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Offshore Development Centre Vs Outsourcing comparison

An Offshore Software Development Centre model is a commercial structure in which the customer pays a fixed fee monthly amount with an agreement to deliver either a large project or a set of projects taken together. This also includes an annual review cycle which comprises of adjustment of rates if necessary, performance evaluations, total quality accessing and alignment of the investment with the company’s overall budgeting process.

One of the biggest reasons why companies opt for Offshore Development services are so much in demand is that they are more cost-effective than simply just outsourcing a project. All they have to do is to maintain a level of quality work, customer’s expectations and instructions.

Let’s try to understand how the Offshore Software Development Centre model is overtaking the traditional outsourcing market-

ODC table (1)

Benefits of Offshore Development Centre-

  • Enhanced commercial model quality because of improved visibility and commitment.
  •  Less development cost because of reduced operating cost from the service provider’s side.
  • Less traditional challenges and attrition because of significant improvements in retention rates.


  • The main principle of the core team is to figure out that the over time learning curves are shorter and time to market is faster. 
  •  More time is spent on delivering value services and products as the time spent in delivering BIDs and RFPs is shortened.
  • Flexibility in staffing allows rapid adjustments and keeps the work moving


  • Improved overall quality and focus because of Team learning and cultural integration.
  • Improved resource and capacity planning and better understanding of demand by the service provider.
  • Better management and execution of knowledge transfer across the team and customer organization.

The working principles for an ODC need to be designed and diligently followed which include three important areas:

ODC Core Committee

  • An agreed governance and escalation model that involves senior management from both sides as final decision making authorities. 
  • Quarterly reviews to monitor ongoing work, make adjustments accordingly and ensure that the cultural mindset is being properly adopted and maintained.
  • Annual review for joint strategic business planning

Relationship Management

  • Defined roles and rules of engagement to ensure frequent and consistent communication and collaboration from each side. 
  • On-time completion of each role by the entire team as planned previously.
  • Well-defined communication techniques to make sure that all the related important and needed information are flowing properly.

Performance Management

  • Well-defined measures and matrices that actually have some values for not only for your software but for the whole business.
  • Ways to improve the existing services in order to achieve the best possible quality.
  • Defined processes for how the knowledge is transferred and managed.

Let’s try to understand how to decide among the ODC model and the traditional outsourcing model.
One should opt for the ODC model when-

  • You are not sure about the frequent changes in your project
  •  You have an ambitious idea and you expect the requirements to change with time
  • You want more functionalities to be added in the later period of time
  • You want long-term support for your applications
  • You want to experiment with the new technologies at lower risks/cost.

Talking about the traditional outsourcing model, one should go for it when-

  • You have a small project to go for- probably a CMS based website
  • You want a small mobile app which doesn’t need much modifications
  • You don’t want to set a benchmark of your application and want simple functionalities
  • You don’t want to risk yourself with new/emerging technologies

If we talk about the present economy, everyone wants to save money. But when it comes to quality, outsourcing is still a necessary part of the strategy which in turn, can prove Outsource development Centre model an effective way to make things more agile in the outsourcing business. Any organization planning to jump into outsourcing needs to understand one thing that the models which are possible and available and not be sold strictly on the one they are presented by your offshore development company. The best service providers will always prefer offshore software development Centre model since it also helps them build the longevity in the relationship they sick.

How can we help you?

Enuke is a software development company providing comprehensive Offshore Development Centre model services to its clients all over the world. At Enuke, we believe in providing extensive software development services which our customers can rely on. Under our Offshore development Centre model, you will find these many things-

  • Full retention of business and process knowledge
  • Quick start capability for new requirements/projects
  • Quick integration with customer’s practices and methodologies
  • Long term support for all the application
  • Experimentation with all the new/emerging technologies at lower risks/costs.

Last modified: 28 Jul 2020

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