{Offshoring Wiki}

VODC (Virtual Offshore Development Center)

Updated: 02 March 2024

6 min read

Written by Anastasia Stefanuk

Brief History of the VODC Model
The Backbone of the Virtual Offshore Development Centre
The Popularity of VODC Services
Companies That Successfully Used Virtual Offshore Development Center Model
Virtual Offshore Development Center Pros and Cons
VODC Services Cost Comparison
References:

VODC (Virtual Offshore Development Center) is a remote department that takes care of the company’s development tasks. This dedicated team can include all types of IT specialists such as coders, software engineers, designers, project managers, testers, etc. There are plenty of cases when a virtual offshore development center company had HR specialists, accountants, product, and support managers as well.

1. Brief History of the VODC Model
2. The Backbone of the Virtual Offshore Development Centre
3. The Popularity of VODC Services
4. Companies That Successfully Used Virtual Offshore Development Center Model
5. Virtual Offshore Development Center Pros and Cons
5.1 VODC Model Pros:
5.2 VODC Model Cons:
6. VODC Services Cost Comparison
7. See Also
8. References

Brief History of the VODC Model

VODC definition has been around almost ever since the term “outsourcing” was used for the first time ^[1]. Nowadays it would be hard to find a business owner who would ask “What is a VODC?”. Due to its many benefits, it is now a popular strategy that is incorporated into many companies’ development plans.

The VODC services as we know them now, though, began shaping back in 1989 ^[1] when a company named Kodak decided to outsource not just some of its minor functions, but a core technological process. Their move showed other business owners that development outsourcing can be highly beneficial and having virtual teams will not endanger productivity. From that point on companies began focusing more on collaboration and effective management, therefore making VODC services grow up in demand.

Now the outsourcing industry is booming ^[2] and it is only the beginning as more and more businesses learn about the opportunities it can open up in front of them.

The Backbone of the Virtual Offshore Development Centre

A VODC team can cover a wide variety of tasks for you: software development, accounting, recruitment, design, management, and so on. Such diversity is designed to decrease the task load on the headquarters of the company and let its core management focus more on urgent tasks.

Typically, a VODC company can offer you two service models:

Customer model. This is the right option for big companies or those that operate in a small niche. In this case, virtual offshore development center providers would set up a team of professionals according to the needs of the customer
Contractor model. If you own a small company, then this is the right option for you. With the contractor model, a company can hire a remote team specifically for the particular project. At the same time, recruited specialists can cover any task that is necessary.

The Popularity of VODC Services

Virtual offshore development center services are in high demand nowadays. There are thousands of IT outsourcing vendors out there that could assist with VODC tasks. The whole outsourcing market is expected to reach more than $400 billion by 2027 according to recent research ^[3]. One of the major reasons companies are diving into outsourcing practices is cost reduction. Considering that the IT market is highly competitive nowadays it is reasonable for companies to try and stay relevant without going over their budget.

One of the most popular VODC destinations in the world is Eastern Europe. Such countries as Ukraine, Romania, Czech Republic, and Poland had won their title of top countries for outsourcing tasks a long time ago.

Companies That Successfully Used Virtual Offshore Development Center Model

Successfully maintaining a VODC team is no easy job, however, some companies ^[4] managed to make a good deal out of it. One of the most well-known examples of successful VODC implementation is IBM. Not only do they frequently hire remote teams, but they also allow their permanent employees to work from any time zone that is convenient to them.

Another example worth mentioning is a General Electric company. Being a global company with more than 90,000 employees all over the world, they decided to create a virtual onboarding program. This way their employees, even being remote ones, can easily and quickly dive into the working process.

Virtual Offshore Development Center Pros and Cons

Before getting involved with the VODC model it is important to learn about its main flaws and benefits ^[5].

VODC Model Pros:

It allows you to stay physically present even in a foreign market.
It can significantly reduce your expenses as outsourced specialists tend to have lower costs. You can easily find a team within your price range in any part of the world.
It grants you flexibility. You can hire as many specialists as you want or need with any type of skill. Also, it is up to you to decide on how long they are going to be working for you.
It increases your security. By hiring a remote team in a separate office (as implies the VODC meaning) you can be sure that your proprietary technologies stay safe.

VODC Model Cons:

Communication difficulties. Even though there are now plenty of ways to get connected with your remote team, there is nothing better than having an actual meeting at the office.
You might find yourself putting too much trust in your contractor. Always make sure that you keep track of every task’s execution.

VODC Services Cost Comparison

While trying to learn about the costs for the VODC services you might notice that they are at times quite different, depending on the country. Such differences can be explained by the different economy states that greatly affect remote specialists’ rates. For your convenience, we have prepared a small comparison table of VODC services according to Payscale ^[6]:

	USA	Germany	UK	Japan	Ukraine
$ per month	$5600	$5500	$6400	$7400	$4000

As you see, the rates of Ukrainian specialists seem to be the lowest ones. That does not mean, however, that does not mean that Ukrainian specialists are any less professional than, let’s say, American ones. This means that if you are looking for a good ratio of price and quality, Ukraine might be just the right solution for you. Establishing a Virtual Offshore Development Center (VODC) becomes even more impactful when you hire AR developer, as their expertise in augmented reality can seamlessly integrate with remote teams to innovate and enhance project outcomes.