Offshore Development Center (ODC) Services

Build and manage your global offshore development center with ease. Newxel helps you set up a dedicated engineering team with full operational support.

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8
hiring locations
500
+
developers
33
active R&D teams
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Why businesses choose Newxel
for offshore development

Cost efficiency

Access top engineering talent in Poland, Ukraine, and Romania, at a fraction of Western rates. Lower cost doesn't mean lower quality: you get strong technical expertise without the premium price tag.

Speed

Stop waiting months to build a team. Our streamlined process puts qualified candidates in front of you within 5 days, so development starts on your timeline, not ours.

Knowledge retention

A 98% retention rate means your team stays your team. We invest in engagement and career growth so turnover doesn't quietly drain your product knowledge.

Quality control

You stay in the driver's seat. Your engineers work as a true extension of your in-house team, you own the priorities, workflows, and technical calls.

HR Business Partner

Every team gets a dedicated HR Business Partner, actively managing engagement, catching issues early, and keeping satisfaction high

Reduced operational overhead

No more juggling recruitment, onboarding, payroll, compliance, or office logistics. We run the operational engine in the background so your team can just build.

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What is an offshore development center?

Offshore development center meaning: An offshore development center (ODC) is a dedicated team of software engineers and IT professionals based in another country who work exclusively on your products and projects.

Rather than acting as an external vendor, an ODC becomes a natural extension of your in-house team. It gives you access to global talent, helps reduce development costs, and allows you to scale your engineering capacity while maintaining full control over your processes, priorities, and product development.

Full team integration

Your offshore team works as a seamless extension of your in-house organization.

Operational efficiency

Get the talent strategy guidance with processes for planning, hiring, onboarding, and retention while we are handling all HR, legal, and finance

Scalable growth

Expand your engineering capacity quickly without compromising quality or delivery speed.

Global talent

Find the developers 2x faster through our global network of professionals who match your tech and company culture needs.

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Offshore development center models

Dedicated ODC
Contractor ODC
Ownership
The offshore team works exclusively for one client and is often legally owned or directly controlled by the client.
The offshore team is employed and managed by a third-party vendor.
Management
Client has direct control over hiring, priorities, processes, and culture.
Vendor handles recruitment, HR, administration, and day-to-day operations.
Team dedication
100% dedicated to a single organization.
Typically dedicated to the client but managed by the service provider.
Hiring
Client participates heavily in recruiting and team selection.
Vendor recruits and replaces resources as needed.
Infrastructure
Client may establish or lease its own office and infrastructure.
Vendor provides office space, equipment, IT, and support.
Scalability
Slower but offers greater control.
Faster and easier to scale up or down.
Best for
Long-term strategic engineering organizations, IP-sensitive projects, permanent offshore capability.
Companies seeking faster setup, flexibility, and reduced operational overhead.
Dedicated ODC
Ownership
The offshore team works exclusively for one client and is often legally owned or directly controlled by the client.
Management
Client has direct control over hiring, priorities, processes, and culture.
Team dedication
100% dedicated to a single organization.
Hiring
Client participates heavily in recruiting and team selection.
Infrastructure
Client may establish or lease its own office and infrastructure.
Scalability
Slower but offers greater control.
Best for
Long-term strategic engineering organizations, IP-sensitive projects, permanent offshore capability.
Contractor ODC
Ownership
The offshore team is employed and managed by a third-party vendor.
Management
Vendor handles recruitment, HR, administration, and day-to-day operations.
Team dedication
Typically dedicated to the client but managed by the service provider.
Hiring
Vendor recruits and replaces resources as needed.
Infrastructure
Vendor provides office space, equipment, IT, and support.
Scalability
Faster and easier to scale up or down.
Best for
Companies seeking faster setup, flexibility, and reduced operational overhead.
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Benefits of an offshore development center

Cost savings

Reduce development and operational expenses without sacrificing engineering quality.

Access to global talent

Expand your hiring reach beyond local markets and build a team with the specialized skills your projects require.

IP protection

Your dedicated team follows your workflows, security standards, working exclusively on your projects.

Faster time-to-market

Accelerate product delivery by scaling development quickly and reducing hiring timelines.

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Case studies

Offshore development team AI automotive

Offshore Development Team for Nexar

Newxel partnered with Nexar to build a dedicated offshore development team of Web and Mobile engineers in Ukraine and Moldova, enabling the company to scale engineering capacity quickly and cost-effectively. Starting with one developer in 2021, the partnership grew into a fully integrated three-person team that accelerated product development, ensured seamless collaboration, and continues to support Nexar’s AI-powered road safety platform.

Read full case study
dedicated development team for Nexar
IT staff augmentation MarTech AI-platform

IT Staff Augmentation for Feedvisor

Feedvisor is the “AI-first” optimization and intelligence platform powering growth for hundreds of top brands and enterprise sellers across Amazon, Walmart, and leading e-commerce marketplaces.

Read full case study
feedvisor team
Gamedev Team expansion offshore team

Offshore development team for a game development company

Today, the game development team in Ukraine consists of 7 people: a front-end specialist, a full-stack web developer, mobile developers, QA engineers, and Data Engineers. The client’s team in Kyiv is continually expanding and consistently delivers impressive results in game programming services.

Read full case study
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Choose your offshore development center location

Ukraine Explore the county

IT specialists:

300.000

Top tech hubs:

Kyiv, Lviv

English proficiency:

Medium–High

R&D incentives:

Government grants and tech park benefits

Poland Explore the county

IT specialists:

~300.000

Top tech hubs:

Warsaw, Krakow, Wroclaw

English proficiency:

High

R&D incentives:

Tax credits for innovation, EU funding opportunities

Romania Explore the county

IT specialists:

150.000

Top tech hubs:

Bucharest, Cluj-Napoca, Iasi

English proficiency:

High

R&D incentives:

Government grants, IT park benefits

Bulgaria Explore the county

IT specialists:

100.000

Top tech hubs:

Sofia, Plovdiv, Varna

English proficiency:

Medium–High

R&D incentives:

Low corporate taxes, EU funding

Turkey Explore the county

IT specialists:

200.000

Top tech hubs:

Istanbul, Ankara, Izmir

English proficiency:

Medium

R&D incentives:

Government grants, tech incubators

Spain Explore the county

IT specialists:

150.000

Top tech hubs:

Madrid, Barcelona, Valencia

English proficiency:

Medium

R&D incentives:

Tax deductions for R&D investment

Portugal Explore the county

IT specialists:

100.000

Top tech hubs:

Lisbon, Porto

English proficiency:

High

R&D incentives:

R&D tax credits, startup-friendly environment

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Clients’ feedback

Gal Shulman
Head of HR, Carbyne

“We are extremely happy with Carbyne and Newxel’s cooperation
and mutual work.

Our developers in Ukraine are integral to our development team, they work in different teams and each contributes to our system’s success.”

Yuval Dror
Director of Engineering, Anodot

“They produce very good results and are extremely professional. Newxel’s efforts have consistently met the mark.

Customers can expect a dedicated team that’s both knowledgeable and reliable.”

Chen Ben-Or
People Partner, GigaSpaces

“Newxel has gone above and beyond to meet all of the client’s R&D needs perfectly. The team has demonstrated stellar project management and communication through virtual meetings.”

Ana Pereira
HR Director, Nexar

“Our collaboration with Newxel has been pivotal in Nexar’s performance. Their developers show great dedication and eagerness to learn and have seamlessly integrated with our teams.”

Izik Orgad
VP of Engineering, Firebolt

“Newxel successfully scaled up the engineering team. The hiring process was very efficient and the code quality was excellent. The project was very well managed.”

Mickey Nagel
VP of HR, Crazy Labs

“Newxel is made up of a team of top-class software developers with an efficient workflow. Throughout the project, they were incredibly helpful. I was impressed by their level of service.”

Common offshore development center challenges

From geographic selection to distributed team coordination, establishing offshore development centers can be a challenging task for business. At Newxel, we provide a solution to all these challenges to support sustainable company growth.

Choosing a geographic location

We guide you through location assessment based on budget parameters, technical requirements, and strategic objectives. Our network spans 8 established markets: Ukraine, Poland, Spain, Portugal, Bulgaria, Romania, Turkey, and Israel. We can also identify alternative regions worldwide to align with your specific criteria.

Coordinating distributed offshore teams

Our developers integrate directly into your existing tools, workflows, and communication platforms, functioning as natural extensions of your in-house staff. Every team works with an assigned HR Business Partner who facilitates onboarding, accelerates adjustment periods, and maintains operational continuity. Distributed teams typically reach full productivity within 2–4 weeks, synchronized with your methodologies and delivery timelines to get the best offshore development service.

Offshore development center services costs

We maintain straightforward, consistent pricing structures for hiring dedicated development teams. Each engineer carries a fixed monthly fee that encompasses HR administration, payroll processing, legal compliance, project coordination, and hardware provision. Your expenditure formula is simple: developer count × monthly rate, without surprise charges.

Launching offshore centers in unfamiliar markets

Newxel orchestrates the complete establishment process of offshore development center solutions: from geographic evaluation and regulatory framework through talent acquisition, infrastructure deployment, and ongoing management. We administer HR functions, compensation systems, compliance requirements, and facility operations, ensuring your center achieves operational readiness rapidly. Our expertise enables successful launches across any global market.

Managing site-level operations

Newxel manages daily center operations encompassing HR, payroll, financial administration, regulatory adherence, and facility oversight. You retain complete authority over your technical team while we execute all administrative and operational responsibilities, maintaining consistent, efficient center performance.

Cultural alignment with new hires

As an offshore development company, we evaluate your organization’s communication patterns, workflow practices, and collaboration rhythms, then design a customized integration strategy. Engineers accelerate their onboarding through mentorship programs, paired assignments, and structured feedback sessions, reaching peak effectiveness within 2–4 weeks based on cultural proximity. This methodology has enabled 500+ successful placements with a 98% retention benchmark.
Integration velocity varies with cultural similarity: closely matched environments (e.g., Spain–Portugal) typically complete integration in 1–2 weeks, moderately divergent cultures (e.g., Italy–Germany) require 3–4 weeks, while more distinct contexts (e.g., India–Canada) may extend to 5–6 weeks.

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Trusted by 30+ industry
leading companies

Renesas HiBob Driivz Algosec Cyberint IronScales Firebolt Webselenese Zasio Anodot Gigaspaces Feedvisor Carbyne Ceragon Fido Feezback Cybellum Tesedi Nexar Woflow Base Check point Monday Tres

Launch your offshore development center with Newxel

Fast. Predictable. Reliable.

  • 500+ developers ready to contribute
  • 33 active R&D centers worldwide
  • 8+ years in building tech teams

FAQs  on offshore development center

How much does it cost to set up an offshore development center?

The cost of setting up an offshore development center depends on several factors, including the location, team size, technology stack, seniority of engineers, and engagement model.

At Newxel, we tailor each offshore development center to your specific needs, providing transparent pricing based on the team composition and services you require, without the overhead of establishing your own legal entity.

How do you ensure quality for an offshore dedicated center?

At Newxel, we recruit developers according to your technical requirements and cultural fit, ensuring every team member aligns with your standards and expectations through a 4-step process.

We also support quality through structured onboarding, performance management, regular feedback, transparent reporting, and ongoing HR support. Your dedicated team follows your development methodologies, coding standards, QA processes, and project management practices, giving you full visibility and control while we handle operational excellence behind the scenes.

What's included in a managed ODC as a service?

A managed offshore development center provides everything needed to build and operate a dedicated engineering team without the complexity of running an overseas office yourself.

With Newxel, a managed ODC typically includes talent sourcing and recruitment, HR management, payroll, legal and compliance support, office facilities or remote work infrastructure, equipment provisioning, IT administration, employee engagement, and ongoing operational support. Your team works exclusively on your products and reports directly to your managers, while we take care of the administrative and operational responsibilities.

How do you handle dedicated offshore development center time zone differences?

Successful distributed teams rely on structured collaboration rather than identical working hours. At Newxel, we help establish overlapping work schedules that enable efficient communication while allowing your offshore team to maintain a healthy work-life balance.

We also support effective collaboration through clear communication processes, agile ceremonies, shared project management tools, and regular status updates. Depending on your business needs, we can recruit talent in locations with greater time zone overlap or organize flexible working hours to maximize real-time collaboration with your in-house team.