Offshore development center in Ukraine

1. Offshore Development
Centers (ODC)
+38 (050) 388 49 17
dmitry@bekinin.com
Oct, 2011

2. Why offshore development center?
are good for both startups and existing business
can run one or several software projects
simultaneously
can include one or several development
and QA teams with different skills
are set up and supported by an outsources service provider
usually at their premises and with vendor’s experience
and existing infrastructure
www.bekinin.com

3. ODC Benefits
Quick set up and quick cancelation, no longer-term
investments
Reduced costs as compared to onshore labor costs
Reduced costs as compared to offshore full time
development team
Transparent (“aquarium” vs “black box”)
Simplified accounting
No problems to visit

4. ODC Features
Servers as a technology and software engineering extension
of customer’s main facility
Allows the customer to focus on business specific while admin
routines are being resolved by the outsourcing services
vendor
Customer’s 100% ownership
Staff replacement within from a week to a month, no special
costs

5. ODC Flip sides and challenge
Require an intensive communication due to large geographic
distances; poor communication makes ODC use it resources
inefficiently and increase overall costs
Requires regular assessment of the team to perform
necessarily HR adjustments
ODC members are not native English speakers in the most
cases.
May require additional trainings in customer’s business
domain
Time difference

6. ODC Flip sides and challenge
The customer may need to get familiar with local HR market,
their specific, levels of salaries and professionalism to make
effective HR decisions if he want to.
Startups are often don’t have solid development process
the outsourcing vendor has to analyze, recommend and
implement…
Roles and responsibilities
Just enough documentation
Agile development, if required
Average time to hire talents
Middle level engineer: 2 - 4 weeks
Senior engineer: 4 - 6 weeks
High level leader: 4 - 8 weeks

7. ODC Creation steps
Discuss and create an estimation for the monthly budget.
Consider a particular model of building the team:
Hiring new ones or based on existing vendor’s employees
or mixed model.
Figure out requirements for the talent expertise, identify the
needs of:
Permanent long term employees
Contractors for shorter periods of time
Plan infrastructure
Equipment workstations and servers
Office desks and space
Network equipment

8. ODC Creation steps (continued)
Budget sign off
Build a team: hiring process
Set up knowledge transfer, requirements gathering process,
training.
Set up communication process:
Meeting scheduler
Reporting
Personal communications
Set up workflows, management systems
Achieve success

9. Budget components
Salaries, bonuses
Office space costs
Collective taxes
Telecommunications costs
Bank expenses
A fee to the vendor

10. ODC Service levels
What the customer can do:
- Review all and any costs, costs analyses, suggestions
and negotiations for cost reductions
or additional expenses.
- HR activities such as:
- Conduct interviews
- Make hire decisions
- Make firing decisions
- Motivate - bonuses
- Project management: yes, if customer wishes,
and may be hidden if the customer wants so
- Visit ODC: yes, any time

11. Thank you
Dmitry Bekinin
dmitry@bekinin.com