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How to Set Up an Offshore Software Development Center

Setting Up Offshore Software Dev Center in India: Guide

11 July 2022

Set Up an Offshore Software Development Center

In the software development sector, offshore development is getting extremely popular. The worldwide economic crisis, as well as the huge gap between possibilities and available IT resources in Western countries, has boosted demand for Offshore Development Centers (ODCs).

India is becoming one of the most popular countries for companies in the United States, the United Kingdom, Canada, Europe, and Australia to outsource IT services. According to Statista Indian IT Outsourcing revenue will reach $7.14 bn in 2022 and is predicted to increase at an annual rate of 11.80% and is expected to reach US$12.47 billion by 2027.

However, rising operating costs, a scarcity of qualified candidates, and increased competition in online and software development have driven firms to think outside the box to overcome these issues. To overcome these issues, outsourcing plays a major role, and it has fundamentally altered the way firms operate. In this article, we will walk you through the process of establishing an offshore software development center to extend your business in remote locations.

What Is Offshore Development Center (ODC)?

The offshore development center is an offshore location occupied by a specialized team that is responsible for the development and maintenance of certain software products and services. They assist in establishing a company’s presence in another nation, improving access to IT talent, and saving money. It includes developers, testers, project managers, designers, copywriters, and UX/UI professionals. It oversees software development and maintenance, as well as project planning, testing, migration, and other IT-related activities.

The Benefits of set up an Offshore Development Center in India

Cost Reduction

One of the primary reasons why organizations choose to establish ODCs in India is the cost-effectiveness it offers. Labor and infrastructure costs in India are relatively lower compared to many other countries. This cost advantage allows companies to reduce their operational expenses significantly, including wages, office space, and equipment. Additionally, the favorable exchange rate further amplifies cost savings, making India an attractive choice for outsourcing software development and other IT-related services.

Having access to a large talent pool

An offshore development center allows your company to tap into a large pool of talented developers who can help you scale your product faster. Onshore are often unable to provide the range of talent you need, which can delay or even prevent your project from moving forward With an offshore center, you can hire more developers without increasing your overhead or spending additional funds on recruiting. This can allow you to keep your overhead low and invest in other areas of your business that will help you grow faster.

Many professionals in India have excellent English language skills and college qualifications. As a result of establishing an offshore center in India, you would have access to experts.

On-demand Setup

Offshore development companies offer you to customize your workplace to meet your specific requirements. In other words, you’ll have complete access, authority, and control over everything. Simply provide the necessary information to the ODC partner, and they will organize the resources to meet your needs.

Highly scalable and flexible

Offshore development centers in India provide flexibility and scalability options to businesses. Companies can set up dedicated teams with the required skill sets based on their project requirements. Moreover, with the availability of a vast talent pool, it is easier to scale up or down the team size as per project demands. This flexibility allows organizations to adapt quickly to changing business needs and effectively manage resource allocation.

Quality of Work

Indian professionals have established a strong reputation for their technical expertise and proficiency in the IT industry. Many Indian engineers and developers have successfully contributed to high-profile projects worldwide. Their strong educational background, coupled with continuous professional development, ensures that the work delivered by Indian ODCs is of high quality and meets international standards. Companies can expect reliable, efficient, and innovative solutions from their Indian offshore teams.

Lower Operational Costs

India is a very economical country to establish an offshore center. In other words, you will save a lot of money because the overall ongoing costs will be lower. Because India has a low cost of living in comparison to other countries, establishing an offshore development center is beneficial because there is no requirement to spend a significant amount of money on salaries.

Zero Infrastructure Costs

It is one of the biggest benefits of offshore development center setting up in India, because the cost of infrastructure in India is far lower than that of other nations. The accessibility of remote workers is crucial to an ODC’s success. As a result, you won’t have to pay for infrastructure.

Focusing on the Main Part of Your Business

Offshore development helps companies stay focused on the core aspects of their business. For example, if a financial firm needs IT solutions, they may find it difficult to hire and manage an in-house team. This is where offshore development can be helpful. It allows them to concentrate on their primary operations without worrying about the outsourced project.

Shared Responsibility

Risk management in software development is often overlooked by non-IT companies. When companies outsource a component, they share the responsibility for the project’s outcome and risk management. An experienced offshore company can help manage and mitigate any risks that arise, using the best practices available.

Time Zone Advantage and Round-the-Clock Productivity

The time zone difference between India and other major business hubs, such as the United States or Europe, can be leveraged to optimize productivity. With teams operating in different time zones, companies can ensure round-the-clock workflow, enabling seamless handoffs and faster turnaround times. This advantage facilitates agile project management and accelerates product development cycles, leading to faster time-to-market.

Government Support and Infrastructure

The Indian government has implemented several initiatives to promote and support the IT industry, including tax incentives, simplified regulations, and policies that encourage foreign investments. Additionally, India boasts a robust IT infrastructure, including reliable internet connectivity and state-of-the-art technology parks, fostering a conducive environment for offshore development centers.

Read More: Benefits of Outsourcing Software Development to India

Offshore Development Centre Checklist

Skills and Knowledge

It is critical to have a clear grasp of which nation provides the greatest service without spending your company’s cash right from the start. Along with India, the top IT outsourcing destination, there is a developing destination that is attracting the interest of many global organizations.

India offers a large pool of skilled software engineers that have a good IT background and are always up to date on the latest technology.

Working Profile

Overview of the company, background, and mission and core value of the organization, partners, future goals, and year of experience in this field by this you will have a better understanding of the firm and its operations.


Working with an ODC firm in a nation where communication is easy would reduce the load. Companies looking to save labor expenses might search for personnel in countries such as India who are fluent in English.

Delivery and Guaranty 

When considering working with an ODC partner, look at their track record of completing projects on schedule and ensuring you receive additional support such as bug resolution assistance. When you work with an offshore development company, you will save a lot of time and effort since they are prepared to assist you with future needs as they occur.

How to set up an offshore development center in India

Have a Focused Vision

When it comes to building an offshore software development center in India, there are several things to consider. You need to have a clear vision of what you want to accomplish and then look for the best partners to help you achieve your goals. Building an offshore center in India requires a lot of planning and preparation, so it’s important to take the time to understand what you’re getting into before you dive in.

Selecting the Best ODC Partner

If you’re planning to set up an offshore development center in India, finding the right partner is critical to success. Not only do you need a partner who can help you scale your business, but you also need someone who shares your culture and values. This will help you build a long-term relationship and increase your chances of success. Here are some essential factors to consider.

  • Examine the ODC partner’s expertise.
  • Inspect the company and provides timely and accurate responses to questions and support issues.
  • Ensure the company is transparent in how it communicates and shares information.
  • Your offshore development company is well-versed in the local market and understands your needs.
Hire developers with caution

When starting an offshore software development center in India, one of the first decisions you must make is who will be hired to work for your company. Hiring the wrong developers can cause your company to waste time and money while hiring the right developers can help you scale your business quickly. Additionally, communicate work tasks and roles with them.

Consider Time Zone Variations

Time Zone differences must be taken into consideration when setting up an offshore center. Time zone variations can be difficult to deal with, but you’ll be able to set your working hours and assign tasks to your staff. As a result, if you want your virtual team to function during business hours, you need to request it from the ODC.

Read More Managing Time Zone Differences When Working with Offshore Development Teams Ensure that communication is consistent

Ensure consistent communication among the offshore development team across the globe – and locally too. This is a very important consideration, as it can have a big impact on team cohesion. Make sure that all of your stakeholders are aware of your choices. This will assist you in navigating the different blockages that arise during the development process.

Define the Talent Requirements

When establishing an ODC, you should constantly keep the talent’s needs in mind. Talent requirements are values that describe what you’re looking for in applicants. You can think about these as the “must-haves” that help you identify this potential talent pool. You should also choose the specialists who will be doing certain job duties.

Why should you work with Star Knowledge as your Smart Shore Outsourcing Partner?

Setting up an Software Development Center in India with Star Knowledge’s Smart Shoring is the ultimate solution to combat America’s tech talent shortage. With an average 49-day hiring time and escalating costs, businesses need a game-changer. Smart Shoring offers access to skilled engineers, cost-effectiveness, and rapid scalability. The model ensures local accountability, seamless communication, and top-quality deliverables. Embrace innovation, stay competitive, and enhance brand reputation with Star Knowledge as your smart shore software outsourcing partner. Let our transformative Smart Shoring approach guide you to success in the dynamic digital landscape. Feel free to schedule a call with us for your project requirements.

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