The accelerated digital proliferation is promoting an era of outsourcing all over the world. Based on the findings of the Global Services Location Index (GSLI), India remains the top offshoring destination for organizations across the world.


Moreover, a recent study from Deloitte claimed that around 59% of global nations prefer outsourcing their requirements to India. The popularity of India as an offshore development center seems to be driven by the abundance of developers and software engineers.

From offshore development to testing, the developers can execute every function you can think of.

The Offshore Development Center, also abbreviated as ODC, refers to a physical office which offers dedicated software development services to companies and enterprises worldwide.

To be precise, the ODC contains testers, developers, project managers, copywriters and UI/UX specialists.

Another key highlight of ODC is its versatility. And because of its versatility, an ODC is ideal for both start-ups and large-scale companies.

Plus, establishing an ODC in India is less expensive and more efficient than hiring an in-house IT team.

Companies both in India and from other parts of the world can outsource their requirements at affordable rates. In simple words, hiring an ODC is effective compared to appointing a whole team of developers, and UI/UX experts.

Why set up an ODC for your Software Project?

By establishing an ODC for your software project, you will get the best of both worlds! In simple words, you will be able to finish projects with low risk, reduced costs, and higher productivity.

ODCs usually have in-house technical experts who can help you find innovative solutions to all your technical issues. Moreover, they are conversant with the latest development frameworks and coding languages.

Benefits of Setting up Offshore Development Center in India


Lower Operational Costs

Establishing an offshore development center in India is vastly affordable. In other words, the overall operational costs will be lower which will help you to save big.

As India has a low cost of living compared to other countries, it makes sense to establish an offshore development center there as there is no need to spend a lot of money on salaries.

Zero Infrastructure Costs

When compared to infrastructure costs of other countries, the infra cost in India is substantially lower. An ODC thrives on the availability of remote workers. Hence, there is no need for you to spend on infrastructure costs.

Access to a Vast Pool of Talented Professionals

There is no shortage of qualified and highly skilled software developers in India. There are many renowned IT hubs in India which have the reputation of providing some top-grade talents.

Technology Expertise

Usually, a large number of developers, software testers and IT professionals are well-versed with the latest technological platforms. Moreover, they are always up-to-date with the latest software frameworks and coding languages.

Market Expansion

Offshore development centers are an ideal way to expand the market. Put another way, it allows you to expand the sales volume, build a good reputation, establish a positive image of your business, All this, as a result, helps you to gain new customers quickly.

On-Demand Setup

With the help of an offshore development agency, you will have complete freedom in establishing your office. Nowadays, business owners want flexibility and an ODC provides that! You will have full authority, control and access over everything.

You just have to communicate your requirements! The offshore development center will comply with your requirements and they will organize a team to meet your demands.

Highly Scalable & Flexible

Scalability and flexibility are the two primary aspects of a business nowadays. In this competitive business world, every company is looking for scalable and flexible business operations.

And an ODC helps your operations to be both flexible and scalable. With the help of an ODC, you can expand your business at any stage with no comprehensive investment needed on operations and infrastructure.


Mistakes to Avoid When Setting Up Your Offshore Development Center in India

Here are some mistakes you should avoid while establishing an ODC in India.

Not Having Long-Term Goals

While establishing an ODC, it is essential to have long-term goals! Defining the long-term objectives for your ODC is the key in making it successful. Moreover, with long-term objectives, you can undertake crucial business decisions easily.

Focusing only on Cost

Most ODC owners tend to focus only on cost. Though cost is always a deciding factor, it shouldn’t be the only criteria. If you concentrate only on cost, then it may lead you to select an inefficient team which will create delays for your clients.

Neglecting Cultural Diversity

Cultural diversity is essential to streamline the productivity of your ODC. Moreover, a proper understanding of cultural diversity will help you navigate the challenges associated with the local environment.

It is important to acknowledge the workforce diversity in India to make your ODC successful.

Choosing a Wrong Partner

If you select wrong partners while setting up an offshore development center, it can have serious repercussions. Even an experienced and professional ODC can be a wrong choice if they lack:

  • Relevant experience
  • Proper experience in handling technology stack
  • Experience in emerging technologies
  • Readily available pool of resources

How to Set Up an Offshore Software Development Center in India?


Have a Clear Vision

Before you select an ODC to establish a virtual office for your business operations, you should list down the top requirements. In other words, you should always have a clear vision and expectations from the ODC.

Sharing a detailed and illustrative picture of your future product ensures overall transparency. You should use images, illustrations and videos to communicate your ideas with the ODC.

In this manner, you can make the software requirements easily understandable to the ODC.

Create a Scope of Work

It is crucial to define the scope of the work and communicate it to the ODC. You should consider asking some important questions like:

  • What features do you want to have in the product?
  • Which technology platforms do you wish to integrate?
  • Does the development involve simple elements or complicated ones?

Define Talent Requirements

Professional developers will be eager to work on one product since they are not interested in handling various projects.

Hence, while setting up an ODC, you should always consider the requirements of the talent. You should also select the experts required to perform specific job roles. It will also help you to choose the appropriate mode of engagement with the hired remote team.

Choose the Right ODC Partner

Unless you delve into the ODC set up by yourself, finding and identifying a trustworthy offshore development partner is imperative. With the help of an ODC partner, you will be able to successfully tackle the challenges. Here are some important things you should consider while hiring an ODC partner.

  • Check the experience of the ODC partner in offshore development center setup. You should also check the ODC models they work with to gain an understanding of their proficiency.
  • You should be sure that the ODC partner has proper know-how of the local market and comprehends your requirements.
  • Analyze if the previous clients of the ODC are satisfied with their services by going through reviews.
  • It is crucial to compare the setup costs of the ODC with other proposals.
  • Assess how affordable the ODC is by going through their packages.
  • You should also examine the flexibility levels offered by the ODC and their skills to serve the needs of your projects.

Hire Developers Carefully

With an offshore development company, you will have access to resumes which match your specific project requirements.

It is important for you to go through them carefully and shortlist the most talented developers. Ensure that you ask a large number of questions to them so that you’ll get clear insights on their abilities. Moreover, share the job responsibilities and roles with them.

Ensure a Consistent Communication

Always remember that consistent communication is the key when you want to set up a successful ODC. Communicate your preferences to all the stakeholders so that they remain informed.

Moreover, constant communication will help you negotiate the bottlenecks present in various stages of development. So always make sure that you are consistently communicating with the development teams.

Consider Time Zone Differences

While establishing an ODC in India, differences in the time zone can be a bit overwhelming. But note that with an offshore development center, you’ll have the authority to decide the working hours along with roles of your team.

Hence, if you want your virtual team to work during the working hours, you should ask the same to the ODC. At first, there might be some difficulties in making the developers work as per your schedule.

But with constant communication, you can convince them to work based on your preferred time slot.

Choose the Right Development Methodology

It is always essential to choose the right development methodology to make the ODC successful. Usually, the developers will create the app by using Agile methodology.

But if you want to customize the features of the software product, always communicate the methodology the developers should follow.

By following a specific methodology, you will be able to create highly customized software products for your users. Moreover, the development methodology varies from one software product to the other.

Hence, you should be flexible while communicating your development methodology.

Why Choose Peerbits as Your ODC Partner?

Peerbits is a reliable and trusted ODC partner with a proven track record of helping many entrepreneurs as well as global organizations channelize the right talent, expertise, and technology into building solid software products.

With our extremely creative, dedicated, and experienced team of nerds, we’ve assembled a robust army of individuals who have both knowledge as well as skillset to overcome any complex and complicated technical challenges.

For further information, feel free to get in touch with our sales representative for professional consultation for your next software development project.


As you’ve just learned, setting up an offshore development center relieves you from establishing your own infrastructure, hiring & managing a team, and taking care of administrative responsibilities such as legal, finance, and other overheads.

More importantly, it gives you access to the best-in-breed professionals at a cost-effective price.

With that, we hope that you found this post helpful. If you still have any questions regarding offshore software development centers in India, feel free to ask them in the comments.


Krutika Khakhkhar

Krutika is an accomplished software project manager with years of experience leading complex software development projects from conception to delivery. They possess a unique combination of technical and project management skills, which enables them to successfully manage and motivate cross-functional teams to deliver high-quality software solutions.

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