Effective Use of Offshore Development Companies

There are many advantages to offshore development. Cost-effectiveness for one. Engaging in offshore dedicated teams also reduces overheads involved in hiring people, freeing the company from responsibilities such as superannuation, payroll tax, office space, utilities, and training. It also enables resources to be directed to more strategic activities. However, it is not without its challenges. Australian based organisations who have engaged Offshore Development Centres (ODCs) in faraway countries like India and Eastern Europe often discover these challenges first hand. Whereas the advantages of engaging a nearshore operation such as in Indonesia with its proximity to Australian customers, often pays dividends with reducing risk and ensuring efficient and effective collaboration. In this paper, we explore the pros and cons of engaging ODCs in different parts of the world and include considerations around how to maximise the effectiveness of engagements with offshore development companies wherever they may be located.