What is an Offshore Development Center? Summary of basic knowledge for businesses 

In today’s digital age, Offshore Development Center is becoming a more and more popular choice for software development solutions thanks to its cost-effectiveness and good accessibility to technology professionals. So what is an Offshore Development Center? What benefits does it bring and what risks does it contain? All will be answered in the article below. 

I. What is an Offshore Development Center? 

Offshore Development Center (ODC) or Offshore Software Development Center is a team or company that specializes in providing software development services but is located in another country. 

The country where ODC is located has a much lower living standard than the country where the parent company is located. Because the main purpose of ODC is to help reduce the company’s costs by using the cost difference between two countries. 

An ODC can provide a wide variety of services and often includes many of the specialists a business needs. For example: project managers, developers, DevOps engineers, QA engineers, test engineers, designers, UX/UI specialists,… 

What is ODC

Offshore Development Center is a very popular type nowadays – Image: hachinet.com

II. Advantages and Disadvantages of ODC 

1. Advantages 

  • Cost reduction:

ODC significantly reduces the cost of setting up infrastructure for businesses. 

  • Access to highly qualified human resources:

The company operates in another country, so it can access the talent pool in that country. In order to ensure the best service to customers, professional ODCs attach great importance to the training and development of professional skills of their employees. Therefore, ODC often has abundant and highly qualified IT human resources. 

  • Can control work progress:

Project activities and progress are always well controlled, because offshore development centers often strictly follow instructions from the main office. Customers can also monitor employee work progress. If something doesn’t fit, you can request repair right away. 

Benefits of ODC

ODC helps save costs and access technology experts – Image: fullscale.io

2. Disadvantages 

  • Communication and Management:

Promoting effective communication between the client organization and the offshore team can be difficult if not managed properly. 

  • Cultural barriers:

Recruiting developers in countries with different cultures is often associated with challenges stemming from differences in personal and corporate values, communication attitudes, etc. .. So cultural differences can affect the working process. 

III. Offshore Development Center Models 

Software ODC Classic  

The ODC Classic model consists of a team with the necessary technical skills to be able to execute a project as required and supervised by a manager. This kind of working model benefits both parties. It allows the team to understand the vision and desires of the customer they are working with to deliver a product that meets the customer’s expectations. 

Software ODC Classic

ODC Classic is the most popular model today – Image: blog.arrowhitech.com

Software ODC Branded 

This model is the best choice for businesses and corporations that want to participate and control the software development process. ODC gives your business a presence and ensures that you are in its local operation. 

Software ODC Trust 

Software ODC Trust is a model specially created for customers who require the highest level of security in their design model. So this model is suitable for those with unique software that claim ownership or patent rights. With high security, its development site is also secured and far from the workplace. 

offshore development center models

Three common models of offshore development centers – Image: Tinhte.vn

Thus, each model has its own characteristics. In general, ODC Classic is the most popular and cheapest, followed by ODC Branded and finally ODC Trust. 


In summary, the above is an overview of the offshore development center. Hope this article brings useful information for businesses. ODCs usually have the necessary facilities and human resources to carry out the entire software development process for the market. If your business is lacking resources for technology projects or wants to save costs, ODC is an option worth considering today! 

Learn more about offshore development here.