Nearshore Development Team in Europe

Get your own top-10% nearshore development team in Europe with:

  • 10+ elite engineers in Europeย in 2 months, 100+ in a year
  • Up to 40% cost savings
  • No-entity compliant employment
  • Fully managed back-office: payroll, benefits and more
  • No buy-out costs or hidden fees
  • Your direct management and corporate culture

    Your own nearshore software team in a month

    We build and operate software development teams from scratch in Latin America and Eastern Europe



    Your Own Nearshore Development Team in Europe of

    All-In-One platform for expansion
    End-to-end in-country support
    Partnership liability and commitment

    Can a Nearshore Teams Provider in Europe Guarantee

    2.5 years

    average tenure of developers

    Cultural alignment

    with your company values

    Pricing transparency

    no hidden or buy-out fees

    Legal & compliance

    and other needed operational support

    Exceptional dedication

    itโ€™s literally your own team

    Long-term partnership

    shared responsibility & commitment

    Key Things about a Nearshore Development Team in Europe

    Advantages of working with a nearshore team in Europe
    Challenges of managing nearshore development teams
    Nearshore teams model vs. alternatives
    What is software R&D center

    Advantages of working with a nearshore team in Europe

    Engaging with a nearshore software development team in Europe may be a profitable short-term solution, due to:

    • Flexibility
      With a nearshore development team in Europe, you can ask your provider to adjust your software team size for faster project completion at any time
    • Access to a big candidate pool
      Whether you opt for nearshore or offshore software team services, you expand the talent pool. This diversity allows you to select from a wide array of tech specialists with different skills and tech stacks.
    • Focus on core activities
      Your in-house staff can focus on high-priority projects while a nearshore development team in Europe can overtake less strategic tasks.

    Challenges of managing nearshore development teams

    But in the long run, this approach also poses significant risks:

    • Buy-out fees
      Recognizing a rising star in a nearshore software engineering team in Europe is exciting. However, hiring them full-time will always result in significant buy-out fees and negotiations.
    • Dependence on a middleman ย 
      Dependence on middlemen not only complicates necessary adjustments but can also create a misalignment between your company’s goals and the candidates they present, potentially missing out on the perfect match for your vision.
    • Questionable software quality ย 
      When you hire a nearshore development team in Europe, you might face concerns about software quality, which could lead to variations in development standards, the engineering teamโ€™s commitment, communication gaps, and limited direct oversight.
    • Data security concerns
      Entrusting external teams with your product development means sharing sensitive company data and potentially exposing your valuable intellectual property rights to risks. Without robust security measures in place, there is a heightened risk of data breaches, leaks, or unauthorized access.

    Nearshore teams model vs. alternatives

    Overall, a nearshore team in Europe is a good solution for project-based software development. The client can partially control the development process and get a moderate teamโ€™s dedication. Thus, it surpasses such collaboration models as team augmentation and software outsourcing, which are more suitable for short-term projects and demonstrate low dedication levels. In addition, these solutions are not beneficial in terms of client control; while staff augmentation also has partial involvement, with IT outsourcing, itโ€™s absent. The same applies to managed services, with its lack of client control but yet with the same moderate level of team dedication.

    Another alternative is a software R&D center, which is a solution for product tech companies that offers full control over the development process, making it a safe option for the long term. With this approach, you get your own software development team:

    • fully committed to your product
    • in a location with cost effective salary rates
    • fully supplied
    • and legally compliant under Alcor’s Employer of Record.ย 

    What is software R&D center

    A software R&D center is a fresh alternative to traditional team extension models, such as a nearshore development team in Europe. With this solution, you get your own software research and development center turn-key ready with a team of 100 skilled engineers within a year. What does it include?

    • IT recruitment
      With a team of 40 experienced IT headhunters, we offer full-cycle IT recruiting services spanning 8 countries in Latin America and Eastern Europe to hire your dream engineers. We handle it all: starting with thorough sourcing and finishing with smooth onboarding of your software developers. Within 2-6 weeks, we can find a perfect match for your team, ensuring top-notch quality as 98.6% of our candidates successfully pass the probation period.
    • Employer of Record support
      If you hire with Alcor, you donโ€™t need to establish your legal entity in a target location. Leave all the nitty-greedy tasks to our experts! Weโ€™ll take care of the employment of software developers and compliance with all local laws, with payroll and tax management covered. You can rest assured while focusing on your core tasks, as in case of a fine because of our mistake, we provide 100% compensation.
    • Full operational support
      We go even further and offer a bunch of other additional services, such as hardware procurement for your team, office lease, your employerโ€™s brand promotion in the local market, visa support, and even more! Just choose what fits your business needs best.

    Expand with Your Own Nearshore Team in Europe

    Alcor is your tech expansion accelerator for global growth

    • From 0 to 100+ engineers in one key talent pool
    • Employer of recordโ€”no entity compliant employment
    • Comprehensive in-country support
    • No buy-out or other hidden fees
    • Your team from day one. Your management. Your culture.
    Book a call

    Own R&D Center vs Nearshore Team in Europe

    Software R&D Center

    1. Silicon Valley-caliber talent We recruit 30+ elite senior developers in 3 months. All decisions regarding the team are up to you.
    2. Transparent pricing Detailed invoices help you be in control of your finances. Plus, your tech R&D team is x2 more affordable than an external one.
    3. Your team & branding You get a tech team with shared values for innovation and growthโ€”90% retention rate & an average tenure of 2.5 years.
    4. No setup & buy-out fees No setup fee is needed to start building your software R&D team. Plus, there is no buy-out processโ€”your team now, free insourcing after.
    5. Intellectual property under control With direct agreements, you fully own your product and its source code, keeping unique expertise in-house.

    Nearshore Development Team

    1. Junior/middle-level talent You can’t control the quality of talent. Plus, with planned moves to new customers after 1 year, your A-players will be snatched away.
    2. High markups Some providers charge up to 50% of talent compensation to earn more without the client knowing about it.
    3. Not your brand & practices Developers work under your providerโ€™s brand. Thus, there’s no room for your corporate culture, policies, and direct oversight.
    4. High setup & buy-out fees Most vendors require contractual & financial obligations first. Then, you pay 20% of a developer’s annual compensation in buy-out fees.
    5. Intellectual property risks IP rights over your product initially belong to developers of your provider. You get minimum security and a tedious transfer process.

    Companies Scaling with Alcor

    Alcor is a reliable partner that meets our hiring needs. We finally hired experienced software engineers in Eastern Europe with strong tech skills and business acumen. Account Managers are awesome!

    Andrii Akselrod CTO People.ai

    With Alcor’s all-in-one solution, we got a software R&D office with 15 senior PHP devs and a compliant operational coverage. I really appreciated their transparent pricing structure and deep expertise.

    Boris Glants CTO Tonic Health

    We interviewed a lot of EoR platforms and companies, but Alcor was the only one that provides a combo package of EoR and Recruting offerings. Alcor helped us build a full stack team in 1.5 month.

    Dmitrii Iermiichuk Head of Engineering Gotransverse

    We wanted to switch from our outsourcing provider, and Alcor has become really game-changing for us. Within a mere 6 months, we got a fully-fledged team of 30 engineers in our own R&D office.

    Elena Leonova Director of Product Management Bigะกommerce

    Alcorโ€™s R&D solution eclipses full-cycle recruitment, EOR service, and operational support for our offshore team. Their ‘all-in-one place’ approach is far more cost-effective than I could’ve imagined.

    Farhad Shamshirzan
    Farhad Shamshirzan Director of Software Engineering Certent

    I value their commitment to going the extra mile. We evolved from an outstaff project into an independent company, and Alcor’s support was crucial. They hired and ondoarded 15+ professionals for us.

    Grigoriy Didorenko Research and Development Director BIScience

    Thanks to Alcor, we hired four engineers and a designer that strengthened our team. Beside stellar recruitment, Alcor flawlessly handled our payroll. Their approach was seamless and swift.

    Kirill Latish Head of Engineering & Communications Velory

    Alcor closed our 4 QA positions in a month and more than doubled the team in a year! We chose Alcor because of their communication style, cost, scope of services, and ideas to help us be successful.

    Vitalii Belelia Production Management & App Support Manager Ledger

    Expanding our engineering team outside the US with Alcor was a game-changer! They found 15 talented developers and provided seamless EOR & operational support. Great responsiveness to our needs!

    katherine-laggos-chartbeat
    Katherine Laggos VP People & Culture Chartbeat

    FAQ

    Is it beneficial to use nearshore development team services in Europe?

    For short-time projects, leveraging a nearshore team in Europeย can offer flexibility, faster project completion, and access to specific skills. Yet in the long run, this approach may not be the most cost-effective or strategic choice for sustained development efforts.

    What are the common challenges or pitfalls of using nearshore teams in Europe?

    Outsourcing software development by nearshore team model poses significant challenges with long-term collaboration, commitment to your productโ€™s success, data leakage, and buy-out fees. Thatโ€™s why before they decide to hire a nearshore development team in Europe, tech entrepreneurs often explore alternative solutions. The most popular options include opting for IT recruitment services or a full R&D office setup with their own nearshore development team in Europeย through a reliable partner.

    What are the alternatives to a nearshore software team in Europe?

    To bypass the pitfalls of this collaboration model, tech companies opt for nearshoring and offshoring via establishing their own software R&D centers. With this approach, you get a software development department with full back-office support, including full-cycle IT recruitment, office lease, Employer of Record services, legal compliance, employer brand promotion, and office maintenance. With Alcor, you can hire a nearshoreย development team in Europe and expect your brand-new office to be launched in just 2 months.

    Is my company prepared to use an R&D center, or should I go for a just nearshore software team after all?

    It all boils down to your business needs. For technology companies, establishing a software development center with an in-house development team proves to be a great solution. This approach enables the retention of core operations under direct control, ensures a long-term commitment from engineers, and facilitates the attraction of investments to scale internationally. On the other hand, for non-tech businesses lacking internal expertise in product design, opting for a nearshore software development team in Europe would be a better fit. Yet, if you want to play the long game and potentially grow your business, opting for IT recruitment services is a great option to start with.ย