Thursday, November 02, 2006

Offshore Dedicated Center – Cost-Effective Model for Web Development Outsourcing

Current business situation shows that to outsource means to benefit, i.e. to make profit from international trade in products and services. Witnessing high quality companies that have helped to improve the global perception of the "brand", lots of producers have stuck to the idea of partnership with Offshore Development teams. Participating in such business does not necessarily take away from them market share, but it is a 100% key factor in maintaining customers and acquiring new business i.e. providing a quality product or Service.

To run business above and beyond the limitations of production methods is essential nowadays. No doubt, this task is not an easy one taking into consideration that companies try to keep inventories low, overhead costs and capital expenditures to a minimum.Being not able to keep up with the upgrade of technological advances, nor the expense of keeping employees up with these improvements, most companies start to use outsourcing as on of the essential ways to upraise any product or service one has to offer.According to statistics, more than 85% of companies participating in IT development business and Outsourcing abroad, usually do it in CIS countries: half of that number takes risks to establish ODC (Offshore Dedicated Center) that allows to benefit from the expertise of another company, without accumulating the expenses of new equipment and training.

An ODC is a dedicated, customized, and secure development center established for a customer that needs to outsource application and maintenance work for a long period of time. ODC model gives the customer better control over the process of product Offshore Development, and helps to have higher resource efficiency (cost saving up to 70%).

Being a branch of offshore business, Dedicated Center does not require any up-front investments or long-term commitments: the company chosen handles incorporation issues, establishing IT infrastructure, legal fees, payroll, legal compliance and office leases. Being not obliged to pay office expenses, internet, electricity, infrastructure and many more, the employer can be sure that each dedicated member of this team works 180 hours per month making profit.

With companies all over the world everyone can gain access to talented engineers, experienced developers and trendy designers. Leveraging the dedicated team means that customers who risk can handle their own IT projects quickly and efficiently, utilizing cost-effective equivalent in-house resources.

At the same time, management team that is a must in every modern IT company is always at client’s service to provide a level of convenience and security that one would never get by working within some local development departments.

With roots in all continents and countries, IT development companies are utilizing close relations with local universities, the development community and educational centers to quickly fill the need for qualified engineers. Local business connections also work for Outsourcing companies’ benefit.


1. Focus on Core IT Competencies - Save on Cost of Applications Development
2. Avoid Long-term Investments
3. Lower Business Risks
4. Best Practices from Leading Web Development Company
5. Quick Return on Investment
6. Full Operational Control
7. Established IT Infrastructure
8. Access to the Best Talents
9. Improved Product Release Time

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