The Offshore Development Centre is not a new concept! 

Since the 1980s, businesses have embarked on a transformative journey with the emergence of Offshore Development Centers (ODCs), particularly in the realm of software development outsourcing.

Initially driven by the need to trim expenses, ODCs swiftly evolved into a means of accessing specialized talent without breaking the bank.

India emerged as a trailblazer in this paradigm shift, boasting a rich pool of skilled engineers and cost-effective structures.

As this innovative concept gained traction throughout the 1990s and early 2000s, industries such as technology, finance, and healthcare embraced ODCs as a savvy solution to their outsourcing needs.

This trend wasn’t confined to India alone – countries like China and the Philippines also embraced the ODC model, broadening their global footprint.

Fast forward to 2010, and ODCs have undergone significant evolution, cementing their status as indispensable elements of global business operations.

Their impact on cost reduction, talent accessibility, and project efficiency remains profound, making them a strategic choice for enterprises seeking to streamline operations and gain competitive advantages in a rapidly evolving marketplace.

However, despite the promise of cost savings, access to specialized talent, and expedited project timelines, an unsettling trend has emerged.

With increasing investment in Offshore Development, there has been a sudden surge in unhappy clients, raising an important question –

Why are these substantial investments not yielding the desired results?

And why is it so?

Well, there is no simple and straightforward answer to it – rather, the situation is a bit complicated and influenced by reasons that one may not directly know.

Let’s look at some of the reasons that may not seem to directly influence the clients’ dissatisfaction with the ODC they are dealing with – but they do!

Uncovering the Underlying Problems with Offshore Development Services

1) Lack of Responsiveness

“Imagine a client encountering a critical issue during a project milestone. They reach out to the ODC team for assistance but receive delayed responses or no response at all.”

This lack of responsiveness can escalate the problem, cause project delays, and erode trust between the client and the ODC, ultimately impacting client satisfaction and retention.

The responsiveness of the Offshore Development team is crucial for maintaining strong client relationships and project success.

Prompt communication, timely issue resolution, and proactive problem-solving are essential components of responsiveness.

Clients expect quick responses to inquiries, updates on project progress, and swift resolution of any issues that arise.

But due to delayed responses or perceived lack of urgency, it is becoming one of the top reasons for frustration and is eroding client trust and confidence in the ODC’s ability to deliver expectations.

Timely issue resolution is essential for maintaining project momentum and meeting deliverable deadlines.

Issues and challenges are inevitable in any project, but how quickly and effectively they are addressed; respecting the time and situation, can make a significant difference.

2) Improper Project Management

“Consider a situation where project timelines are constantly shifting, project objectives are unclear, and communication among team members is inconsistent.”

This lack of effective project management leads to confusion, missed deadlines, and budget overruns, ultimately affecting the quality and timely delivery of project outcomes.

Effective project management is fundamental to the success of ODC engagements. It involves defining clear project objectives, establishing achievable timelines, allocating resources effectively, and managing risks proactively.

ODCs must employ robust project management methodologies, such as Agile or Scrum, to ensure transparency, accountability, and alignment with client objectives.

However ignoring what is needed and trying to navigate with poor project management practices, such as undefined project scope, inadequate resource planning, and insufficient risk management, are resulting in project delays, budget overruns, and quality issues that are affecting clients negatively around the world.

3) Unhealthy Work Culture

“Imagine an ODC where talented employees are leaving frequently due to a lack of career development opportunities, a toxic work environment, and a disconnect between organizational values and employee expectations.”

This turnover not only disrupts project continuity but also diminishes team morale and hampers productivity.

Talent retention and company culture are critical factors in building a high-performing Offshore Development team.

High turnover rates can disrupt project continuity, lead to knowledge gaps, and diminish team morale.

ODCs must foster a positive work environment, provide opportunities for career development and growth, recognize and reward employee contributions, and cultivate a strong company culture aligned with organizational values and goals.

Factors such as limited career advancement opportunities, lack of recognition, and cultural mismatches significantly contribute to the challenges faced by an ODC, resulting in employee dissatisfaction and turnover.

4) Less Focus on Quality Assurance (QA) and Testing

“Picture a project where thorough testing is neglected, resulting in undetected software bugs, poor performance, and client dissatisfaction upon product release.”

This oversight in quality assurance not only compromises the integrity of the final deliverable but also undermines the credibility and reputation of the ODC.

Quality assurance (QA) and testing are essential components of the software development lifecycle.

They involve processes and activities aimed at ensuring that deliverables meet quality standards, functional requirements, and user expectations.

ODCs must prioritize QA and testing efforts, establish comprehensive testing strategies, leverage automation tools, and implement rigorous quality control measures to deliver high-quality, reliable solutions that meet client expectations.

Inadequate focus on QA practices, such as insufficient testing coverage, lack of automated testing frameworks, and inadequate quality control measures, has led to instances where either a software failed or had performance issues, resulting into ultimate client dissatisfaction.

5) Leadership and Their Involvement

“Consider a scenario where ODC leadership is disengaged, providing unclear direction, and failing to address team concerns or provide necessary resources.”

This lack of leadership involvement leads to confusion, decreased morale among team members, and a lack of alignment with project objectives, ultimately hindering project success.

Effective leadership and active involvement are critical for driving success within ODCs.

Strong Leadership sets the tone, establishes strategic priorities, and provides guidance and direction to the team that fosters a culture of accountability, collaboration, and excellence, driving ODCs to achieve their objectives and deliver value to clients.

Lack of leadership involvement, indecisiveness, or misalignment with organizational goals has hindered ODC performance, created confusion among team members, and eroded client confidence to the extent that clients may refuse to work with a team led by such a leader again.

6)More focus on Billing than Quality

“Imagine a situation where the ODC prioritizes meeting billing targets over delivering high-quality solutions to clients. As a result, important testing procedures are overlooked, and the final product falls short of expectations.”

This short-term focus on revenue generation ultimately jeopardizes long-term client satisfaction and retention.

Balancing billing considerations with a focus on quality is a common challenge faced by ODCs.

While maximizing revenue is important for business sustainability, prioritizing billing metrics at the expense of quality and customer satisfaction can have detrimental consequences in the long run.

This requires a commitment to quality, adherence to best practices, and a customer-centric approach to service delivery.

By prioritizing quality over short-term financial gains, ODCs can build trust, foster long-term client relationships, and position themselves for sustainable growth and success.

But in the ODC landscape, organizations sometimes fail to strike a balance between revenue generation and delivering value-driven solutions, resulting in solutions that failed meet client expectations.

“An important thing to understand here is that this does not represent the situation of all the ODCs or offshore development companies out there!”

Some of them have found solutions to mitigate the negatives and amplify the positives.

To avoid facing such offshore development challenges that drive one crazy, it’s crucial to look for certain qualities that can be observed to help choose the right one.

Qualities to look for in your offshore development company

>> Reliability – Look for an ODC with a solid track record of consistently delivering high-quality results within agreed-upon timelines. Reliability ensures smooth project progress and minimizes unexpected delays.

>> Communication – Prioritize ODCs that emphasize clear, transparent, and proactive communication. Effective communication channels keep you informed about project updates, potential challenges, and necessary adjustments, fostering trust and enabling timely decision-making.

>> Flexibility – Choose an ODC that demonstrates flexibility in accommodating changing project requirements. A flexible approach allows for agile responses to evolving needs, ensuring that your project stays aligned with its objectives and delivers value even in dynamic environments.

>> Expertise – Seek ODCs with a team of skilled professionals possessing deep domain expertise and technical proficiency relevant to your project needs. Expertise instils confidence in their ability to tackle complex challenges and deliver innovative solutions

>> Client-Centric Approach – Opt for an ODC that prioritizes understanding and meeting your expectations at every stage of the project. A client-centric approach involves actively listening to your needs, providing tailored solutions, and seeking continuous feedback to ensure alignment with your goals.

>> Collaboration – Partner with an ODC that views you as a strategic collaborator rather than just a client. Foster an environment of collaboration where ideas are exchanged freely, challenges are addressed collectively, and successes are celebrated together. Open communication and shared goals are vital for driving project success through collaborative efforts.

A Simple Advice to Clients Looking to Set Up an Offshore Development Centre

A strong track record on verified platforms like Clutch, coupled with careful observation, serves as your guide in the journey of finding a tech partner capable of elevating your deserving projects to new heights.

First Investigate – When choosing an ODC for your project, investigate their track record. Look for verified service review platforms like Clutch and read reviews to ensure authenticity, as fake reviews can be misleading.

Then Observe closely – Don’t just hire someone; instead, pay attention to the behaviour of the people you interact with. Notice how they communicate, understand your pain points, suggest solutions, share experiences, and demonstrate promptness and genuine interest in your projects.

Bonas Point

Choose an ODC partner that prioritises transparency and communication at every step of the process.

As an Offshore Development Company, we at Covrize ensure that our clients are clear about each stage of development.

From discovering the possibilities to collaborate to onboarding and setting up a complete ODC (Offshore Development Center) in India, we walk hand in hand with our partner team for their escalations and project deliveries.

Sharing the steps we follow to Set Up an ODC with our clients.

Having an Offshore Development partner is a profitable deal, all you need to do is find the right one. By combining thorough investigation with keen observation, you can confidently select an ODC partner that aligns with your project goals and maximizes the potential for success!