Offshore Development Center vs. Outsourcing: The Key Differences

Netsmartz LLC
2 min readApr 11, 2022

Although both terms are frequently used interchangeably, there are significant differences between the two — take a look at them!

It Outsourcing

IT outsourcing involves hiring external talents to help with the development and deployment of your software. Your software development partner is responsible for meeting deadlines and exceeding goals. When the project is done, the development team will move on to your vendor’s next project assigned to them.

As a result, hiring an outsourced team is an excellent option for one-time projects such as developing a website, Proof of Concept & MVP development.

Also Read, Offshore Development Center: Why do you Need one & How to Build one

Offshore Development Center

ODC is a dedicated office that handles offshore software development needs. It is simple to establish your own ODC in any part of the world.

The ODC was created to focus on its core business responsibilities. As a result, the team is wholly dedicated to that specific project, providing sufficient stability throughout the project development lifecycle.

Furthermore, it is adaptable enough to change as the needs of the business change. As a result, with Offshore Development Firm, your company can achieve complete flexibility and scalability.

Here’s a complete guide of Offshore Development Firm for a clear picture.

To understand better, let’s check out the differences —

1) High Level of Commitment

Being a part of the project, dedicated software developers working for product companies typically show more dedication and interest in the project’s outcome. With the ODC approach, you have a better chance of attracting people who have a product mindset and enjoy being a part of something big. Having said that, you can have outsourcing developers with a high level of commitment as well, but you can expect more passion from ODC employees.

2) Cost-Effectiveness

Outsourcing is likely to be less expensive, but it comes with the caveat that your project will not scale very well. The ODC requires upfront investments and additional time to assemble a team of experts and set up a properly functional office; however, you can expect a higher Return On Investment (ROI) from it in the long run.

3) Control Over Management

You have no direct influence over your outsourcing partner’s team. Your service provider’s project managers have the authority to change the team composition or reassign specific team members between projects. You have complete control over management and decision-making with an ODC.

Do you need help setting up a dedicated team of developers in India? We have a pool of certified developers at Netsmartz that you can hire to build your dedicated development team. Offshore or outsource — whatever you prefer based on your business objectives because we provide both services.

Connect with us now & get a free consultation!



Netsmartz LLC

Netsmartz strives to be a Leader in the Global Marketplace for IT Solutions in the areas of Cloud & Infrastructure Services, eLearning, Enterprise Mobility.