Top 5 Nations to Set Up Offshore Development Centers- 2022

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.

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