Why should ODC be part of the long term strategy for any business?

Why should ODC be part of the long term strategy for any business?

07 Feb. 20
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Let’s Nurture, specializes in developing and running Offshore Development Center (ODC) for its clients to broaden their IT expertise by providing access to qualified experts and our state-of-the-art software engineering facility. While Planning any business it takes a lot of preparations to be carried out be it short term, mid-term or a long term business and scheduling a set of actions necessary for its fulfillment. Coming to any Long-term business Outsourcing often comes to our mind and it is not wrong if I say Outsourcing is still hard especially when it comes to an IT company.

ODC in IT companies generally refers to an off-shore development center. ODC mostly involves the development, testing, and deployment of software offshore with a core dedicated team and has turned out to be a new business model that is being currently adopted by many businesses. The ODC model is designed to be more cost-effective than simply outsourcing a project.

ODC Commercial Structure:

A model of an Offshore Software Development Center is a contractual arrangement in which the customer pays a fixed monthly cost, with a commitment to execute either a large project or a series of joint projects. This also includes an annual review period that includes cost improvement, success reviews, comprehensive product exposure and coordination of the investment with the overall budgeting process of the company, if necessary.

Reason for ODC’s popularity:

The reason behind companies opting out for ODC is because all they have to do is look after and maintain the quality of work as needed by their client.

What Makes ODC different from Traditional Outsourcing Development:

An Offshore Software Development Center differs from traditional outsourcing development in the Following Ways:-

  • ODC is based on team size & time based contractual agreement whereas Traditional Outsourcing Development usually follows scope bound agreements.
  • ODC engagement normally involves a core team with flexible staffing whereas Traditional development has a Utilization based model.
  • ODC has a strategy and value-led approach but the traditional outsourcing development has a task-oriented relationship model.

What can be expected from the Offshore Development Centers:-

  • The commercial model can be achieved because in the Offshore development model the commitment is improved allowing the suppliers to invest a higher value in ODC.
  • ODC provides greater savings to the end customer since the total cost of operating is reduced because the sup[ppliers don’t need to involve much in an ODC format.
  • The time spent establishing BIDs and RFI / RFPs is reduced or nullified, which ensures that more time is spent on quality production.
  • Flexible staffing allows for rapid improvement and keeps the work going.

Benefits of ODC:-

  • Cost-saving Infrastructure : Off-sharing the work will increase the direct and indirect costs such as recruitment, supervision, compensation, infrastructure, etc.
  • 24/7 Services : Continuous day and night work is possible, and the work can be done efficiently using the difference in time zone. The work happens simultaneously with the help of Offshore development activities and the work is completed sooner with a high level of productivity.
  • Focus on the Core business : If one’s business is except IT industries then hiring the IT department will incur the high operational cost and in that situation, one cannot think of a better option then opting for ODC to cut out major complications and frees up time that you can spend on different tasks for one’s own business.

Lets Nurture is having a highly interactive team-based environment with a transparent approach towards project management to meet your business requirements. Please feel free to request a quote. Also, you can send us an email at info@letsnurture.com.

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Lets Nurture
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