In recent times, lots of companies are now dealing in nearshore outsourcing partnerships – hiring vendors from developing countries, which are relatively close to one another in terms of proximity and time zone. They have a preference for nearshoring over offshoring due to some of its benefits like cultural, geographic, time and linguistic which have close proximity. Companies that have interest in long-term outsourcing to satisfy their growing software development desires may utilize a dedicated development team model.

Some businesses that have discovered that typical project-based outsourcing is unfit and can’t meet their needs may look into establishing captive facilities in fascinating nearshore zones (such as Eastern European nations) and carry out their specified duties and operations. However, this model has its own demerits and comes in form of risk, asset, operational efficiency and organizational challenges. Thus, lots of large companies and multinational organizations are willing to invest heavily in them due to their utilization, look at the risks and benefits and also allocate the management resources when necessary. In this regard, the use of dedicated development center (DDC) appears to be a feasible option for businesses with long-term goals and planning for software outsourcing.

In DDC kind of engagement, the vendor is the one in charge of facilities provided and set up a group of software development experts to help achieve the client’s goals, and also correspond to their custom, management practice and even business culture. Nearshore partner also carries out other tasks like administrative functions, staffing, resources management, technical support and office facilities and ensure a proper and standard service delivery.

Staff-based dedicated development team model can be considered as the most popular for clients that have outsourcing experience and make use of solid offshore/nearshore delivery practices. In this case, the major role played by vendors is the provision of necessary facilities and setting up a team to manage the account’s projects (client is the one in full control of operations).

Team “tailored DDC” manages and control the centers listed below: product competence center, product development center, project center, research, and development center, application re-engineering center, software maintenance and support center, and quality assurance center.