Open an offshore development center: What you should consider

The so-called Offshoring is becoming increasingly popular. Companies are relocating certain operational activities abroad. A special form is the Offshore development center in the IT sector. This means that companies set up a software development center abroad with qualified specialists from the respective country or region. When opening an offshore development center, in addition to organizational and financial aspects, the legal requirements that apply locally must also be taken into account.

Important factors when choosing a location

After a strategic Needs analysis it is important to find the right Location to select. In addition to the Cost factor in particular which country has the best Talents for your project. Ideally, you should open an offshore development center where you have sufficient qualified software developers In addition, when choosing a location, you should also consider Geographical and political Take factors into account.

Check legal aspects for offshoring

If a company opens an office abroad and employs staff there, the labor law requirements of the respective country apply. It is also important to clarify the social security and tax conditions at the foreign location. In general, it is very important that you inform yourself in advance about the legal framework conditions at the respective location inform.

Clarify in advance:

• Which working time laws/working time guidelines apply in the country?
• What tax regulations must be observed?
• How is social security regulated?
• What is the local wage level?
• What non-wage labor costs will you incur?
• What regulations regarding remuneration do you have to comply with?
• Which data protection regulations must be observed?
• What termination rules apply there?

Ensure secure data transfer

It is also important that a reliable data infrastructure is available and that secure data transfer is guaranteed. High-speed Internet is a basic requirement for an IT development center in particular.

You should also define clear rules as to which employees have access to which data. You should also attach great importance to effective data encryption.

Learn more about data security >>>

Advantages of an offshore development center

When companies set up an offshore development center abroad, they generally hope to achieve greater efficiency and lower (personnel) costs. But there are other reasons to open such a development center. The main advantages at a glance:

• Deploying foreign specialists efficientlyYou can recruit qualified specialists from the respective country and deploy them locally. This allows you to utilize local expertise and counter the shortage of skilled workers in Germany.
• Save costsIn many non-EU countries, wages and operating costs are significantly lower than in Europe. Renting office space is also often cheaper. Lower energy and raw material prices can also play a role.
• Improve competitivenessAn offshore development center can help to increase the company's efficiency in terms of work processes and thus productivity. Together with cost savings, this improves the company's competitiveness.
• More capacity for the core businessOpening an offshore development center abroad can help to free up new capacity for the core business at the company's headquarters in Germany.

Temporary Work International can help you recruit qualified IT professionals and set up an offshore development center.