All You Need to Know About a Software R&D Center In a Nutshell

Software R&D Center

The idea of a software r&d center remains vague to many. As a result, most businesses don’t know why they need to incorporate this outsourcing strategy into their system. That isn’t very pleasant because several benefits are attached, which ultimately contribute to business growth and development. The process, however, starts with finding the best provider offering software r&d center services in a particular location. In this article, you are about to find out everything there is to know about a global research and development center. 

What is a software r&d center?

A software research or development center is a typical office setup focusing on meeting the IT needs of a company. It consists of a team of professionals or developers that work closely with the company to solve significant challenges and ensure goals are met. It is an alternative to a company’s in-house department and is often known to be in another location (or country). 

An international R&D center is set up offshore or near-shore, depending on the resources and skilled labor available in that location. For instance, some U.S. businesses have their r&d center in Canada or other developed countries. Interestingly, the center isn’t size-selective, i.e., it works for large, medium, and small businesses.

Why Do You Need a Software Research and Development Center?

Investing in research and development services benefits a business irrespective of size. Below are the reasons and benefits that come with this initiative. 

  • Cost-Efficient 

One of the best things about an r&d center is that it helps an organization save money. It is a cost-efficient strategy to recruit unique talents to help with IT solutions and other needs. It is a better option because you won’t have to spend money or plan a budget to relocate your company’s team to a preferred location for them to work. It gets better when you hire a third-party service provider to recruit because they can work closely with your brand’s budget and get you the best developers in the country of interest. 

  • Access to Skill Pool

Among the many challenges businesses face, recruiting the best talents seems like the bigger problem. There are hundreds of people with particular skills a company is looking for; however, it takes a thorough and time-consuming selection process to find exceptional individuals. It gets even more complicated when you need developers in another country to help grow your business. With a global r&d center, you can be assured access to a skill pool. You can pick individuals based on their talents, experiences, and potential here. 

  • Business Expansion

Business expansion is a known benefit of the software research & development center. Some companies are looking to branch out and extend their reach beyond their current location; setting up an r&d office is an excellent way to start. Having a representative in another country and recruiting people in that location will help you gain ground. It also allows your brand to learn about the country’s culture and develop ideas for entering and focusing on the local market. 

  • Brand/Company Awareness

As you bring in new talents to help develop your business, people become more aware of the brand. This awareness allows creating products and offering services faster because you don’t want to disappoint your target consumers. Likewise, you gain new concepts or techniques with the help of foreign specialists, which will be helpful for your business.

  • Strong Partnerships 

An international research or development center fosters solid partnerships and relationships, which is significantly what most organizations need to survive in a competitive market. In addition, this initiative eliminates the need to outsource or hire freelancers whose roles are only temporary for a business. Instead, it allows you to hire skilled individuals who will work for your company long-term, continually solving problems and meeting goals. In short, this model ensures you can retain developers for future projects rather than a one-time experience. 

  • Improved Performance and Productivity  

The result of a strong partnership between an organization and its team of developers – offshore and in-house is improved performance and productivity. Everyone working for the company has specific responsibilities or contributions that are important to meeting goals. And as commonly known, increased productivity means more money and a chance for the brand to grow.  

How to Set Up a Software R&D Global Center?

If you want to set up an international office for your brand, you can either do that yourself or hire a reliable remote r&d center services company. The former is more difficult because it is a tedious process. However, the latter removes the stress of having the company fully involved in setting up, recruiting, and hiring. 

Here is a brief description of the stages involved: 

1- Recruitment

It is the initial stage where a service provider analyzes the needs of a brand and searches for skilled developers for the role. As a result, this provider has better access to a talent pool and, thus, initiates a recruitment process.

2- Hiring 

The stage that comes after recruitment is hiring. It involves getting the best hands for the job, depending on a company’s technical and non-technical needs. 

3- Duties and Operations

The next phase is assigning specific positions or duties to individuals in the r&d office. This move automatically sets an opportunity for team integration and team-building activities. Indeed, this operational infrastructure is what the company needs to grow. 

4- Assessment and Planning

The final stage is assessing the impact of the offshore center and planning how to build your team to do better in the future. The assessment would tell if you need to expand, hire more developers, or maintain the status quo. 

Tips for Setting Up a Software R&D Center

Now that you know a little more about setting up an R&D center for software development, there are a few tips you should follow to optimize your investment:

1. Put together a good mix of skills

Having a diverse R&D center means you benefit from a mix of ages, skills, backgrounds, ethnicities, and perspectives at all times. Innovators love experimenting and pushing limits, so pick a team that dares to experiment and ask questions. Remember, your next big idea could come from anyone – whether a junior is just starting their career or a seasoned veteran.

2. Set goals – but give your team creative freedom

You must clearly communicate your vision and mission to your team and set measurable objectives and milestones for the team to hit. However, it would be best if you also gave your team the autonomy to explore and innovate independently. You don’t want to be a dictator. After all, you hired your team because you want new ideas and perspectives – not because you have all the answers. 

3. Learn to fail

This is a tough one for most business owners. After all, mistakes are costly. However, the best innovations are often found through trial and error. (Even the COVID-19 vaccine was only discovered because researchers made an error in their calculations!) Accept that mistakes are part of the discovery process. Your team should be meticulous, but they shouldn’t be afraid to make mistakes. 

4. Set your budget early

You need to set a budget and communicate it clearly from the start. Remember that you should consider how much customers will be willing to pay once the development is finished. You should also speak to your tax advisor about possible R&D grants and tax credits your business may be eligible for and what the criteria will be. This can keep your prices low and provide valuable access to resources. Include some flexibility and risk in every budget – restrictive budgets and bean-counting will stifle your team’s creativity. 

5. Host regular stand-up meetings and catch-ups

Keep the culture of R&D alive by setting up regular brainstorming sessions so you can discuss your progress and identify ideas worth exploring. Sometimes, team members may have great ideas that aren’t included in product sprints because the PM lacks vision or doesn’t feel it’s appropriate. Giving your team face-to-face time with you will allow them to share ideas more freely. 

6. Stay flexible

Don’t rush your R&D team. You should have timescales to keep spending in check, but keep the lines of communication open. You don’t want to miss out on a breakthrough because you refuse to budget on deadlines. Make sure your team informs you about the possibilities and requirements so you can call about extending the deadline or budget. 


What you need to know about a software r&d center mainly revolves around why you need it and how to set up one. This article has done a great job of exposing you to the benefits of setting one in a new jurisdiction, courtesy of a service provider. However, without wasting too much time, you should consider starting by finding a reliable third-party company to help with the process.