The Offshore Development Center (ODC) model has emerged as a preferred approach for small and mid-size companies looking to access specialized expertise, reduce costs, and maintain operational efficiency. As an ODC provider, an IT services company plays a crucial role in ensuring smooth project execution, security, scalability, and collaboration.

Below are the key roles and responsibilities of an IT services company when offering an ODC engagement to its clients:

1. Infrastructure and Setup

Setting up an ODC requires an optimized and fully equipped infrastructure to ensure seamless operations. IT services companies handle:

  • Facility Setup – Establishing a dedicated development center with the necessary workspace, hardware, and network connectivity suitable for the client’s team to be able to collaborate with folks working within ODC. 
  • IT Infrastructure Management – Setting up cloud-based or on-premises infrastructure to meet performance, security, and scalability needs.
  • Security and Compliance Measures – Implementing data protection, access control, and compliance frameworks like GDPR, HIPAA, SOC2, etc.

2. Talent Acquisition and Workforce Management

One of the biggest advantages of an ODC is access to a skilled talent pool. The IT services company is responsible for:

  • Recruitment and Hiring – Identifying and onboarding skilled developers, testers, DevOps engineers, project managers, and AI/ML specialists.
  • Team Scaling – Providing flexibility to scale the team up or down based on client requirements.
  • Retention and Engagement – Ensuring high employee engagement, competitive compensation, and career growth opportunities.
  • Workforce Training & Upskilling – Conducting training programs to keep the team updated with the latest technologies and best practices.

3. Software Development & Engineering

As the core function of the ODC, the IT services company delivers high-quality development and engineering services, including:

  • Agile & DevOps Practices – Implementing Agile methodologies and DevOps automation to accelerate software delivery.
  • Custom Software Development – Providing tailored software solutions across web, mobile, cloud, and AI-driven applications.
  • Product Engineering – Designing and building scalable, high-performance products with end-to-end development cycles.
  • API Development & Integration – Creating secure APIs and integrating third-party services to enhance functionality.

4. Quality Assurance and Testing

To ensure that software applications meet the highest standards, the ODC provider must establish robust testing mechanisms, including:

  • Automated & Manual Testing – Implementing automation frameworks to reduce human effort while ensuring comprehensive testing.
  • Performance Testing – Conducting load testing, stress testing, and scalability assessments.
  • Security Testing – Identifying vulnerabilities and ensuring compliance with industry standards.
  • Continuous Testing – Embedding testing in CI/CD pipelines for faster and defect-free releases.

5. Operations and Project Management

Effective governance and project management ensure that the ODC delivers on time and meets business objectives. IT services companies should provide:

  • Project Oversight & Governance – Assigning dedicated project managers and client success teams for seamless collaboration.
  • Agile Sprint Planning & Execution – Following Agile methodologies for sprint-based software development and iterative releases.
  • Collaboration Tools & Reporting – Using project management tools like Jira, Confluence, and Slack to maintain transparency.
  • Client Communication & Stakeholder Management – Ensuring proactive communication, regular updates, and milestone tracking.

6. Maintenance, Support, and Continuous Improvement

Beyond development, an ODC provider should ensure long-term operational support and continuous improvements, including:

  • 24/7 Technical Support – Offering dedicated L1, L2, and L3 support teams to handle incident management and troubleshooting.
  • Product Enhancements – Providing ongoing feature updates and software upgrades.
  • Performance Monitoring – Using AI-driven monitoring tools to ensure system stability, uptime, and reliability.
  • Cloud & Infrastructure Management – Managing cloud deployments, DevOps automation, and infrastructure optimization.

7. Security and Compliance

Ensuring security and compliance is critical for maintaining client trust and safeguarding sensitive data. The IT services company should:

  • Implement Secure Development Practices – Enforcing secure coding standards, penetration testing, and encryption protocols.
  • Regulatory Compliance – Adhering to global regulatory frameworks such as GDPR, HIPAA, PCI-DSS, and SOC2.
  • Access Control & Identity Management – Managing role-based access control, multi-factor authentication, and endpoint security.

8. Transition and Knowledge Transfer

If the client chooses to take ownership of the ODC after a certain period, the IT services company should be able to facilitate the same through:

  • Knowledge Retention & Documentation – Creating comprehensive technical and process documentation for easy transition.
  • Development Handover & Onboarding Support – Facilitating a structured transition by training the client’s internal team.
  • Continued Advisory Support – Offering post-transition consulting to ensure smooth operations.

Scale Smarter with an Offshore Development Center!

Boost productivity, optimize costs, and access world-class talent with a dedicated ODC. WalkingTree takes care of everything—from infrastructure and security to agile development and seamless collaboration.

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How WalkingTree Can Help

An ODC is not just a team extension—it is a strategic growth enabler that optimizes costs, improves productivity, and accelerates innovation. The success of an ODC depends on seamless execution, security, scalability, and operational efficiency, all of which an experienced IT services company provides.

Reduce operational overhead

Cut infrastructure, hiring, and administrative costs by leveraging an offshore team with optimized workflows and automation.

Gain access to top-tier talent

Tap into a global pool of skilled developers, DevOps engineers, AI/ML specialists, and domain experts without the hassle of recruitment and retention.

Scale software development

Quickly ramp up or down development resources based on project needs, ensuring agility and faster time-to-market.

Security, compliance & collaboration

Maintain strict security, adhere to GDPR and SOC2, and enhance teamwork with real-time project tracking.