R&D in Ukraine: Why Establishing an R&D Lab in Ukraine Is So Beneficial for Foreign Companies

r&d in ukraine

Benefits of Offshore R&D Firms in Ukraine

For some industries, research and development R&D is what drives the market and revenue for businesses and organizations. R&D is highly beneficial to businesses for these industries and the results are used to diversify and enhance product portfolios and organizational processes. Despite the risks that are inherent in establishing an R & D facility or offshore R&D firms in Ukraine, there are also advantages and potential benefits of this venture.

Opening an R&D Center in Ukraine

Competitive Advantage

Businesses and organizations can only leverage competitive advantage if and when their competitors are unable to replicate their products and services. Despite the risk of losing to your competitors, R&D projects, and research and development activities remain the best avenue for businesses and organizations to develop and improve products, services, and organizational processes. Great strategizing, planning and security can still secure your R&D competitive advantage over others. 

Faster Turnaround Time

Outsourcing R and D activities and R&D projects, like legally establish R&D company in and around Europe nearshore locations, can help streamline your R and D department and its processes. Partnering with the best offshore R&D firms ensure that you have a dedicated D&D team to streamline your R and D projects on shorter turnaround times, and at a more manageable cost. 

Increased Income

The more streamlined and dedicated your R and D department, the faster you can put to market your products and services, the better your advantage and chances of attracting a larger percentage of the market. The first to market unique and attractive products tend to set the market trends and reap their “early bird” benefits. Well-planned, strategized, and resourced R&D will see results in marketable and innovative products and services. Even if the products are not the pioneers or trendsetters in the market, having great products effectively and strategically marketed will still pull more income and investment for the business. 

Unique Selling Proposition

Offshore R&D firms are highly equipped to help you build R&D team and engineers best fit for your R and D department. They are also equipped to help you strategize and identify R&D projects that connect with your target market and meet their needs. R&D drives innovation and enhancement in products and services. Sufficient market research, effective strategizing, and marketing will supplement your R&D and its projects.

Potential for Additional Investments

Effective R&D departments and great products cultivate interest and attract more potential investors to your business. Offshore R&D firms are equipped at helping you manage your portfolios and R&D strategizing. Your products and services are your brand and will be reflected by the quality of your infrastructure, R&D, and organization. Producing high-quality products and services will be what attracts investors and resources to supplement your R&D.

Attracting Better Industry Talents

Partnering with offshore R&D firms to help legally establish R&D company in Ukraine will ensure that you are guided on how to build an R&D team and attract the top industry experts and skills for your projects.

why go with nearshore staffing

Possible Risks of Establishing R&D

Just like any other business venture, establishing R&D has its risks. Research and development can be time-consuming, expensive, and risky for businesses to venture into. 

Competition

R&D carries no assurance of uniqueness and runs the risk of business competitors doing the same R and D projects, establishing R&D in the same areas, or piggy-backing off of developed products. Businesses and offshore R&D firms can implement measures to secure legal and intellectual property protection of their r&D and engineering projects and products.

Uncertain Economic Profit

Outsourced R&D and engineering projects can be riskier than establishing in-house an R and D department. The resources, time, effort, and finances required to open R&D center in Ukraine can be daunting. This approach can also seem as if the cost to build R&D team and legally establish R&D centers offshore is way higher than optional returns to be gained. Regardless of strategizing and detailed planning, R and D projects are highly speculative, exploratory in nature, and without guaranteed future profit. 

Financial Capacity

R&D is but a single cog in the entire machinery of a business. And just like the others, the R and D department completes for resources and financial allocation to fully function. Because of its nature, the R and D department require high and remarkable returns for a business to justify allocation funds for R&D projects and R&D activities. Businesses run the risk of losing money and investments from unsuccessful R&D activities and R&D projects.

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Why You Should Open R&D Center in Ukraine

Of all places, why open R&D center in Ukraine?

Growing Software and IT Market

The past several years have seen Ukraine be a fast-growing and flourishing IT and Tech hub and nearshoring in Europe. Ukraine is home to numerous top IT development service companies as well as home to global brands like Jooble, Petcube, and Grammarly. The country boasts a high level of education, IT expertise, and can communicate with a global audience. 

Access to Global Tech Talent Pool

Numerous IT services providers based in Ukraine have a large global network and are capable of collaborating and employing global tech experts and professionals for R and D activities and R&D projects. Geographically, Ukrain-based companies are accessible and have an easier time zone to work with.  

Manageable R & D Facility Costs

The cost to open R&D center in Ukraine is more manageable and cost-efficient compared to countries with booming tech industries like the US.

Manageable Legal Restrictions and Tax Processes

Ukraine also has less stringent and resource-consuming legal restrictions and tax processes when businesses legally establish R&D company or partner with offshore R&D firms in Ukraine.

why open offshore r&d firms in ukraine

Cost of Nearshore Staffing Recruitment

Cost is a large factor in deciding to employ software engineering nearshore services or legally establish R&D company overseas. Skillset – whether specialized or not – and level of experience affect the cost of recruiting nearshore staffing.

As an overview of the potential cost, below is a summary of average Ukrainian engineer and developer salaries with programming proficiencies.

Ukrainian Dedicated Developers Net Salary Rates

TechnologiesJunior Dev Average Salary RangeMiddle Programmer Net Salary RangeSenior Coder Average Net Salary Range
React JS$1200 – $2000$2500 – $3500$4000 – $5000
Vue JS$800 – $1800$2000 – $3500$4000 – $5000
Angular JS$800 – $2000$2500 – $3500$4000 – $5500
JavaScript$500 – $1600$2000 – $3000$4000 – $5000
Magento$1000 – $1900$2000 – $3800$3900 – $5000
NodeJS$1200 – $2000$2100 – $3400$3500 – $5000
Python$1000 – $1800$1800 – $3000$3000 – $5000
PHP$1000 – $2000$2000 – $3600$3700 – $5000
Java$1000 – $1800$2000 – $3300$3500 – $5000
Ruby$1400 – $2400$2500 – $3700$3800 – $5500
iOS$1000 – $2500$2500 – $4000$4000 – $5500
Android$1000 – $2500$2500 – $4000$4000 – $5500

All these net salaries rates were found during our research over a few local job portals

Ukraine-based IT nearshore offshore R&D firms offer highly competitive R&D engineers salary. This will fluctuate according to the level of experience and the specific development skills that you will need for your project. But all around, Ukraine offers both high-quality skills and manageable salary costs compared to other IT nearshore offshore countries.

build r and d team in ukraine

Where to Legally Establish R&D Company in Ukraine

Establishing R&D in Ukraine goes a long way to securing your research and development activities and R&D projects. Ukraine-based offshore R&D firms are highly capable and equipped to:

  • Guide businesses on how to find an R&D lab for your company
  • Recruit nearshore staffing and build R&D team for your R and D department
  • Assist in nearshore software staff augmentation
  • Provide software engineering nearshore services
  • Legally establish r&d company and open R&D center in Ukraine

Partner with Ukraine-based offshore R&D Firms! Learn more about the benefits of setting up an R & D facility in Ukraine!

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