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How to Set Up a Software R&D Center?


Most successful companies utilize every resource, including creating certain role-specific departments or recruiting the best talents. Today, in some companies with full utilization of technology, opening a software r&d center now seems to be the order of the day. Unfortunately, not many businesses understand the need for this yet, but those that do, know the impact of software research and development services for growth. For instance, one benefit is leveraging IT solutions from a team of experts to launch products or services online. That being said, if you consider setting up an r&d center for software operations, you should read this article.

6 Tips to Set Up a Center for Research and Development Services

There are some useful tips to consider before getting software r&d center services. They include:

Choose The Type of Software Research and Development Center

Generally, there are two types of software r&d centers – in-house/internal and external.

The internal r&d center is handled by a company and is responsible for the management, recruitment process, finance, legal services, and onboarding.

On the other hand, a service provider or vendor handles the external r&d center. Such a vendor recruits the designated team for a task to achieve a company’s goals.

Both types have their advantages.

An independently-designed center makes it possible to execute tasks more efficiently. Companies scout for skilled developers, engineers, and other professionals tailored to meet their needs. There is also a good communication system between these individuals and an employer since they might possibly be working in the same space.

On the other hand, a vendor-assisted center considers a company’s budget and reduces the cost spent on recruitment. It also has reduced risk because the required skill sets are often available and in an existing work structure.

Choose Location

If you are considering an external r&d center, you need to consider where the team would work from, i.e., location. A company needs a stable environment with facilities to run its center effectively. Some even go as far as creating an international r&d center if the company’s location (or country) doesn’t meet the standard for research and development. Alternatively, some companies adopt a remote work system and ensure there is constant and smooth communication for the effective running of operations.

Consider and Plan Budget

When you’ve decided what type of research or development center you want and the location, the next is to plan a budget. Creating a center like this is always expensive and needs constant funding for smooth running. For instance, some money goes into recruitment, management, maintenance, and legal risks.

Recruitment Process

After planning a budget and deciding where the team would operate, you can proceed with the recruitment process. This can be done either by an independent talent acquisition program or a vendor-assisted team search. Depending on the company’s chosen method, getting the best hands for certain tasks is essential.

Define Goals and Give Team Autonomy

Also, whether you are interested in an internal or external software research & development center, stating company goals is paramount. It gives the team a reason why they are working. This department should know exactly why they exist so they can develop strategies to meet goals. Also, a company should maintain good communication and use certain parameters or metrics to judge progress.

Put The Team to Work

The next phase is putting your team to work since they are available and there is a facility to work in. Every individual recruited has specific roles to play in launching a product or service. And through effective team management and HR policies, it shouldn’t be difficult to coordinate them.

More so, there should be room for creativity. It is one of the reasons why the development center was created in the first place. Giving the team autonomy, i.e., freedom to explore, is also important. This department or center differs from the corporate structure, where everything else is designed to follow a particular pattern.


Research and development services offer business owners several benefits, whether in-house or external, i.e., regardless of their chosen method. However, one factor is very important – recruiting the perfect skills. By doing that, the essence of creating the center is established, and your company shouldn’t have problems meeting its goals.


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