The growing popularity of remote operations in western countries has made offshore development centers a popular choice amongst companies in the US, Canada, UK, Japan, Australia, Newzealand, Middle East, and Europe. As more and more businesses plan to set up an offshore unit for their IT development, they face the same question ‘Where to set up an Offshore Development Center?” This comprehensive guide will educate you on various factors to consider while assessing a location and the top 5 nations for setting up an ODC.

2. Top 5 Nations to Set Up
Offshore Development
Centers- 2022
www.yourteaminindia.com

3. Overview
The growing popularity of remote operations in western countries has made offshore
development centers a popular choice amongst companies in the US, Canada, UK, Japan,
Australia, Newzealand, Middle East, and Europe. As more and more businesses plan to
set up an offshore unit for their IT development, they face the same question ‘Where to
set up an Offshore Development Center?”
But before we move further, let us understand a few offshore development
terminologies.
● An offshore development company refers to a company that provides the service of
setting up offshore development centers and teams.
● An Offshore Team refers to the resources deployed in an ODC (Offshore
Development Center) to work on your software development projects.
● An ODC (Offshore Development Center) project refers to the software
development project the offshore team is working on

4. Top 5 countries for setting up offshore
development centers

5. 1. India
When businesses consider offshoring, India is one of the first destinations that
pop into one’s mind. Over the last two decades, India’s IT sector has
accelerated, giving neck-to-neck competition to the US.

7. 2. China
China is another nation that has built a strong name in the offshoring industry.
Today, China owns many of the fastest-growing IT companies.

8. 3. Culture Barriers
There are wide cultural differences between India and the U.S. Some
of these differences won’t impact your professional relationship and
enhance the diversity of your business. However, if you are not
acknowledged with all the cultural nuances, you may run into
misunderstandings. So, it’s advisable to understand each other’s
cultures that lead to better management and increased productivity.
Another difference between the cultures relies on nonverbal
contextual communication. In India, people build relationships as
part of doing business and often use emotions to communicate their
ideas.

9. 3. Poland
Despite being a small nation, Poland has the third most skilled
programmers globally. Poland is the Research and development hub for
global companies across industries.

10. 5. Communication Challenges
Despite many perks, hiring Indian developers can sometimes result in dissatisfaction caused by
engaging in outsourcing or offshoring operations without ensuring all communication risks are
met with proper preventive measures.
To be precise, communication challenges arise from two scenarios:
Lack of Language Proficiency – The hired team, has analytical competency, but they struggle
due to low English proficiency. And as English is considered the lingua franca in technology
and software development, this comes as an unconscious bias for Indian developers as they are
non-native speakers. This communication gap causes a major challenge when instructions get
lost and developers cannot present their ideas effectively.
Tracking of Work – In a typical outsourcing operation, you are usually engaged in a contractual
agreement with another party that consists of clauses regarding the workload and duration of
the project. Since working with a remote team gives you limited visibility of the ongoing
operations, dealing with developers with poor communication ability can delay development.

11. 4. Philippines
Apart from good command of the English language, Filipinos are known
for their hard work and good work ethics. But the country faces
turbulent weather conditions and tropical storms that can disrupt
operations during summers.

12. 6. Not Meeting Quality Benchmarks
A common problem amongst Indian developers is that they lack
curiosity. Despite having a large talent pool across technologies, one
can see the disparity in skill-sets among resources.
Rudimentary coding knowledge and a degree seem to suffice the
saturated market, and most of these resources work mechanically
without understanding what they do. This eventually affects the quality
of the work compared to the quantity delivered in the long term.
Besides, the Indian IT industry is primarily service-based, which means
it initially comprises companies that work on already developed
products by clients and offers.

13. 5. Ukraine
Apart from good command of the English language, Filipinos are known
for their hard work and good work ethics. But the country faces
turbulent weather conditions and tropical storms that can disrupt
operations during summers.

14. 6. Not Meeting Quality Benchmarks
A common problem amongst Indian developers is that they lack
curiosity. Despite having a large talent pool across technologies, one
can see the disparity in skill-sets among resources.
Rudimentary coding knowledge and a degree seem to suffice the
saturated market, and most of these resources work mechanically
without understanding what they do. This eventually affects the quality
of the work compared to the quantity delivered in the long term.
Besides, the Indian IT industry is primarily service-based, which means
it initially comprises companies that work on already developed
products by clients and offers.

15. Thank you!
Indian Offshore Software
Development Company
www.yourteaminindia.com
info@yourteaminindia.com
+1-619-309-4653