# What is an offshore development center (ODC) | Miyagami > An offshore development center is a dedicated engineering team abroad. Models, costs, risks and alternatives such as embedded engineers. Source: https://www.miyagami.com/resources/articles/what-is-an-offshore-development-center [Home](https://www.miyagami.com/)/ [Resources](https://www.miyagami.com/resources)/ [Articles](https://www.miyagami.com/resources/articles)/ [Hiring](https://www.miyagami.com/resources/articles/hiring)/ What is an offshore development center # What is an offshore development center **[Dale Wesdorp](https://www.linkedin.com/in/dale-wesdorp/)** Co-founder, Miyagami [Hiring](https://www.miyagami.com/resources/articles/hiring)3 min read 20 October 2026 An offshore development center (ODC) is a dedicated team of engineers in another country that works as an extension of your company. The team uses your tools, follows your roadmap and often has its own management and office. It suits companies with a long-running product and the capacity to direct a team they do not sit next to. ## How does an offshore development center work You and the provider agree on the team size, roles and working model. The provider recruits, employs and houses the engineers, while you set the priorities and review the work. Over time the team builds product knowledge that a rotating pool of freelancers never does, which is the main reason companies choose this model. ## What models are there - **Vendor-run ODC.** The provider owns the setup and employs everyone. You pay a monthly fee per engineer. - **Build-operate-transfer (BOT).** The provider builds the team and runs it, then transfers the entity and staff to you after an agreed period. - **Own subsidiary.** You set up a legal entity abroad yourself. You carry the full cost and complexity, and you keep full control. ## How does it compare with other options | | Offshore development center | Staff augmentation | Project outsourcing | | --- | --- | --- | --- | | Who directs the work | You | You | The vendor | | Team structure | Dedicated, often with its own leads | Individuals inside your team | Vendor's team | | Typical horizon | Years | Months | Project length | | Setup effort | High | Low | Medium | | Management load on you | High | Medium | Low | See also [what staff augmentation is](https://www.miyagami.com/resources/articles/what-is-software-staff-augmentation) for the lighter alternative. ## What does it cost Costs include engineer salaries, the provider's margin, office and equipment, management overhead and your own time spent on coordination. Compare the total with the full cost of a local hire, including employer taxes and recruitment. Our own figures for Vietnam are in [what a senior engineer costs in Vietnam](https://www.miyagami.com/resources/articles/senior-engineer-cost-vietnam). Beware of quotes that omit management and setup costs, since those decide the real price. ## What are the risks Knowledge concentrates in the team, so ask for documentation and code ownership from day one. A large ODC can drift into a separate culture that ships to a spec without caring about the product, which you prevent by including its engineers in planning and customer conversations. Attrition is another risk, and contracts should say how replacements are handled. Legal exposure depends on your country. In the Netherlands, [the DBA law affects how offshore engineers are engaged](https://www.miyagami.com/resources/articles/offshore-development-dutch-dba-law), and in the UK IR35 rules apply to some arrangements. ## When is an ODC the wrong choice If you need two to six engineers inside an existing team, a full center adds overhead you do not need. The same applies when you have no engineering lead to direct the work, or when your roadmap is shorter than a year. Time zones also matter, so read [offshore vs nearshore](https://www.miyagami.com/resources/articles/offshore-vs-nearshore-software-development) before you commit. ## What does Miyagami offer instead We place senior engineers who join your team full-time, from €5,600 a month, with a three-month minimum and no recruitment fee. You get a shortlist within 3 working days and can hire within 5 working days of the brief. Each engineer has been through [two sixty-minute sessions in a real codebase](https://www.miyagami.com/how-we-vet), and you see both scorecards. We replace the engineer at our cost if the fit is wrong. We don't do part-time. Our engineers work from Vietnam, mainly Da Nang and Ho Chi Minh City, with overlap in the CET afternoon. ## Short answers What does ODC stand for? ODC stands for offshore development center, a dedicated engineering team in another country that works as an extension of your company. What is build-operate-transfer? The provider builds and runs the team for an agreed period, then transfers the entity and staff to you. Is an ODC cheaper than hiring locally? Often yes on monthly cost, but management, setup and coordination costs belong in the comparison. How is an ODC different from staff augmentation? An ODC is a dedicated team with its own structure and a long horizon. Staff augmentation adds individuals to your existing team. We test for this Every engineer we place goes through two assessments: one without AI tools, one with. Both scorecards are published. [How we vet](https://www.miyagami.com/how-we-vet) Related - [Offshore vs nearshore software development](https://www.miyagami.com/resources/articles/offshore-vs-nearshore-software-development) - [What is software staff augmentation](https://www.miyagami.com/resources/articles/what-is-software-staff-augmentation) - [What does a senior engineer cost in Vietnam](https://www.miyagami.com/resources/articles/senior-engineer-cost-vietnam) - [Offshore development and the Dutch DBA law](https://www.miyagami.com/resources/articles/offshore-development-dutch-dba-law) Hiring for this? Senior AI-native engineers, a shortlist in three working days and a hire within five. [Get a shortlist](https://www.miyagami.com/shortlist) Let's talk ## Get a shortlist within three days You share the roles and the stack in a short form or a thirty-minute call. Within three working days you get named senior engineers to review, each with both scorecards, and you can hire within five. [Get a shortlist](https://www.miyagami.com/shortlist) Reviewed on **Clutch** 39 reviews [ISO 27001 Certified](https://trust.miyagami.com/) Book thirty minutes with Dale The calendar is provided by HubSpot, which sets its own cookies. Load it here, or book on HubSpot's page. [Open booking page](https://sales.miyagami.com/meetings/dwesdorp)