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Offshore Development Centers - Primer

Following primer discuses what, why and when.

What is an ODC?

A development center located offshore (most likely a low cost location) that provides software development, testing, and support services.  This center can also provide supporting business services, depending upon client needs.

Features of an ODC:

  • 100% customer ownership
  • Ability to reduce/increase staff levels quickly
  • Acts as a strategic facility with experienced and skilled staff and offers low liability
  • Very secured facility, dedicated staff, full control and transparency

Services offered by an ODC:

  • Software requirements gathering
  • Business Analysis
  • Software development, testing and support
  • Production support
  • Business processes (e.g. reconciliations, claims processing, daily checks, etc.)

Above are most frequently setup services by clients.  However, it is your ODC, an extension of your organization, you can define which functions should be performed and we will help set them up.

Why do I need an ODC?

  • Significant cost reduction - improved bottom line
  • Lower management headache including managing employee administration tasks
  • Better focus on business and ability to tap resources to support business processes

When should I set up an ODC?

The answer depends upon your business processes and how is your business setup.  Almost all businesses are setup such a way so they start the process incrementally.  Initially a set of functions can be identified (for example, testing, software development, claims processing) and can be relocated to the ODC under onshore management supervision.  Based upon the first experience, most businesses make minor amendments and then add more until they reach their balanced target state.


You should start the process NOW and then incrementally define the roadmap to the target state. 

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