Establish Software R&D Center in Ukraine

Why Opening an R&D Software Development Center Is Great for Business?

We are one of the professional nearshore service provider companies based in Ukraine that offer software research and development services to all sizes of businesses from across the industries worldwide. Powered by the state-of-the-art research infrastructure and highly qualified tech-talent, we can help you establish a modern R&D center for your business needs within a few months of time.
Software research and development (R&D) center is a software development department focused on creating innovation in the existing products and introduction of new products or services powered by an innovative idea of business in the marketplace.
Software research and development centers can be either on-premises or located at a remote location under the idea of nearshore or offshore development. The concept of nearshore development center is becoming a new norm in all sizes of businesses such as startups, SMBs, and large corporations globally. The concept of building a remote R&D team in Ukraine through professional software development service provider companies like us has already taken stronger roots.

Role & Reasons for Building a Nearshore Software Development Center

The role of the software R&D center has become very pivotal in modern businesses because almost all businesses are highly influenced by new technologies. And, technologies are changing so rapidly. To catch up with the speed of the technologies and their impact on the businesses, the role of a research and development company is significantly high.
The major roles of a center of research and development engineers are listed below:
– Sustained product development. This is a continuous type of role in which the research team continuously tries to improve the existing products and services after the initial launch of the product or service by introducing new software patches, tools, features, capabilities, and ideas.
– Disruptive product development. In this role, the research and development center or R&D lab tries to create a new product or service based on innovative business ideas, market and technology trends, and customer behavior changes.
Numerous companies invest in both nearshore and offshore R&D centers due to the following reasons:

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What Types of IT Research and Development Can You Choose for IT Research?

The process of research and development (R&D) is divided into three major types, which have their respective objectives, activities, and processes. The risks & opportunities to establish R&D centers based on those types are also different. Let’s have a look at those three major types of research and development.

BASIC RESEARCH

In this type of research, the research team focuses on technology advancement in a particular domain without any big specific commercial objective. It is a long-term process to achieve command over knowledge and understanding of a particular domain of technology. This is a type of holistic approach to gain a lead in terms of knowledge and understanding in a particular field.

APPLIED RESEARCH

This type of research focuses on getting new knowledge of scientific facts to create any commercially new viable solution or product that meets the objectives of company and customer requirements. The knowledge of basic research can also be utilized in this type to achieve business viable solutions.

DEVELOPMENT RESEARCH

Development research is the research type, in which an R&D software engineer or a development team deals with the research systematic study of all processes and phases of development to achieve knowledge-based on that research or previous experience while dealing with those development processes and then, design and develop solutions, which improve quality, efficiency, performance, and usefulness of the product and service.

Importance of Establishing R&D Center

Research and development (R&D) are critically important in modern knowledge-based businesses, which are highly powered by innovative technologies, especially software development.

Why Do You Need Your Own R&D Center?

Almost every sustainable business is looking for creating a research and development team to establish its own dedicated R and D center due to the following reasons.

  • Maintaining business and research secrecy

  • Developing standout products and services

  • Increasing faster returns

  • Taking market lead

Numerous companies invest in both nearshore and offshore R&D centers due to the following reasons:

  • Creating innovative solutions to the new business needs

  • Converting an innovative business idea into products and services

  • Catching up with the market and technology trends

  • Achieving faster time to market

  • Building product competitive-edge

  • Enhancing the quality of products

  • Building business efficiency

  • Reducing R&D costs and improving return on investment (ROI)

  • Enhancing user experience

Why Open R&D Center In Ukraine?

Ukraine is one of the popular hubs in enterprises across the globe for establishing research and development Ukraine centers. The main reasons include:

  • The government encourages companies by providing incentives and ease of business

  • A huge pool of highly talented developers and engineers

  • Highly technical savvy and business-friendly people

  • Very ideal geographical location for nearshoring

  • Offers high quality of work in line with European standards

  • One of the fastest-growing software development industry

  • Reduced legal restrictions and red taps

  • Shared cultures and no language barriers and an easy and flexible tax regime

You may wonder what are the companies with Research and Development teams in Ukraine. In fact, there are more than 100 R&D centers in the country. Those R&D centers are associated with many top multinational companies. A few major companies are Google Inc., Samsung Korea, Oracle Corporation, Upwork Inc., Siemens, IBM Corporation, Magento, Snap Inc., Reddit Inc., Payoneer, Bolt/Taxify, Rakuten Japan, Viber App, Huawei Technologies.

These companies have already invested millions of dollars in this domain and many other multinational companies are mulling to open up their R&D centers to grab prospective business opportunities in one of the fastest-growing R&D destinations.

Why Choose Our R & D Services?


We offer professional-grade services to help you on how to create a research and development department in Ukraine to achieve the very desired business objectives. A few of the major reasons to choose our R&D nearshore development services are listed below:

  •  Experienced in building R&D centers  

  •  Professional team of experts and technologists

  • Offer fully managed and high-quality services

  • Offer highly competitive prices without any hidden charges at all

  • Ensure state-of-the-art infrastructure and other resources on the client’s behalf

How to Set up R&D Department with Our Assistance in Ukraine?

Like in any other country, multiple factors are involved in opening up an R&D center in Ukraine too. Those factors include:

  • Registering with government authorities

  • Establishing physical office

  • Furnishing office with equipment

  • Hiring management, administrative, and technical staff

  • Managing the staff and technical processes

  • Getting legal support

  • And much more

All of the above-mentioned processes require expertise and a substantial amount of funds to accomplish. We offer you the best way to handle all of the above processes efficiently and professionally on your behalf. We can help you get your R&D center up by:

  • Registering with authorities

  • Purchasing or renting a workspace

  • Hiring the team of researchers and developers

  • Managing both hard and soft infrastructure

  • Managing administration and operations

  • Enhancing teams for future needs

  • And much more

You don’t need to worry about how to build R&D team in Ukraine. We will offer you fully managed services to complete all stages of setting up an R&D center for you professionally.

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Stages of Operating R&D Engineering Center in Ukraine Through Us

The major stages of building and operating R&D engineering center through us in Kyiv, Ukraine are mentioned below:

PREREQUISITES AND PLANNING

In this phase, the structure and size of the team will be defined. We can accomplish this within a couple of weeks for you. Besides, on this stage, different aspects of planning such as scoping, time bounding, contracting, and other things are completed. We can do them within a couple of weeks or so for you.

DEVELOPING TEAM

In this phase, we can complete all processes of hiring an R&D engineer or a developer to complete your R&D team. This process may take about 2 months or so. We will manage it professionally for you.

TEAM EXTENSION

We are experts at team extension. We can do it within a couple of months to make your team ready for assigning tasks. It may take about 2 to 3 months.

ASSESSMENT

This is a critical phase requiring a high-level of expertise to assess the entire project to make sure the R&D team is ready to go. If any issues arise, we will resolve them professionally for you within a couple of months or so.

STAFF SERVICES

In this phase, we will arrange a complete administrative staff to take charge of the administration of the entire operations of the center. We will accomplish it within 3 months for you.

R&D CENTER FINALIZATION

This is the final phase in which we will help you arrange real estate, utilities, entity registration, exit plan, and other processes professionally. It may take about 2 to 3 months to flag off the operations of your state-of-the-art R&D center in Ukraine.

How Has Ukraine Become an R&D Bright Spot for Tech Companies?

Ukraine has always been the home of technically savvy people for many decades now. In recent years, the roles of software and developers have got strong traction, which resulted in a huge population of over 190,000 software developers and engineers. The average demand for IT specialists per month is over 5000 IT specialists, which is a clear indication of the high growth in the industry.

A few factors that made Ukraine one of the brightest spots for R&D are listed below

  • Huge annual growth of about 26% IT industry

  • Over 4% share in the country GDP in 2019

  • Over 100 big companies have already R&D centers in Ukraine

  • The growing economy and stable currency exchange rate

  • Over 150 universities and research institutes

  • Over 13% margin in cost vs income per employee

  • Over $544 million foreign investment in IT R&D sector in 2019

  • Affordable property and IT specialist cost

  • Very powerful infrastructure in the country

There are many other good factors at a micro and macro level that are contributing to increasing the popularity of Ukraine as a bright spot for R&D centers.

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Establishing R&D Center Comparison: Self Building vs Service Provider

Establishing an R&D center is highly professional work that will require a high level of expertise, experience, and skillset. The difference between the two modes of building an R&D center is mentioned below:

R&D CENTER BUILDING (SELF)

– Need a legal team for entity registration and handling other legal and commercial matters
– Need offices and other infrastructure before the team is built, which cost a huge upfront price
– Huge coordination and communication required among internal as well as external teams before the technical team is built
– Complete multiple processes of hiring through different recruiting agencies or by hiring dedicated managers, which is so costly and a difficult process
– Need help of real-estate contractors for physical infrastructure that will cost hugely
– Very expensive options
– Slower process

R&D CENTER BUILDING (TROUGH SERVICE PROVIDER)

– No need for any additional team. Service provider completes those processes
– No need for any huge upfront cost. The service provider does that at a reasonable price included in the contract
– Need to communicate with just one interface of the service provider
– Service provider hires your entire team and takes the responsibility of team enhancement in the future or when needed
– The service provider manages this take efficiently at a reasonable cost.
– Very cost-efficient option
– Fast process

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