IT startups can be costly to set up and maintain which is why in some countries the government may provide aid. To have a chance at success in the industry requires expertise, innovation, immaculate customer service, but most of all consistent clientele.
Software development companies have adopted the offshore development center (ODC) model because it has been an effective way for companies to remain in good standing. It has been proven to be a win-win scenario for both the outsourcer and the clients.
This business model will continue to grow as there are monetary benefits, business relationship benefits, and increased expertise.
Monetary Benefits of the ODC Model
Developing the ODC model for a startup IT company can widely expand the client base. There are many offshore software development companies globally but those in the Eastern Hemisphere have been attracting major clients from the Western Hemisphere.
Bigger projects and consistent work from these clients have led to an increase in profit for international software development companies despite competitive rates. Prices for offshore services are part of why big companies seek to outsource IT needs. Therefore, both parties benefit as one increases profit while the other saves on software development costs.
Benefits From Strong Business Relationships
Long-term relationships with clients can be achieved for startup IT companies by providing advantages that clients cannot obtain with others, especially in their region of the world.
Another reason why the ODC model has been a preferred method for IT is that software development can be worked on 24/7 versus normal business hours of the client. A 2020 survey shows the main characteristics companies look for when hiring freelance developers.
Production can be done at one point of the day while testing could be done at another. As a result, projects can be completed much faster which clients can benefit from during launches and more. Speed and efficiency from IT startups using the ODC model can lead to strong business relationships because trust and a reliable reputation have been earned.
Effective communication plays a significant part in maintaining great business relationships. Startup IT companies should be sure to not only provide 24/7 customer service but also communicate in different ways. Communicate by phone, email, instant messages, and more while providing progress reports.
Many startup software development companies from around the world make the English language a necessary skill to eliminate the language barrier with some Western Hemisphere clients. Knowing the English language with international companies has enhanced those long-term relationships these startups are looking to have.
Expertise is a Main Selling Point
The monetary benefits and long-term relationships with clients are great when using the ODC model. However, those results cannot be achieved unless the offshore development center has expertise and skill.
IT startups should invest in having a versatile team with certain specializations. Graduates emerge annually entering the talent pool in countries around the world. As a startup builds itself, there should be team members experienced in different programming languages, artificial intelligence, custom development, and more.
Testing the completed project or testing the project in sections is a good way to ensure quality assurance. It will be a good reputation on the offshore development center to test for any bugs or issues before a project is launched.
Cybersecurity is the main concern for all, so a reliable IT startup would have adequate cyber protection so any work belonging to clients stays discrete.
The ODC Model is in the Best Interest of IT Startups
The offshore development center model is becoming the new norm in the software development industry based on growth. This model has various advantages including potential increased profit, lasting client relationships, and expertise in various areas.
It takes consistent effort for IT startups to be successful and take certain steps and habits to get there. Overall make sure the client experience is above expectations and have the expertise to keep clients long-term, even if that means investing in a team if an IT startup cannot initially have more staff available.
