IT Outstaffing Services

What is the difference between IT outstaffing, IT outsourcing, and a tech R&D center?

IT outstaffing provides businesses with external software developers or full teams to work on projects for a definite period of time. While these programmers integrate into the client’s in-house tech team, they still remain official employees of the outstaffing agency, which handles HR functions, pays salaries, and buys needed hardware. 

IT outsourcing is a similar collaboration model but with a critical difference: clients delegate the entire project to the vendor, giving up on team management and development process supervision. Meanwhile, IT outsourcing and outstaffing share the same risks associated with possible IP theft, team indifference, and cloudy pricing. 

The software R&D center solution, on the other hand, is free of these pitfalls. It allows tech companies to build their development teams, keeping all the decision-making and saving up to 40% on expenses.

What is the hiring process like within Alcor’s IT outstaffing approach?

Alcor’s 40 headhunters manage the entire IT recruitment of Valley-caliber senior developers in LATAM and EE. Our full-cycle hiring process includes crafting the ideal candidate profile and EVP, sourcing and pre-screening applicants, conducting HR interviews to check candidates’ skills and cultural fit, and working with offers/counteroffers.

We are dedicated to providing our clients with their first CVs in 5 days, and it usually takes us 2-6 weeks to close an open position.

Clients can get 5 developers in the first month, 30 in 3 months, and 100 in a year. They become fully integrated into clients’ in-house teams and cultures from day one, with no buyout process or fees if insourced later. 

Alcor’s IT outstaffing service is part of a turnkey R&D center solution encompassing tech-focused Employer of Record and operational support, including:

• hardware procurement,
• office/coworking leasing,
• insurance provision,
• employer branding,
• HR services,
• remote/office/hybrid strategy support,
• sysadmyn support,
• business/travel visa support,
• stock options & IP agreements

How do I choose an IT outstaffing location for my project?

If you seek nearshoring opportunities for your product development, consider Latin American tech hubs like Mexico, Colombia, Chile, and Argentina and an emerging market like Uruguay.

Collectively, these locations boast about 2 million tech professionals with a tech stack including JavaScript, Python, SQL, Java, PHP, and NLP, offer up to 50% lower salaries than in the US, developed infrastructure, and time zone alignment. 

If you are into exploring offshoring opportunities, consider opting for Eastern Europe. Such tech powerhouses like Poland, Ukraine, Romania, and Bulgaria offer access to over 1.8 million Valley-caliber tech gems, 44% lower developer rates, a business-friendly environment, and ripe infrastructure.

Alcor covers all of these tech hubs, where we hire top-10% engineers with a focus on senior, lead, and C-level talent. To ensure you get the best talent on the market, we prepare a location strategy and consultation from the start.

What are the risks of software development outstaffing?

One of the main risks of software outstaffing is possible IP exposure. Since the extended team is not your in-house developers, your code and product information are more vulnerable. Plus, the IT staffing team relies on their internal cybersecurity tools, which may not fully protect from threats.

Additionally, the vendor’s team perceives you as their “secondary” employer, leading to low loyalty and engagement, which may affect software quality. 

Overspending is another risk. Keeping the outstaffing software development team means hefty buy-out fees, reaching hundreds of thousand dollars per developer. This becomes mandatory if you seek investment, as only companies with in-house development can secure funding.

How do I pick an IT outstaffing service provider?

Firstly, assess their expertise in recruiting tech talent. A dedicated recruiting team and solid portfolio of case studies are vivid signs of outstaffing partner’s professionalism. For instance, Alcor has 40 tech recruiters who specialize in hiring senior software developers for tech companies like People.ai, BigCommerce, ThredUP, Sift, etc. 

Next, view their pricing structure. Consider outstaffing companies with predictable pricing and detailed invoices to avoid hidden fees. With Alcor, you’ll enjoy the pay-as-you-go approach, with a flat 10% administrative fee and zero setup and buy-out costs.

Finally, consider their guarantees, which demonstrate the IT outstaffing agency’s reliability. Alcor, on its side, guarantees to close an open tech position in 2-6 weeks and set up an R&D center with 30 LATAM or EE developers in just 3 months. 

What is Alcor, and why is it a better long-term alternative to outstaffing or generic EOR platforms?

Alcor builds software R&D centers and hires remote development teams for US and European tech product companies. Since 2017, we’ve been helping our clients scale in Latin America and Eastern Europe, adding 10 to 100 developers each year.

Our solution is designed only for the tech industry:

• hiring in top tech talent markets,
• benefiting from tax incentives for tech, and
• managing all the necessary contracts for tech (NDAs, IP rights protection agreements, etc.).

Alcor lets clients easily track and manage payroll, benefits, and more via its cloud platform, AlcorOS.

However, unlike other global payment platforms, our clients don’t just get robotic support; they work with a dedicated human Customer Operations manager.

Our solution is 50% more affordable than hiring in the US or tech outsourcing, and we offer custom pricing and volume discounts for even greater savings – no setup or hidden fees.

What do I get with Alcor’s tech-focused EOR service?

First of all, you don’t have to spend 3.5+ months setting up your own legal entity and other infrastructure, such as a bank account and a local team, in a new tech market. We’ll hire talent on your behalf right away.

Secondly, our EOR service covers everything: payroll, compliance, benefits, onboarding, offboarding, and other services. We commit to onboarding talent in 10 business days and provide free offboarding.

Last but not least, you’ll hire developers in top talent markets for tech – across Latin America and Eastern Europe – with 3.5+ million IT specialists and fast-growing tech industries.

But our solution is not just another HR payments platform – with us, you get EOR, plus tech recruitment from scratch with full operational coverage in one place.

How does Alcor handle compliance, risk, and data protection?

Alcor acts as a legal shield, ensuring 100% compliance with labor laws in the countries of our operations and IP protection. We protect clients from risks related to worker misclassification, social security, and tax obligations while providing GDPR and CCPA solutions.

We also provide a background check service for our clients upon request. Moreover, Alcor has a mature policy set consisting of a publicly available Privacy Policy, Cookie Policy, Terms of Use, Security Policy, and Code of Ethics.

What is the quality of Alcor’s candidates?

To present you with the best candidates, we use an internal database of 253K software engineers and external resources.

• 80% of the CVs we send to clients are approved;
• 8 CVs are needed to secure an accepted offer;
• and 15% of vacancies are closed with the first CV.

If a client wants to further improve the quality of the candidate pipeline, we offer an Engineering Manager screening service. As a result, 98.6% of the developers that we hire for clients successfully pass probation.

How long do software developers that Alcor hires stay with clients?

90% of the talent we hire for clients stays with them long-term, while the average tenure of developers is 2.5 years. If you’re dissatisfied with our hire or vice versa, we offer a 3-month free replacement warranty.

What’s more, you can increase the retention rate among your R&D team with the talent retention strategy developed for you by our HR professionals.

Is Alcor’s pricing transparent?

We don’t have setup fees, tricky rate cards, or expensive pricing wrappers. Also, our model doesn’t presuppose regular cost increases with no visible returns. Instead, we have custom pricing for each client, set and revise individual compensations, and give contractual volume discounts.

Who owns the team and assets, and can I insource later?

You own everything from day one – the team and all procured assets (hardware, software, office/coworking arrangements, and related records). You can insource the team at any time for free, with no buyout or lock-in.

Who manages the team day to day?

You do. We act as the official employer of record (EOR) for compliance and payroll, while decision-making, roadmap, and performance management remain on your side.

What documentation and visibility do I get?

You get full transparency – employment contracts, SLAs, and supporting documentation are shared with you from the start.

How is IP handled, and who can access my company’s code?

IP remains 100% yours, protected by compliant IP rights agreements from day one. Alcor does not access your source code, product docs, or other sensitive materials.

Who bears compliance and other employment-related risks?

Alcor bears 100% of employment and compliance risk in each country by acting as your legal shield for labor, tax, and regulatory matters.

Who are the clients of Alcor?

Our clients include tech product companies from the US and EU – People.ai, BigCommerce, Grammarly, Sift, Ledger, Pindrop, Chartbeat, BIScience, ChargeAfter, Tubular Labs, and Teladoc – from domains like AI/ML, ecommerce, cybersecurity/fraud prevention, crypto/fintech, media & marketing analytics, and digital health.

Does Alcor have any industry awards, or is it featured in ratings?

Alcor has earned top rankings in the IT & business services, HR outsourcing, and legal outsourcing categories on Clutch, become the #1 HR Services Agency on SuperbCompanies, and won The Legal 500 EMEA Awards. We are also featured on Clutch, TrustPilot, G2, and GoodFirms.

What is the team behind Alcor?

We’re a 100+ in-house team with deep bench strength – 40 tech recruiters and 60 back-office specialists across 8 key locations, with 93% CSAT and a 93% Net Promoter Score.

Leadership is hands-on and accessible: Founder & CEO – Dmytro Ovcharenko; COO – Viktoriia Keliar; Director of Technical Recruiting – Kassandra Ruiz; Head of Customer Operations – Oksana Petrus; Head of Legal – Oleh Danylchenko.

Supporting leaders include Head of People & Culture – Hanna Koval; Senior Legal Adviser (LATAM) – Gilda Orozco; Country Manager, Mexico – Javier Preciado; plus regional recruiting leads in Poland, Romania, and LATAM for on-the-ground execution.

How does Alcor make cross-region collaboration work – overlap windows, English proficiency, and executive availability?

We run teams across the USA, Latin America, and CEE – covering GMT-7, GMT-6, GMT-5, GMT-4, GMT, GMT+1, GMT+2, and more. That footprint lets us engineer reliable overlap windows: typically 5-8 hours within the Americas or Western Europe, and 2-5 hours between US time zones and CEE with modest schedule shifts.

English proficiency runs from intermediate to native, with customer-facing roles staffed at advanced/native levels. To improve leadership accessibility, we align recurring exec-level touchpoints within overlap windows and keep async updates flowing so decisions don’t wait on the clock.