Your Own Offshore AI Development
Better than outsourcing or hiring offshore AI developers—build your own offshore development center with Alcor and get:
- Silicon Valley-caliber team from 0 to 100 developers in 1 year
- Up to 40% cost savings compared to traditional outsourcers
- No buy-out cost—it’s your offshore AI developers
- Employer of Record service–our compliant employment solution
- No intermediary in team management. Establish your corporate culture
Mexico
Colombia
Argentina
Chile
Poland
Romania
Ukraine
BulgariaYour Own Offshore
AI Development Team of
developers in a month
Can an Offshore Provider Offer
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
it’s literally your own team
Long-term partnership
shared responsibility & commitmentHire Any Offshore Experts
Key Things to Know About Offshoring AI Development
Why big tech offshores AI development
AI technologies today are indispensable to the automation of data systems and streamlining operational processes. According to the SAS Institute, 63% of US tech leaders lack AI and ML skills. This fuels a high demand for AI developers.
Big tech chooses Latin America and Eastern Europe to hire offshore artificial intelligence developers because of:
- Abundant talent. 1.75 million software developers in LATAM and 1.5 million in EE potentially address the US talent gap.
- Affordable costs. Hiring and retaining an IT professional includes annual salaries, recruitment fees, payroll & tax, and benefits. In the United States, AI software engineers cost tech companies $108,000 to $132,000 annually, while in LATAM and Eastern Europe, average costs are $42,000 to $61,200 and $49,500 to $76,500, respectively. This difference alone cuts expenses by 1.7 to 2.5 times—and with reduced tax burdens in these regions, savings increase even further.
- Acknowledged tech expertise. In AI, ML models, and data science. Latin American and Eastern European programmers rank in Coursera’s top.
Top countries to offshore AI development
Let’s take a closer look at the most prominent locations to hire offshore artificial intelligence developers in Latin America and Eastern Europe.
In LATAM:
- Mexico abounds with 14,000 AI devs and 8,500 ML devs. The country is 3rd in LATAM tech skills rankings, shining in data visualization and statistical programming, and comes 3rd in UNESCO’s AI Readiness Index. On top of that, Mexico is regional #1 for the startup ecosystem, amassing 1,153 startups and 6 unicorns.
- Colombia boasts the highest AI potential, according to 84% of business leaders in the region. Out of 150,000+ software engineers proficient in Python, JavaScript, Ruby, and more, 1800 excel in AI, while 1200 have ML expertise. Finally, Colombian infrastructure ranks 2nd in LATAM and thrives with 1,720 startups and 2 unicorns.
In Eastern Europe:
- Poland leads with 22,000 AI devs and 13,000 ML devs—the biggest AI talent pool in the region. It also tops the regional rankings with 250 AI companies, 96,500 AI employees, and €171M of AI startup investment as of August 2024.
- Romania shines with its 146 AI product companies and 49,100 professional AI employees. What’s more, the country aligned its AI strategy with the EU AI Act and established its first AI research institute with 30 labs at the Technical University of Cluj-Napoca.
Your offshore AI development center
Alcor’s development center with AI expertise is a blend of three: tech recruitment, Employer of Record, and full operational support.
Tech recruitment builds you a team of top-10% software engineers in the market. Thanks to our 253K+ database of pre-vetted candidates and 40 expert recruiters, it takes only 8 CVs for one accepted offer and 2-6 weeks to gather a team from 0 to 100 Silicon Valley-caliber offshore artificial intelligence developers in a year.
Employer of Record removes the hassle of managing HR, payroll, and legal compliance on your own. There’s more: you don’t need to open a legal entity when expanding abroad. Instead, we at Alcor hire offshore AI and ML engineers, and you enjoy a top-tier in-house team.
Full operational support provides you with a cutting-edge R&D AI development center overseas. Office rent, equipment procurement, insurance provision, and IT support—all taken care of!
Comparison with alternatives
In outsourcing or outstaffing, you get junior or middle-level talent, low loyalty, communication via a third party, as well as exorbitant buy-out fees and markups. Alternatively, you can build an offshore software development team on your own, but conquering a local market with legal and tax differences is no mean feat.
Alcor steps in with expert knowledge in offshore business expansion. Instead of leaving you high and dry in an unfamiliar market, we navigate the complexities of tech recruitment, taxation, and legislation for you. Add in Employer of Record services and full operational support, and a team of offshore artificial intelligence developers is at your disposal without opening a legal entity.
Alcor’s software R&D accelerator is an all-in-one solution to expand into Latin America or Eastern Europe and access top-10% tech talent at a fraction of the cost. It’s long-term, scalable, under your control, and without markups.
Your Own Offshore AI Development Solution
Alcor is your tech expansion accelerator for global growth
- From 0 to 100+ engineers in one key talent pool
- Employer of record—no entity compliant employment
- Comprehensive in-country support
- No buy-out or other hidden fees
- Your team from day one. Your management. Your culture.
Own R&D Center vs Offshore AI Development
Software Development Center
- Maximized cost savings Your own software R&D team costs 40% less than an outsourced team. Because you get no buy-out fees & markups.
- Long-term commitment Product development and a sense of ownership attract professional developers as bees to honey. Hence, more loyalty.
- Direct control over development You get your team of offshore AI developers for ideation, innovation, and growth—without intermediaries.
- Intellectual property under control With direct agreements, you fully own your product and its source code, keeping unique engineering expertise in-house.
- Easy investment attraction Establishing your own R&D center with a dedicated team will enhance your appeal to investors.
Offshoring AI development
- Cloudy pricing With outsourcers, the markup for your vendor’s service might exceed a AI developer’s salary by 50%.
- Temporary fix Offshore development teams are loyal as long as the contract lasts and won’t go the extra mile to ensure your product’s long-term success.
- Your provider comes first An external AI development team will report only to your vendor, treating you as the “secondary” employer.
- IP rights transfer complexities When you engage a offshore development service company, the IP rights of your product initially belong to the outsourcing team. So think ahead about the safe transferring of them to you later.
- Barrier to investment attraction Engaging with a offshore development partner means that you delegate your core competencies to developers who will leave your team for good. Not exactly the investor’s dream.
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.
FAQ
- Is it cheaper to offshore AI development?
Yes, and with Alcor, you can save from 40% to 70% while scaling your company at the same time. Here’s what makes it possible: the difference in salaries & taxes and the 360-degree Alcor’s software R&D accelerator model.
In the US, a senior AI developer earns up to $132,000 a year, while an offshore AI engineer from Latin America and Eastern Europe makes $61,200 and $76,500, respectively. The regional taxation policies also offer tax reduction policies—like in Mexico and Colombia—and lower tax rates. Lastly, Alcor’s approach goes beyond finding coders. We get you a team that’s yours from day one—cut costs by not paying buy-out fees!
2. What are the average salary rates of offshore AI developers?
An offshore middle AI engineer in Mexico and Colombia would earn $50,400-$74,400, while their senior counterparts get $48,000-$72,000. In Poland and Romania, for instance, these numbers would be $68,400-$92,400 and $66,000-$90,000, respectively. Overall, US tech companies can save up to 60% on salaries in Latin America and up to 53% on tech wages in Eastern Europe.
3. Which hard and soft skills to consider when looking to hire offshore artificial intelligence developers?
The typical hard skills for AI programmers include top-level expertise in Python, Java, R, and C++, statistics, AI models, algorithms, frameworks, and big data technologies. As for the necessary soft skills, they cover critical and big-picture thinking, problem-solving, time management and communication skills, and teamwork.
4. What are the pitfalls of offshore artificial intelligence development?
The main pitfalls are an unsuitable location and an ineffective cooperation model. Regarding locations, consider not only the number of AI developers and general expertise but also the country’s infrastructure, educational potential, infrastructure, governance, tax incentives for R&D projects, and salaries. In terms of cooperation, beware of models where you communicate with your AI developers through a third party. This will only result in lower product loyalty and work engagement. Instead, opt for models where your offshore coders are part of the team from day one.
5. What are the benefits of building an offshore Web development center with Alcor?
Alcor is not just a regular provider of remote tech devs. We’re much more: your tech recruitment and EOR in one place! Our Employer of Record solution takes your mind off accounting & payroll, taxes, and legal matters, plus 100% compliance and our shared experience in navigating new labor markets. With tech recruitment, you build an offshore team for AI according to your requirements: 15% of Alcor’s vacancies are closed from the first CV, so you won’t wait long.
If you want to pump it up, opt for our R&D services: full operational support, office lease, and equipment procurement. All that comes with the guarantee to hire from 0 to 100 programmers in a year and a 3-month warranty for free candidate substitution. Worried we’d miss the deadlines? We hire free of charge in that case!
6. How fast can Alcor build an offshore AI development company?
We pride ourselves on expeditious recruitment—stellar quality within tight timeframes. Alcor’s average time to hire offshore artificial intelligence developers is 2-6 weeks, with the time-to-hire for team leads and C-level managers extending to 5-8 weeks and 6-9 weeks, accordingly. In just 1 day of our cooperation, you’ll get blind CVS. In the next 5 days, we’ll start sending you pre-vetted CVs. Then, we promise 5 AI developers within a month and 100 within a year.
7. Can you headhunt C-level management?
That’s an ace up our sleeve. We’ve access to an internal network of 253,000+ of pre-vetted candidates! That’s why C-level management positions, such as CTO, CIO, CMO, CFO, and others, come to our recruiters as easy as pie. Our clients attest: we hired the Head of R&D for Sift, an online fraud detection firm, from the second CV. Other successful cases include the Director of Engineering for Dotmatics and the Deployment Lead for Ledger.
8. What about payroll, accounting, and office lease?
If you hire offshore artificial intelligence developers with Alcor, there’s no need to establish your legal entity in a target location. With our comprehensive EoR support, we take care of all the nuts and bolts for your remote tech development team. It includes the employment of software engineers, monthly payroll management, tax payments, compliance with all local laws, and even more. With our turnkey solution, rest assured—we guarantee 100% compliance while handling all the paperwork.
9. What else does Alcor’s offshore Web center development include?
On top of an R&D office with full operational support at its highest? Depends on your request!
Let us tell you about Dotmatics, a US scientific software company aiming to hire 30+ devs within a year. The tech stack varied: Node.js, Java, React, JavaScript, AWS, and Cypress. We filled most roles with the 1st candidate, and not only that—we presented such a top-tier Back-End Developer that he joined the team as a Full Stack Java Engineer. Result? 30 skilled devs in a fully compliant R&D with back-office support in a year!
Bonus: we even help devise stock option plans for your new employees, just as we did for ThredUP and Sift.
Alcor shines bright among other offshore AI development providers: in 2024, we got a 99% client retention rate. Coming from industries like cryptocurrency, online fraud detection, machine learning software, etc., they agree on one thing—Alcor’s service is wow. We’ve worked with Sift, Ledger, People.ai, Tonic Health, and counting. You’re welcome to join!