Setting up an Offshore Development Center in India: Step-by-step Guide
Digital transformation has changed the business environment. Organizations must constantly deliver innovative and quick solutions challenged by budget limitations. This is where an offshore development center (ODC) in India brings tremendous benefits.
An Indian ODC is an unparallel advantage for organizations exploring a cost-effective solution for software development. Let us explore the factors that drives India business expansion:
1. Huge Talent Pool
Over four million individuals per annum graduate as STEM experts. They have exceptional engineering and mathematical skills, which are important for an efficient ODC setup. Most Indian graduates are fluent in English and are enthusiastic to learn new technologies. Additionally, tight deadlines are important for Indians. Several professionals have international exposure having worked with other ODCs, which helps them to understand global requirements.
2. Cost-Efficiency
A global business setup in the United States or Western Europe may cost 40% to 60% more in comparison to an Indian ODC. More importantly, these savings do not impact the quality of the talent pool. Here are some potential cost-savings when you opt for setting up an ODC in India:
• Senior developers’ salaries are almost 75% lower than equivalent talent in Western countries like USA, UK, EU, and others
• Infrastructure costs like rent, utilities, and facility management are almost 70% lower when compared to major cities in the USA, UK, and EU
• Operational overheads significantly decrease due to vendor ecosystems, which includes HR, payroll, recruitment, compliance, IT, and more while offering scalability and reduced management for global parents
3. Time Zone Synergy
Time zone difference provides a strategic advantage and when managed correctly ensures continuous development cycles, which reduces project timelines. Moreover, it enables companies to offer 24/7 productivity, which goes beyond cost-savings.
Steps to Setup an ODC in India
1. Define Goals and Scope
Clearly define organizational goals and outline the precise software development services that will be handled at the Indian ODC. Well-defined objectives enhance decision-making and provide a unified vision across the organization.
2. Choose Engagement Model and Location
Several Tier 1 and Tier 2 cities are ODC hubs and choosing the city that best suits your company requirements and team building goals is advisable. Moreover, opt the appropriate engagement model; an offshore company setup or partnering with a local ODC for smooth integration and faster scalability.
3. Legal, Tax, and Compliance Structures
Register the type of entity (wholly-owned subsidiary, LLP, branch office, or others) with the Registrar of Companies. Global companies must also adhere to employment laws, such as PPF, ESIC, Shop and Establishment, and others. Robust contracts to protect intellectual property is crucial. Having NDAs and regular audits by working with reliable business setup services in India provider is very helpful.
4. Hiring the Right Talent
Attracting and retaining the right talent pool is important for the success of an ODC. Global companies must develop their brand in the domestic market and use the services of experienced professionals to build a strong team that aligns with the parent’s organizational culture.
5. Infrastructure and Office Setup
Opt for locations in proximity to educational institutions and established IT companies. Moreover, office location must be well-connected with the public transport services. Equally important is a robust infrastructure setup that ensures fast and continuous connectivity, network security, and collaboration tools like video conferencing platforms.
Establishing an Indian ODC is a strategic decision and can transform your company’s capabilities. Greenvissage is your trusted partner to setup your India ODC. Our team offers deep local expertise and provides streamlined processes for talent acquisition, compliance management, payroll, and setup and operations.
Drop a mail on info@greenvissage.com or call on +91 8237857853 to start your journey of setting up an ODC in India.