Center of Excellence: Meaning, Components, and Best Timing for it

In the quest for innovation, companies are constantly seeking ways to mobilize expertise and resources. 

Centers of excellence (CoE) have emerged as powerful drivers for concentrating specialized knowledge within a company’s specific field of interest, creating a strategic hub for growth and development. 

As a company that builds centers of excellence for EU, UK, and North American businesses, we’ll explore the concept of CoE in software development, its main components, and the optimal timing for CoE development.

The meaning of CoE in software development 

So, what is the CoE? The meaning of CoE in software development refers to a dedicated team of tech specialists focused on a particular area of expertise. This squad may include various skill sets, such as software developers, Quality Assurance experts, project managers, business analysts, and other relevant roles. The CoE software development team collaboratively works towards advancing knowledge and practices in areas such as artificial intelligence (AI), data analysis, security, cloud migration, and more.

A center of excellence can serve as a stronghold of tech expertise in your organization gathered under one roof in any corner of the world. If you want to optimize your budget and access tech talent at a reasonable cost, developing a CoE in Eastern Europe can be a viable solution. The region boasts a diverse pool of tech talent that is readily available at a comparatively lower cost than your local resources.

The fact that you can set up a center of excellence anywhere may raise a reasonable question. Is CoE development akin to traditional outsourcing? Centers of excellence go beyond mere farming out your daily software development activities: They play a vital role in driving innovation at all stages of SDLC – from Design and Development to Quality Assurance. 

Summing up, centers of excellence are specialized tech divisions focused on innovation, tech expertise, and as a result – software quality. Located in a single tech hub in an offshore/nearshore zone, CoEs development units can help you optimize costs and save time while ensuring the delivery of high-quality software products.

What are the components of a CoE development unit? 

The composition of a CoE development division tends to vary from company to company. However, several elements are considered to be the staples of this model. So, here are the key elements on which you can build your center of excellence. 

A dedicated team. A team of experts working full-time is part and parcel of a center of excellence. It forms the core of your CoE and will be the driving force of innovation within your organization. We at nCube specialize in setting up teams geared up for innovative software development in Eastern Europe and LATAM.

READ ALSO: Nearshore Product Development: Eastern Europe and Latin America Overview

IT infrastructure. This is the bloodline of your center of excellence. Your CoE requires proper hardware, software, development environments, and collaboration tools. We always ensure the team we build has all the needed resources to deliver on their responsibilities.

Best practices. Part of the CoE’s responsibility is to establish and promote recent best practices, coding standards, and development methodologies – both within the center of excellence and throughout the organization. 

R&D. Research and development is typically a part of the CoE’s agenda. It includes exploring emerging technologies, tools, and approaches. The members of centers of excellence put them to the test and see if they are worth implementing. That way, CoE can improve your existing software development processes. 

READ ALSO: Launching an R&D Center: An Expert Addresses Key Questions

Support and knowledge sharing. Centers of excellence often pave the way to a culture of learning and continuous improvement. With that in mind, team members of CoE share their expertise through various training programs, workshops, seminars, and other venues. 

Quality Assurance and Testing. Centers of excellence are laser-focused on the quality of software. To that end, CoE development units design testing frameworks, automate Quality Assurance processes, and apply innovative testing methodologies. 

Continuous Improvement. Centers of excellence should be committed to the unwavering pursuit of perfection. They should regularly evaluate their processes seeking ways to improve. Doing so, team members not only boost efficiency but also create a ripple effect of improvement that spans the entire organization.

When do you need the development of CoE?

In this part, we will define the best timing for the development of a CoE. So, here are some scenarios you may want to consider. 

You have a complex project. As we already mentioned, centers of excellence come with the tech expertise that can help businesses reap the benefits of the best practices, technologies, and software development approaches. Thus, CoEs will help companies handle their complex projects, as they typically require mastering innovative solutions. 

You are inclined towards innovation and research. If your goal is to stay at the forefront of technology, you can find footing by developing a CoE. The center of excellence in that case will be a hub that explores emerging technologies and evaluates their potential for your organization. Moreover, your CoE will promote a culture of innovation within your organization. 

You lack consistency in implementing new standards. With multiple teams on board, it can be hard to implement new standards, approaches, or methodologies. A center of excellence can take on the task of ensuring consistency when it comes to various software development aspects – be it code quality or software development processes. 

You want to foster a culture of knowledge sharing. If you want to boost the overall staff competency or develop specific skills within your company, a CoE can step in with training programs, workshops, and knowledge-sharing sessions.

You want to improve the quality of software. Quality Assurance and testing are common tasks for CoE. If you strive to improve the quality of software, your center of excellence can apply proper frameworks, automated testing, and other standards to ensure your software product is up to scratch.  

You want to optimize your budget. Chances are your company is aimed at saving costs without any quality trade-offs. In that case, you may want to consider establishing a CoE in an offshore location. Regions like Eastern Europe and LATAM are bursting at the seams with skilled technologists, so you will maintain the same level of technical expertise while reducing development costs. 

The cost of software development center of excellence

Before launching a software development center of excellence, it’s essential to learn how its cost, which tends to vary depending on the location. If you plan to build your CoE in London or New York, the rates for software development are high. The approach we at nCube stand by is creating a remote branch in Latin America or Eastern Europe – cost effective and skilled tech hubs. In the table below, you’ll notice that hiring local tech talent costs much more than sourcing developers from other regions. 

Role	LATAM	CEE	North America	Savings due to remote CoE
Software architect	$72–$96	$71–$95	$139–$182	up to 50%
Senior developer	$65–$82	$68–$82	$169–$209	up to 60%
Mid developer	$53–$66	$47–$65	$119–$144	up to 55%
Junior developer	$41–$53	$35–$53	$75–$91	up to 50%
DevOps	$59–$82	$62–$79	$114–$148	up to 45%
Junior QA (automation)	$35–$53	$32–$51	$74–$94	up to 55%
Mid QA (automation)	$48–$62	$43–$63	$125–$151	up to 60%
Senior QA (automation)	$59–$72	$54–$74	$140–$167	up to 60%

With high rates of software developers, employee perks, retention and team administration expenses – building a local center of excellence doesn’t make sense for many companies. On the other hand, delegating CoE to a vendor like nCube trims the extra costs for employee benefits, retention, office space, which makes this approach a cost-effective solution.

Let us build your center of excellence

No matter your scenario for establishing a center of excellence, we at nCube can help you launch one in your chosen location around the globe. Here are some reasons to consider us as your vendor in developing a CoE.

Software development experience

• We have successfully launched 4 CoE since 2019.
• With overall 15 years of experience in software development for companies worldwide, we specialize in helping Western European and North American businesses establish remote divisions in the most skilled tech hubs.
• Our deep understanding of the Eastern European and LATAM business landscape and tech talent market ensures that we can provide valuable insights and guidance when it comes to building your center of excellence in these regions.

Swiftness

• Our extensive database includes over 125,000 skilled software engineers.
• Our HR team is highly experienced in sourcing talent efficiently according to the client’s project specifics.
• We are well-prepared to fulfill your staffing requirements within a rapid timeframe, typically covering positions within 2-4 weeks.

Tech expertise

• Your center of excellence requires cream-of-the-crop specialists. With that in mind, we established a rigorous screening process that involves multiple steps, including technical interviews and assessments of soft skills. We always provide candidates who fit the client’s requirements in the best way possible. 
• To ensure that you meet the most suitable candidates for your CoE needs, our team of senior-level engineers actively participates in the selection process.
• We possess expertise across a wide range of programming languages and technologies, allowing us to handle diverse project requirements.

Contact us to discuss our cooperation model in more detail and see if it fits your business.