The Importance Of Building A Software R&D Center

October 16, 2021

You may perhaps have heard about the software R&D center in many business conversations that you have been into. You may have been recommended to have one for your business. If you are not yet very familiar with R&D centers, this is a good place to get started. In this article, you will get to know details about R&D centers, with a focus on the software R&D center.

The abbreviation R&D stands for “research and development.” The company can organize these initiatives when they need to launch new software, products, or services. Previously, R&D was only associated with the pharmaceutical and tech industries, but apparently, any company can partner with R&D centers providers and come up with something that is innovative.

What Are R&D Centers?

R&D centers can either be in-house departments of the company or can be outsourced to a team that specializes in providing these. Big corporations can even open their research and development for products like software abroad. In this way, they not only get qualified employees at a more affordable price, but they can also gain insights into the local market.

For small businesses, it is recommended they outsource their R&D centers since this is more cost-efficient than hiring internal teams of experts with the specializations.

The Benefits Of R&D Centers

If you are still doubtful about launching your R&D centers, particularly a software R&D center when needed be, read on. We will be discussing the basic advantages you can get from them.

1. Become More Competitive In The Market And Save Time On Marketing

Research and development centers help in generating brand new products and services, such as software. When you are able to launch these products faster, you can stand out in the business competition.

2. Get More Income For The Long-Term

Related to the previous benefit, as long as you are the first to market state-of-the-art products and services, there are more chances for you to attract more customers, thereby, increasing your income in the long run. This also involves winning your customers’ loyalty, leading to a revenue increase.

3. Achieve A Unique Selling Proposition

Also correlated with the previous benefits, you can be able to achieve a unique selling proposition when you set up your software R&D center. It offers you the best solutions that solve many of the problems and needs of the customers, thereby building stronger and long-term relationships with them.

4. Attract Additional Investments

With your research and development centers, despite these being costs for your business, small and mid-sized businesses can benefit by helping them get public funding by winning industry-specific grants. In this way, you are able to attract additional investments.

5. Drive More Talents

Businesses with research and development centers are more appealing to top-brass industry experts. When you establish an R&D center or your software R&D center, you are more likely to attract talented specialists than not having these centers with you.

Seeking providers of R&D systems can likewise optimize business processes, as well as increase the efficiency of your company while achieving a reduction in spending. For instance, Toyota is among those that implement these systems in order to improve the quality of their products, reduce costs, and speed up the delivery process.

How Much Should Be The Budget To Launch An R&D Center?

According to 2016 data from the National Science Foundation, United States micro-companies with five to nine employees spent $1.2 million on research and development, while bigger companies with over 25,000 employees spent approximately $148.3 million.

These costs depend on factors that include your industry, your company size, time spent on research and development, the number of people in the R&D team, and the location of your R&D center.

Best Places To Open R&D Centers

Aside from the budget, you will also need to consider where it is best to launch your R&D centers.

San Francisco, California, United States

Best known for Silicon Valley, San Francisco is undoubtedly the heart of innovation across the globe. This is where tech businesses are, so building your R&D center here will provide huge returns for your business.

Kiev, Ukraine

Over the previous decade, the capital city of Kiev in Ukraine has proven to be a fast-growing information technology or IT hub, despite the background of the country having uncertain situations. Did you know that this place is where Grammarly, Preply, Petcube, and Jooble are, as well as other well-known companies worldwide?

Bangalore, India

India is among the worldwide leaders in innovation. This is also partly because of the government initiatives that make this country attractive to tech companies like Bosch and Intel.

A Provider Of Software R&D Center

So how can you get started launching your R&D center for your software products? It is best to partner with companies that provide them. One of these is Alcor.

The teams at Alcor know-how R&D processes should work together, letting you focus on your product, more than operational and administrative matters. With them, you can make the most out of your software product development office as a service to have a successful business experience in Ukraine.

Covered in their offerings are recruitment services, real estate services, payroll and accounting, and legal and compliance services.

Hire the best talent in the marketplace with their software R&D solutions. Find, verify, negotiate, rent, and get your R&D facility prepared for your development teams.

Furthermore, with Alcor’s software R&D center building services, you can properly calculate and pay salaries, local taxes, and more. They also are with you in making sure you are fully and legally compliant, with your intellectual property and commercial information properly protected in Ukraine.

Here Is How It Works

First, they receive your requirements with regards to the first employee, send your blind curriculum vitae, and consult with you during the kick-off call to complete the first hire in just three weeks.

Then, they send you a long list of available co-working office spaces based on your needs. Clients like you look through these and shortlist the ones you desire.

Thirdly, their lawyers negotiate with the landlord on the lease agreement prior to discussing the rent details. With these, they purchase all the necessary equipment for your employee so they have everything they need in the workplace.

Lastly, two weeks prior to your first working day, this provider asks your new employee for documents and assigns them to a personal accountant for payroll and taxes services.

Why Choose Alcor

There are several reasons why you should choose Alcor for providing you with your software R&D center. They offer transparent pricing so there is no need for large upfront investments, and you can pay only for what you use.

There are no buy-out fees at Alcor, or hidden fees, unlike other R&D center providers. Recruitment processes are also incredibly fast with this team. They vow to hire five developers in the first month, 20 in a three-month period, and 100 within a year. In case they do not meet the deadlines, they will hire the rest with no charges from the client.

With them, you get fully committed developments with no intermediaries. Build your own brand and corporate culture with the same key performance indicators or KPIs for people having a sense of ownership over your products.

Clients also get 100 percent compensation if your company or developers get a fine due to their team. Be provided with a one-stop place to establish and run your turnkey research and development department. Pay only for what you use.

Alcor has worked with various clients that include Samsung, Snapchat, BigCommerce, Grammarly, and so much more. For further details, visit


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