software solutions for clients around the globe. The Vietnam offshore development centre, which officially opened on January 10, 2024, reflects a shared vision of growth and a commitment to delivering exceptional services.

Representatives from Newwave Solutions and ARCTEC during a meeting [_newwavesolutions]
Newwave Solutions and ARCTEC representatives

With Vietnam’s talented workforce and Newwave Solutions’ extensive expertise, the Vietnam offshore development centre service is set to provide high-quality, cost-effective solutions that address the growing demand for digital transformation. The center will also enable companies to build-offshore-team operations, creating smooth communication channels that enhance project outcomes.

>> Read more: Opening of ARCTEC’s Offshore Development Center at Newwave Solutions

ARCTEC Director engaging in discussions with the project team [_newwavesolutions]
The ARCTEC Director held discussions with the project team members

As ARCTEC JP and Newwave Solutions embark on this journey together, they look forward to building lasting partnerships with clients. Through the Vietnam offshore software development center, both companies aim to provide impactful solutions that meet immediate needs and foster future innovations. The partnership will enable them to serve a broader audience as a trusted offshore development company, setting the stage for further success and growth.

Final Words

In conclusion, establishing an offshore team presents a multitude of opportunities for businesses, especially for those seeking to expand their digital presence globally while optimizing costs and recruiting skilled professionals across all borders. Throughout this discussion, we’ve delved into the steps of building an offshore team and highlighted the invaluable role of partnering with an established Offshore Development Center. 

While the advantages are clear, it’s also essential to acknowledge and address the challenges that come with offshore collaboration. However, with careful planning, effective communication, and the right partner by your side, success is within reach. Whether you’re looking to build your offshore team in India or establish a Vietnam offshore development centre, the right support is crucial.

As you determine to partner with a provider of offshore development services, consider Newwave Solutions as your trusted partner. With their proven expertise in providing top-notch offshore development services, including their Vietnam offshore software development center, they are committed to delivering exceptional results for clients worldwide. Let Newwave Solutions be your trusted partner as you take steps to build-offshore-team solutions and unlock new growth opportunities.

Key Takeaways

  • Strategic Advantage: In today’s globalized market, ODCs are essential for accessing top talent, optimizing costs, driving business success, ensuring quicker project turnaround, concentrating on main business objectives, making it easier to find the right professionals, and reducing the risks associated with local disruptions.
  • Steps to Success: To build your offshore team, define clear goals, select the right location, partner with a reputable provider, and establish effective communication and training processes.
  • Overcoming Challenges: Be aware of potential challenges like cultural differences, language barriers, and time zone discrepancies, and invest in solutions to foster collaboration and communication.
  • Established Partnerships: Collaborating with a seasoned ODC, like Newwave Solutions, can simplify the process and provide immediate access to skilled professionals, ensuring efficient team-building.
  • EDC vs. ODC: Understand the differences between Extended Development Centers (EDCs) and ODCs to choose the best option for your business needs—EDCs offer more control, while ODCs provide cost-effective scalability.
  • Future Opportunities: Partnering with a capable ODC positions your business for growth in the digital landscape, making it a crucial aspect of modern operations.

Contact Information:

  • Head Office (Hanoi): 1F, 4F, 10F, Mitec Building, Duong Dinh Nghe Street, Yen Hoa Ward, Cau Giay District, Hanoi City, Vietnam
  • Branch Office (Tokyo): 1chōme118 Yushima, Bunkyo City, Tokyo 1130034, Japan
  • Hotline: +84 985310203
  • Website: https://newwavesolution.com
  • Email: sales@newwavesolution.com

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To Quang Duy is the CEO of Newwave Solutions, a leading Vietnamese software company. He is recognized as a standout technology consultant. Connect with him on LinkedIn and Twitter.

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