{"id":22427,"date":"2025-08-15T14:34:52","date_gmt":"2025-08-15T11:34:52","guid":{"rendered":"https:\/\/scroll.media\/?p=22427"},"modified":"2025-08-15T14:34:54","modified_gmt":"2025-08-15T11:34:54","slug":"beyond-outsourcing-alcors-turnkey-rd-centers-are-winning-over-us-and-eu-tech-firms","status":"publish","type":"post","link":"https:\/\/scroll.media\/en\/2025\/08\/15\/beyond-outsourcing-alcors-turnkey-rd-centers-are-winning-over-us-and-eu-tech-firms\/","title":{"rendered":"Beyond Outsourcing: Alcor\u2019s Turnkey R&D Centers Are Winning Over US and EU Tech Firms"},"content":{"rendered":"\n

In mid-2020, Dmytro Ovcharenko, founder of Alcor<\/a>, was deep in talks with two recruitment agencies. He wasn\u2019t looking to hire them \u2014 he wanted to acquire them and bring their recruiters in-house. For Ukraine, it was an unusual case of acqui-hiring, but for his business at the time, it was a necessity.<\/p>\n\n\n\n

Alcor helps US and European product tech companies set up fully operational R&D centers with their own developer teams \u2014 covering everything from recruitment and office space to legal and accounting. Today, Alcor\u2019s 100-strong team operates across Latin America and Eastern Europe, serving more than 30 clients. So, how does this business work?<\/p>\n\n\n\n

From Idea to Business<\/h2>\n\n\n
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Before launching Alcor, Ovcharenko had built a successful career at Luxoft, a major IT services company with offices in Ukraine. During one important meeting in the Kyiv office he noticed a pattern.<\/p>\n\n\n\n

\u00abI kept hearing big-name clients being mentioned, and realizing they were paying huge sums to intermediaries without direct access to the developers. At the same time, I saw that most of our top recruiters were working for product companies. Then it hit me: why not connect both sides and create value for everyone?\u00bb Dmytro recalls.<\/em><\/p>\n\n\n\n

Ukraine has long been known for its highly skilled, adaptable developers, which fueled a booming outsourcing and outstaffing market in cities like Kyiv, Lviv, Kharkiv, and Odessa \u2014 a market that\u2019s been thriving since independence.<\/p>\n\n\n\n

Then Ovcharenko saw the opportunity in the Employer of Record (EOR) model \u2014 the approach he began implementing through Alcor. Traditionally, an EOR provider takes on the legal and administrative aspects of hiring developers, while the client manages the team and product development. This approach helps save time and resources on operational team management, but has certain gaps: no recruitment support for building a development team, and no help with essentials like buying equipment or renting office space.<\/p>\n\n\n\n

Ovcharenko\u2019s vision was to build a business that would combine EOR with full operational support, including recruitment and hiring. In return, the client company gets its own tech R&D center<\/strong> in a cost-effective location.<\/p>\n\n\n\n

\n

\u00abOur first client is a perfect example,\u00bb he remembers. A US MedTech company had about 15 developers in Ukraine \u2014 no formal legal entity, a mediocre office, and ad hoc payments. \u00abThey told me, \u2018I want these engineers to become my legal team in Ukraine, but I don\u2019t want to handle it myself.\u2019\u00bb<\/p>\n<\/blockquote>\n\n\n\n

Alcor acted quickly, transferring the client\u2019s operations into the Ukrainian legal and financial framework. The company ended up with a fully compliant, in-house team \u2014 and zero operational headaches.<\/p>\n\n\n\n

Once his concept was proven, Ovcharenko set out to scale the business. He identified the greatest demand among clients from the US and Europe, who lacked the resources to open their own offices abroad. Together with his team, Dmytro started building turnkey R&D centers for these companies: recruiting developers, securing office space, purchasing equipment, and providing full legal, accounting, and HR support. Whether a client needed five engineers or two hundred, Alcor delivered \u2014 often assembling teams of hundreds in less than a year.<\/p>\n\n\n\n

Unlike outsourcing, the clients don\u2019t \u00abrent\u00bb a team \u2014 they\u2019re getting their own tech R&D center. <\/p>\n\n\n\n

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\u00abNot everyone knows this, but a foreign customer can actually buy out a development team from a service company, sometimes paying up to $3 million for a team of 50. The thing is: before that, the company might have been paying those same people\u2019s salaries for three years without truly owning the team. I offer clients their own team, along with full support in organizing it,\u00bb Dmytro explains.<\/p>\n<\/blockquote>\n\n\n\n

Financially, there\u2019s a significant difference. In traditional outsourcing, out of every $100 paid by the client, only about $50 actually reaches the employee. The rest goes to the service provider\u2019s overhead and profit. At Alcor, it works differently: developers receive the full amount the client is willing to pay.<\/strong> The business model is based on charging a transparent management fee for project and team administration, but everything is discussed upfront and clearly spelled out in the contract. Importantly, the entire team works exclusively for the client, not for Alcor<\/p>\n\n\n\n

Focus on Tech and Deep Market Knowledge<\/h2>\n\n\n
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After securing his first clients, Ovcharenko realized he couldn\u2019t be everything to everyone and needed to focus on one direction. He had a clear example to confirm this.<\/p>\n\n\n\n

He referred to well-known global companies like Deel, Remote, and Rippling \u2014 large EOR players \u2014 and saw why they often drew criticism from their clients. They\u2019re industry-agnostic: ready to help you hire 25 fishermen in Japan, 15 wind farm specialists in Norway, and 20 engineers in Australia.<\/p>\n\n\n\n

Heavy automation and a lack of personalized support often come at cost. For example, a Ukrainian entrepreneur complained<\/a> about poor customer service and double billing. Another case involved hiring a team in Mexico, where the client faced huge fines after downsizing the team without understanding local labor laws.\u00a0<\/p>\n\n\n\n

Downtown Works\u2019 COO also pointed out a similar issue with Rippling: the company took payment but failed to fulfill its obligations. The problem was ignored to such an extent that the client had to escalate the issue publicly, yet even this did not prompt any action from Rippling.<\/p>\n\n\n\n

\n

\u00abThese are billion-dollar businesses, but let\u2019s be honest: clients care about outcomes, not shiny packaging,\u00bb says Ovcharenko.<\/p>\n<\/blockquote>\n\n\n\n

Alcor\u2019s tech-only focus has allowed it to build a team of 40 specialist IT recruiters who know exactly how to find the right talent, what the market rates are, and how long specific hires will take. This expertise helps fill roles faster and with candidates who have relevant experience.<\/p>\n\n\n\n

Next comes the choice of markets. Today, Alcor focuses on four specific regions: Ukraine, Poland, Romania, and Latin America. Each market launch happens only after a thorough study of local laws, financial regulations, and compliance requirements. Many clients are large enterprises or even IPO companies, so there is zero room for compliance mistakes in building R&D centers from scratch. That means, the Alcor team must know everything inside out to avoid creating any reputational or other problems for their partners.<\/p>\n\n\n\n

That\u2019s why, before entering a new geography, Alcor hires local specialists to join their team and prepare for any possible challenges.<\/p>\n\n\n\n

\u00abWhen you go to an outsourcing company, you get a team to work on your project. When you come to us, you get your own office with your name on the door, your people in your merch, and a team that\u2019s part of your culture \u2014 building your product, not ours,\u00bb Dmytro says.<\/em><\/p>\n\n\n\n

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This article was produced with the support of Alcor. Learn more<\/a><\/figcaption><\/figure>\n<\/div>\n\n\n
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We talk for over an hour, reflecting on the pre-COVID times and the early days of the business, as well as the Ukrainian tech market back then. Of course, we discuss 2020 and 2021, when the entire tech sector was soaring \u00abas fast as Falcon 9 launch,\u00bb he jokes. At the end, I ask him to share one key lesson he has learned through building his business over the past eight years.<\/p>\n\n\n\n

\n

\u00abUkrainian IT is great, no doubt,\u00bb he reflects. \u00abBut in recent years, I\u2019ve been traveling a lot \u2014 Silicon Valley, other tech hubs \u2014 and I see a totally different approach to life and business. Don\u2019t be afraid to look beyond your bubble.\u00bb<\/p>\n<\/blockquote>\n\n\n\n

By the end of 2025, Ovcharenko plans to launch another European location and triple the company\u2019s size within three years. For now, he\u2019s busy: in May, Alcor had a record number of conversations with potential clients. After our call, Dmytro heads straight into a full day with his team and customers.<\/p>\n","protected":false},"excerpt":{"rendered":"

In mid-2020, Dmytro Ovcharenko, founder of Alcor, was deep in talks with two recruitment agencies. He wasn\u2019t looking to hire them \u2014 he wanted to acquire them and bring their recruiters in-house. For Ukraine, it was an unusual case of acqui-hiring, but for his business at the time, it was a necessity. Alcor helps US \u2026 Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":22454,"comment_status":"open","ping_status":"open","sticky":false,"template":"template-custom-post-without-sidebar.php","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[416],"tags":[457,563],"class_list":["post-22427","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-partner-news","tag-promo-en"],"acf":[],"yoast_head":"\nBeyond Outsourcing: Alcor\u2019s Turnkey R&D Centers Are Winning Over US and EU Tech Firms | Scroll.media<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scroll.media\/en\/2025\/08\/15\/beyond-outsourcing-alcors-turnkey-rd-centers-are-winning-over-us-and-eu-tech-firms\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Beyond Outsourcing: Alcor\u2019s Turnkey R&D Centers Are Winning Over US and EU Tech Firms | Scroll.media\" \/>\n<meta property=\"og:description\" content=\"In mid-2020, Dmytro Ovcharenko, founder of Alcor, was deep in talks with two recruitment agencies. 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