Offshore development center

An offshore development center (ODC) is a dedicated team (sometimes its own office) in another country, working exclusively for your company, typically run by a partner who handles hiring, facilities, payroll and compliance.

When an ODC makes sense

  • You need 20+ engineers for years, not months.
  • You want your own culture, processes and tools, without setting up a foreign entity yourself.
  • You may want to own it later: through a build-operate-transfer (BOT) arrangement.

Models

Model What it means
Managed ODC The partner employs the team and runs operations; you direct the work
Build-operate-transfer The partner builds and runs it, then transfers it to your own entity
Captive center You set up your own subsidiary from the start

Setup steps

  1. Choose the location (talent pool, time zone, cost, stability).
  2. Pick a partner and model.
  3. Hire a local leader first, then the core team.
  4. Mirror your engineering practices: tooling, reviews, security.
  5. Plan regular in-person visits both ways.

Frequently asked questions

Is an ODC cheaper than outsourcing?

At scale it often is, and you keep more control and knowledge. For small teams, a dedicated team or staff augmentation is simpler.

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