Research and Development Consulting Process
R&D is essential in growing and expanding a business, whether it be a startup or a long-established conglomerate. Research and development encourages businesses to innovate and adapt to trends while testing and improving their products and services. They can match these market trends and still integrate core values, goals, and business models.
But businesses and organizations often collaborate with an expert with an outside perspective to determine how to set up a research and development department that will best benefit the business. Businesses and organizations employ research and development consulting services for this task alone.
Consultations generally go a standard way: Conceptualization → Implementation → Evaluation
- Businesses collaborate with R&D consultants to define and conceptualize the research and development structure or approach that fit their needs.
- The business or the service provider then implements the agreed-upon strategy or requirements.
- The business then tests or evaluates the system if it adheres to the requirements and fits with the business.
Depending on the needs of the business, this process can be linear or cyclical. Also depending on several factors, the expertise that is employed can be outsourced from a third-party service provider or an affiliate. The goal remains as employing these services to aid the business or organization in establishing a research and development strategy that will help innovate and enhance the business.
R&D and Innovation for Businesses
When businesses employ research and development methods, they can design, develop, and introduce new products and services to the market. This practice enables them to be more active and participative in the market; not only matching trends but also creating and leading them. With R&D, businesses can enhance both their products and their marketing strategies. Studying and researching market trends, the consumer movement, and others enable the business to develop better ways of attracting customers and expanding their market reach.
In a way, businesses are also able to better manage their resources when they leverage research and development as part of their product development strategy and business model. R&D relies heavily upon the skills, knowledge, and experience of research and development consultants and R&D engineers. With expert R&D consultants and an R&D engineering team, businesses can identify optimal strategies, methods, and products, as well as be efficient in managing their product development and improvement costs.
Businesses can gain these advantages without having to do all of the needed details and steps by themselves. There are R and D consulting services providers available in the market that will handle the majority of the work for you. These service providers will collaborate and partner with you to determine and implement the best-fit R&D solutions and structures your business may need. These research and development consulting services companies can provide:
- Research and development setup assessment and strategy design
- Service and product strategy consulting services
- Service and product development consulting
- R&D solutions design and development
- Dedicated R&D engineer team recruitment and management
Quality Research Development and Consulting
There are numerous service providers available in the market. You will need to select the best R&D consulting service provider that best fits your business needs and goals. There are several essential indicators for choosing the best research and development consulting service provider.
Do you and the R and D consulting services provider have the same understanding of the goals and objectives of your project? You need to be on the same page and have the same understanding of your project as the third-party R&D consulting services provider. The service provider will be the one overseeing and managing the necessary R&D services and must align their strategies and methods to your set goals.
A quality research and development consulting service provider is transparent with its clients. Be wary of service providers that over promise or over-compromise with your project. No service provider is perfect and can give you everything you could want in an R&D solutions project. Partner with an R&D service provider that is honest with what they can provide you and the potential limitations or issues that may arise. Work with service providers that are willing to negotiate a project that realistically meet your business needs and can be met by their expertise.
Your partnership with an R&D consulting service provider is highly dependent upon the timeframe of a project; the length of time that either you or your service provider can commit to completing this project. Priorities and goals are also adjusted according to the project timeframe; some goals may require more time-intensive work that your service provider cannot commit to, and such. Discuss and clarify with your service provider if your project will be long-term or short-term, or if other arrangements need to be made for other parts of the project.
The main reason why businesses employ third-party services is to search for the expertise that they need for their projects. Businesses need to have an idea or understanding of the expertise that they need for a project. This will help determine if they do indeed need third-party R D consulting services or if they have the capacity in-house. But if you do need R&D consulting services, ensure that you choose the service provider that you trust, can provide, and can be relied on to complete your project.
Benefits of R&D Consulting
Outsourcing your research and development function to R&D consulting firms could see a reduction in costs, as there is no long term commitment as when hiring a team of employees. The R&D management consulting firm or agency will deal with all the recruitment and onboarding necessities and all you need to worry about is the bigger picture. You can focus on the ideas and objectives you need to achieve and the agency will deal with the smaller details.
When you start off with R&D in your business, it is often time-consuming as new staff needs to be trained and briefed on what the objectives of your R&D is. There are also many, many procedures that need to be developed and staff needs to be trained on this as well. When you outsource, this is already in place with the agency and they can start working on your new, innovative products straight away. In this competitive business world we operate in today, time is vital and the one who gets to the finish line first, usually wins!
Expertise and experience
These research and development consulting firms have more experience and expertise in the R&D sector and can usually do a better job than what can be performed in-house. Agencies often also have relationships with universities and others to do more in-depth testing of new products. This also helps you form alliances with experts in the market and makes for faster and more efficient future R&D projects.
By enlisting the services of an agency, you can avoid any risks related to creating your own R n D department. This can lower your risk of losing money on a product that may not even make it to the market.
R & D Consulting Services in Ukraine
Once you decide that you do indeed need to employ R&D consulting services, the next questions to be answered are where and who. With outsourcing and globalization, businesses are now able to expand their market and vendor search globally. Depending on the expertise you need, some countries and hotspots are known for quality and reliable outsourcing services. R&D in software industry sectors is especially in demand as most businesses and organizations strive to keep up with evolving trends and technologies.
If you were looking for R&D IT consultant expertise for IT R&D solutions, Ukraine is among the top countries to source for R&D consulting services. Ukraine is a hot spot for numerous IT development services companies with clients all over the world. The country is also known for turning out large numbers of skilled and highly-educated IT professionals that go on to supplement the country’s strong IT industry. Ukraine is also strategically placed, with close access to the rest of Europe, the Middle East, and Asia.
Costs of Outsourcing R&D
R&D expenses are all over the map with some regions being a lot cheaper than others. Outsourcing R n D is a way to save money but considering the expenses involved is crucial. R and D is a risky business where most of the products developed never see the light of day. Thus, it’s important to keep costs low in the initial stages of product development.
One way to reduce costs is by outsourcing R&D on a global level and seeking cost-friendly opportunities. Numerous professionals can offer the same quality of work as local developers at a lower price. Eastern Europe has long been a leader in the IT industry, and outsourcing to this region is among the cheapest worldwide.
Lower living costs in Eastern Europe contribute to its lower outsourcing costs, making it a preferred destination for US and global companies. Despite lower costs, the quality of work is high due to a competitive job market and excellent education systems.
Outsourcing R&D offshore can significantly lower costs, but it’s vital to conduct due diligence to avoid unexpected expenses, such as varying taxation laws. Before outsourcing, companies should establish a full cost or hourly rate for their projects, including taxes, to ensure they align with their objectives and targets.
There are thousands of R&D consultant firms worldwide, and businesses can easily contact them to discuss their specific needs. These firms can provide pricing estimates and an overview of what they can offer. Companies should shop around for the best deal and consider their expenditure.
Communication is critical, and researching an R&D firm’s track record can help assess their cost and communication with past customers. Companies should also consider other factors, such as time zones, language barriers, and cultural differences.
According to a 2021 survey by Gartner, global IT spending is expected to reach $4.1 trillion in 2021, with R D expenses accounting for a significant portion of that expenditure. In 2020, the US spent approximately $602 billion on R and D, with China spending $496 billion, making them the top two R&D investors worldwide.
High R&D spending is not restricted to pharma – the reinvestment of profits in R&D is substantial in many sectors.
Global Private-Sector R&D Spending as a Share of EBITDA, By Industry Percent
|Industry||share of EBITDA, by industry %||Source|
|Pharma and medical products||15.2%||Source|
|High tech, media and telecom||5.2%||Source|
|Automotive and assembly||1.6%||Source|
|Aerospace and defense||0.5%||Source|
|Healthcare systems and services||10.2%||Source|
|Construction and infrastructure||1.00%||Source|
|Chemicals and agriculture||2.4%||Source|
|Electric power, oil, gas and utilities||0.1%||Source|
Total Global Private-Sector R&D Investment, By Industry in Billion Dollars
|Industry||Investment in USD (Billion)||Source|
|Pharma and medical products||232,534||Source|
|High tech, media and telecom||216,269||Source|
|Automotive and assembly||149,343||Source|
|Aerospace and defense||19,262||Source|
|Healthcare systems and services||24,600||Source|
|Construction and infrastructure||33,938||Source|
|Chemicals and agriculture||27,486||Source|
|Electric power, oil, gas and utilities||10,779||Source|
How to Set Up a Research and Development Department: How We Can Help
Our research and development consulting service offers a wide variety of services:
- Establishing R&D in Ukraine at cost-effective rates
- Designing and outlining R&D strategies and businesses models
- Product strategy consulting and product development consulting for R&D solutions
- Provide guidance and knowledge on how to build a research and development lab
- Facilitate and management of R&D solutions development and maintenance
If you were to consider building a nearshore development center or an R&D lab, our R&D consulting services also assists in designing and establishing R&D centers in your area of choice. We help:
- Choose or help with building R&D facilities
- Recruit nearshore development team
- Manage a development team in a selected R&D center
- Address administration processes (legal issues, payroll & accounting)