hey everybody, i'm dave hecker and today we're going to talk about one of the most popular forms of offshore development, it's the odc
Offshore Job Benefits, or offshore development centre. in a nutshell, the odc is just that it's an offshore development centre, that as
a client you create by hiring some developers overseas, full time and they work for you they don't work for anybody else and you sort of treat them as if they are your employees. so it's kind of like you open up a development center of your own overseas but another
company is hosting and managing that for you. there are a lot of benefits and some disadvantages to this model, so let's go through the pros and cons. first the pros. the odc model is a great value, and the reason is really simple. it's that vendor companies love it. this a stable kind of money maker for them. imagine if you got clients
doing one month, two month, three month projects. we're always taking developers and moving them from one project to another, we're dealing with start dated, end dated and customers are asking for extensions and all that. in the odc model, that doesn't happen at all. you get a client, they take on a few developers and basically, you don't even
have to manage them, the vendors don't even have to manage them. that's a great deal for them and it's stable. as a result you are going to get a better price using the odc model. another advantage is that you get to train these resources however you like. you can have them use your tools, it's your company culture you can set the hours, you can do
just about everything as if they were your own employees. and also you are going to have them accumulate a lot of knowledge about your product and your client and the way that you do business which is a huge value and it's something you're not going to get at if you are
doing project work and you never know if you are going to get the same developer twice. another benefit is that you get to choose these developers, you don't just call the company and say give me six a dot net developers, the next day they are there. they are going to send you resumes or cvs depending on where in
the world you are going and you're going to look at them, make a decision about which ones you want to interview, you can talk to them over skype, you can send them a test project, whatever you like but you can go through a fairly ordinary hiring
process and if you're not happy, you can get rid of them and ask to bring in another developers. so this kind of flexibility is a huge benefit. another pro is that when you open in odc, in another country, in another company, that team is presumably housed in a company that is professional
management, there are going to be in a real building, there are going to have air conditioning and computers and chairs you can pretty sure that these aren't freelancers working on someone's basement, or they are operating a little company that looks like a big company, these are legitimate companies, they
are going to pay their taxes and things like that and as a result they are going to be stable. you don't want to have an odc partner who is brand new and they are unstable and they are trying to pull resources away or they can't retain them or something like that. the odc model with a proper company is going to provide that stability.
let's look at some of the cons or disadvantages to the odc. they are not that many. one of the big drawbacks is that you have to manage the developers yourself. that's also one of the advantages because you get to do that but you get no help on this, the deal is that you are not going to
get any assistance from the vendor company, they are going to provide the developers and that's it, they'll show for work, it's up to to you to manage them. it's a good deal if you have time and the skill to do that. managing developers especially overseas one is not easy, you are going to have to set up
training pools, your going to have to do source control, your going to have to figure out how you are going to do ball tracking and all the things that come along with management. so that advantage could quickly turned into a disadvantage if you don't have the time or skill to do that, and finally this
isn't really a con but a challenge is that you can't really get into the odc model unless you are spending above a certain threshold of money and right now that is somewhere in the neighborhood of maybe $50 000. it could be less or more depending on the company you are talking to.
generally want to have at least two developers but some companies would one for at least 3-4-5 months but some companies would do less or would need more. in general expect $50 000 in order to get into this model, but it is a great model, and to
sum up if you can send study work, and you can meet these budget requirement, you know how to manage the team, you got the time and the energy, the skill to do that, i think the odc model is a fantastic way to handle your offshore development, and
i highly recommend it. that source[sp?] we love, connecting clients with odc friendly companies, because it's a sweet spot, it's perfect and everybody is happy. if you have any further questions about the odc model, or just want to learn about some teams that we can introduce to,
who are great at it, give us a call.
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