## Introduction

OpenAI, the renowned research-focused organization, has recently undergone a transformative shift towards a for-profit model. For this transition, OpenAI partnered with the esteemed design agency, Area 17, to create a new visual identity and website. The objective was to enhance OpenAI's public presence while emphasizing the organization's commitment to safety, precision, and the responsible development of artificial intelligence (AI). The result is a captivating new brand identity that seamlessly combines humanist design elements with a touch of magic. In November 2023, OpenAI proudly unveiled its new identity and website, marking an important milestone in its evolution.

## A Public-Facing Approach

![Image from ts2.space](img/open-ai-to-offer-copyright.jpg "Image from ts2.space")

Image from [ts2.space](https://ts2.space/en/open-ai-to-offer-copyright-shield-and-app-store-for-chatgpt/#gsc.tab=0)\
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Recognizing the need to engage with a broader audience, OpenAI decided to adopt a more public-facing approach. The collaboration with Area 17 aimed to develop a fresh identity that would resonate with both experts in the AI field and the general public. By leveraging the expertise of the design agency, OpenAI sought to create an inclusive brand that would effectively communicate its mission and values to a wider audience.

One of the key aspects of OpenAI's new identity is the integration of "humanist" design references. This approach aims to infuse warmth, empathy, and a sense of connection into the organization's visual representation. By incorporating elements that evoke the essence of humanity, OpenAI aims to bridge the gap between advanced technology and human society. The humanist design references serve as a reminder that AI development should always prioritize human well-being and ethical considerations.

## A Touch of Magic

In addition to the humanist design references, OpenAI's new identity also features touches of "magic". This creative element adds a sense of wonder and excitement to the brand, capturing the imagination of the audience. The inclusion of magical elements symbolizes the transformative power of AI and its potential to shape the future positively. By combining the concepts of humanism and magic, OpenAI aims to inspire trust, curiosity, and a belief in the limitless possibilities of AI technology.

## Tech Nostalgia for Safety

![Image from area17.com](img/tech-safety.png "Image from area17.com")

Image from [area17.com](https://area17.com/work/openai-brand-and-website)\
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The design team at Area 17 cleverly utilized tech nostalgia as a means of instilling a sense of safety in OpenAI's brand identity. By incorporating design elements reminiscent of past technological eras, OpenAI seeks to cultivate a feeling of familiarity and comfort. This approach acts as a counterbalance to the potential apprehensions associated with cutting-edge AI technologies. The nostalgic elements create an environment where users can feel at ease, fostering trust in OpenAI's commitment to responsible and secure AI development.

## Emphasizing Safety and Precision

OpenAI's new identity and website strongly emphasize the organization's dedication to the safe and precise development of AI. The design elements chosen are intended to communicate OpenAI's commitment to transparency, accountability, and ethical practices. The precision-focused design elements reflect OpenAI's meticulous approach to AI research and development, ensuring that every step is taken to minimize risks and ensure the technology's positive impact on society.

## Conclusion

OpenAI's transition to a for-profit model has spurred a remarkable evolution in the organization's visual identity. Collaborating with design agency Area 17, OpenAI has successfully crafted a new brand identity and website that effectively communicates its commitment to safety, precision, and the responsible development of AI. By integrating humanist design references, touches of magic, and elements of tech nostalgia, OpenAI has created a captivating identity that appeals to a diverse audience. The launch of the new identity and website in November 2023 represents an important milestone for OpenAI as it continues to lead the way in AI research and innovation while prioritizing the well-being of humanity.

OpenAI unveils its new identity and website, focusing on safety and innovation. Discover how the organization incorporates humanist design, touches of magic, and tech nostalgia to communicate its commitment to responsible AI development.

Cultivate a feeling of familiarity and comfort: OpenAI Unveils New Identity and Website, Emphasizing Safety and Innovation

## Introducing Movadex

![Image from Movadex](img/dsc_2737.jpg "Image from Movadex")

I﻿mage from [Movadex](https://movadex.com/)

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Hey there! I'm Nor, the CEO & co-founder of Movadex, a company specializing in software design and development.

After earning numerous awards for building an innovative fintech product Uprice, we made the leap to become Movadex. Our expertise has influenced over 200 projects across various sectors like sustainability, fintech, travel, KYC, healthcare, and more. We're transforming digital products and services, making a mark in the industry.

**What sets us apart?** We blend the art and business of innovation. Whether it's an AI powered art platform or an eCommerce solution integrated with real estate, our team is not only technically savvy but also creatively inclined. So, our mission is to enrich the startup ecosystem by providing transparent solutions and innovative ideas from our team of professionals.

## The Importance of Staying Ahead in the Tech Industry

With the spread of AI, especially ChatGPT, [35% of global companies report using AI in their business](https://explodingtopics.com/blog/companies-using-ai). Notably, 42% of companies have reported exploring AI use within their company.

To address the question of "Why bother keeping up with current trends?" in brief, the answer lies in the optimization of time, gaining access to novel technologies, and enhancing overall business performance, thereby boosting revenue.

For example, a [survey of 7,700 sales professionals from Salesforce](https://www.salesforce.com/news/stories/sales-research-2023/) found that sales representatives spend an average of less than 30% of their week on actual selling. A significant chunk of their time goes into manual duties like entering data and updating details on their ongoing deals. AI tools come in handy here, automating these time-consuming tasks and allowing sales reps to focus more on selling.

Hence, it's crucial to adopt different software trends, as I'll discuss shortly. Don't hesitate to try new things.

## Movadex's Approach to Embracing Emerging Software Technologies

When clients come to us, we help them come up with ideas to improve their business, like adding new features or using the latest tech. Most of our clients are startups and small businesses that like to try new things, so our team is always learning to give them the best results.

For example, we worked with [Artsted](https://movadex.com/portfolio/artsted), a platform that's unique because it offers affordable investment-grade artwork with clear pricing and artist career info. The project used NFT and blockchain technologies, so our main job was making sure everything was super secure. First off, we use really good security and encryption to protect user data and transactions. We use SSL tech to encrypt data when it goes between users and the platform. We also have strong checks to make sure only the right people can access things.

On top of these techie steps, we have strict rules about how we handle and store data, and we regularly check to make sure we're following all the important rules. Lastly, we work closely with our clients to teach them the best ways to keep their users' data safe, like using strong passwords and being careful with links and emails that seem suspicious.

## Insights from Nor on Emerging Software Technologies

![Image from Movadex](img/dsc_2790.jpg "Image from Movadex")

I﻿mage from [Movadex](https://movadex.com/)

### Artificial Intelligence and Machine Learning

Startups should dive into AI without hesitation. It's a fast and budget-friendly method to incorporate AI and ML into your project. For instance, AI-driven analytics for customer behavior can significantly enhance user experience and business strategies.

While some are concerned about shelling out hundreds of dollars for deploying AI models, the truth is that up to **95% of companies don't**. In fact, the vast majority of companies are finding ways to integrate AI into their projects without incurring exorbitant costs. This aligns with the idea that advancements in AI tools, frameworks, and cloud services have made these technologies more accessible to businesses of all sizes.

### Internet of Things (IoT)

IoT might not be as trendy lately, but it's **making a comeback**.

The Internet of Things (IoT) refers to a network of physical objects, commonly known as "things," which are equipped with sensors, software, and various technologies. The functionality of IoT devices revolves around the collection and transmission of data to a central server or cloud. This data becomes instrumental in monitoring, analyzing, and optimizing the performance of the connected device. To illustrate, consider an IoT-enabled thermostat that gathers data on the temperature and humidity within a room, utilizing this information to make adjustments to the temperature settings accordingly.

IoT is revolutionizing how we interact with our devices. Businesses should look into how they can integrate IoT to improve operational efficiency or create new customer experiences. *For example, smart home technology is rapidly growing, offering numerous possibilities for innovative applications.*

### Blockchain Beyond Cryptocurrency

Blockchain is a type of technology that acts like a digital notebook. It keeps getting bigger as it records new information in blocks. These blocks are connected and kept safe using special codes. Each block has a time stamp and a link to the one before it, creating a chain of blocks.

You don't have to use it everywhere, but blockchain works really well in certain situations.

*For example, when you want to make sure data won't change, won't be tracked, and needs to be anonymous, decentralization is a great choice.* Think about signing documents. With decentralization, anyone can check that all parties actually signed the document.

### Edge Computing

With the explosion of data, edge computing is becoming important. It involves processing data closer to where it’s being generated, which can lead to faster and more efficient systems – a crucial aspect for businesses dealing with large volumes of data.

For example, edge computing can be used to analyze network traffic and identify potential threats in real time. This can help to prevent cyberattacks and keep networks secure. Or the smart grid is a network of electricity distribution that uses communication and information technologies to optimize the delivery of electricity. Edge computing can be used to collect and analyze data from smart meters and other devices, enabling the grid to respond to demand more efficiently and prevent blackouts.

### Cybersecurity

We all have to invest in good cybersecurity—it's a must, not a choice. Staying ahead in technology and strategy is key to protecting your digital stuff.
Take, for instance, the [Free Vestia](https://movadex.com/portfolio/free-vestia) platform—a hub for startups and investors to connect and collaborate seamlessly.
Our first step was to closely examine Free Vestia's existing security measures, searching for any potential weak spots. We conducted a thorough security audit, identifying vulnerabilities and potential risks. Once we had a clear picture of their data security status, we partnered with Free Vestia to devise and implement a comprehensive security plan. This involved enhancing encryption techniques, fortifying access controls, and regularly conducting security audits and tests to ensure the system's resilience.

### Sustainable and Ethical Tech

Businesses need to consider the environmental impact of their tech solutions and strive for sustainable practices. Additionally, ethical AI is a topic gaining traction, focusing on transparency, fairness, and accountability in AI systems.
For example, consider a tech company that specializes in manufacturing smartphones. To embrace sustainability, the company commits to reducing electronic waste by implementing a robust recycling program. Instead of discarding old devices, they encourage customers to return their outdated smartphones for proper recycling and refurbishment.

### Remote Work Technologies

The shift to remote work has accelerated the development of tools and platforms that facilitate collaboration and productivity in a distributed work environment. This trend is likely to continue, with more innovative solutions emerging in this space.
For example, I recently wrote a post about [BYOD (Bring Your Own Device)](https://movadex.com/blog/article/understanding-byod-definition-and-meaning): exploring the policies, factors to consider when working remotely with your own devices, and questioning its overall profitability.

## Recommendations for Businesses

![Image from Movadex](img/dsc_2797.jpg "Image from Movadex")

I﻿mage from [Movadex](https://movadex.com/)\
\
It’s important to keep a close eye on these trends and continuously evaluate how they can be integrated into your business strategy. Encourage your team to engage in ongoing education and training in these areas. Moreover, adopting a flexible business model that can quickly adapt to new technologies is crucial. Always be ready to pivot and embrace change – it’s the key to success in the ever-evolving world of software technology.

Discover Movadex, a software design and development company revolutionizing the industry with innovative and transparent solutions. Explore the importance of staying ahead in the tech industry, Movadex's approach to embracing emerging software technologies, and valuable insights on AI, IoT, blockchain, edge computing, cybersecurity, sustainable and ethical tech, and remote work technologies. Stay informed and adapt your business strategy to thrive in the ever-evolving world of software technology.

Tech Talk: CEO of Movadex Shares Insights on Emerging Software Technologies

London, UK – The Generative AI for Marketing Summit 2024 is set to take place on February 27th-28th, 2024, at a venue to be confirmed in London. This pioneering event marks a significant milestone as the first gathering of strategic marketing leaders, creatives, and technology enthusiasts to explore the transformative power of Generative AI.
Generative AI has ignited unprecedented levels of excitement and curiosity within the marketing and creative industries. Its potential to revolutionize marketing workflows is undeniable, and this summit aims to provide a comprehensive understanding of how Generative AI can shape the future of marketing.

**Key Themes and Highlights:**

1. Navigating the Generative AI Landscape: Delve into the world of Generative AI, learning how to identify the right use cases, establish a robust framework, and assemble the right team to embark on your Generative AI journey.
2. Transforming Workflows: Discover how to seamlessly integrate Generative AI tools and models into your marketing workflows, unlocking maximum value and efficiency.
3. Augmented Creativity: Explore how Generative AI can supercharge creativity, enabling hyper-personalized content generation and providing new levels of insight for marketing strategies.
4. Responsible AI: Develop a framework for responsible AI usage, and gain insights into navigating issues related to intellectual property, copyright, and ethical concerns.
5. Human-Bot Interactions: Explore the future of generative agents and avatars, reimagining how businesses interact with their customers.
6. Brand Identity Reinvented: Learn how AI can be harnessed to ensure a consistent and compelling brand presence across all customer touchpoints.

**Industry-Leading Insights:**

Generative AI has redefined the marketing landscape, revolutionizing content creation and audience engagement. However, with these advancements come challenges. Leading experts will address critical topics such as:

•  Optimizing content creation with generative AI.

•  Navigating data ownership, privacy, and permissions in the realm of generative AI.

•  Elevating generative AI design, maintaining quality and brand identity.

•  Harnessing generative AI for hyper-personalization.

•  Expanding global reach through AI-powered marketing localization.

•  Ethical frameworks for AI in marketing, considering evolving challenges and regulations.

**Event Details:**

•  **Dates:** February 27th-28th, 2024

•  **Location:** London, UK \[Venue: To Be Confirmed]

•  **Website:** [](https://www.aidataanalytics.network/events-generative-ai-for-marketing)<https://shorturl.at/opvE3>

•  **Agenda:** [](https://www.aidataanalytics.network/events-generative-ai-for-marketing)[](https://shorturl.at/opvE3)<https://shorturl.at/gMOPY>

•  **Speakers:** A distinguished lineup of industry experts will share their insights and experiences at the summit.

Stay tuned for updates on our website to discover the full list of speakers, sessions, and networking opportunities planned for the Generative AI for Marketing Summit 2024.

**About the Generative AI for Marketing Summit 2024**

The Generative AI for Marketing Summit 2024 is a groundbreaking event that unites strategic marketing leaders, creatives, and technology enthusiasts to explore the transformative potential of Generative AI. Through expert presentations, workshops, and networking activities, attendees will gain invaluable insights into the application of Generative AI in marketing, revolutionizing their strategies and practices. This event is proudly organized by IQPC R&D and promises to be a pivotal moment in the convergence of marketing and AI innovation.

**Unlocking Creativity and Efficiency**

The main report has been released and is now available. You can access it through the following link:  [Navigating the Generative AI Marketing Revolution](https://shorturl.at/dnwZ8). This comprehensive report explores how marketers can leverage generative AI to enhance their creativity, efficiency, and effectiveness. It delves into the impact of generative AI on marketing creativity, optimizing marketing workflows, and managing the risks associated with this technology. To gain valuable insights into the generative AI marketing revolution, make sure to check out the main report using the provided link:  <https://shorturl.at/dnwZ8>.

The Generative AI for Marketing Summit 2024 in London, UK, on February 27th-28th, 2024, brings together strategic marketing leaders, creatives, and technology enthusiasts to explore the transformative power of Generative AI. Discover key themes such as navigating the Generative AI landscape, transforming workflows, augmented creativity, responsible AI, human-bot interactions, and reinventing brand identity. Industry experts will address optimizing content creation, data ownership, and privacy, AI design, hyper-personalization, global reach, and ethical frameworks. Don't miss this groundbreaking event organized by IQPC R&D, shaping the future of marketing and AI innovation.

Generative AI for Marketing Summit 2024: Transforming Marketing through Innovation

Both small businesses and large enterprises can reap the benefits of launching research and development centers (also known as R&D centers) located in offshore or nearshore zones. Thanks to these centers, companies have a chance to tap into a treasure trove of skilled tech talent to work on their software products and bring in innovations. To delve into the intricacies of launching an R&D center, we spoke with Dmytro Malashevskyi, Head of Business Development at nCube. In his role, Dmytro helps clients start R&D centers across such skilled tech hubs as Eastern Europe and LATAM. In the following interview, we address some important questions on this subject. *Let's begin!* 

## What makes R&D centers stand out among other outsourcing models? 

The main difference between outsourcing and a stand-alone R&D center lies in their respective models of cooperation. Unlike outsourcing, a**n R&D center serves as an extension of the client's parent company**. It operates as an autonomous branch under the client's brand with an independent infrastructure and dedicated employees who handle the tasks of the client's parent company. This assumes having a separate organizational structure, Chief Operating Officer (COO), management, HR and office managers, and other supporting teams. It comes with its own cookies and tea as well :)

<iframe src="https://giphy.com/embed/5r5J4JD9miis" width="480" height="270" frameBorder="0" class="giphy-embed" allowFullScreen></iframe><p><a href="https://giphy.com/gifs/cat-day-office-5r5J4JD9miis">via GIPHY</a></p>

## When does it make sense to launch an R&D center and why do companies do it? 

That's a great question, which has a fairly simple and understandable answer. The best time to create a research and development center is **when the need for further evaluation of the company arises**. At this point, companies get a chance to report and present their R&D centers as part of their assets, which elevates their overall value. That's the main reason why a company would prefer to launch a research and development center instead of going for outstaffing or outsourcing services. 

A good reason for a company to start an R&D center is **to benefit from instilling its own culture within its remote branch**. The matter is that R&D centers suit **long-term projects** as opposed to short-term ones of startups. With an R&D center, you will get an opportunity to **work with a stable team for as long as you need it**. Such an approach reduces the risks for the parent company. If anything goes awry at some point, for instance, a change of plans occurs, it'll be easier (and cheaper) for the client company to scale down an R&D center than disband their local team.

## Is it legal to run an R&D center in an offshore region? 

This one is tricky and falls under the "Everything which is not forbidden is allowed" category. As a matter of fact, it all depends on the goals and preferences of the parent company. My recommendation is **to choose countries that offer incentives for establishing IT companies**. 

For example, some countries boast reduced tax rates or even zero taxes policies up to 2 million Euros per year, for instance, Estonia. It's also crucial to define whether your R&D center will be a profit-generating entity. With that in mind, you should answer the following question: **Will your research and development center generate revenue for the parent company, or will it be a subsidiary that only handles software development tasks?** In the latter case, it is not as important where you establish the legal entity.

## What are the primary components and factors that influence the cost structure of an R&D center? 

Since an engineering research and development center is an intellectual and talent-dependent business, **the majority of expenses are related to Human Resources costs.** In fact, employees' salaries account for a lion's share of the expenses within an R&D center model.

Besides that, there are also additional costs in this model that are typically covered by the provider. Those include the costs of office space rent, one-time investments like office equipment, furniture, and appliances as well as expenses for establishing a legal entity, managing taxes, office maintenance and management, and HR support aimed at employee retention. It's also common to put down a deposit equivalent to two months' rent, along with an upfront payment for the office lease.

<iframe src="https://giphy.com/embed/2vq9I9HGKrpjaHNLVb" width="480" height="270" frameBorder="0" class="giphy-embed" allowFullScreen></iframe><p><a href="https://giphy.com/gifs/RJFilmSchool-crunchyroll-acd-anime-crimes-division-2vq9I9HGKrpjaHNLVb">via GIPHY</a></p>

## What is the average price of an R&D center and how is the price defined?

There's no universal answer as to how much it costs to open an R&D center. Above all, **it depends on the number of people and the size of the office**. For instance, in Ukraine, it’s now possible to rent an office space of 250 square meters for $3,500, which would be sufficient to comfortably accommodate 20-25 people, according to standard requirements. There's also the cost of establishing a legal entity, which is usually covered by the provider. On average, launching an R&D center of this scale requires an investment of approximately $50,000. This one-time investment should suffice to cover various expenses such as office rent and equipment, legal entity registration, and legal support, including the necessary deposits.  

## Which countries are most favorable for R&D centers?  

An ideal choice is a region with **the most reasonable cost-quality ratio when it comes to the talent** you will engage in your research and development center. Despite the risks involved, Eastern Europe remains one of the best options. Portugal is another noteworthy location for an R&D center. One of the reasons why clients consider launching R&D centers in Portugal is the abundance of engineers from Eastern Europe who have relocated there. Thanks to the policy of attracting IT talent through its digital nomad program, Portugal has now accumulated a lot of developers. 

Furthermore, despite the risks, we receive requests from companies willing to launch R&D centers in Ukraine, particularly in Kyiv. That's due to the large pool of candidates and the excellent infrastructure. Another popular location for an engineering research and development center in Ukraine is Lviv. This tech hub is close to the European Union, easily accessible, and boasts a large pool of IT talent as well. 

![](img/alex-kotliarskyi-qbpzgqemskg-unsplash.jpg)

## What steps should be taken to organize an R&D center for EU & USA companies?   

The easiest way to set up an R&D center is by hiring a provider to arrange the entire process for you. Regardless of the country where you plan to launch your R&D center, it's vital that you **hire a local director or manager** who is familiar with the local business landscape, understands local business practices and laws, and knows the ins and outs of local tax regulations. The provider will also assist you in finding the right kind of manager who will be in charge of your R&D center. 

The challenge with establishing an office in another country is that service providers like to overcharge, especially when it comes to rent. A local manager is a guarantee you'll receive the best services at a reasonable price. That I believe is the first step and an essential condition for a successful kickoff of your R&D center. 

The next step is to **build the core team** of your engineering research and development center. As your office expands to around 20 people, as your next step, it’s reasonable to **hire a dedicated HR professional**. Until this stage, the provider takes care of HR functions using their own resources.

## Is it possible to launch an R&D center without a provider?

It's possible, but company leaders should consider the risks I mentioned earlier. Chances are it'll be more expensive, and time-consuming, not to mention that you risk facing local legal issues, unfamiliar business environments, and other speed bumps. Thus, it may turn out to be a rather challenging journey for you.

## How to establish proper management and Agile development processes and culture in an R&D center? 

Above all, it's important to find the right managing director who will embody the values of the parent company and instill those values within the research and development center. 

When it comes to culture, it doesn't appear out of thin air. As a visionary, **the client defines the culture of communication and business processes.** Then, the managing director will communicate that vision to the newly formed R&D center. Additionally, the provider (given that they have a lot of experience in building research and development centers) will focus on hiring people who meet the demands of the client in terms of culture. For instance, the client may require individuals with advanced soft skills, open-mindedness, and agility. These requirements are documented in the hiring specifications, and the provider will hire people who best fit the client's vision of an ideal employee. That’s the best way to crystallize and spread the culture of the client company within an R&D center. 

Furthermore, **the HR team of the provider will shape the distinctive culture** of the client through team building, working with people, and establishing processes that reflect the culture of the parent company.

![](img/airfocus-d4d1wzavpk8-unsplash.jpg)

## What services regarding the R&D center are covered by the provider?  

Firstly, it's **sourcing the right kind of talent.** That's the primary function that companies entrust to providers of research and development centers. With that in mind, the provider should aim to hire employees who meet clients’ expectations in the best way possible. **The right people bring the right results.** 

Secondly, the provider takes care of **hiring contractors who will provide services to the R&D center**. This includes contracting workers who handle office maintenance, catering, water delivery, office repairs, equipment procurement, and more. 

The next responsibility that rests on the provider's shoulders is **people management**. The provider takes on all HR-related functions, such as employee retention services, legal and taxation support, payroll, accounting, sick leave and vacation management, organizing team building activities, facilitating employees' professional development, conducting one-to-one meetings with Human Resources managers, and so on. 

## How to evaluate a company considering that the R&D center is a separate entity and asset?

A legal entity such as an R&D center is typically a component of the provider's company. When the client company plans to enter the stock market and attract more investment, **it can buy out the entire R&D center, including the office, legal entity, and personnel after 1-2 years of collaboration**. It would then become a part of the parent company and a subject for evaluation. Alternatively, companies can mention an R&D center as their asset during negotiations with investors to secure better terms during investment rounds.



## To wrap up, what advice would you give to leaders who want to launch an R&D center?

I'd strongly recommend considering this decision carefully. It's important to clearly define reasons why you want to go with an R&D center. Frankly, hiring a team through an outstaffing model will be a more cost-effective option, as it eliminates the need for additional expenses such as office space rental, reduces administrative issues, and provides greater flexibility in terms of staff. Therefore, take into account the additional costs and organizational efforts associated with a research and development center. If your goal is to create a competitive organization in an offshore zone with more cost advantages than your local market can offer, then an R&D center is a reasonable choice.

Creating an R&D center also makes sense if you're a large startup aiming to attract funding and are looking for better evaluation. That way, you can showcase your R&D center as an additional asset to potential investors. 

Besides that, if you're focused on building a global employer brand, a separate office under your brand can become one of the "puzzle pieces" within your brand ecosystem or company/group of companies. On the other hand, if you have a short-term project or lack a clear purpose for establishing an R&D center, it's best to go with an outstaffing or outsourcing model, which can fully cover your software development needs.

<iframe src="https://giphy.com/embed/xrjvidNlVleA8" width="480" height="314" frameBorder="0" class="giphy-embed" allowFullScreen></iframe><p><a href="https://giphy.com/gifs/up-first-xrjvidNlVleA8">via GIPHY</a></p>



## Key Outcomes 

1. R&D centers serve as an extension of the client's parent company, with independent infrastructure, dedicated employees, and a separate organizational structure.
2. Launching an R&D center boosts a company's value, making it a sensible move when the need for further evaluation of the company arises. It's suitable for long-term projects and instilling company culture within a remote branch.
3. Running an R&D center in an offshore region is legal, provided it aligns with the goals and preferences of the parent company. Countries that offer incentives for establishing IT companies are preferred locations.
4. The cost of an R&D center majorly depends on HR costs. Other significant expenses include office rent, equipment, legal entity establishment, tax management, office maintenance, and HR support.
5. Regions like Eastern Europe and Portugal offer a cost-quality balance in terms of talent for R&D centers. Ukraine, particularly Kyiv and Lviv, also has a large pool of IT talent.
6. Setting up an R&D center is simplified with the help of a provider. Hiring a local director or manager familiar with local business practices, laws, and tax regulations is key.
7. Although launching an R&D center without a provider is possible, it may be more expensive, time-consuming, and fraught with local legal issues and unfamiliar business environments.
8. To establish a proper management and Agile development culture, it's important to have a managing director who embodies the parent company's values. The provider helps in hiring people who best fit the client's vision of an ideal employee.
9. Providers of R&D centers handle talent sourcing, contractor hiring, people management, employee retention services, legal and taxation support, payroll, accounting, and HR-related functions.
10. An R&D center can be considered an asset of the parent company during investment rounds and can be bought out by the client company when it plans to go public.
11. Leaders contemplating launching an R&D center should consider the additional costs, organizational efforts, and their company's long-term goals. If the aim is to build a global employer brand, attract funding, or create a competitive organization in an offshore zone, then establishing an R&D center is a beneficial move.



![](img/dima-malashevskyi-photo.jpeg)



## **About the Contributor**

[Dima Malashevskyi](https://www.linkedin.com/in/malashevskyi/) is the Head of Development and Marketing at [NCube Ltd](https://ncube.com/). Over the course of his 10-year career, Dima has been instrumental in helping businesses that require qualified engineers to join their in-house teams and startups seeking a dependable technology partner to assume full responsibility for their product development.

His expertise encompasses various industries including IT business development, FMCG, and Pharmaceutical. He excels in project management and fostering customer business development.

Dima has also shared his insights in another insightful piece titled [The Role of Emotions in the Selling Process](https://thecymes.com/article/the-role-of-emotions-in-the-selling-process), which further highlights his depth of knowledge and understanding of business development.

Explore the journey of launching an R&D center, with insights from Dmytro Malashevskyi, Head of Business Development at nCube. Understand the unique benefits, costs, and legal considerations of establishing an R&D center in offshore or nearshore regions.

Launching an R&D Center: An Expert Addresses Key Questions

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