What is ODC? Does it differ from offshore development services in Ho Chi Minh city?

Having an in-house IT development team requires a huge amount of costs and other infrastructure. So, not any organization has a development team and they need to hire some other development team. But many of them can only develop and do not have a responsibility to upgrade your product, that is why the OCD model was born. Does it differ from offshore development services in Ho Chi Minh city?

1. What is the ODC (Offshore Development Center) model?

The offshore development center is a physical location or office dedicated to providing the organization with software development services. A dedicated offshore development center can be established anywhere on the planet. Businesses, on the other hand, are more likely to choose a place with lower living costs than their home country (like our offshore development services in Ho Chi Minh city).

Figure 1. The offshore development center is about creating a development team outside your country

2. The functions of an Offshore Development Center (ODC) typically include:

2.1 Software Development 

The primary function of an ODC is to provide software development services to the client company. This includes designing, developing, testing, and maintaining software applications according to the client’s requirements and specifications.

2.2 Project Management: 

ODCs have dedicated project managers who oversee the team’s work and ensure that the project is completed within the agreed timeline and budget. The project manager also serves as a single point of contact for the client.

2.3 Quality Assurance

The ODC team typically includes quality assurance specialists who ensure that the software developed meets the client’s quality standards and is free of bugs and errors.

2.4 Maintenance and Support

Once the software is deployed, the ODC team provides ongoing maintenance and support services to ensure that the software runs smoothly and is updated as required.

2.5 Infrastructure Management

ODCs are responsible for managing the IT infrastructure, including hardware, software, and network resources required to develop and deploy the software.

2.6 Communication and Reporting

ODCs maintain regular communication with the client to ensure that the project is progressing as per the client’s requirements. They also provide regular reports and updates on the project’s status, including progress, challenges, and milestones achieved.

Overall, the functions of an Offshore Development Center are aimed at providing efficient and cost-effective software development services to the client company while maintaining high-quality standards and timely delivery.

3. benefits of offshore development centers( ODCs)

Offshore Development Centers (ODCs) offer several benefits to client companies, including:

3.1 Cost savings 

ODCs provide access to highly skilled and experienced IT professionals at a lower cost than hiring local developers. This is especially true for companies located in high-cost areas such as the United States, Canada, and Europe.

3.2 Access to skilled resources

ODCs allow companies to tap into a larger pool of highly skilled and specialized resources. This can help companies access expertise and knowledge that may not be available locally.

3.3 Scalability

ODCs are scalable, allowing companies to quickly increase or decrease the size of the development team as needed. This flexibility can help companies adapt to changing business needs and requirements.

3.4 24/7 development coverage

 ODCs can provide 24/7 development coverage due to the difference in time zones. This can help speed up the development process and reduce the time to market for products and services.

3.5 Faster time to market

With access to a larger pool of resources and 24/7 development coverage, ODCs can help companies develop and deploy software applications faster, which can provide a competitive advantage.

3.6 Focus on core competencies

 By outsourcing software development to an ODC, companies can focus on their core competencies and strategic initiatives, freeing up time and resources to drive business growth.

3.7 Reduced operational risk

 ODCs can help reduce operational risk by providing a stable and secure development environment. This can help companies mitigate security risks, compliance issues, and other potential challenges.

Overall, the benefits of an Offshore Development Center can be significant, including cost savings, access to skilled resources, scalability, faster time to market, and reduced operational risk.

4. Difference between OCD and outsourcing

ODC differs from software outsourcing in a few ways. While ODC delivers services or products from a different country, outsourcing is a service that provides specific services or products from a third-party organization, and physical location isn’t always a consideration.

Outsourcing is primarily used to boost productivity and free up time to focus on other important duties. Cost savings is one of the reasons for outsourcing, but it is not the primary reason. On the other side, ODC’s main goal is to assist the company saves money by taking advantage of the cost differential between the two countries.

However, both ODC and outsourcing (especially some reliable offshore development services in Ho Chi Minh city) have the same goal: to gain access to a large pool of talented developers at a lower cost for development services, allowing businesses to save money while increasing recruiting productivity, and optimizing accounting, human resources, and office budgets.

ODC can provide you with a variety of services, including assembling a software development team depending on your needs, project-based development, testing, and setting up different ODCs for clients.

5. Similarities between OCD and offshore development services

5.1 Reduce the costs

As said before, ODC is frequently located in countries with lower living costs than those in which the headquarters are located (like using offshore development services in Ho Chi Minh city). They can use the cost disparity to cut costs in materials and labor while increasing sales or they can shift the main focus to other factors.

Figure 2. Both ODC and outsourcing help companies reduce costs

5.2 Expand the market to a foreign country

Being in another country’s marketplace allows you to increase your sales volume, and reputation, get closer to your customers, and better understand their needs. This is also a method of being physically present in the target market while lowering logistics costs.

Figure 3. Have your development team in another country can positively affect your brand image

5.3 You can access the new talent pool

Having your company employee in a different country means having access to that country’s talent pool to enrich your company’s working culture and improve your overall skills. When job seekers see that they will be working in a “foreign company’s office,” they are more likely to accept the positions like our team members who are working in offshore development services in Ho Chi Minh city.

5.4 Chance to localize your product

If you want to reach the overseas market, both ODC and offshore development services are a good options. Because it not only brings your company closer to that market but also aids in the localization of your products. For example, if you want to bring your products to Vietnam, having your ODC there is a smart move because all of your developers are locals who can help input ideas to localize your product for their market.

6. WHY DO YOU CHOOSE OFFSHORE DEVELOPMENT SERVICES OFFSHORE DEVELOPMENT SERVICES IN HO CHI MINH CITY?

Some potential reasons why a company may choose Offshore Development Services in Ho Chi Minh City could include:

• Access to a large pool of talented developers: Ho Chi Minh City has a strong and growing tech industry, with many skilled software developers. This means that companies can have access to a large pool of talented developers with a range of skills and experience.
• Cost-effectiveness: Compared to hiring local developers, Offshore Development Services in Ho Chi Minh City can be more cost-effective. The cost of living is lower in Vietnam, which means that wages for developers can be lower than in other countries.
• English language proficiency: Many developers in Ho Chi Minh City have a good command of English, which can help with communication and collaboration with the client company.
• Time zone compatibility: Vietnam is in a time zone that overlaps with many other countries, including Australia, New Zealand, and many parts of Asia. This means that Offshore Development Services in Ho Chi Minh City can provide good time zone compatibility with clients in these regions.
• High-quality work: Many Offshore Development Services in Ho Chi Minh City are known for delivering high-quality work that meets international standards. This can provide a high level of confidence in the quality of work that will be delivered.

It’s important to note that there are potential challenges and risks to using Offshore Development Services in any location, including language and cultural barriers, differences in time zones, and potential challenges with communication and project management. Therefore, companies should carefully evaluate their needs and resources before choosing an Offshore Development Services provider.

Conclusion

Both ODC and offshore development services can save some costs for organizations. But if you want a long-term solution, ODC is a better choice, for the rest, choosing to use offshore development services in Ho Chi Minh City is still the best choice for the money.