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Setup Your Own Offshore Development Center(ODC) In India

Are you planning to set up an offshore development center in India? This post will guide you through the process.

Why set up an ODC for your Software Project?

  • USA outsources approx 300,000 jobs every year
  • 45% of companies plan to increase their outsourcing
  • 24% of small businesses today outsource their operation to achieve efficiency
  • 50% of Fortune 500 rely on trusted offshore outsourcing partners for their requirements

How to Set Up an Offshore Software Development Center in India in 11 simple steps?

1. Define the vision & requirements of your business

  • Outline the scope of work –
  • Define the project’s purpose- Building a new product, building new features in an existing product, or upgrading it to better technologies.
  • Features do you wish to build?
  • Technologies do you wish to integrate?
  • Tech stack do you wish to use?
  • Whether it is a simple development or complex development with changing requirements?
  • Define the term of engagement
  • Whether it will be a short or long-term engagement?
  • One-time, recurring, or permanent technical support?
  • Define the talent requirements
  • Detail out the different experts required for the project at various stages of development.
  • Choose a development methodology that would work best for the project.

2. Choose a location

  1. Ease of resource availability across tech-stack
  2. Per-hour rates of developers
  3. Government FDI policies
  4. Rules and regulations regarding data breaches and IP theft
  5. Political and geographical stability
  6. Available infrastructure in the location

3. Service provider evaluation

  • Check for their industry experience, especially in your business domain
  • Evaluate their development methodology
  • Check if they are providing you dedicated offshore development center/team to work with
  • Evaluate the size of the firm and their technology expertise
  • Check for their international presence
  • Do they offer resources with different amounts of experience?
  1. Open and direct communication with the leadership team
  2. Collecting information on work experience, client reference, and company’s social proof
  3. Assessing the partners on their ability to have transparent and honest communication

4. Team Selection

  • The team selection process-the end-to-end process to be followed before onboarding a resource in the offshore team. Setting up a transparent process that allows you to have complete visibility into the hiring operation of the offshore development center.
  • HR Policies- Defining employment policies, engagement terms, and project payment.

5. Create legal documentation

  1. Business Agreements
  2. Employment Agreements
  3. Work Permits
  4. NDAs
  5. Data security and privacy policies
  6. Coding standards

6. Infrastructure setup

  • Systems to be used
  • Internet bandwidth
  • Communication channels and technologies
  • Server Backups
  • Management policies
  • Data security system
  • Data access and exchange protocols
  • KT process

7. Security management

  • The Client
  • The offshore development partner
  • The hired software developers and other resources

8. Project management

  1. Scope of work and expected outcome from the resources
  2. Hierarchy of workflow
  3. Chain of command
  4. Escalation matrix
  5. Feedback mechanism
  6. Knowledge transfer process

9. Team training and mentoring

10. Define Milestones

11. Communication management

Thanks articlerod for allowing me to publish this article.

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