How to set up offshore development center in India

A smart strategic move for companies looking to use global labor resources and cost-effective solutions is establishing an offshore development center (ODC). Beyond a passing trend, India’s offshore development center (ODC) movement is becoming a concerted effort to promote innovation and cooperation. Travel to India is very desirable for Overseas Development Council members. 

Initiating an offshore development center involves setting up a virtual workplace that facilitates communication and coordination. This should be between developers, testers, project managers, designers, and other experts. This blog will guide you through the procedure for setting up an offshore development center in India.

How to set up offshore development center in India
How to set up offshore development center in India

Why choose India for your offshore development center?

ODCs have found India to be a popular choice for the following reasons:

  1. Minimal Running Expenses

The cheap cost of living in India makes it financially advantageous to open an ODC. This appeals to businesses since it saves much money on operating and salary costs.

  1. Confer with Experienced Experts

There is a substantial and extremely talented pool of software developers in India. IT centers like Bangalore are perfect for companies looking to hire highly qualified staff. This is because of the large number of talented IT specialists they generate.

  1. Knowledge of several technologies

India has many skilled workers in many different technologies. These include testing tools, front-end and back-end databases, programming languages, and design tools. Both mobile and complete application development demand this wide range of skills.

  1. Making Plans for On-Demand

You may arrange your workplace to have the most flexibility possible because of ODC service providers in India. This gives you power and flexibility since you may change the settings to fit your needs.

Steps to establish your offshore development center in India

Follow the steps below to set up an offshore development center in India successfully.

  1. Define Your Vision and Requirements

Begin by stating your product vision and software requirements. To improve clarity, provide a detailed picture of your project using visuals like images, screenshots, and videos. Doodling tools can help in making your software needs easily understandable.

  1. Choose the Right Offshore Software Development Company

Conduct thorough research to identify a reliable offshore development company. Look for experience setting up ODCs and make sure a good value proposition. The selected company should accept your requirements. 

It should also commit to providing the right resources to transform your software development idea into reality.

  1. Carefully Hire Your Team

Once you partner with an offshore development company, select the professional resumes that match your project requirements. Conduct interviews to assess skills and responsibilities. Share job responsibilities transparently to set up a collaborative and efficient work environment.

  1. Prioritize Engagement

Establishing the offshore development company is a major step, but ongoing engagement is crucial. Regular communication with the offshore team ensures project progress and prevents any misunderstandings. Schedule weekly video conferences and request regular work reports to stay informed.

  1. Consider Time Zone Differences

Addressing time zone differences is a key challenge in offshore development. Clearly define your team’s working hours and job responsibilities, making sure alignment with your business hours. Effective communication can bridge the gap, allowing for early-morning or late-night interactions.

  1. Treat Your Virtual Team as Your Own

Cultivate a sense of unity by considering the offshore development team as an integral part of your organization. Avoid an “us vs. them” mentality. Establish communication through regular meetings and video calls, introducing them to other teams in your company. 

Keep them informed about important company announcements and grant them flexibility in their work.

  1. Choose India Wisely

Selecting the right city in India for your ODC is critical. Evaluate factors such as project complexity, availability of resources, government policies, stability, and hourly rates. Tier 2 cities may suffice for smaller projects, while tier 1 cities are suitable for complex developments.

  1. Evaluate the Service Provider

Partnering with a reliable offshore development company is essential. Consider the company’s experience, development methodology, size, technical expertise, and global presence. Communicate with the leadership team, check client references, and assess the company’s commitment to transparent communication.

  1. Select Your Offshore Team

With a chosen service provider, focus on selecting your offshore team. Define a transparent team selection process and establish HR policies, including engagement terms, employment policies, and project payment.

  1.  Develop Legal Documentation

Legal documentation is crucial for cross-border operations. Collaborate with legal advisors to frame engagement agreements covering employment, business, NDAs, work permits, coding standards, and privacy policies.

  1.  Infrastructure Setup

Define your infrastructure requirements, covering systems, internet bandwidth, server backups, data security systems, and communication channels. Establish management policies, data exchange protocols, and access procedures to ensure smooth operations.

  1.  Security Management

In an era of regular cyber threats, prioritize data security. Develop comprehensive engagement contracts, including NDAs, signed by all parties involved. Regular security audits are imperative to prevent information leaks and data theft.

  1.  Project Management

Define the organizational structure, workflow hierarchy, feedback mechanisms, escalation matrix, and knowledge transfer processes. Implement these structures in your ODC to ensure seamless operations.

  1.  Training and Mentoring

Conduct training sessions for your diverse offshore team to ensure effective communication and collaboration. Bridging cultural gaps enhances teamwork and leads to better project outcomes.

  1.  Define Milestones and Communication Management

Define project milestones to ensure timely deliveries. Leverage communication tools like Google Meetings, Zoom, Slack, Trello, and Jira for seamless information flow. Regular scrum meetings provide updates, minimize micromanagement, and keep projects on track.

Common mistakes to avoid

Take care while opening an offshore development center in India to reduce these risks.

  1. Too Few Specific Long-Term Objectives

Setting short-term objectives as a priority might lead to issues later on if there is no clear vision. Set long-term goals for the site, tech stack, staff level, and infrastructure.

  1. Ignoring Diversity in the Employment Sector

Make workplace diversity a priority to encourage creative thinking and a more cohesive team. Recognize the many cultural differences present in Indian workplaces.

  1. An excessive focus on the cost

Think about things other than price when choosing an offshore development team, such as industry knowledge and experience.

  1. Not Using the Appropriate Tools for Communication

Verify whether the infrastructure and resources needed for efficient internal and external communication are not operating as intended.

  1. Choosing the Wrong Partner

Choose the right offshore development partner may save you a lot of trouble. Think about things like tech stack, experience, resources, and transparency.


India should deliberate extensively before making the strategic decision to establish an offshore development center. By following these principles and avoiding common mistakes, businesses may fully benefit from the cheaper prices and global talent pool. Businesses searching for the top Offshore software development partner may be interested in India’s burgeoning IT sector. The reason is it creates an environment ideal for ODC installations.

Article written by – Harikrishna Kundariya, co-founder and Director of eSparkBiz Technologies
His 12+ years experience enables him to provide digital solutions to new start-ups based on IoT and SaaS Application.

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Software Professional, Blogger. He writes about the Startup stories, Business Growth Tips, Blogging Tips, Influencers, Brands, Motivational real stories, etc.