Today, the Offshore Development Center (ODC) and Buil-Operate-Transfer (BOT) are popular software outsourcing models in the world. Let’s talk about the difference between ODC and BOT model in more detail!
Difference between ODC & BOT
ODC & BOT meaning
In IT companies, ODC stands for Offshore Development Center. ODC is a kind of software outsourcing and is an extended, integrated, and dedicated offshore team supporting a company located in another country. In addition, the ODC model has been used by IT companies for offshore development, testing and deployment of software outsourcing. The demands of clients for products that can be deployed much faster, and the limitations of in-house resources such as cost, development time, infrastructure, and availability of specialized skills. Your company as the client will partner with an offshore provider to establish an offshore team in the country of the provider.
BOT stands for build-operate-transfer and it also is an offshore development center model that is really useful for businesses that want to focus on development in the local market as their future business goals. The benefits of BOT are well known, like, scalability, short-term cost and risk avoidance, productivity, etc. The contractual relationship between an organization and a build operate transfer company – software outsourcing development service provider which should set up, run, and optimize a certain business or infotech process service delivery operation and transfer the operation to the organization.
How do they work?
The ODC process includes stages below:
- ODC is very easy to operate. Initially, the business will inform their partner of work and the goals they want to requirements of their offshore development team. This stage involves establishing an operating unit that includes everything from choosing buildings, installing infrastructures such as the Internet and IT systems, employing staff and setting up the administrative and legal framework.
- This next stage of the offshore development center manages the project that involves program management, growth, maintenance, upgrades and product support.
- After then, the offshore development center provider will stop these activities until the contract expires.
BOT model works similar to ODC in building and operating. The key difference between an ODC and a BOT relationship is the future transfer of ownership of the ODC operation. With BOT, the offshore vendor will establish the team, infrastructure, and operations, and then transfer the entire set-up back to the client company that will own, operate and integrates the ODC into their corporate culture.
Read more: “How many type of software outsourcing contracts are there in the world?“
The similarity between ODC and BOT
Although there are differences between the ODC and the BOT in their original definition and operation, they share the same benefits of working with their team.
Low development cost
Most companies hire top offshore developers from India, Vietnam and China work at lower costs in comparison to the developers in the United States. According to CIO magazine, software development outsourcing in Vietnam is about 90% cheaper than hiring the US labor force.
Accessibility to large tech pool
You will find an abundance of tech experts globally who often focus on developing the capabilities of their employees to handle every request from customers.
Improved productivity
ODC and BOT model offer you the advantage of serving at two different time-zones. This shortens the product completion time and launches to the market earlier.
No infrastructure cost
Another important advantage is that clients do not have to pay for any infrastructural costs. Thus, it is suitable for any kind of type and size of an organization.
Innotech Viet Nam Corporation is a software outsourcing company focusing on high-quality services in Viet Nam. At Innotech Vietnam, We strive for the creation, innovation, development, and advanced solutions. We provide a wide range of software services to meet all requirements and expectations from customers. We turn these advanced technologies into value for our customers through our professional solutions and business service worldwide.
If you are looking for an Offshore Development Center to provide solutions for your companies, contact experts at Innotech Vietnam for any questions about Offshore Development!
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