• Quality of hiring 

Hiring skilled software engineers is no walk in the park. It demands in-depth research into the local labor scene, crafting a smart tech recruitment strategy, and navigating the interviewing process. On top of that, finding that perfect candidate who not only fits your technical needs but also blends seamlessly with your company culture adds an extra layer of complexity. To save time and money while establishing a software development center, tech companies choose to partner with experienced recruitment providers. Typically, these providers offer clear guarantees, such as a 2- to 6-week timeline to fill the vacancy, a specific number of CVs required to secure a job offer, and a large recruitment team with around 40 headhunters on board. 

• Provider choice  

Yes, choosing a reliable partner abroad is another pitfall tech companies face when opting for onshore development center services. Your scaling experience can quickly go south if your provider makes mistakes — like presenting unsuitable candidates, missing deadlines, mismanaging payroll & taxes, or failing to deliver other operational services, which could force you to juggle multiple vendors. Instead, look for a partner who is not only dependable and trustworthy but also brings top-notch tech recruitment and legal expertise to the table.  

Alcor is an excellent example of such a software development center service provider, having successfully assisted prominent tech companies like ThredUp, People.ai, Gotransverse, and others to set up their software development centers. Our clients have praised our services, with one among others stating on Clutch: “Alcor’s expertise and implementations have enabled us to run our company in the way and at the level we want.” This is thanks to our unique solution, which combines tech recruitment with seamless EoR support, allowing our clients to operate their businesses abroad hassle-free. 

With Alcor, you’ll avoid drowning in paperwork and back-office tasks when launching your onshore development center. We’ve got it all covered, and our software development center as a service process runs like clockwork:  

• We kick things off with full-cycle tech recruitment in your location. Our team of 40 seasoned headhunters can find Valley-grade software engineers in just 2-6 weeks! 

• Accounting and HR payroll are crucial for smoothly running your new software center. And that’s where our EoR service takes care of everything — from managing salary payments and transferring funds between your R&D unit and headquarters to handling health insurance and leave policies. Plus, we offer comprehensive legal and compliance support, including real estate negotiations, contract drafting (SLAs, NDAs, B2B agreements), and support with labor laws, visas, and M&A. 

• At the same time, if you need your own physical office, our real estate experts are on the hunt for the perfect space for you. We handle everything from location selection and parking to security systems, office layout, seating, and equipment. 

• To complete your software development center setup, we’ll assist in choosing furniture and establishing a robust IT infrastructure — everything from computers and software to security systems and servers.  

When all is said and done, your turnkey onshore software center is up and running within just 2-3 months!  

• Working with multiple service providers in parallel 

Some companies opt for onshore outsourcing of the software development center setup to multiple service providers for different tasks: tech recruitment, employer of record, legal compliance, office lease, procurements, and so on. While this might seem efficient, this approach often backfires, leading to miscoordination, delays, and, ultimately, higher costs and disappointing results.  

Solution? Consider teaming up with an onshore software development center provider that can manage all back-office functions that you need in one place, ensuring your onshore development center runs smoothly and saving a lot of your time and costs. 

• Overlooking employer branding 

When business leaders overlook promoting their company in a local job market, they often find themselves facing rejected offers from prime candidates. In fact, 60% of job seekers decide against accepting a position due to a company’s poor employer brand. This typically occurs when candidates are unfamiliar with the company’s values, culture, and growth opportunities, leading them to choose other options instead. 

To turn this around and boost your tech recruitment, Alcos kicks off an engaging employer branding campaign by crafting a compelling employee value proposition (EVP), building your company’s strong presence in local developer communities and tech media, and running impactful social media and PR campaigns. For example, we created a video featuring Sift’s Hiring Manager that highlighted the company’s values and team culture. Promoted across social media, the video had a significant impact — leading to a 15% increase in response and offer acceptance rates.