June 29, 2023

What are R&D Centers?


I would venture to write a banal truth, but, as they say, you cannot erase words from a song: the one who keeps up with the times, invests in research and new technologies and ideas, is booming. And you cannot argue with this statement. Therefore, research and development centers are not a whim, not a tribute to the times, but a necessary component of success.

There is an opinion that the concept of R&D center or R&D office is associated with large companies and enterprises. But I cannot entirely agree with this point of view. Today medium and small businesses and even startups are actively using the benefits of creating R&D centers. And I will tell more about R&D offices and those who benefit from them.

What is an R&D center?

An R&D center is an office that focuses on providing computer programming services. Often, such an office is located in the country of offshoring or near offshoring. The main task of this research and development center is to develop a unique product or improve what already exists.


Such a center allows companies to establish their branches in any country they consider promising for their business development. This center enables companies to scale their products or services and enter new promising markets.


Now there are many staffing agencies providing services for creating such R&D centers. Their staffing services include selecting a team, arranging an office, and organizing the center's management. And all these arrangements fall not on the customer but on the service provider.


The company that has opened such a branch can change its team composition at any time. Moreover, such R&D centers report directly to the company's headquarters since they are part of the company. And while the staffing company recruits a team for this office and arranges the office management and accounting, the center’s programming team works under the control of the company's principal office.

What are an R&D center’s employees’ responsibilities?

The range of responsibilities of such an office’s staff includes many tasks, the common goal of which is to create and introduce new products and services to the market. Their duties also aim to identify the most profitable, desirable, and salable products or services for their company’s customer segment. These tasks may consist of the following:


  • customer data analysis;
  • customer experience research and analysis;
  • market research and analysis;
  • product tests conducting;
  • market tests conducting;
  • product development;
  • product research;
  • product update;
  • product quality control.

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What skills does an R&D center’s team member require?

Being part of an R&D center demands its employees have a particular set of hard and soft skills:

  • sufficient knowledge and experience in programming;
  • proficiency with programming languages;
  • excellent knowledge of data structures and algorithms;
  • excellent knowledge of database and SQL;
  • proficiency with cloud computing;
  • proficiency with web development;
  • excellent knowledge of integrated development environments;
  • good mathematical skills;
  • excellent teamwork and collaboration skills;
  • flexibility;
  • attention to detail;
  • excellent problem-solving skills;
  • excellent analytical and critical thinking;
  • excellent planning and execution skills;
  • excellent organizational skills;
  • excellent leadership skills.


And what makes an excellent R&D center’s team?


Taking several simple steps will help your company create the perfect team for your R&D office, each member of which will work in a comfortable environment and be highly engaged:


  • Provide the center’s team with the necessary resources and equipment.
  • Gather a team of professionals with a good combination of skills and talent.
  • Maintain a comradely and friendly atmosphere of mutual understanding and support in the center.
  • Set clear goals for the team.
  • Provide the team with maximum autonomy in achieving the goals set.
  • Establish a flexible system of bonuses and rewards.

The advantages of opening an R&D center

A well-managed R&D office with a well-chosen team of experts may bring many benefits to your company. Such benefits include the following:


  • Innovative marketing strategies.

Your office will help you expand into new markets and increase your brand awareness, which will help you stand out from the competition, attract investors, or even get industry grants or government funding. In addition, the high recognition of your brand will attract top-notch developers.


  • Increase in the company’s revenue.

The research and development center will help your company bring to the market innovative products or services or redesigned and improved solutions for existing ones. With their help, your company will win the interest and loyalty of customers and increase their number with new ones. And having profitable products and services will multiply your company’s income over time.


  • Cost reduction.

Setting up an R&D office means moving your company’s projects to a country with lower salaries and operating costs.


  • Ensuring high quality of the product.

Through research and development, the R&D team will find the best way to produce the product. Besides, at the last stage of the production of the new or improved product, the team will test it to ensure that a product of excellent quality will hit the market.


  • Providing more effective customer service.

The R&D center’s tasks include customer experience research that will enable your company to consistently offer the customers an improved user experience for your products, increasing customer satisfaction, and loyalty.


  • Potential tax breaks.

Companies can frequently deduct their R&D expenses from the taxes. However, this possibility depends on the business location and the type of research and development performed.


  • Attraction of investors.

Effective research and development can help your company attract investors to give a hand in funding the production of the new product.

In conclusion

New ideas are the engines of progress. And the key to success. So, if you want to leave your competitors far behind and significantly multiply your profits, creating an R&D center will help you cope with this goal.

OnHires can build R&D center for you

Address us in case you need to create an R&D office. We are always ready to give you a hand in a short time and quickly provide outstaffing or recruiting services!