ODC Model vs Outsourcing: Which One Is Right for You?
Big city life is great in terms of resources and opportunities, but it’s a rip-off when it comes to hiring employees. Developer salary is already high enough on its own, but when you consider the additional costs, such as taxes, paid vacations, and pension — it’s a hefty sum.
Business owners who don’t want to spend a fortune on hiring high-quality software developers yet aim to receive top-level services came up with a forward-looking solution. They set up an ODC or leverage outsourcing because these provide a perfect price-to-quality ratio.
Choosing between the ODC model vs outsourcing is a challenge because they both have their benefits, and you wouldn’t want to back the wrong horse. Qubit Labs is here to ease this task. Read on to see whether an ODC model is the right fit, or maybe outsourcing is your to-go choice.
ODC Model VS Outsourcing: The Main Differences
Before moving to the ODC model vs outsourcing comparison, let’s clarify the terms.
What is ODC?
What is ODC? The offshore development center is an office space with the infrastructure and equipment required for a software development team. Usually, it includes administrative and support staff that facilitate its work.
The companies can locate their ODCs in any country but usually choose those with lower living costs (compared to their native country) yet skilled programmers. Your remote offshore team is a part of your in-house team. You can manage it yourself or hire offshore project managers.
When to Opt for an Offshore Development Center?
The ODC model is a perfect choice when you need to:
- Attract talents with specific skills. It might be hard to find software developers with specific skill sets in your location, or they might cost you a fortune. ODC is a great way to strengthen your team by adding unique expertise and filling the knowledge gaps.
- Gain new knowledge. Training and development opportunities are time and cost-intensive, so hiring experienced remote developers to train your junior-level employees is an effective solution. The employees will complete the project and obtain new skills — that’s a slam dunk.
- Have full control over your remote team. One of the major differences between the ODC model vs outsourcing is that the first option allows you to comply with software development and security standards and add vetted professionals to your team. You can track the load and evenly distribute the tasks between employees.
- Be able to adjust team size. The project requirements change during the process, and now you need to add-lay off some developers? Not a problem. When needed, you can quickly scale up or down the team size at your ODC. Also, that’s an excellent way to optimize software development costs.
- Save costs. Long-term contracts usually imply a further discount. Besides, ODC model vendors typically offer better prices compared to software outsourcing.
- Increase productivity levels. A minimized learning curve and the professionals able to cooperate and come up with an all-inclusive working strategy are the prerequisites for increased performance rates.
What is Outsourcing?
What is outsourcing? Software outsourcing implies delegating tasks to an external development team usually located abroad. This option is time-effective because you can delegate the job to experts and get the desired results as soon as it’s completed. No hurry or constant supervision. As a rule, outsourced employees work on several projects at a time.
When to Consider Outsourcing?
Software outsourcing makes sense in the situations when you aim to:
- Reduce project accountability and management overhead. When it comes to the ODC model vs outsourcing comparison, the latter option implies that the vendor is responsible for the project outcomes. You discuss the terms and budget, and the vendor manages the team in a way to meet the mentioned expectations.
- Reduce the in-house team’s load. If your internal team is already engaged in too many activities, a high load might lead to employee burnout and decreased performance. So, offshore or nearshore outsourcing allows your in-house team to focus on core tasks while remote professionals handle non-strategic operations.
Pros and Cons of ODC Model
The most effective way to choose between the ODC model vs outsourcing is to highlight the strengths and weaknesses of both options. These are the ODC benefits you can expect:
- Dedicated workforce
- Strategic approach
- Control over the processes
- Short time to the market
- Flexibility in staffing
- Cultural integration and improved overall quality
- Better management
The fly in the ointment is that the ODC model has some deficiencies. These are the following:
- Communication challenges associated with remote work
- Cultural differences might provoke misunderstandings
- The need to comply with legal requirements depending on the country you choose for your ODC
- Risks of data leakage and sensitive information exposure
Benefits and Pitfalls of Outsourcing
The ODC model vs outsourcing analysis is full only when we point out the highs and lows of both alternatives. So, let’s start with software outsourcing advantages.
- Access to top-level tech talents across the globe
- Time savings
- Shared responsibility
- Focus on core business tasks
As for the disadvantages of outsourcing, these are the following:
- Decreased service quality due to developers’ insufficient tech expertise.
- Loss of control
- Data privacy concerns
- Communication issues because of language/culture.time zone differences
- Hidden costs
- Lack of transparency
So, choosing between the ODC model vs outsourcing comes down to your requirements and expectations. If you prefer staying in contact with your remote employees and managing the processes, the ODC model is the best fit. Besides, you can easily strengthen your team by adding a couple of developers or, in contrast, save costs by laying off some specialists.
In case you need help with non-core business tasks and aim to decrease the load put on the in-house specialists — opt for software development outsourcing.
Setting Up ODC with Qubit Labs
The ODC model vs outsourcing comparison proved that setting up the ODC is a long-term investment that helps companies drive their performance. It provides access to vetted developers, decreases operational costs, and gives a competitive advantage.
Ukraine is a rapidly advancing offshore software development destination with a fast-paced tech industry and skilled programmers. It surpasses other countries by providing top-quality services and helping companies grow.
Leverage the benefits offered by the ODC model with Qubit Labs, a leading offshore development services provider. We solve all the recruitment and administrative issues while you develop a sought-after product alongside hand-picked developers.
Don’t hesitate to schedule a free consultation call to know more about the advantages you can leverage.