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R&D office for People.ai in Ukraine

PEOPLE AI: Setting Up Software R&D in Ukraine

People.ai is a software product company
which develops a platform with the help of machine learning technology.
It aims at optimizing team management, marketing processes and sales.
Founded in 2016 and based in San Francisco, People.ai is backed by
Y Combinator and Silicon Valley’s top investors. In 2019 the company
raised $7M from Lightspeed Venture Partners

ISSUE

People.ai was considering to expand its engineering team abroad. The company chose Ukraine as the most attractive offshore destination. The problem was that People.ai started to work with different service providers simultaneously for different or even the same tasks. It took them very long to handle this cooperation, so the company decided to consult Alcor and delegate all back-office operations to our team.

UKRAINE AS AN OFFSHORING DESTINATION

There are many attractive places to start offshoring around the world. But as for Europe, Ukraine is viewed as the most winning solution. According to the official data, Ukraine has lots of investment advantages such as high quality of
education, cultural and geographical proximity to Europe, competitive wages etc.

For People.ai one of the prominent reasons to establish an offshore development office in Ukraine was competitive wages. According to statistical data, Ukrainian wages in the tech industry are by 73% lower than in the USA.

SOLUTION:

Alcor provided the full cycle of support in real-estate, legislation, and finance issues, as well as in hiring people. Our legal and finance teams offered the most efficient legal structure of doing tech business in Ukraine. When the formal stage was completed, we focused on location. In 4 weeks our team chose and prepared a proper location. Alcor’s IT and Real Estate Managers conducted onsite checks of each office chosen for consideration. We wanted to make sure the locations met the client’s requirements, including IT and security infrastructure. As a result, we prepared a short list of the best suitable offices for People.ai’s review.

Once the client made a choice, our lawyers negotiated a lease agreement with the landlord to protect the client’s interests and make sure the office is ready for a long-term cooperation. In the meantime, our recruitment team was working hard to hire and form a team of developers on behalf of the client. People.ai was able to focus on its product and business, so that the process of R&D opening was fully delegated to Alcor with the possibility to watch and discuss the ongoing work via meetings and emails.

RESULTS:

R&D office

The company has received the required back-office support and opened its new development office. This R&D office performs very well today and is going to grow. It has been working since 2017 and now is about to scale up.

1 month

It took us a month to launch a new development office for People.ai. Our team found a location for office, successfully made a lease agreement and provided procurement within 4 weeks. Alcor’s recruiters also hired the required staff, while our legal team assisted in legal operations.

25+ talents

Alcor hunted over 25 talented professionals who successfully joined People.ai, including software developers with rare skills, which are in huge demand today. Now the company employs 125+ people around the world and plans to expand further.

legal compliance

Today People.ai enjoys doing IT business in Ukraine due to the full compliance with the American and local law. The client uses special IT tax incentives offered by the Ukrainian legislation, which helps People.ai save costs on taxes and still be transparent.

operational comfort for doing business

Alcor took care of every minor step in setting up the R&D office, starting from the deployment of IT infrastructure to the office redecoration. Their head office in San Francisco has no difficulties in communicating and working with their R&D team in Ukraine because they both use the same software, hardware, and equipment. As a result, the client can direct its attention to the core business with no worries about operational management.

complete control

When the deal was closed, People.ai became the owner of all property and software developers. People.ai has received complete control over its R&D center together with all intellectual property rights.

We also recommend checking another case study with Tonic Health here backed up by Alcor. You can also contact us via the form below.

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