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Offshore Development Centers Bring Agility and Resilience in Financial Technology Development

April 15, 2024

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In the competitive FinTech space, adapting to change securely and with agility is the key to success. Learn how offshore development centers can help.

The rapidly evolving FinTech space and an increasingly globalized world demand swift and adaptable technology solutions. Being prepared for, or in fact, pioneering disruptive innovation has become critical to staying relevant against this backdrop. The biggest challenge in developing future-ready financial technology is getting your hands on the right talent and resources. A team and infrastructure that can plan and efficiently execute agile, flexible, and scalable development is key to ensuring long-term success

According to financial consulting firm BCG, the FinTech industry is forecasted to grow 600% between 2023 and 2030 to reach a market valuation of $1.5 trillion by the end of the period.

This is where offshore development centers (ODCs) come to the rescue for small- and mid-sized financial organizations. Their expertise, domain knowledge, and hands-on experience offer affordable and reliable solutions for all tech-development concerns. Learn what’s driving the popularity of ODCs in the financial industry and why you need it too.

About ODCs

An offshore development center is a dedicated technology team, often outside the country, that offers end-to-end software and technology solutions. They offer everything from design, development and coding to testing, deployment and maintenance, by tapping into a global pool of domain experts.

ODCs for Agile Financial Technology Development

Through 24/7 cost-effective operations, ODCs facilitate agile and scalable development in multiple ways.

Faster Development Cycles

ODCs operate 24×7 across geographical locations. Cloud-based technology facilitates collaboration between these remote teams. This accelerates development cycles to reduce time-to-market while maintaining top-notch quality due to the expertise of the teams.

On-Demand Scalability

With offshore teams, FIs can respond to market needs with agility. They can scale team sizes according to project requirements and timelines. The collective offshore talent pool eliminates the overheads of hiring, training, and team management.

Catalyzes Innovation

FinTech is a space of perpetual innovation. When experts have hands-on experience in cutting-edge technologies and the financial space, combined innovation potential and problem-solving capabilities of the FIs grow exponentially.

Greater Flexibility

Modular and cloud-based technology design can be quickly adapted to changing market needs. Novel regulatory and technology advancements are constantly redefining the FinTech landscape. ODCs are equipped with the right talent and resources to adapt projects while complying with regulations and timelines.

Advantages of Trusting ODCs for Your Fintech Development Needs

Having exceptional partners by your side is paramount to improving operational capabilities and service quality to stay ahead in the competitive FinTech arena. Relying on reputed ODCs with excellent reachability, experience, and focus offers several benefits to FIs.

Resilience

Cloud services offer high availability and ease of integration with on-premise technology stacks. Additionally, cloud-based protection mechanisms and monitoring bolster the overall security of the FinTech environment, offering greater technical resilience to the FI.

Risk Mitigation

ODCs have dedicated experts, adept at building technologies to expand risk visibility, expose and plug vulnerabilities, and devise expedited incident response mechanisms to reduce the risk associated with technology transformation and cyberthreats. Moreover, they offer continued post-release monitoring and maintenance services to always keep the security framework closely guarded.

Business Continuity

Stringent security and high uptime ensure business continuity for the FI. With offshore development centers at locations with high geopolitical and regulatory stability, FIs can mitigate the potential risks associated with their own operational centers. While offering greater operational and financial stability, ODCs also provide long-term growth capabilities and resilience.

Access to Niche Expertise

One of the key benefits of partnering with experienced and reputed ODCs is gaining access to niche expertise and cultural enrichment. But for this, the GFI needs to partner with a culturally receptive organization with the capacity to train and maintain a talent pool of experts for every domain. Their expertise should extend across financial, regulatory, and quality-control areas to offer a well-rounded development experience.

Cost-Efficiency

The most appreciated advantage of offshoring technology development to an expert team is harnessing their economies of scale, built through years of experience. An FI gets to leverage the expertise and technical nimbleness of its partner without having to build its own teams from scratch. This not only saves team management costs, but the team’s experience helps the cost benefits ripple through the technology development and deployment phases. These add to the overall affordability of the project significantly. The optimized cost structure and streamlined operations allow you to redirect resources to other value-adding initiatives.

FinTech Offshoring Best Practices

  • Define clear expectations, project scope, and leeway.
  • Agree on communication channels and frequency.
  • Assess the experience and reliability of your partner.
  • Plan how to navigate offshore development risks.
  • Treat the offshore team as an extension and equal of yours
  • Take interest and maintain transparency.
  • Show your trust in their expertise and keep motivating them.

Leverage Opus’ Expertise

After more than 2 decades of hypergrowth, the financial services industry is now focused on value creation through sustainable and profitable growth. It is a time when radical restructuring is required at the foundational level on diverse fronts, such as everyday banking, advisory, access to credit, large-scale intermediation, and BaaS. They must simultaneously stay on top of regulatory compliance. While these might overwhelm small- and medium-sized FIs, ODCs offer a way to address changing customer needs with agile and reliable technology development.

With almost 3 decades of experience in the financial technology and money movement domain, Opus Technologies has carved a niche for itself as a pioneer in the domain. Our experts are adept at planning and executing financial cloud-based projects to support FIs in positioning themselves as technically forward leaders in their target markets. Speak to our experts today to discover how our ODC offerings can facilitate technical transformation for your organization.

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