Software Development

What is Better: A Software R&D Center or A Dedicated Team?

A Software R&D Center or A Dedicated Team

Today, research and development services have been the trend in many companies for executing tasks that involve software management. With talented hands such as developers, engineers, product designers, and so on, on the job, there is an absolute provision of the best IT solutions in a workplace. These people are interested in delivering the company’s goals using their various skills. However, recruiting these individuals can be done in two ways – a software r&d center or a company’s dedicated development team. This article aims to establish which method is better than the other.

Software R&D Center Vs. Company’s Development Team

A company’s development team temporarily utilizes a vendor’s team of software development and management experts. Here, a provider or vendor sets up an office in great locations where these individuals would work. On the other hand, a software research and development center is almost similar to traditional outsourcing, only that the company chooses the specific people needed for the job. It gives the autonomy of setting up an abroad office for operations.

Ideally, there are advantages and disadvantages to setting up either of them. The important thing is deciding which meets exactly what the company is looking for, with good consideration of budget and facility for operation. That being said, the yardstick for their differences include:

Also read: Dedicated Development Team – What Is It?

Recruitment Process

The recruitment process is one of the established differences between a development team and a personal r&d center. The former relies on a vendor to provide the best available talents in a particular location within a few weeks to work on a task. Thus, there is little or no information about the processes involved in selecting them. On the other hand, the latter allows a company to get involved in the selection or recruitment process. There is always a recruitment team responsible for scouting talents abroad, reviewing their CVs, and conducting interviews. Undoubtedly, a personal r&d center is faster and easier than a development team.

Control and Management

Another difference between a company utilizing software r&d center services and a development team is the control and management. If a company gives the task of selecting talents to do a job to a vendor, that means they won’t get full control and properly manage them. However, if they do it themselves, there is full control such that the company can establish rules to follow to enjoy transparency and meet targeted goals. More so, most companies have in-house HR policies for these individuals to follow for the smooth running of operational functions.

Contract Basis

A development team and an international r&d center also differ in their contracts. This factor distinguishes their role in a company extensively. For instance, a team built by a vendor will only be expected to work based on the duration of a task – short-term, mid-term, or long-term. And after completing a task, there is no need for them or until another situation when they are needed. However, those in an r&d center are hired as employees. They are working long-term and growing with a company through different stages. In short, there is high motivation to work in the latter than in the former.

Also read: Top 7 Benefits No-Code Survey Software Offers to Recruitment Professional

Cost and Pricing

A company’s r&d center has reduced cost and transparent pricing more than most development teams. The reason is that there are individuals responsible for ensuring the appropriate management of the funds for building up a team that would work directly with the company. On the other hand, some vendors might set up a team without considering your budget, and even the recruitment process takes a lot.

Legal Compliance and IP Rights

In a software research & development center, legal compliance and IP rights are the day’s order. The team handles various responsibilities, including tax planning and securing intellectual property rights. They even know how to utilize the government’s tax incentive programs better than a development team.


Building a software r&d center for business operations is better than a development team, following all the above points. The former interests itself in the company’s goals and has a higher investment potential than the latter. Lastly, some vendors also provide software research & development as a service, only that a company needs to find the best options to build their team.

Written by
Delbert David

Delbert David is the editor in chief of The Tech Trend. He accepts all the challenges in the content reading and editing. Delbert is deeply interested in the moral ramifications of new technologies and believes in leveraging content marketing.

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