Nearshore Development Team in Europe
We hire and operate. You get your own nearshore development team in Europe.
You build your product. We have your back.
- Our tech talent is your perfect match that stays for good
- We employ, you own. 100% compliance, no exceptions
- Delegate your operational hassle, focus on what matters
- Expand rapidly if needed. We hire 10+ developers a month
- Save costs up to 40%, no buy-out or hidden fees
Mexico
Colombia
Argentina
Chile
Poland
Romania
Ukraine
BulgariaYour Own Self-Sufficient Nearshore Development Team in Europe of
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!
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.
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.
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.
Alcor’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.
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.
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.
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.
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!
Alcor’s flexible model helped us scale from 0 to 30 devs in a year first, and then to 50! No buy-out fees, seamless hiring, and top-tier talent. A hassle-free way to grow without setting up a subsidiary!
Why Tech Companies Migrate
from a Dedicated Team Model to Alcor
- Right talent from the right markets Your requirements and individual vetting, access to the optimal candidates, free replacements
- People as a strategic asset Grow, invest, and retain tech talent. Build trust, boost performance, and benefit from long-term relationships
- Your team Complete transparency and control over your remote team, no go-between, only your culture and rules
- Transparent costs, predictable for years Set and revise individual compensations, understand every dime & get contractual volume discounts
- No exit barriers No exit fees, immediate and free IP transfer, audited and proven by publicly-traded companies
Dedicated Team in Europe
- Entry-level talent, seniority inflation Wrong seniority mix, ungrounded titles, bench-focused project staffing
- No capitalization on knowledge Little/no control over engineers’ allocation, sudden moves to other clients
- Not your team Black box approach in compensation, motivation, performance, and individual contribution
- Untransparent & ever-rising costs Tricky rate cards or expensive pricing wrappers, regular cost increase with no visible returns
- Fence-based business Ridiculous notice periods and exit fees, legal obstacles to insourcing key contributors, and retaining knowledge
We Offer Cost-Efficiency for Your Long-Term Growth
Build top-talent nearshore development team in Europe and effortlessly scale delivery
- $ 70,000
- $ 60,000
- $ 50,000
- $ 40,000
- $ 30,000
- $ 20,000
- $ 10,000
- 0
Budget for your team, not provider’s EBITDA
-
Outsourcing company
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Alcor
- $ 70,000
- $ 60,000
- $ 50,000
- $ 40,000
- $ 30,000
- $ 20,000
- $ 10,000
- 0
- Engineer’s compensation
- Recruiting cost
- Provider’s uplift
We Build Nearshore Development Teams Fast and Efficiently
2-6 weeks
to close a vacancy
80% of candidates
are approved by clients
98.6%
probation pass rate
2.5 years
average tenure
8 CVs
to get 1 accepted offer
5 business days
to send you first CVsReinvented Nearshore Development Team Model
A reliable partner accelerates your expansion risk- and hassle-free
- Navigates you through tech market landscape
- Covers compliance, payroll, procurement, office lease
- Communicates, adapts, supports, takes action
- Always delivers
Key Things About Nearshore Development Team in Europe
Reasons to build a nearshore development team in Europe
Access to talent and cost efficiency
CEE and central Europe boast over 3.5 million ICT specialists, making them prime regions for building a nearshore development team in Europe. Companies gain access to highly skilled tech talent while reducing costs compared to hiring locally in the US or Western Europe.
Strong software development and tech capabilities
Europe’s technical universities feed a strong pipeline into the software development sector. The region is rich in developers skilled in languages and modern frameworks like flutter development team stacks, Python, and AI development.This allows a nearshore development team in Europe to cover advanced tech needs reliably.
Time-zone and cultural alignment
A nearshore development team from Europe operates in overlapping business hours with both Western Europe and the US. This supports smooth communication, sprint planning, and manage team workflows. Cultural similarities also reduce friction when building distributed teams.
Business-friendly environment & compliance
European countries offer favorable legal, tax, and IP frameworks. A nearshore software development team in Europe ensures GDPR compliance, IP security, and global legal alignment.
Versatility in tech stack and team roles
Whether you’re hiring a flutter development team, AI development experts, or DevOps engineers, a nearshore development team in Europe gives access to specialized skills quickly.
Challenges of working with a nearshore development team in Europe
Despite the many advantages, working with a nearshore software development team in Europe requires careful planning and proactive management to avoid potential pitfalls. Below are key operational, legal, and organizational challenges you should anticipate—along with practical mitigation strategies.
Talent saturation and hiring delays
With many companies competing for the same highly qualified engineers, especially in CEE and central Europe, talent saturation can result in longer recruitment cycles and higher salary expectations. Roles requiring niche expertise, are particularly affected.
Solution: Partner with an Employer of Record in Europe that specialises in building nearshore development teams from Europe and has a pre-vetted network of senior developers. Maintain realistic timelines and build strong employer branding to attract top tech talent.
Legal and tax compliance risks
Each country in Europe has unique tax codes, labor laws, and contractor classifications. Without in-depth local knowledge, companies risk employee misclassification, non-compliance penalties, and incorrect taxation—especially when managing B2B or mixed employment models.
Solution: Either work with a local legal advisor or engage a tech-specialised EOR partner who can hire your nearshore developers in Europe compliantly. Ensure all employment contracts and compensation schemes align with local regulations.
Cross-border coordination and communication gaps
Even with time-zone alignment, global team communication can suffer if expectations, workflows, or documentation practices are unclear. Misalignment between HQ and nearshore development teams in Europe may lead to delivery delays, scope creep, or unfulfilled KPIs.
Solution: Establish unified sprint planning, daily syncs during overlapping hours, and shared dashboards. Use agile ceremonies and collaboration tools to drive transparency, and ensure your IT team includes experienced project managers to bridge locations.
Cultural misalignment and integration challenges
Though many nearshore developers from Europe are culturally compatible with Western firms, there are still subtle differences in feedback style, decision-making, and team dynamics. If overlooked, these may hinder collaboration or slow onboarding.
Solution: Include cultural alignment as part of your hiring and onboarding process. Invest in knowledge-sharing sessions, joint training, and occasional in-person team-building to foster mutual understanding and reinforce a shared tech culture.
Holiday schedules and resource planning
Local holidays and time-off schedules vary by country. If not accounted for in your development roadmap, this can disrupt deliverables or reduce sprint velocity at critical times.
Solution: Align calendars in advance and plan buffer capacity into project timelines. Distribute responsibilities across multiple regions or adjust team resourcing to ensure business continuity for your European nearshore software development team.
Scalability and long-term retention
As your business grows, scaling your nearshore development team in Europe without compromising quality becomes more difficult. Fast hiring often leads to mismatched skills or poor integration, while retention risks increase if developers lack a clear career path.
Solution: Work with a partner that not only sources talent but also supports onboarding, training, and career planning. Define growth plans for each team member and build a long-term engagement strategy with clear incentives and performance reviews.
Key steps to build your nearshore development team in Europe
Selecting the right cooperation model:
- IT outstaffing provides fast access but weak loyalty.
- Nearshore development team in Europe balances control and cost.
- R&D centre gives full ownership.
Choosing employment options:
- FTE: Full-time hires via a legal entity.
- B2B: Independent contractor engagement.
For your nearshore development team in Europe, the choice impacts tax, compliance, and scalability.
Partner selection checklist:
To build a nearshore development team from south-east Europe, vet your partner on:
- Recruitment strategy
- Local IT team expertise
- Clear KPIs and timelines
- Legal compliance coverage
Operational setup:
Use an EOR or legal entity for hiring your nearshore developers in Europe, ensuring labor law compliance and IP security.
Nearshore team managment best practices:
- Overlapping schedules
- Task visibility and sprints
- Integrated tools
- Strong tech culture and onboarding
These make your nearshore development team from Europe effective and aligned.
What roles to include in your European nearshore software development team
- Team/tech lead
Leads your nearshore developers from Europe, sets direction, mentors team members, and ensures engineering quality.
- Product manager
Bridges business goals and software development. Critical for aligning your nearshore software development team in Europe to product vision.
- Software developers
Core of the team. Includes front-end, back-end, full-stack, and niche roles like a flutter development team. These nearshore developers in Europe build scalable applications.
- QA engineers
Ensure testing and release quality across your nearshore development team in Europe.
- UI/UX designers
Key for product usability. A nearshore development team in Europe with strong UI/UX delivers better software outcomes.
- AI developers for modern frameworks
To integrate emerging capabilities into your nearshore software development team in Europe using AI development specialists profiles.
Top locations to hire a nearshore software development team in Europe
Poland
Poland offers the largest tech talent pool in Central and Eastern Europe with over 650,000 IT professionals as of 2025. Cities like Warsaw, Kraków, Wrocław, and Gdańsk serve as major tech hubs, supported by strong academic institutions such as Warsaw University of Technology and AGH University of Science and Technology. Poland ranks high in global developer skill ratings and provides a stable infrastructure for scaling a nearshore development team in Europe.However, companies must navigate complex employment regulations and a dual system of contracts (Umowa o Pracę vs. B2B). An experienced partner is essential for managing tax compliance and choosing the most efficient hiring strategy for your nearshore developers in Europe.
Romania
Romania is home to more than 190,000 software engineers, concentrated mainly in Bucharest, Cluj-Napoca, Iași, and Timișoara. It offers highly competitive salaries—30% lower than Western Europe—and boasts strong English proficiency among developers. Romanian engineers are particularly known for their expertise in Java, PHP, and .NET technologies.A nearshore development team in Europe established in Romania benefits from a favorable tax environment, including a 10% flat income tax and exemptions for IT professionals. Despite having fewer hubs than Poland, the local tech talent is highly skilled and increasingly tapped by global tech firms like Microsoft, Amazon, and UiPath.
Bulgaria
Bulgaria produces over 6,000 STEM graduates annually from 50 universities and has developed a strong reputation in data science, fintech, and cybersecurity. The average salary for senior developers ranges between €35,000–€45,000, significantly lower than in Germany or the UK. Bulgaria’s capital, Sofia, as well as towns Plovdiv and Varna, are key locations to build a nearshore development team from South-East Europe. The country ranks #1 in CEE for data science skills, with local developers consistently scoring high in HackerRank and Coursera rankings. Bulgaria is also a member of the EU and NATO, which ensures strong data protection and political alignment with Western partners.
Czechia
Czechia hosts a mature tech ecosystem with over 150,000 developers and a strong focus on AI development, embedded systems, and cloud platforms. Prague and Brno are the leading cities for hiring top-tier talent. The country’s developers are highly ranked globally in problem-solving and algorithmic skills. Average salaries are moderate: senior developers typically earn €45,000–€55,000 annually. Czechia also benefits from an efficient public administration system and access to EU R&D funding, making it an ideal base for a European nearshore software development team focused on innovation and scalability.
Ukraine
Despite the ongoing conflict, Ukraine remains a tech powerhouse with over 300,000 IT specialists and a thriving startup culture. Kyiv, Lviv, and Dnipro are still operational hubs where companies can build a nearshore software development team in Europe with high resilience and cost-effectiveness.Ukrainian developers excel in AI, ML, and software development services. Average monthly salaries range from $2,500 to $4,000 for mid to senior engineers—up to 55% lower than in the US. The country also offers tax incentives through its Diia.City regime, providing a simplified legal framework and 5% flat tax on income for tech professionals.
Portugal
Portugal is gaining momentum as a nearshoring destination, especially for Western European companies. With over 140,000 tech professionals and strong university programs in Lisbon, Porto, and Braga, Portugal supports growing demand for full-stack, DevOps, and flutter development team roles.The government offers R&D tax incentives and startup-friendly policies. Lisbon ranks among Europe’s top five digital nomad hubs, attracting global developers. While salaries are higher than in CEE, Portugal provides seamless timezone alignment, EU legal stability, and easy access for on-site collaboration, making it ideal for building a nearshore development team in Europe serving EU clients.
Real example of building a nearshore development team in Europe
Dotmatics, a US-based scientific software company, needed to expand its engineering capacity while entering the European market. Instead of choosing risky IT outstaffing or traditional outsourcing, they partnered with Alcor to establish a full-scale nearshore development team in Europe.
Hiring: Alcor assigned four senior recruiters who assembled a team of over 30 experienced software development professionals, including a Director of Engineering, Full Stack Developers, React Engineers, QA Automation specialists, DevOps, and Node.js experts. The entire hiring process was completed in record time, ensuring that Dotmatics gained rapid access to top tech talent.
Legal: Through Alcor’s EOR solution, all legal and compliance operations were managed within Europe. Payroll, accounting, onboarding, offboarding, and benefits administration were handled seamlessly. This allowed Dotmatics to focus on its software development roadmap while maintaining full compliance with European labour and tax regulations.
Operational: Alcor’s local operational support covered everything from workspace setup to equipment procurement. The team ensured that laptops and technical resources for the nearshore development team in Europe were delivered quickly and configured properly, enabling engineers to start coding without delay.
By choosing a nearshore development team in Europe, Dotmatics minimized legal risk, accelerated product delivery, and gained full control over its engineering operations—all while keeping costs transparent and predictable.
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 don’t need to establish your legal entity in a target location. Leave all the nitty-greedy tasks to our experts! We’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 employer’s brand promotion in the local market, visa support, and even more! Just choose what fits your business needs best.
FAQ
Is it beneficial to use nearshore development team services in Europe?
For short-time projects, leveraging a nearshore team in Europe 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 product’s success, data leakage, and buy-out fees. That’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 Europe 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 nearshore 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.