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R&D office for People.ai in Ukraine

PEOPLE AI: setup R&D in Ukraine

People.ai is an IT product software 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.

PROBLEM

People.ai was considering to expand its engineering team abroad. The company chose Ukraine as the most attractive destination. The problem was that People.ai started to work with different service providers simultaneously for different or even the same tasks. It took quite a long time to handle the 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 in Ukraine. But as for Europe, Ukraine seems to be the most winning solution. First of all, official data say that Ukraine has a number 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 aspects 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 operations and support in real-estate, legislation and finance parts as well as in hiring people. Our legal and finance teams offered the most efficient legal structure of doing tech business in Ukraine. After the formal stage was completed, we focused on location. In 4 weeks our team chose and prepared the proper location. Alcor’s IT and real estate managers conducted onsite checks of each office chosen for consideration to make sure the locations are in line with the client’s requirements, including IT and security infrastructure. As a result, we prepared a short list of 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 client’s interests and make sure that legally the office is ready for a long-term cooperation. In the meantime, our recruitment team had been working hard to hire and form a team 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 our work via meetings and emails.

Once the client made a choice, our lawyers negotiated a lease agreement with the landlord to protect client’s interests and make sure that legally the office is ready for a long-term cooperation. In the meantime, our recruitment team had been working hard to hire and form a team 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 our work via meetings and emails.

RESULTS:

R&D office

The company has received the required back-office support and opened its own development office, which has been working since 2017. Now People.ai plans to double the office size because this R&D office performs very well and needs more facilities.

1 month

It took us a month to launch the new development office. 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 staff assisted in legal operations.

25+ talents

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

legal compliance

Today People.ai enjoys doing 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 to save costs on taxes and still be transparent and efficient.

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 and up to the office decoration. People.ai has now no difficulties
in communicating and working with their R&D team in Ukraine because they use the same software, hardware and are equipped accordingly. As a result, the client can direct its
attention to the core business processes with no worries
about operational management.

complete control

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

We also recommend checking another case study with Tonic Health here to figure out how other tech companies benefit from havingn R&D office in Ukraine backed up by Alcor.

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