Offshore Development

Centers (ODC)

+38 (050) 388 49 17

dmitry@bekinin.com Oct, 2011

www.bekinin.com

Why offshore development center?

are good for both startups and existing business

can run one or several software projects simultaneously

can include one or several development and QA teams with different skills

are set up and supported by an outsources service providerusually at their premises and with vendor’s experience and existing infrastructure

ODC Benefits

Quick set up and quick cancelation, no longer-term investments

Reduced costs as compared to onshore labor costs

Reduced costs as compared to offshore full time development team

Transparent (“aquarium” vs “black box”)

Simplified accounting

No problems to visit

ODC Features

Servers as a technology and software engineering extension of customer’s main facility

Allows the customer to focus on business specific while admin routines are being resolved by the outsourcing services vendor

Customer’s 100% ownership

Staff replacement within from a week to a month, no special costs

ODC Flip sides and challenge

Require an intensive communication due to large geographic distances; poor communication makes ODC use it resources inefficiently and increase overall costs

Requires regular assessment of the team to perform necessarily HR adjustments

ODC members are not native English speakers in the most cases.

May require additional trainings in customer’s business domain

Time difference

ODC Flip sides and challenge

The customer may need to get familiar with local HR market, their specific, levels of salaries and professionalism to make effective HR decisions if he want to.

Startups are often don’t have solid development processthe outsourcing vendor has to analyze, recommend and implement…

Roles and responsibilitiesJust enough documentationAgile development, if required

Average time to hire talentsMiddle level engineer: 2 - 4 weeksSenior engineer: 4 - 6 weeksHigh level leader: 4 - 8 weeks

ODC Creation steps

Discuss and create an estimation for the monthly budget.

Consider a particular model of building the team:Hiring new ones or based on existing vendor’s employees or mixed model.

Figure out requirements for the talent expertise, identify the needs of:

Permanent long term employeesContractors for shorter periods of time

Plan infrastructureEquipment workstations and serversOffice desks and spaceNetwork equipment

ODC Creation steps (continued)

Budget sign off

Build a team: hiring process

Set up knowledge transfer, requirements gathering process, training.

Set up communication process:Meeting schedulerReportingPersonal communications

Set up workflows, management systems

Achieve success

Budget components

Salaries, bonuses

Office space costs

Collective taxes

Telecommunications costs

Bank expenses

A fee to the vendor

ODC Service levels

What the customer can do:

- Review all and any costs, costs analyses, suggestions and negotiations for cost reductions or additional expenses.

- HR activities such as:- Conduct interviews- Make hire decisions- Make firing decisions- Motivate - bonuses

- Project management: yes, if customer wishes, and may be hidden if the customer wants so

- Visit ODC: yes, any time

Thank you

Dmitry Bekinin

dmitry@bekinin.com