How To Set Up An Offshore Development Center In India

Do you know that India ranks No. 1 in outsourcing talent? In India, businesses can easily find an abundance of software engineers, UX/UI designers, testers, etc. In this blog, we will unlock why global companies prefer to set up offshore development in India and how to do it.

Is your business intending to set up an offshore development center(ODC) in India? It can be great news for your business, as India is the most suitable country for the setup. India is rich in talent, and thus it is easy to get them within a short period. In a recent study, Deloitte claimed that 59% of companies across the globe prefer outsourcing talent to India. It’s amazing!

Let’s unlock why businesses want to come to India and understand how to set up an offshore development center.

What are the Benefits of Setting up Offshore Development Centers in India?

Today, we are in the age of outsourcing talent to companies. And India stands at the top in offshore development.These are the top benefits of Offshore Software Development Companies that make India the best country for outsourcing.

1. Cost-effectiveness

The primary reason is cost-effectiveness. The labor costs are low in India. It will help businesses reduce development costs to maintain better output.

2. Access to a vast pool of skilled professionals

In India, there is a large pool of IT professionals available. Ensure a steady talent supply and easy access to skilled resources like software developers, designers, and others to cater to diverse development needs.

3. English Proficiency

Today, English is the official language of almost every country globally. India is an English-speaking country, and this is its biggest advantage. This ease of language will facilitate smooth communication between offshore teams and onshore stakeholders.

4. Time Zone Advantage

India’s time zone overlaps with European and American clients. It helps with quick response times and effective real-time collaboration.

5. Flexible and Scalable Operations

India provides flexibility to scale operations based on requirements. Here, you can ramp up or down your team size for your needs. It allows for efficient resource utilization and cost optimization.

6. Technological Expertise

Indian IT professionals are famous for their technical expertise and proficiency in technologies. They have experience in diverse domains and are well-versed in popular programming languages, frameworks, and tools.

7. Robust Infrastructure

A strong IT infrastructure with reliable power and internet connectivity is comparatively easy to develop in India. They have well-established technology parks, data centers, and communication networks, enabling smooth operations for offshore teams.

8. Established IT Ecosystem

India has a thriving IT ecosystem with multiple technology parks, industry associations, and networking opportunities. This ecosystem enables collaboration, knowledge sharing, and creation, allowing businesses to tap into a rich tech community.

9. Quality Standards and Certifications

Most Indian software companies follow international quality standards and certifications. It ensures that your offshore development center in India supports high-quality deliverables and follows robust development processes.

These benefits make India a top choice for companies to leverage global talent.

How to Establish an Offshore Development Center in India?

If you are to set up offshore development in India, keep these steps handy. Here we go.

1. Define Your Objectives and Scope

First, you must identify your objectives and services you intend to outsource. Understand the size and composition and determine the size of your ODC team. This process will help you streamline the process.

2. Conduct Market Research

The most critical parameter is market research, as India is a huge country. To target the best talents, you need to identify the potential cities in India. For research, look at infrastructure, the cost of living, and the primary business hubs. Look for talents from Bangalore, Chennai, Pune, Hyderabad, and Gurgaon.

3. Engage with a Local Partner

Look for a local partner or a consulting firm that has experience setting up ODCs. It will help you gain insights into the legal administration process, place and help you find great talents.

4. Legal and Administrative Considerations

The legal nitty-gritty of any region is a very crucial factor. You need to register your company with the Registrar of Companies (RoC) and obtain a Digital Signature Certificate for key personnel. 

5. Infrastructure Setup

To find a suitable office space, you must know your team size, the amenities required, and accessibility. Make sure that the location has reliable power and internet connectivity. The office should have the hardware, software, and other resources to promote smooth operations.

6. Talent Acquisition

Look at job portals, recruitment agencies, and online platforms to source and hire talented individuals. Conduct thorough interviews and technical assessments to assess their abilities.

7. IT Infrastructure and Security

Implement robust IT infrastructure and security measures to protect your intellectual property and sensitive data. The infrastructure must include secure networks, firewalls, data encryption, regular backups, and access controls.

8. Cultural Integration and Team Building

Regular team-building activities, virtual meetings, and knowledge-sharing sessions promote a sense of connection. Respecting each other’s cultural differences will help create a cohesive work environment.

6 Mistakes to Avoid while Starting an Offshore Development Center in India

Here are some common mistakes to avoid as you start an ODC:

1. Insufficient Planning 

First, define your objectives, scope, and desired outcomes for your offshore development center setup. Always create a well-planned approach for a strong foundation of a successful ODC.

2. Inadequate Due Diligence 

If you fail to research potential service providers, consultants can lead to legal complications or misalignment with your business goals. 

3. Neglecting Cultural and Communication Factors 

It is essential to understand cultural differences. Understand and respect each culture to have better transparent communication channels. Invest in training programs for language and culture for seamless communication between onshore and offshore teams.

4. Neglecting Cost and Time Expectations

You need to manage ongoing and operational costs in a given time frame. So, look at the budget and the initial investment costs to build a properly functional ODC before proceeding. 

5. Transfer and Training 

Implement robust training programs, documented processes, and best practices to facilitate regular knowledge-sharing sessions. It will ensure that the offshore team is aligned with your organization’s goals and work methodologies.

6. Failure to Adapt to Local Laws and Regulations 

You must seek legal expertise to understand labor laws, taxation regulations, and data protection requirements. Adhere to these regulations to evade legal consequences and protect your business interests.


So, are you ready to take on the big challenge? If yes, then your search starts here. Here, you learned in detail about setting up an offshore development center in India.Remember that setting up an offshore development center in India can be easy if you follow the rules. 
To have better talents, you must nurture them, as it will help you build a strong foundation for your ODC.If you are thinking of setting up the ODC center in India, you can contact here!