IT Outsourcing to Armenia: Market Insights & Right Team for You

17 min read
IT Outsourcing of Armenia

With this digitally connected world, IT Outsourcing is a key approach where firms aim at getting affordable options and professional help. Outsourcing is a method in which organizations are allowed to give away certain roles and assignments or outsource it to other foreign partners. Outsourcing has overhauled the work paradigms in software development and customer service fields among many others.


Among these settings, Armenia is a growing pearl in global IT outsourcing. One small European state situated between Asia and Europe, with a blossoming IT industry, that fascinates the world for having qualified technicians and a beneficial commercial environment. For instance, all around the world, businesses are looking for partners whom they can trust with their IT projects, and Armenia is an excellent country that has competence, innovativeness, and cost-effectiveness in offering services.


Preview of What's Ahead


We will take an extensive look at the intricate terrain of IT software outsourcing in Armenia throughout this comprehensive guide. Here’s a glimpse of what you can expect:


  • Why Outsource to Armenia?: Revealing the powerful motivations why an international organization should outsource its IT services to Armenia.
  • Key Info & Top Companies in Armenian IT Outsourcing: The major actors reshaping Armenian IT outsourcing and how to identify the top performers.
  • Addevice: In depth view of Addevice, a quality IT outsourcing company in Armenia focused on strengths and services provided.
  • Why Consider Software Development in Armenia: The detailed list of 12 Vivid Benefits of software development in Armenia.
  • How Many Developers Are There in Armenia?: A statistical review of Armenian IT labor force expansion tendencies.
  • How to Find the Right Armenian Developers: Strategic recommendations for organizations that aim to recruit trained Armenian developers for project tasks.


In this exploration, we expect to give vital information that can guide businesses as they consider IT outsourcing services in the emerging IT market of Armenia.


Economic and Strategic Advantages of Outsourcing to Armenia


Global Software Application Outsourcing Market Projections

However, over the recent years, Armenia has become a favorite place for IT outsourcing simply because it possesses many economic and strategic advantages. According to The World Bank report, Armenia boasts of a strong network of roads, telecommunications infrastructure, favorable business climate, and developing start-up scene that makes it an attractive choice for offshoring IT services provision.


  • Cost-Effectiveness:  The main reason why many organizations outsource from Armenia is because it is cheap. Labor costs also incur fewer expenditures in Armenia than in most of the West countries. In addition, setting up and maintaining appropriate infrastructure comes at a lower price. This lowers the costs of providing quality IT solutions with competitiveness. Hence, businesses experience considerable savings.
  • Skilled Workforce: Despite the country’s small size, Armenia possesses a highly qualified labor force. The focus lies especially in the field of STEM education. Additionally, the country has a regular supply of tech graduates from the universities which creates an abundant labor market full of skilled workers conversant with the modern techniques and computer languages. This highly skilled staff efficiently carries out complicated IT jobs and provides high-quality output for outsourcing collaborators.
  • Geopolitical Stability:  Another reason which makes Armenia attractive for outsourcing is that it provides a stable political environment. The country has the support of its government to encourage investment into the IT sector, which has led to the creation of a safe and productive business climate that allows companies to form lasting commercial relationships.


A Snapshot of the Armenian IT Outsourcing Industry

The Armenian technology outsourcing market was born and developed as a result of high speed progress in recent decades. Businesses worldwide are looking for trustworthy partners where they can give in their IT undertakings. As such, Armenia has an abundance of firms that specialize in the provision of distinct tasks associated with computerized technologies. A brief summary on the Armenian IT outsourcing environment, principal stakeholders in this field, and a definition of parameters according to which the best performing organizations are selected.

The Armenian Outsourcing landscape

The IT outsourcing landscape in Armenia is diverse enough – from start-ups to well-known corporations. As a result, Armenia attracts attention as an emerging IT hub. Armenia’s government has developed several strategies towards boosting the IT industry that has created an enabling atmosphere for the local and external investors.


This is exemplified by a broad spectrum of operations carried out by Armenian IT firms. The spectrum ranges from software development and testing to cybersecurity, data analytics. This provides Armenia with the unique ability to be a sole gateway of business needing all inclusive information technologies.

Key Players and Companies Contributing to the Industry

Five Key Benefits of Multi-Partner Sourcing

There are several significant actors who have substantially determined the shape of Armenian outsourcing IT setting. For instance, there is one example firm, Synopsys Armenia, which is an affiliate of a top-rated multinational corporation on the world market for manufacturing of semiconductors - design. Synopsys Armenia is involved in the sphere of electronic design automation, semiconductor design and verification and it contributes greatly to the technology development in Armenia.


The other popular player around PicsArt has created worldwide recognition of their software designed towards photos and videos. As seen in the case of PicsArt, the latter is used by individuals from various counties across the globe, which makes Armenia an innovator in developing usable technology for the world.


However, the list goes way beyond that as well as with such companies mentioned above as EPAM Systems, TeamViewer Armenia and more others that are operating within the Armenian IT industry.

Criteria for Selecting Top Companies    

Identifying the top IT outsourcing companies in Armenia involves considering several key criteria:


  • Expertise and Specialization: The best-performing organizations understand the various demands and have the relevant experience in particular sectors so that their customers’ expectations are met.
  • Track Record and Client Testimonials: When it comes to reliability and competence, clients are likely going to consider a company’s successful project records as well as testimonials.
  • Technological Capabilities: Leading companies are always ahead when it comes to technology and employ the most modern instruments and approaches to offer outstanding services.
  • Quality of Workforce: It is important to assess workforce quality such as qualification, experience and readiness for life-long learning.
  • Adaptability and Innovation: What differentiates leading organizations is their capacity to adapt when faced with changes in emerging technologies and competitive markets alongside promoting innovativeness.


There is a range of Armenia’s IT outsourcing options that businesses can select from depending on their needs and interests.


We shall now look at an iconic example company, Addevice, and explain why it is unique amidst other outsourcing players in Armenia.



Addevice: Your Armenian IT Outsourcing Company


Addevice - Your Armenian IT Outsourcing Company

Addevice is a pioneer in the Armenian IT outsourcing industry by having specialized knowledge, cutting edge technologies and services for clients’ needs. Having a good profile will make companies consider Addevice as their reliable partner in solving IT problems.

Company Overview

Addevic was founded in Armenia in 2014 and acts as one of the main IT outsourcing organizations offering solutions for mobile apps, websites and bespoke software products. In this regard, Addevice promises to deliver a state of the art technology solution making it renowned as the most competent firm at building a robust and scalable application suitable for changing clients’ needs.

Strengths and Areas of Expertise


  • Mobile App Development: Addevice, however, is great at making novel and user-friendly mobile apps for numerous platforms. Addevice’s ability to develop for iPhone, android and cross platform provide them with the best solution that relates to the consumers.
  • Web Development: The company has many web developments that incorporate various technologies and frameworks. Using its technical skills, Addevice converts client’s vision into a life by taking it to the digital world from dynamic websites to complex web applications.
  • Custom Software Solutions: Addevice builds tailor-made software systems for all businesses in view of their needs. It makes sure that the clients get customized solutions that address directly into their goal as well as their working systems.
  • UI/UX Design: The firm focuses on providing excellent user experience. The solutions ensure that there is a smooth journey in which the customers interact with the products with the help of a dedicated team of designers from the company.


Client Testimonials and Success Stories

On-Demand Marketplace - Varpet


Varpet, an integrated Machine Learning and AI based platform of Addevice is set to change the face of on demand businesses. Using smart technology, Varpet automates specialist searches enabling customers to connect with skilled people for house repairs or maintenance in their homes. A multifunctional app simplifies the whole process whereby an individual can search for, book, and pay for a service. Varpet’s success can be shown through a 90% customer satisfaction, $1.5 million worth of completed orders, and a 4.6/5 ratings on Google Play Store and App Store. Despite all the competition, Varpet is currently one of the leading on-demand service providers in the market that offers safe, fast, and competitive rates in both B2C and B2B models.

Revolutionizing Communication - idict


The translation industry has been revolutionized by Addevice’s Idict using groundbreaking voice cloning technology. It is the first translation app that gives real time, instant and natural voice translations over 137 languages hence removing language barriers easily. Idict has incorporated elements such as online/offline translation, voice-to-voice communication, and photo-text translation making it an all-rounded solution. Idict is an essential tool for business, travel, entertainment, among others because Addevice aims at AI-powered enhancements that facilitate smooth communication. Enjoy the future of language intercourse, by Addevice.

Dating Industry - WOO


The WOO project initially dubbed as Thedusapp, transformed Addevice into the flagbearer of a classy dating site prioritizing women’s safety and revolutionized online contacts. Addevice came up with a safe app for users that had built-in location services and social integrations as well as in-app payments with enhanced security for users’ private data and confidential information of users. WOO boasts of more than a million matches, thus changing how women date and making real connections.

Healthcare Industry - Alertive


Through their inventive strategy Alertive, it is possible to cut down visits of a patient at hospital by 80% because of it. It has a feature that ensures the use is a two-way communication, data recording and automatic as well as hyper secure storage of information. Alertive provides smart notifications, automated care and a caregiver mode, with an approved integration of devices by the FDA and AI technologies. The results also show a reduction of hospital readmission rate by 80%. Its partners make $250,000 annually. Alertive is an indispensable tool under Addevice’s strategic approach in responding to the contemporary needs of modern healthcare.

Driver App - DriveHop


The DriveHop app that is provided by Addevice is revolutionary in respect to designated driving services. In order to prevent drunk driving tragedies, Addevice developed an easy to use MVP so one can have a safe ride home. DriveHop redefines the idea of responsible driving culture, with pioneering licensed drivers, journey tracking, and AI-driven interactions. The company has managed to create DriveHop by putting in mind the issue of safety and its customers’ trust. This is because people tend to avoid alcohol-related accidents for good reasons and thus DriveHop will serve them well. It makes their trip secure and ensures that they are safe.


The updated case studies depict how addevice is flexible, developing solutions appropriate for individual sectors, aiding in the expansion as well as success in their businesses for their clientele’s companies.


Why Consider Software Development in Armenia: Benefits and Statistical Insights

The fastes growing economies in 2023  
For those who are considering software development and want a place which offers creativity, labor and business benefits, Armenia is an appropriate country. The details of this and how Armenia proves to be a great base for software development will now follow but with statistics as a basis. Armenia is included in the list of the fastest growing economies in the world in 2023, according to data from the International Monetary Fund.

Economic Landscape


  • The IMF classifies it in the list of developing countries; however, on average it earns $5960 per capita a year, which makes Armenia a part of upper middle-income nations.
  • For the last decade and a half, the tech ecosystem’s been on fire averaging a whooping 23%.

Tech Entrepreneurship Boom


  • The past ten years have seen increased numbers of tech start-ups, fueled by the nation’s engineering heritage and experience derived from interactions with western cultures.
  • This is why Armenia has now become a promising center that cultivates a creative climate and makes innovations.    

Venture Capital and Funding


  • In fact, more than twenty startups in Armenia have attracted approximately 700 million dollars over the last two years.
  • With the growing interest, funding rounds display as Picsart raises $130 million in series C and Krisp grabs $17.5 million.


Impact of Global Events


  • The tech sector in Armenia had a huge boost as it registered 2,565 new tech companies and about 50,000 tech-professionals relocated in 2022 post Russo-Ukrainian conflict.

Government Support and Incentives


  • The government of Armenia has established a great investment climate which gives 0% profit taxes as well as VAT to tech companies with a purpose of fostering growth in startups.

Venture Capital Ecosystem


  • SmartGateVC, HIVE Ventures, and Granatus Ventures among others put Armenia on the global map on the venture capital scene.

Educational Initiatives and Talent Development


  • As a result of such initiatives as Gituzh there was an 83% increment in financing of state science funds and research and development since 2021, which ultimately has contributed to enhance Armenia's qualified workforce.
  • This approach creates collaborative ties between universities and industry leaders, which is similar to what takes place in innovation hubs across the world.    

Digital Literacy and Market Expansion


  • It is important to consider digital literacy because more than 33.5% of the citizens were still offline before the early part of 2022. Enhancing this will broaden the customer base of early adopters.    

Diaspora Engagement


  • Diasporan connections played an important role in establishing such companies as Synopsys Armenia, Hive Ventures, etc. in Armenia.    

Diaspora Bonds and Investment Opportunities


  • Diaspora bonds offer a potential window for the government to utilize the intellectual resources and financial clout of Armenian overseas.


In choosing Armenia, we have moved past just low costs but into the deep waters where there is an ocean of qualified experts with a huge technology background. Apart from that, geographical position, cultural harmony and state support make Armenia one of the best destinations for software development companies in need of the most innovative technologies. With rapid changes in the world of IT, Armenia is ready with innovations for technology’s future global space.


Software Outsourcing Insights in Eastern Europe in 2024

Dynamic changes are taking place in 2024 in the software outsourcing landscape in Eastern Europe against the backdrop of certain geopolitical events and a global market situation. Armenia is one of the exceptional areas in this scenery providing special opportunities for companies looking for software developers.


Geo-political Influence on Outsourcing Dynamics


The 2023 events such as the Eastern Europe war shaped some aspects of the software outsourcing business. The invasion of Russia caused challenges for Ukraine also called the “silicon valley of eastern Europe” which contributed around $6,8 billion to the world IT services market annually. This resulted in massive talent outflux that forced Ukraine from being one of the lowest priced outsourcing destinations to among the most expensive ones globally.


This period brought about stability and resiliency for a small country of Armenia located in the south Caucasus. Businesses responded to this development by exploring alternative locations. In particular, Armenia which had a reputable labor force and stable politics became attractive. As opposed to Russia and Belarus, Armenia appeared the most likely place of outsourcing worth of attention.


CountryImpact of Geopolitical EventsCurrent Appeal as Outsourcing Destination
UkraineTalent displacement, increased rates globallyReduced appeal, businesses exploring alternatives
ArmeniaPolitical stability, talent pool resilienceGrowing appeal, stable outsourcing destination
Russia/BelarusNull and void appeal as outsourcing destinationsLoss of appeal due to geopolitical factors

Working with nearshore or offshore software development companies usually allows a business to reduce their expenses by up to 70%. It’s good timing for savings. A staggering 23% increase in onshore development rates in North America was driven by an unprecedented talent deficit for software engineers in 2022. As rising interest rates, inflation.    
Ukrainian war increases supply chain disruptions that also puts budgets more under pressure as outsourcing is still the best option for keeping the digital strategies on track.


Cost Consideration - Pricing Models


  • Regional dynamics: The Latino region had a 24% increase because of increased labor costs and some companies fleeing Ukraine’s union. On the other hand, the increase in rates was marginal in Centre and Eastern Europe as the region was in upheaval, while in both South and Southern Asia, it stayed at the lowest level of outsourcing destinations.
  • Outlook for 2024:  Prices continue to spiral as a result of high ongoing developer demand, high cost of living and global inflation. Specialized skills in critical technologies will be costly, while senior-level engineers will command top-dollar.
  • Global insights: Close sourcing for Latin America will be more and more unaffordable because it will become harder not only to hire but also to keep development teams together in general due to scarcity of resources. Gpt for cheaper, quicker hires through offshoring in Asia instead.


Global Software Outsourcing Rates


2023 Global Software Outsourcing Rates Per Region


 Latin AmericaCentral & Eastern EuropeSouth AsiaSoutheast AsiaNorth America
Architect$72 - $96$71 - $95$58 - $71$47 - $70$139 - $182
Lead Developer$66 - $82$68 - $82$44 - $53$41 - $45$169 - $209
Senior Developer$65 - $82$68 - $76$41 - $49$34 - $41$143 - $172
Intermediate Developer$53 - $66$47 - $65$35 - $41$27 - $34$119 - $144
Junior Developer$41 - $53$35 - $53$25 - $36$21 - $35$75 - $91
Business Analyst$56 - $68$57 - $81$40 - $61$31 - $47$109 - $154
DevOps$59 - $82$62 - $79$29 - $44$35 - $62$114 - $148
Graphic Designer$48 - $75$53 - $71$38 - $43$29 - $37$79 - $100
Project Manager$59 - $82$53 - $78$44 - $55$37 - $60$96 - $123
Scrum Master$54 - $79$61 - $74$44 - $50$48 - $59$121 - $153
Junior QA (Manual)$34 - $52$26 - $44$24 - $29$18 - $28$62 - $78
Intermediate QA (Manual)$42 - $59$41 - $59$29 - $32$22 - $32$104 - $126
Senior QA (Manual)$53 - $66$47 - $61$34 - $37$25 - $38$117 - $139
Junior QA (Automated)$35 - $53$32 - $51$25 - $32$22 - $29$74 - $94
Intermediate QA (Automated)$48 - $62$43 - $63$29 - $39$25 - $35$125 - $151
Senior QA (Automated)$59 - $72$54 - $74$35 - $46$29 - $40$140 - $167



Finally, this essay concludes that despite all of this global geo-political shift, it is still quite a reasonable idea to invest into Armenia due to its well established resilience force and qualified personnel. Despite these hurdles associated with war in Eastern Europe and talent gap, Armenia still shines as it boasts of relatively calm and flexible people who can tolerate fluctuations. However, this becomes another challenge for them as they search for developers who are in high demand and costly.


Armenia has several unique benefits such as political stability, a large pool of qualified personnel and the ability to provide quality services. Going for Armenia is opting for an area experiencing global insecurities but offering economical and inventive programming support.


With regards businesses looking for the ideal team for IT outsourcing, Addevice is a trusted partner who has proved over time. As an expert in handling the Armenian IT environment and maintaining high service standards, Ad device has proved to be reliable by its clients. Hire the most experienced and competent in IT staffing professionals that we personally select will make enhance the capacity of your team and bring you greater success.


Venture into IT outsourcing opportunities in Armenia. Get into touch with Addevice, using this Guide as an opportunity to build up a group of professionals, suitable to work at your IT projects. Expanding your outsourcing efforts with Armenia’s flourishing IT economy and Addevice’s resolute dedication to client prosperity, ensuring perpetual expansion and triumph for your venture.


Navigating IT staffing, Staffing industry trends, Navigating IT staffing Staffing industry trends



Strategic benefits of outsourcing to Armenia by businesses. A secure political setting, a literate and competent labor force combined with a booming ICT sector makes Armenia the right destination for investments. Outsourcing firms take advantage of the Armenian IT experts’ skillfulness across numerous technologies. Lastly, Armenia offers affordable but high-quality service. Furthermore, it enjoys a good time zone that enables effective engagement with global customers. The selection of Armenia, as a destination for outsourcing, contributes to realizing an opportunity to acquire skilled IT, affordability and prompt provision of desirable quality output.

Presently for instance, Armenia boasts of over 50,000 IT experts. There has been continuous improvement in the IT sector within the nation having more qualified programmers, engineers as well as many other IT experts. The growth of this labor force pool indicates Armenia’s dedication to creating a vibrant IT environment, which makes it an appealing option for firms looking for an outsource center.

A firm that offers IT services to the clients through another’s resources is termed as an outsourcing IT company. Such firms have become specialized to support various IT functions, projects, and aspects, affording customers to concentrate on critical aspects of their operations. IT outsourcing service providers can provide different solutions for their clients; these include software development, system support, cyber-protection, among others. It aims at improving performance, cutting down on expenditures, and acquiring unique talents which could be unavailable within the company’s jurisdiction.

Outsourcing is a phenomenon that involves hiring other businesses or organizations to manage certain parts of the company’s IT operations. Some of these services could include software development, application maintenance, network operations, cybersecurity, and helpdesk services. They are in a position of outsourcing their IT services so that they can save money, enjoy high flexibility and maintain the focus on their main tasks. It is an effective way to ensure efficiency of IT operations in an organization.

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