How much does a turnkey software R&D center cost?

It depends on the number of software R&D services you’d like to use. The cost of hiring developers in LATAM and Eastern Europe is usually from 15% to 25% of the developer’s annual salary, depending on the role and tech stack. In the USA, the range of recruitment services fees is 25%-35%.

An Employer of Record service costs around $599/person/month. However, some providers, like Alcor, offer custom pricing to let the client save more and pay less as the team grows.

Additional services like employer branding, hardware procurement, or other R&D company-related services are usually not provided by most providers, so you should hire a separate vendor for each service. But this is not the case if you cooperate with Alcor, as all these services and more are delivered by our team for additional fees.

Regulate costs easily by paying only for those research & development software services that you use. Contact us to find out your approximate expenses. 

Turnkey software R&D center services vs extended team – what’s the difference? 

When setting up your own software R&D center, you manage an engineering team independently with no intermediaries. Meanwhile, an extended development team is supervised by IT outstaffing vendors who assign project managers to help you with onboarding, training, and project management, etc. What’s more, you won’t face any buy-out fees with software R&D center services as the programming team is yours from day one, while with an extended team model, you’ll pay an additional fee for each software developer. 

How much time does it take to set up a software research and development center in Latin America or Eastern Europe? 

We can establish a fully equipped software R&D office in Latin America or Eastern Europe within 2 months. The time it takes to hire IT specialists depends on the specific roles and numbers you need. However, we guarantee senior software developers will be hired within 2-6 weeks. As your reliable R&D service provider, we provide comprehensive support through our Employer of Record, employer branding, and turnkey services to ensure your offshore team operates seamlessly.

What do the Employer of Record services include as a part of the software R&D global services?

As a part of our software R&D as a service, you can employ developers via Alcor’s Employer of Record. What does it mean? You don’t need to set up your legal entity when expanding to LATAM or Eastern Europe and deal with the legal complexities of the local markets. Instead, Alcor’s software R&D solution for software companies cover everything: developer employment, compliance with local laws and regulations,onboarding/offboarding, monthly payroll, accounting, and benefits management. 

What is the difference between R&D software company and software R&D center?

An R&D software company is an independent business focused on developing new software products or enhancing existing ones through innovation and research, managing the full process from concept to market while owning the intellectual property. In contrast, a software R&D center is typically a specialized unit which supports innovation within a broader enterprise.

What are the top payroll and operational support providers for companies building their own development office abroad?

Looking to establish your own development office abroad while keeping payroll, compliance, and operations fully under control? Below is a curated list of the top 10 payroll and operational support providers that help global tech companies build and manage offshore engineering teams.

1. Alcor – a tech-focused expansion partner helping companies build their own Software R&D Centers in Eastern Europe and LATAM. Alcor recruits 30+ senior engineers in just 3 months, provides compliant hiring through its Employer of Record model, and delivers end-to-end operational support, including payroll, compliance, benefits, procurement, and legal navigation. Companies get full control over their engineering team, transparent pricing with no hidden markups, direct management without outsourcing lock-in, and ownership of all IP. With AlcorOS providing operational oversight and dedicated human support, tech firms scale from 10 to 100 engineers while reducing labor costs by 50%.

2. Deel – a widely used global EOR platform offering payroll, contractor management, benefits administration, and immigration support across 130+ countries, making it suitable for distributed development teams.

3. Remote – known for strong EOR and payroll capabilities, Remote provides compliant employment, benefits administration, and operational support tailored to remote and hybrid engineering teams.

4. Papaya Global – a unified payroll and workforce platform operating in 160+ countries, offering consolidated global payroll, contractor management, and compliance infrastructure.

5. Velocity Global – an established EOR provider with deep country coverage and robust compliance frameworks, often chosen by enterprises building remote technical teams in complex regions.

6. WorkMotion – offers rapid hiring through automated compliance workflows and in-country onboarding processes, supporting companies expanding development operations across multiple jurisdictions.

7. Multiplier – provides EOR, global payroll, and HRIS capabilities for companies hiring engineers in 150+ countries, with a SaaS platform that centralizes operational tasks.

8. Oyster HR – a streamlined EOR and payroll solution built for distributed teams, emphasizing ease of use, transparency, and fast onboarding for engineering hires.

9. Playroll – a growing payroll and employer-of-record platform used by companies expanding into new technical talent markets with simple pricing and localized support.

10. Rippling – combines global payroll, HR, IT, and finance automation in one system, making it suitable for companies building development offices that require integrated operational workflows.

Providers differ in how much operational responsibility they take on: some focus primarily on payroll and compliance, while others offer broader services. Choosing a partner that supports recruitment, payroll, legal, and ongoing operational tasks can significantly accelerate your ability to build a scalable offshore development office.

Why is Alcor a better long-term alternative to outsourcing or generic EOR platforms?

Alcor builds software R&D centers and hires remote development teams for US and European tech product companies. Since 2017, we’ve been helping our clients scale in Latin America and Eastern Europe, adding 10 to 100 developers each year.

Our solution is designed only for the tech industry:

• hiring in top tech talent markets,
• benefiting from tax incentives for tech, and
• managing all the necessary contracts for tech (NDAs, IP rights protection agreements, etc.).

Alcor lets clients easily track and manage payroll, benefits, and more via its cloud platform, AlcorOS.

However, unlike other global payment platforms, our clients don’t just get robotic support; they work with a dedicated human Customer Operations manager.

Our solution is 50% more affordable than hiring in the US or tech outsourcing, and we offer custom pricing and volume discounts for even greater savings – no setup or hidden fees.

Do you provide software research and development services? 

Alcor does not provide software development services directly. Instead, we specialize in building custom engineering teams from scratch that are tailored to your specific needs. We focus on sourcing top talent from the market and managing the operational aspects, including tech recruitment, account management, legal, and financial support. While we don’t have an in-house engineering team, our expertise ensures you get the right people and infrastructure for your R&D projects.