Setting up an offshore development center requires planning, clear ownership, and repeatable execution. When done right, an offshore development center helps you scale engineering capacity faster, control costs, and build a stable team that compounds knowledge over time. Below are six practical steps to set up an offshore development center from scratch.
Step 1: Define Your Business Objectives and Technical Requirements
Start with outcomes. Decide what success looks like for your offshore development center. Common objectives include reducing development cost, speeding up delivery, accessing specialized skills, or building long-term capacity for product and platform work.
Then document your requirements clearly:
- Roles needed (backend, frontend, mobile, QA, DevOps, data, PM)
- Tech stack (languages, frameworks, cloud, CI/CD tools)
- Product scope (new builds, maintenance, modernization, cloud migration)
- Working model (dedicated squads, feature teams, platform team)
This clarity keeps your offshore development center aligned with your roadmap and prevents “hire first, figure later” mistakes.
Step 2: Choose the Right Location
Location decisions directly impact productivity, collaboration, and retention in your offshore development center. Evaluate countries and cities based on:
- Talent availability for your stack
- Infrastructure stability (internet, power backup, office readiness)
- Time zone overlap with your HQ
- English proficiency and communication comfort
- Hiring competition and attrition trends
- Local business and employment regulations
Shortlist 2–3 locations, then narrow down to one based on the best mix of talent density and operational ease for your offshore development center.
Step 3: Select Between Build, Lease, or Partner Models
You typically have three ways to set up an offshore development center:
Build (own entity):
You establish a legal entity, hire directly, and run operations end-to-end. This gives maximum control but takes longer and requires higher upfront investment for the offshore development center.
Lease (run with local support):
You rent office space and assemble a team using local recruiters. Faster than building, with moderate investment, but you still manage many operational responsibilities for the offshore development center.
Partner (managed setup):
You work with a provider that sets up infrastructure, handles compliance, and supports hiring. This is the fastest path to launch an offshore development center with minimal setup burden. Many companies start here, then transition to a fully owned structure later.
Step 4: Handle Legal, Security, and Compliance Requirements
Even if a partner supports operations, you must define legal and security guardrails early for the offshore development center:
- Employment contracts aligned with local labor laws
- IP ownership clauses and confidentiality terms
- Data access controls and device policies
- Security practices for source code, credentials, and customer data
- Internal compliance alignment (security reviews, audit trails, approvals)
Treat this as foundational. A well-governed offshore development center avoids delays, reduces risk, and makes scaling smoother.
Step 5: Build Your Remote Development Team
Hiring quality determines whether your offshore development center becomes a strategic asset or a recurring management problem. Use a structured hiring flow:
- Role scorecards and competency matrix
- Coding assessments aligned with real work
- System design interviews for senior roles
- Communication checks for async clarity
- Culture and collaboration fit evaluation
Plan realistic hiring timelines. For a 10–15 person offshore development center, hiring can take several weeks depending on role complexity and market competition.
Once hired, onboard them like internal employees:
- Product walkthroughs and architecture overview
- Coding standards, branching strategy, review rules
- Access to repos, environments, docs, and support channels
- Clear ownership areas and sprint expectations
Step 6: Implement Communication and Management Systems
An offshore development center succeeds with predictable routines and shared visibility. Set up:
- Project tracking (Jira/Asana/Monday)
- Version control and CI/CD (GitHub/GitLab + pipelines)
- Communication channels (Slack/Teams + async docs)
- Ceremonies (daily standups, sprint planning, demos, retros)
- Documentation standards (tech docs, runbooks, decision logs)
Define KPIs from day one:
- Sprint predictability and velocity trends
- Bug rate, escaped defects, and review quality
- Cycle time from ticket to deployment
- Uptime and incident response (if relevant)
Operate the offshore development center like a first-class part of engineering, not a separate “outsourced” unit.
Conclusion
An offshore development center can be set up in a few months depending on the model you choose and how quickly you hire. The long-term advantage comes from stability: a dedicated offshore development center builds context, improves delivery speed, and scales with your product roadmap. Follow these six steps in order to build an offshore development center that performs like an extension of your core team.
