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Managed ODC Services in India: We Run the Centre, You Direct the Work
Managed ODC services in India give you a dedicated offshore development center that we operate on your behalf. We handle hiring, payroll, facilities, IT, security and HR, while you direct the product and own everything that is built. You get the control of a captive centre without setting up an Indian entity, and you can start in weeks rather than months. This page defines the managed model precisely, shows exactly who owns each operational function in a RACI table, and sets out the terms for converting to a captive centre later. Tell us about your centre.
What a Managed ODC Is, and What It Is Not
A managed ODC sits between two better-known models. Like a captive centre, it gives you a dedicated, long-term team that works only on your product. Like staff augmentation, it avoids the cost and effort of setting up your own Indian entity. But it differs from both in who owns which responsibilities. The table compares the three models directly, so you can see where a managed ODC fits before looking at the detail. It is the core of our offshore development center in india offering.
| Factor | Managed ODC | Captive centre | Staff augmentation |
|---|---|---|---|
| Who employs the team | The provider | Your own Indian entity | The provider |
| Team structure | Full team with its own delivery leadership | Full team, managed by you | Individual engineers in your team |
| Who runs operations | The provider | You | The provider, for employment only |
| Setup time | 4–8 weeks | 4–6 months | 2–6 weeks |
| Upfront cost | Low | High | Low |
| Path to ownership | Conversion to captive by agreement | Already owned | Limited |
Managed ODC Defined
A managed ODC is a dedicated team in India, employed and operated by a provider, that works only for you under your direction. The provider runs everything around the work; you own the product and its output.
How It Differs From a Captive Centre
A captive centre is your own company in India, so you carry entity setup, facilities, payroll and HR yourself. A managed ODC delivers the same dedicated team without that operational and capital burden.
How It Differs From Staff Augmentation
Staff augmentation adds individuals who rely on your leads for direction and management. A managed ODC brings its own tech leads, delivery management and governance, so it can own whole product areas.
How It Differs From Outsourcing
In project outsourcing, the vendor directs a fixed scope and its team moves on afterwards. In a managed ODC, you direct the work continuously. Our ODC vs outsourcing comparison covers this in depth.
The Managed ODC RACI: Who Owns What
The value of a managed ODC lies in a clear split of responsibilities. Ambiguity about who owns hiring, security or attrition is the most common source of friction in offshore engagements, so this split should be written down before the first engineer starts. The RACI table below covers 12 operational functions. R means responsible for doing the work, A means accountable for the outcome, C means consulted, and I means informed.
| Function | Client | Provider |
|---|---|---|
| Product roadmap and priorities | A, R | C |
| Technical architecture approval | A | R |
| Sourcing and screening candidates | I | A, R |
| Final hiring approval | A | R |
| Payroll and statutory compliance | I | A, R |
| Facilities and office seats | I | A, R |
| IT equipment and endpoint security | C | A, R |
| Access to client systems and data | A | R |
| Information security policy alignment | A | R |
| Sprint delivery and quality | A | R |
| Performance reviews and appraisals | C | A, R |
| Attrition handling and replacement | I | A, R |
Product and Architecture
You own the roadmap and approve the architecture, so the product always reflects your strategy. The provider’s tech lead proposes technical designs and is responsible for implementing them well. Nothing ships without your approval.
Hiring
The provider sources, screens and assesses candidates. You make the final decision on every hire, so nobody joins your team without your approval. You interview finalists directly, and you can request a paid trial before confirming any role.
People Operations
Payroll, statutory compliance, facilities, equipment, appraisals and attrition handling all sit with the provider. You are consulted on performance, but you never manage HR processes directly. Escalations come to you only when they affect delivery.
Security and Access
You control access to your systems and data and decide what each person can reach. The provider makes sure devices, networks and practices meet your security policies, under ISO 27001 controls.
Delivery
The provider is responsible for delivering committed sprint scope at the agreed quality, while you remain accountable for accepting the work. Replacement terms are set out in our delivery guarantees.
Managed ODC Costs and Commercial Terms
A managed ODC is priced as a monthly rate per engineer that bundles salary, benefits, facilities, equipment, management and margin. There are no separate charges for HR, payroll or office space. Setup costs are limited to recruitment and equipment. The commercial terms below are the standard starting point for a managed ODC in India. They are adjusted to team size and commitment, and current team configurations appear in our pricing packages.
Monthly Per-Engineer Rates
Rates typically range from USD 2,800 to 6,000 per engineer per month, depending on role and seniority, with blended team averages around USD 3,900. Everything except your own tools and cloud costs is included.
Setup Costs
One-time setup usually costs USD 1,200–2,100 per hire, covering recruitment, background checks and equipment. That is a small fraction of the cost of establishing a captive entity and office. There are no entity costs.
Minimum Term and Notice
A three-month minimum term is standard, followed by 30 days’ notice per engineer to scale down. That avoids long lock-ins while covering the provider’s upfront hiring investment. Terms are written into the agreement.
Volume and Term Discounts
Centres above 20 engineers or with 12-month commitments typically earn 5–8% off monthly rates. Discounts are written into the agreement rather than negotiated informally. They apply from the first month of the qualifying commitment.
Estimating Your Centre
Use our project cost calculator to model a managed ODC by role and seniority, then request an itemised proposal showing each line. Every role, rate and setup item is shown separately, so nothing is bundled out of view.
Transition to Captive: Terms Agreed Upfront
The most common objection to a managed ODC is lock-in: what happens if you later want your own entity in India? A well-structured managed ODC answers that before you sign, with conversion terms written into the original agreement. That turns a managed ODC into a low-risk first step toward a captive centre, rather than a dead end. The terms below are what you should expect, and what we agree with clients from the outset.
Conversion Fee
A fixed conversion fee is agreed upfront, usually tied to team size and how long the centre has run. It decreases over time, so converting after several years costs less than converting early.
Timing
Conversion can usually be requested after an agreed minimum period, often 18 to 36 months, with a notice period of three to six months to plan the transition properly. Planning starts early.
What Transfers
Employees transfer to your entity with their consent, along with all code, documentation and IP, which you already own. Equipment, and in some cases the facility, can transfer by agreement.
Employee Transfer Process
Employees receive offers from your new entity on comparable terms, preserving service continuity where possible. The provider supports the process so that knowledge and morale are protected. Retention is the priority throughout.
Support After Transfer
After conversion, the provider can continue supplying payroll, facilities or recruitment as separate services while your entity builds its own capabilities, so the transition is gradual. There is no cliff edge.
When a Managed ODC Is the Right Model
A managed ODC is the best fit for most companies building a dedicated offshore team for the first time. It offers speed, control and flexibility without the capital and administrative burden of a captive centre. It is less suitable for very small needs or for organisations already running large operations in India. The situations below show where a managed ODC fits and where another model may serve you better. Most companies start here.
First Offshore Centre
If this is your first offshore team, a managed ODC lets you start quickly and learn how offshore delivery works before committing capital to an Indian entity. You keep the option to convert later.
Teams of Five to Fifty Engineers
Managed ODCs are most efficient between about five and fifty engineers. Below that, individual dedicated developers may be simpler; above it, captive economics improve. Most first centres sit within this range.
When You Want Control Without Overhead
If you want to direct the work and choose every engineer, but not run payroll, facilities and HR in India, the managed model gives you exactly that split. Responsibilities stay clear.
When Captive Is Better
Organisations planning hundreds of engineers in India, with leadership able to run a local entity, often benefit from a captive centre from the start, or a build-operate-transfer path. Scale changes the economics.
Testing the Model First
A short discovery sprint defines the team and scope before you commit, so the first months are planned rather than improvised. You own the output whether or not you continue with the managed model.
Frequently Asked Questions
A managed ODC is a dedicated offshore development center operated by a provider on your behalf. The provider employs the team and handles hiring, payroll, facilities, IT, security and HR, while you direct the product, approve every hire and own all code and intellectual property.
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