Research & Development Software Services

One trending way to leverage IT talent is by developing a software research and development (R&D) center. R&D differs from outsourcing in that it quickly recruits talents, has its own branded office, is dedicated to your project rather than to money, and is fully transparent about costs. In Ukraine, there are over 100 software development R&D offices; by leveraging their IT talent, tech companies get greater access to a talent pool, reduce their costs, and get more opportunities for branding. Ukraine is an excellent place to get software research and development services, as its IT market is currently growing by 22% per year. As of 2020, Ukraine had over 190,000 IT specialists – most of whom speak English well and have a higher degree in computer sciences. Furthermore, 55% of developers in Ukraine have senior or middle positions.

Research and development software centers do have risks, but they are avoidable. Some challenges among R&D software centers include employer branding and office lease agreements.

Employer branding: Sometimes, popular US tech companies have no recognition in Ukraine. By spending more money on employer branding, you can get exposure to your company overseas and accelerate the recruitment process.

Office Lease Agreements: Often, business owners don’t think about the costs of office rent and the terms of leases. It’s important to meet with a lawyer who can represent you at tenant negotiations. You should also hold an IT infrastructure manager responsible for checking on your office and assessing its noise level, air conditioning, parking lot, and so on.

The geographical location is a huge factor in assessing R&D costs. Software engineer salaries in Ukrain are about 73% lower than in the US. What’s more, when you build an R&D model, you are paying as you go, thus allowing you to budget in advance and regulate the services you need. You’ll also need to pay for the business center itself – which can vary depending on where in Ukraine it is located. In the center of Kyiv, the rent per square meter is around $50. Furthermore, don’t forget about the monthly salary of your recruiter – and subscription costs for recruitment tools.

While you can certainly set up a software R&D Center on your own, it is complex and not always cost-effective. Our team can help you build an ideal team with little stress – our multi-step process is as follows:

1. We define the size and structure of the needed software research and development team. We’ll complete time bounding, scoping, and contracting within a couple of weeks.
2. We hire a developing team and extend it, if necessary.
3. We assess the whole project and verify that the R&D team is ready to go.
4. We set up an administrative staff to take care of the center’s operations.
5. We finalize the R&D center by arranging entity registration, utilities, an exit plan, and so on.

According to Clutch, the average size of a research and development company in Ukraine is 10-49 employees. The second-most average size is 50-249 employees.