Dedicated Development Centers: Benefits, Infrastructure and Staff

Published: April 16, 2014 4 min. read
Svitla Team
By Svitla Team
Managed Operations
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What is DDC and its Attributes

If your company is on the way of further extending of software development and is looking for a good combination of professional workforce and lower operational costs, one of the possible solutions is contracting with Offshore Dedicated Development Center. To understand what is meant by this notion, try to imagine an IT-office located offshore but working for you. To be more precise, a Dedicated Development Center may include the following attributes:

  • Office equipped with all necessary hardware, software, and the Internet connection;

  • A team (or teams) of qualified software developers and testers who work only on your projects and comply with the policies and culture of your company;

  • All office management activities and legal procedures that are performed by in-house administrative staff;

  • Local labor market and cooperation with leading local universities that can be used for recruitment to extend DDC teams in future;

  • New employees who are involved in work quicker and more effectively as being a part of real (not virtual) team that is coordinated on the spot.

DDC Staff

Administration of an office as well as recruitment is a big deal, especially when it is conducted from another country. Even in our high-tech century, not all questions can be solved via phone or email. The personal assistance still plays a key role in many situations. Benefits for customers who chose the DDC model are connected with obtaining of means of comfortable administration and regulation of local questions.

For example, you can select and pay for the office premises in the Internet, buy the furniture in the e-shop, and interview the candidates via Skype, but it can be like pain in the neck to control such events as honesty of estate agent with whom you sign the rent contract, timely and safely delivery of ordered purchases to the office, personal impression from the candidates during the interview.

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The control of all processes at place, personal signature in invoices and other documents, face-to-face conversations with team, coordination of office work, and cooperation with local authorities are only several possible tasks that cannot be fulfilled other than personally.

And, of course, these tasks should be performed by someone else than developers who are totally engaged in the software development. That is why one of the primary benefits of DDCs is that all administration of the office is performed by the people at place.

The dedicated development centers may include the following staff, besides the developers:

  • Head of Department and Office Manager responsible for DDC organization, daily office management, communications with suppliers, business trips arrangement, and guests accommodations.

  • Recruiter and HR Manager who search for new candidates for pre-selection interviewing and also take care of team-buildings and atmosphere in the office.

  • Finance Manager, or Accountant, performing financial planning and reporting, invoicing, managing payments, new employee legalization, accounting, and tax reporting.

  • System Administrator establishing and maintaining DDC’s networks and telecommunications as well as installation of necessary soft- and hardware.

  • Project Manager who is responsible for organization of development projects of DDC team.

Depending on tasks and specifics of the industry and needs of the projects, the staff diversity can vary.

Benefits of DDC Model

Selecting the Dedicated Development Center model for your business you receive the following benefits:

  • Possibility to dedicate a large part of development to the DDC team while focus the home team on development of some specific tasks and new directions.

  • If the DDC is located in a different time zone (up to 8 hours shift), the development and maintenance can be performed almost without interruption.

  • Reasonable prices for development services and possibility of further team extension from the local pool of candidates.

  • No administrative overheads as all organizational, legal and tax questions are regulated by local office administrators.

  • Guarantee of customer’s Intellectual Property rights and employees’ compliance with the customer’s non-disclosure agreement.

Accepting the customer’s or proven in-house model of organizational and development processes and activities.

Whether you are a startup or large extending company, the opportunity to have an Offshore Dedicated Development Center is a perfect perspective of the well-organized and efficient development of your business with less overhead and cost.

Written by
Svitla Team
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FAQ

What is a Dedicated Development Center (DDC) and how does it differ from traditional outsourcing?

A Dedicated Development Center is a team-based offshore office where professionals sit and work exclusively on your projects. They follow your company’s policies and culture just as any internal staff would do. Normal outsourcing means the teams can be shared with other clients, and you have very minimal or no control at all. However, a DDC ensures you have local administrative support for easy management, good integration, and full oversight. The DDC model handles all aspects of local office management, the recruitment process, and legal issues, while focusing activities on the core business to derive cost-saving advantages and team scalability. It therefore brings more transparency, control, and aligns with the business goals than standard outsourcing.

What are the key benefits of establishing a Dedicated Development Center?

A Dedicated Development Center enables the minimization of operational expenses on one hand and allows working with adept professionals on the other. Such a center frees a company’s internal resources for strategic assignments and innovation since most development work can be outsourced to Dedicated Development Centers. Further advantages accruing from such centers include round-the-clock development and support due to time zone differences, as well as the absence of bureaucracy, since local personnel handle all organizational, legal, and tax matters. The scheme guarantees the protection of your intellectual property rights while facilitating the seamless integration of any organization and development process.

What kind of infrastructure and administrative support is typically included in a Dedicated Development Center?

A Dedicated Development Center (DDC) generally comprises a fully furnished office space with all hardware, software, and internet provisions. In addition to the development team, it also comes with full administrative support, which includes an office manager handling daily activities, recruiters, and HR staff taking care of both talent acquisition and the well-being of your team members, as well as a finance manager dealing with all kinds of financial matters and tax reporting. There is also a system administrator to ensure network and telecom security, while a project manager oversees development projects to ensure everything runs smoothly and is properly coordinated. With such great infrastructure and this kind of administration behind them, clients never have to worry about any daily management tasks concerning an offshore office.

What roles and types of staff are typically found in a Dedicated Development Center, besides software developers?

In addition to software developers, a DDC typically comprises a significant number of administrative and support staff who cover various aspects to support the operations. Others who may be involved in daily management and communication include the department head and the Office Manager. At the same time, Recruiters and HR Managers are responsible for recruitment, as well as ensuring a healthy team environment. A Finance Manager or Accountant typically handles financial planning, invoicing, and tax reporting; IT infrastructure is managed by a System Administrator. Additionally, development projects require organization and coordination; therefore, the workflow must be efficient. Therefore, the delivery of the project itself requires a Project Manager.

What are the main considerations or challenges when setting up and managing a Dedicated Development Center?

Major factors in setting up and managing a DDC include ensuring effective communication across time zones and coordinating efforts. Clear recruitment and onboarding processes should be established to facilitate the quick integration of new team members. Local legal and tax regulations are also associated with management complexity; thus, ground administrative support is required. Long-term success requires strong company culture and team cohesion, even if the DDC is located at a distance.