What is ODC? Prominent Offshore Development Center Destinations
IT infrastructure plays a pivotal part in today’s commercial world. However, not every business has access to the same professionals, resources, and assets as others. This is why outsourcing is an optimal solution to “fill the gap” in IT. Outsourcing is a common strategy that enables any business, regardless of size, to integrate services and specialists into its infrastructure.
Through the years, offshore development center has had impressive growth, and even the severe consequences of the COVID-19 pandemic failed to slow it down. The most popular destinations to hire outsourced providers include India, China, Vietnam, and Brazil as well as Eastern Europe (Poland, Ukraine, and Romania) and Africa. Let’s consider our list of the best countries in each region to outsource software development and discover their success.
What is ODC?
An Offshore Development Center (ODC) is a remote team of software developers or IT professionals located in a different country from a company’s headquarters, set up to handle various software development or IT tasks. The ODC operates as an extension of the company’s in-house team, providing dedicated services while offering cost advantages and access to a larger talent pool.
Benefits of Offshore Development Center
Cost Savings
Lower labor and infrastructure costs in countries with cheaper talent, along with tax incentives.
Access to Global Talent
Hire highly skilled developers and IT professionals from a global pool with diverse technical expertise.
Scalability & Flexibility
Quickly scale your team up or down based on project needs, with minimal administrative hassle.
Faster Time-to-Market
24/7 development due to time zone differences, speeding up project timelines and delivery.
Focus on Core Business
Free up internal teams to focus on core tasks while the offshore team handles development.
Improved Productivity
A dedicated offshore team boosts efficiency and maintains alignment with your business goals.
Access to Cutting-Edge Tech
Offshore teams often specialize in the latest tools and technologies, offering advanced expertise.
Popular Locations for ODC
Eastern Europe
In recent years, Eastern Europe has emerged as a premier destination for IT outsourcing, and businesses from around the world have a variety of reasons for doing so. Some of these reasons include affordable offshore software development partner rates, the availability of qualified professionals, benevolent tax laws, the abundance of software development firms on the market, and so on.
In this region, countries including Poland, Romania, and Ukraine have all achieved notable success as ideal outsourcing options. Poland stands out as a preferred destination for IT outsourcing due to its first-rate services and highly skilled technical workforce. Polish software engineers possess both the technical and soft skills necessary for success in international IT projects.
Another remarkable offshore development center in Eastern Europe is Romania with clear tax advantages. For instance, foreign businesses that invest in cutting-edge technology are exempt from paying earnings tax. Thus, many international software companies like Intel, HP, Microsoft, IBM, and Amazon choose Romania as the location for their subsidiaries and representatives.
Unlike the stability in Poland and Romania, Ukraine recently went through difficult times because of the war. However, IT outsourcing in Ukraine still witnessed an uptrend in both 2022 and the first half of 2023. Thus, international companies can be completely assured about setting up offshore development centers in Ukraine.
Latin America
With excellent IT infrastructure, highly educated population, and low-cost labor, Latin American countries like Brazil and Argentina have become ideal locations for setting up offshore software development centers.
Brazil, an indispensable name when referring to IT outsourcing in Latin America, is considered in the top #13 on the top software outsourcing countries worldwide and the #1 IT outsourcing country in Latin America. Brazil also boasts an exceptional IT infrastructure, with 90 technology parks, a high concentration of research institutions, and IT firms.
Brazil’s neighbor, Argentina has also gained a variety of achievements in developing IT Outsourcing Software Center. Located in the same continent as the US and Canada, Argentina has become a preferred destination to outsource software developers due to the one-hour time difference between Argentina and the US. Thus, responses are quicker, questions and issues may be resolved quickly, and projects can be finished more quickly.
Africa
In recent years, Africa has been predicted to be the next global IT outsourcing center because of its cost savings, multilingual workforce, technological advancement, and young population.
Moreover, located along similar latitudes, Africa and Europe share overlapping or comparable time zones. For example, South Africa and the United Kingdom have a two-hour time difference. Because of having similar time zones between businesses and their outsourcing partner, both teams can foster a productive work atmosphere. This shortens important communication lags and can quickly lengthen response time.
Egypt, often referred to as an “African tech hub”, has experienced impressive growth recently. This country has established itself as a valuable outsourcing location, offering a large pool of tech expertise, competitive development wages, and a developed infrastructure which have made Egypt a favorite outsourcing location for American businesses like Vodafone and Intel.
Asia
It can be said that Asia has become a pioneer in the software outsourcing industry in the past two decades with giant India – the largest contributor to the IT outsourcing market, and China – the leading country in IT services. Also, Asia-Pacific countries like Vietnam have matured and become one of the world’s largest and most developed software outsourcing markets.
Thanks to various advantageous characteristics, India is now dominating the IT outsourcing market with the greatest amount in revenue and growth over the previous few years. These features include a large talent pool with high competency, reasonable prices, supportive government, and state-of-the-art infrastructure and technology.
Being the country with the largest population on Earth, China offers a wide range of possibilities for outnumbered professional software developers. This is fantastic news for businesses as they won’t run out of supply if they choose to hire from China. Additionally, China still has a stable GDP Annual Growth Rate from 1989 till now with an average of 8.95 percent. They were rated the best software developers available by HackerRank.
Another noticeable growth in IT outsourcing in Asia is Vietnam, which is called “The next Silicon Valley in Southeast Asia”. Vietnam software outsourcing has always been a secret weapon for companies looking to use technology since the introduction of IT outsourcing services roughly 15 years ago. In fact, since 2014, Vietnam has become Japan’s second-largest outsourcing partner for software development services.
Recently, the IT software market in Vietnam has witnessed a considerable expansion at an unprecedented rate with large firms and a large number of potential start-ups. Founded in 2004, Luvina Software – one of the top Vietnamese Software Development Outsourcing companies, has a sustainable surge with more than 750 talents who have extensive experience in the IT outsourcing industry.
Having had substantial expertise in the IT outsourcing sector since 2004, Luvina Software understands how hard it is for businesses to find an all-around and capable partnership. As a result, we are dedicated to offering our customers the most dependable and high-quality service.
>> See more: Offshore Software Development Rates by Country
Final Thoughts
Outsourcing is an integral part of the modern tech industry to keep your projects cost-efficient and of exceptional quality. It is virtually essential to choose the right destination out of the best countries for outsourcing your IT projects. Businesses can choose the leading countries like Poland, India, or China, but the newly emerging countries with impressive growth like Vietnam are also worth taking into consideration. Besides considering the budgets, level of education, or government policy, it would be much better if you could find a team that matches your culture and business approaches in particular regions.
With nearly 20 years of experience in the IT outsourcing industry, Luvina is always ready to answer all your questions and kindly provide outsourcing services. You can contact Luvina Software or organize a free meeting if you have any inquiries about a dedicated development team. Luvina Software would be honored to support you in your journey to set out the most committed development team.
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