An Offshore Development Center (ODC) is merely an extension of a company located in a different country. It often comprises developers undertaking different components of a firm’s operations. Tech companies such as Google and Samsung have harnessed the benefits their ODCs provide in Eastern Europe, from a denser pool of qualified software programmers to reduced salaries and tax burdens compared to the US.
When tech corporations look to establish offshore development centers or teams internationally, they typically collaborate with trustworthy vendors delivering proficient recruitment services. One such software development recruiter is Alcor, which excels at hiring candidates for senior and lead roles for product IT businesses.
Alcor offers access to an impressive talent pool of over 600,000 skilled candidates from a range of Eastern European countries like Poland, Romania, Bulgaria, and others. Now, let’s delve into the reasons and steps to create an ODC, as well as its benefits, risks, and possible alternatives.
Why Establish an ODC?
An ODC is typically beneficial for:
1. Augmenting a development team or enhancing it with professionals armed with distinct technical skills.
2. Facilitating entry into a specific market leveraging local experts who comprehend the region’s business culture.
3. Allocating the company’s main team to focus on vital objectives.
4. Significantly reducing costs related to developer compensation, corporate and social taxes, office rent, and other operating expenses.
Benefits of ODC
Creating an offshore development center offers numerous advantages including:
1. Quick scalability.
2. Greater access to proficient software developers.
3. Decreased overhead and personnel expenses.
4. Greater potential to construct powerful infrastructure with less investment.
The approach can also introduce novel solutions and accelerate the development process when the in-house team encounters issues.
Risk Factors in ODC
Setting up an ODC can carry inherent risks.
1. Location and cultural differences often pose challenges. Lower rates for software developers in certain countries don’t guarantee the local workforce will seamlessly blend into your remote team.
2. Legal disputes related to documents or taxes might arise. Thus, countries with systems that support foreign investors, such as Poland, ought to be considered.
3. Security risks are significant when dealing with confidential company details. Robust collaboration contracts and the application of sophisticated security actions can alleviate these issues.
Alternatives to ODC
If ODC doesn’t fulfill your demands, there are other models – IT Outsourcing, IT Outstaffing, and Build-Operate-Transfer (BOT), each with its pros and cons.
Establishing an Offshore Development Team in Eastern Europe!
With over a million competent programmers, Eastern Europe offers great expertise, Western-centric thinking, and secure data handling. The countries are conveniently situated and offer a pro-business climate. Notably, the developer salaries are two to four times less than in the US. Poland, Bulgaria, and Romania lead the pack with the most mature IT industries in Europe.
Why Alcor is the Best Choice for Setting Up an Offshore Development Team?
Alcor provides IT recruitment services with a dedicated account manager to aid clients in assembling first-rate software development teams in Eastern Europe. Our team of over forty IT recruiters commences by sifting through all qualified IT professionals and presenting resumes of verified programmers eager for our client’s openings.
We promise to hire five adept software developers within a month and offer a three-month candidate replacement guarantee. But this is seldom used since 98% of our candidates successfully pass the probation period.
Last Thoughts
Establishing an offshore team could be tricky. A stout IT recruitment firm can augment your team with skilled software engineers and reduce costs by up to 70%, thereby outpacing the competition.
