Introduction

Software Outsourcing has been there for years.  

As per a recently published whitepaper by Deloitte, Global spending on outsourcing could hit $731 billion in 2023.  

While Software Outsourcing is a broader concept and can be a one off- short term solution, setting up an Offshore Development Center (ODC) is more of a strategic decision for any organization as it impacts the organization in the long-term decision.  

Offshore Development Center or ODC, refers to an extended, integrated team with a dedicated infrastructure at a different location or country.  An ODC allows organizations to leverage the benefits of top talent and high-tech infrastructure and yet save on significant costs. 

Setting up an offshore development center for the healthcare business can be one of the most beneficial solutions that cater to the need for highly specialized skilled resources and deliverables. Therefore, it is becoming one of the favorite options for organizations as it helps accelerate technological transformation. 

According to Precedence Research, the global hospital outsourcing market is expected to hit US$ 736.47 billion by 2030 with a CAGR of 10.6% during the forecast period 2021 to 2030.

Reading on will help you get more clarity on how to set up an offshore development center from different standpoints and how it can offer a stellar return on your investments.

Reasons for Healthcare Organizations to Consider Setting up an ODC 

The global economic disruption and enhancing gap in opportunities vs availability of IT resources in western countries have made it obligatory for them to rely on trusted offshore partners and avail themselves of their cost effective and viable solutions.  

Also, to achieve development goals and offer a competitive edge, most healthcare organizations choose the best partners. It is one of the most fruitful options that assesses the business’ needs and offers a lot of other benefits. Here are a few reasons healthcare organizations choose offshoring.

1. Higher Infrastructure and Local Hiring Costs
It is one of the most obvious reasons healthcare organizations consider ODC. Higher investment on the infrastructure to hold up the operations, tools and ensuring security costs a lot to the organizations. Moreover, hiring healthcare experts can be a tough task for the HR team. Even if they hire qualified employees, there is still a significant difference in the salaries of the employees paid in-house and those paid overseas. 

2. Need for Diverse and Talent Rich Team
It is yet another crucial factor that intensifies the need for healthcare organizations to choose to go offshore. It allows organizations to leverage highly skilled and diverse expertise in the ODC. As healthcare is a tech-savvy domain it is vital to partner with an experienced team to offer a competitive edge.  

3. On-time Project Delivery
ODC ensures continuous assistance during the entire project lifecycle. Offshore organizations have the right technical and other expertise that helps with project completion and delivery on time. 

Steps of Setting up a Healthcare Offshore Development Center

1. Choosing the Right Location
Choosing the right location is one of the factors that positively impact the decision to set up an ODC. Ensure to have a checklist ready with all the amenities and focus on the security system, work equipment and more. Based on economic considerations, skills availability, operational cost, and suitable time zone, the right location can be selected. Asia and Eastern Europe are quite popular destinations for offshoring.

2. Research for a Reliable Partner
To achieve success, partnering with a reliable vendor is most critical. Ensure hiring a partner having in-depth knowledge of the healthcare domain, with a rich and talented team for exceptional delivery. In-depth research of their portfolio, pricing and reviews can help choose the most reliable partner.

3. Setting Up a Team Capable of Delivering Your Requirements
Sharing specific needs with the vendor so that they recruit the right and expert team as per the market trend. An ODC eliminates the hiring worries of your in-house team and moreover provides the most qualified professionals as per the project needs. A team with a clear set of objectives and goals is important that will ensure you have the right team in place. Also, ensure they have the relevant skills that make them more efficient in delivering the objectives.

4. Right Legal Support
Getting the right legal support helps frame and sign important agreements including business agreements, employment agreements, work permits, NDAs (Non-Disclosure Agreement), security and privacy policies, and coding standards.

Also, while working with an ODC, it will have a legal contract with employees and others adhering to the strict policies. It ensures the data is handled safely and it cannot be used by third parties.

5. Ensure Secure Infrastructure
A well-equipped office infrastructure includes hardware, the right furniture, robust security system, servers, and more. Security management over the network can include measures such as access control, antivirus installation, security system management, email security, VPNs, and network segmentation. A secure infrastructure is all set to deliver unmatched technologies and innovation.

6. Payroll Organization and Accounts
An organized HR department is one of the most noteworthy features in the ODC functioning and manages the payroll, accounts, and other crucial things. The department is also responsible for the salaries, interviews, health insurance, leave policies, approvals and more.

Recognizing the Right Offshore Development Partner

Once you set the frame right, it is time to embark on the journey and find the right offshoring development partner. To avail themselves of the greatest benefits of offshore development services, organizations must ensure to choose the right partner. Though it is one of the most challenging tasks, addressing all the potential problems can be an immense help.

When considering offshoring you ensure the ODC vendor is well equipped with all advanced infrastructure, tools and technologies used in healthcare and ensure clear communication for the ODC to be a success!

Maximizing ROI with Healthcare Offshoring

Enhancing productivity and continuous learning is one of the crucial steps that help evaluate ROI and allow organizations to make the right decisions. Here is how setting an ODC contributes. 

Managing an idle team and paying them is one of the costly affairs in-house. But in case of offshoring, even after the project is released, the offshore development team can be utilized for research and development. The team can help explore the boundaries while utilizing their potential to offer businesses a competitive edge and save costs. Also, the offshore team can develop a PoC (Proof of Concept) based on their skills and expertise.  

With the continuous learning and work process, an offshore team can develop a better PoC than the in-house team. It is therefore one of the most potential options to maximize the ROI and keep productivity up!

Concluding Thoughts 

Overall, choosing offshoring services in healthcare proves to be the most ideal option that offers businesses a competitive edge. FIRMINIQ is one of the most trusted and renowned ODC partners that has a proven record of accomplishment in helping healthcare organizations with the right skills, technology, and expertise.  

Here is a case study of how we helped a global healthcare enterprise on a Build Operate and Manage (BOM) Model. 

We can help you leverage the offshoring model to the fullest with our healthcare offshoring services and help you achieve all your goals in your budget!