1. What is ODC? What is the difference between ODC and Fixed Price?
Offshore Development Center (also known as Time and Materials Model) is an offshore team specializing in outsourcing software, web systems, mobile applications, game applications, maintenance and system upgrade on software systems. When a business lacks the necessary resources for technology projects or wants to save costs, ODC is an option worth considering. Especially when the requirements, scope and specifications of the project are not clearly defined, or the enterprise is looking for long-term cooperation from external resources, ODC provides human resources for those positions missing in projects and activities under the guidance of client enterprises, such as software engineer, Tester, UI/UX Designer, human resource manager, etc. To put it simply, ODC is an enterprise’s extensive software development team based in foreign countries.
Countries that provide ODC will often have a lower cost of living than the client business’s country, however they ensure enough resources needed for the project. A good example is that the US often looks for ODC in India, Japan and Korea will often search for ODC in Vietnam and other Southeast Asian countries.
When choosing the ODC model, the customer business will be responsible for all necessary costs as well as the success and risks of the project. In addition, the cost of paying for ODC services will be based on the estimated hours that ODC personnel perform the assigned work. Therefore, the client enterprise will be the one to directly manage the project and consider whether the actual working hours exceed the original estimate.
The opposite of ODC is the Fixed Price Outsourcing Project model. In case businesses want to find an outsource company for a fixed project, and all requirements, scope, cooperation terms, project specifications are clearly planned, Fixed-Price is the best choice. When choosing this method, the client enterprise will give full project management rights to the supplier company, including budget, human resources, risk management, etc. The cost of payment will be determined based on project implementation time or output according to each important milestone.
2. Advantages of ODC?
ODC is famous for its low-cost service advantage but not only that, the followings are the advantages of ODC to help this model stand out in the labor market:
- ODC allows customers to fully manage the project, they can track the progress of the project and accelerate if needed, especially for those projects that need to comply with strict ISO standards. The ODC model will help businesses carefully consider and evaluate the quality of the final product.
- Cooperation with companies providing ODC abroad allows businesses to save costs on advertising and popularizing products in that country.
- With ODC, businesses can use long-term services and terminate cooperation at any time as long as they ensure compliance with the terms of the contract.
- For businesses implementing projects in many fields, cooperation with companies providing ODC will be more convenient for businesses to effectively allocate resources to participate in the project and reduce unnecessary recruitment costs.
- Before starting the project, the client enterprise and ODC company will clarify the working hours of human resources, the staff provided by ODC will work within those hours and deliver the products on time while ensuring that the quality complies with the customer’s standards.
3. ODC’s development in Vietnam
According to Statista’s statistics, Vietnam is in the top 6 of the best offshore areas in the world in 2021. From the 11th place in 2016, Vietnam has made a big leap and is on the way to strongly develop. Although the recent Covid pandemic has brought huge losses to the economy, Vietnam proves that it is one of the attractive ODC service providers. What is the main factor that makes ODC services in Vietnam so attractive to foreign businesses?
The answer is 3 factors: cost, quality and multi-language.
First, setting up an ODC facility in Vietnam does not cost too much space rental, living costs as well as labor costs. Human resources and raw materials in Vietnam are also reasonably priced, but the quality is not inferior to other countries. Therefore, businesses can save on outsourcing costs and focus their budgets on other factors such as marketing, software development, and contingency costs when risks arise.
Second, when hiring ODC in Vietnam, businesses can come into contact with a team of talented and suitable personnel for the project. Some complex projects require human resources with specific expertise and in case the enterprise cannot add suitable personnel in a short time, ODC is not a bad choice. According to Lotus Technology Group, in 2021, the Vietnamese labor market will welcome 25,000 well-trained engineers on technology platforms and work at competitive prices. Vietnam is gradually proving itself as a destination not to be missed on the global journey of businesses.
Last but not least, ODC also focuses on training multilingual human resources to meet the needs of building a global team for client businesses. The explosion of the “flat world” trend has simplified and tightened more than ever the relationships between individuals and groups from all regions. Multinational projects are increasing day by day and the demand for multilingual personnel is also increasing. ODC service will solve the need for multilingual and multi-industry personnel.
4. Why should customers choose SHAREWORK?
SHAREWORK is not only a technology business but also an experienced ODC company that has been providing solutions for businesses in the IT field. We are proud of a team with highly skilled personnel who are well trained through practical projects. Coming to SHAREWORK, we provide human resources in many fields such as software development, UI/UX design, human resource management, project assistant,... commensurate with quality and at the same time, meet the client’s requirements in any time frame anywhere in the world. We havedeveloped the Data Entry service with intelligent tools to meet the needs of digital transformation that are gradually becoming a trend in 2022. SHAREWORK wishes to support businesses in the transitions to the social pattern 5.0.
You want to change the world, SHAREWORK is with you!