What is an ODC?
An Offshore Development Center or ODC is a dedicated development center, located outside the client's premises, solely engaged in developing, testing and deploying software solutions and applications, most often in a country outside the client's country. The purpose behind an ODC is to take advantages of the technological know-how, cost advantages or the reduced time to market.

Establishment of an ODC
The process of setting up of an ODC is in phases. The initial phase is required to accomplish the infrastructure set up for the ODC - which would include setting up of the Physical Infrastructure such as Office equipment & Development Environment and also the assignment of professionals with relevant skill sets to the ODC. This phase takes around 2 - 4 weeks time. The next phase is very critical to the long term functioning of the ODC. This phase deals with setting up of a functional process, which will be implemented and improved upon through out the life of the ODC. A detailed discussion is held to decide on the process to set up the Communication protocol, Operational efficiency/Reporting structure, Specific roles and responsibilities assigned to specific personnel. Project Delivery Methodology and the Escalation procedures.

Key Issues

• Protection of IP
• Exit Policy
• Security and backup policies
• Ramp up and ramp down
• Risk Management Plan
  • Attrition issues
  • Cultural Integration
  • Transition / Skill Orientation

The above are some key issues that need to be addressed to ensure the goals of the ODC, which are covered in subsequent sections of the document.

Models of Offshore Development Center We can assist a Client in setting up an Offshore Development Center, wherein the ODC, to start with, will run under the VBSOFT banner. We would assist in the operations of the ODC, providing the resources for development work, managing the ODC etc. This frees the client from worry of the day-to-day operations of the ODC.

In case the Client wants to take over the operations and buy out the ODC at a later stage, we suggests the following options.

Dedicated
Build Operate Transfer (BOT Model)

Dedicated ODC
A dedicated Offshore Development Center will be set up for the Client. The dedicated offshore development center size is based on the requirements of the Client.

• The complete office space, infrastructure and resources will be dedicated
• May be housed within the VBSOFT development center

• Scale up the team at a later stage
• Development center can be setup in a phased manner
• They can Start operating at VBSOFT development Center
• Can Move from VBSOFT development center to dedicated location as they grow.
• VBSOFT will handle the overall Operations and Administration of the ODC.
• The Client can have their Project Managers / Technical Managers managing the projects,

• The ODC will be built based on the requirements of the Client
• Will be run on a pre-defined terms and conditions
• Will be set up and managed by VBSOFT for the client for a particular period of time.
• After a predefined period of time based on a predefined terms and conditions the ODC will be transferred to the Client control.
• In case the Client would like to buy the ODC, the purchase value of the ODC would be calculated as being equal to three months billing for the engineers being transferred from the ODC to the Client.
• All facilities / infrastructure used by the ODC could also be acquired by the Client on payment of the written down value of the facility / infrastructure.
• This model helps clients build up its own facility in India without having to be exposed to entry-level hassles.

Key Functional Areas
To achieve the maximum benefit from an engagement, VBSOFT has identified some key areas where it can provide value.

Risk Management Plan

• Attrition issues: Better practices will ensure low attrition and proper knowledge management / transfer method in place to make any kind of transition smooth.
• Cultural Integration: VBSOFT will carry out the cultural orientation program for the ODC team.
• Transition / Skill Orientation: VBSOFT can organize the training setup for the client to do a structured skill orientation and transition of knowledge to bring the team up to speed on the job.

Communication
VBSOFT will ensure that the communication between the Client onsite team, the Client offshore team (the ODC) and VBSOFT is effective Predefined critical information is be communicated as per schedule There will be a Command Structure defined and established at VBSOFT to deal with the client

Ramp up and ramp down
Specific to the projects the manpower needs may vary from period to period. For any changes in the Team size, the client is required to give a one-month advance notice to VBSOFT for any ramp up and 45-day notice for any ramp down of the resources. In case the advance notice is less than a month, then contingency charges based on mutual agreements will be applicable.

Protection of IP
VBSOFT, having worked with global customers in US, UK and Continental Europe, appreciates the seriousness with which issues relating to IP are to be dealt with. To that effect, VBSOFT is willing to sign statements that indicate clearly, all IP rights will lie solely with the client, prior to the start of the project and that VBSOFT has no claim whatsoever on the IP for the Client's provided software, or for that software that is to be developed for the Client.

Commercial Framework
All resources committed to the project are billed on an hourly basis on agreed rates for various levels and skill sets. Hours spent on projects are tracked through time sheets or any other mutually agreed method.

Exit Policy
At the end of the contract, or any termination, for whatever reason, VBSOFT would immediately return all material related to the project, to the Client. VBSOFT is also open to the idea of having an external, Client sponsored entity, certify that all steps have been taken to ensure that the IP has been protected and that VBSOFT has returned all material that is considered the Client's property, to the Client.

Other Support
Change Management System
Security and backup policies
Project Level Considerations

• Collaboration within the Team
• Project Team information
• Version Control & documentation