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Benefits of the offshore development centre

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Mayur Rathod
Benefits of the offshore development centre

Do you know the average salary a software developer gets in the US is $76,800 per year while it is as low as $6700 in India? The difference is vast. Undoubtedly the concept of Offshore Development Centre is gaining popularity across the world.


It offers several other benefits such as:

  • Access to the best talent at reduced costs.
  • An edge over competitors.
  • A dedicated offshore team working round the clock.


Offshore Development Centre (ODC) is a profitable and convenient option. Therefore, software development companies in the USA are setting up ODCs to address their IT and custom software development needs.


What is an Offshore Development Centre?


Offshore Development Centre is an IT company located in another country. It provides software development solutions at much-reduced rates. With a team of high-skilled professionals, these companies deliver brilliant software solutions.


As a part of business strategy, several software development companies set up ODC as its subsidiary.


How is it different from outsourcing?


There is a subtle difference between outsourcing and offshoring, which is why most professionals confuse them with one another.


In outsourcing, the selected company provides software solutions as a third-party company. It aims to increase the company's productivity, reduce turn-around time and save costs.


On the other hand, offshore development centre utilizes cost difference between the two countries to reduce the company's expenditure. ODC is a subsidiary of the parent company, not a third-party service provider.


Key benefits


Lower wages

ODCs are generally set up in countries where wages are low but abundant talent is available.


For example, in the USA, a company has to pay around $77,000 to a software developer yearly, while it costs just $25,000 in Poland, $17,000 in Bulgaria, $14,000 in Colombia and $6700 in India.


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