Software Outsourcing in Armenia: A Quick Overview

Software Outsourcing in Armenia: A Quick Overview

The establishment of Armenian IT companies is gaining momentum because the country decided to emphasize the advancement of its tech industry. Although this country doesn’t get listed on various It rankings, it still offers immense opportunities for foreign tech companies. Many local people, especially the young ones, are driven by a desire to help the country grow in a new way and are optimistic about its chances of becoming a burgeoning tech hub in Western Asia. 

The country understands that the IT field is a strategic direction for its further development, which is also possible due to the locals’ relatively high level of educational potential. The government significantly supports the tech industry by focusing on creating and strengthening conditions for the balanced and sustainable growth of cybersecurity, technologies, and digitalization. 

Also, Armenia signed a number of various agreements with other countries and world-renowned companies, including Microsoft, Alcatel, and Hewlett Packard. Notably, the country occupies leading positions in the region in the IT field in terms of the increasing number of companies, technologies’ share in its GDP, and overall turnover. 

Although the local IT sector is quite young, it boasts an advanced startup ecosystem and a large number of people working in the tech industry. Also, the tech sector is the highest-paying in the local labor market, and it offers a favorable environment for foreign direct investment. As for the number of Armenian software engineers, it’s around 29,000 employees. 

So, it’s no wonder why software outsourcing Armenia is gaining momentum nowadays. Qubit Labs will explain the nitty-gritty of the local tech industry, point out the average salaries, and emphasize the benefits of opting for this destination.

          

What are the Benefits of Software Development Armenia?

Outsourcing development to Armenia is a remarkable opportunity to attract top-notch developers because foreign companies have a competitive advantage over local businesses. Usually, international companies offer higher salaries and better career development opportunities, so local tech specialists say “yes” to their job offers. Besides, this is a win-win for both employees and employers. Armenia is similar to Mexico and Costa Rica in these means because it also boasts affordable hiring costs and high-quality services.

Why else is software development Armenia sought-after? These are the most notable reasons:

  • Top-notch R&D capabilities. The country has been the leader in research and development since the time of the Soviet Union. After gaining independence, it kept its position as one of the rapidly-advancing tech destinations that are incredibly successful in software and hardware projects. Also, one of the promising branches of outsourcing development to Armenia is robotics because the country has the potential of becoming the world leader in this area. 
  • Talented and experienced workforce. As of 2019, The Economist named Armenia “The Country of the Year.” This was due to its rapid development in the IT field. Also, it’s thanks to the minimal cultural and national differences between local and Western developers. It’s easy to work and communicate with Armenian programmers. This significantly attracts the attention of global businesses to outsourcing companies in Armenia. 
  • Affordable cost of labor. Due to the growing popularity of outsourcing development to Armenia, many programmers who moved abroad several years ago return to their homeland. This means they bring valuable knowledge and vast experience, but their salary requests are lower than in the locations they returned from. Many of them work at Silicon Valley startups, which is good news for any business looking for senior-level developers but can’t afford too high salaries. 
  • Sustainable growth of the IT sector. Many world’s tech companies are now investing in web development Armenia, especially such organizations as Intel, Microsoft, Google, and IBM. They also have a physical presence in the country and help the Armenian tech industry grow, getting $250 million a year. 
  • Significant government support of the Armenian IT companies. Various governmental initiatives focus on software outsourcing in Armenia, such as attractive tax incentives and minimal compliance requirements. Also, many tech companies open IT classes to help people learn to program and get the chance to work in the tech industry.   

Armenia has an array of benefits for foreign companies, but it’s also great to have other alternatives to choose from. That’s why you can check out Argentina as well. 

 

What are the Best Locations for Outsourcing Development to Armenia?

The startup ecosystem in Armenia is growing in leaps and bounds. There are several world-known startups that have their roots in Armenia. These include PicsArt, Krisp, ServiceTitan, SoloLearn, and Shadowmatic. Also, the field of software outsourcing Armenia is full of business angels and venture funds, which are always open for communications, and it’s easy to reach out to them. Notably, the country boasts a large number of accelerators and business incubators that help promising startups grow and achieve success.

Speaking of the top-rated locations for software outsourcing Armenia, these are the following: 

Yerevan

In Yerevan, there are relatively perfect conditions for the pre-seed stage startups. This implies development and beta-launch. If the startup’s success relies on its team, but not time or money, you can be sure that it will skyrocket very quickly. Software outsourcing Armenia is the right choice for companies of different sizes because local developers can easily turn the ideas into reality under short deadlines. 

Gyumri

Gyumri is considered the second IT hub of Armenia because over 30 high-tech companies are located in this city. It provides top-notch training to talented individuals who want to embark on the tech path. Also, the city focuses on teaching young people interested in joining the tech industry “how to fish, not receive fish for eating,” and this is a promising approach. Such values and innovative views on the IT industry help outsourcing development to Armenia become sought-after among many foreign businesses. 

Vanadzor

Vanadzor is known for achieving notable success in mobile apps development. The city has a large Technology Center, which is also known as an educational hub that offers consultations and workshops to startups and businesses. Also, this center helps attract young talent, which is critical for the further advancement of web development Armenia. 

 

Education Level among Armenian Software Developers

In Armenia, there are different initiatives focused on improving the tech education opportunities for the students. For example, there are programs that emphasize the STEM sector by providing schools with the necessary equipment to start robotic laboratories. 

The local culture is hungry for scientific and mathematical opportunities because many talented people are interested in becoming software developers and working with AI. This situation is similar to the one in Poland, another top-rated outsourcing location.

Also, there’s an increased demand for skilled specialists among Armenian IT companies, so local institutions are trying to keep up with this demand. Around 7,000 students enroll in Armenian higher education institutions specializing in information and high technologies annually. 

Besides, Armenian tech specialists boast high English proficiency and impeccable technical knowledge, which is a notable advantage for any company that considers hiring Armenian software engineers.  

 

What is the Average Software Developer Salary in Armenia by Technology?

The rising popularity of software outsourcing Armenia significantly depends on the wages of local programmers. They boast impressive tech skills, yet the companies won’t have to pay a fortune for their services. So, let’s take a look at what you can expect from cooperating with software development Armenia specialists. 

Node.js $12,000
Unity $13,584
React $13,932
JavaScript $19,104
Java $17,256
Python $19,176
PHP $17,700
  • The average Node.js software developer salary in Armenia is $12,000 per annum
  • A mid-level Unity developer in Armenia earns $13,584 per year
  • The average React software developer salary in Armenia is around $13,932
  • A mid-level JavaScript developer in Armenia earns $19,104, while a senior software developer salary Armenia for this technology is $24,983 per year
  • A mid-level Java software developer salary in Armenia is about $17,256
  • The average Python software engineer salary in Armenia is approximately $19,176 per annum
  • An average PHP developer in Armenia earns $17,700 yearly

You can also check out software developer salaries in Kazakhstan, Turkey, MoldovaRomania and Azerbaijan to compare the options. (You can also check software engineer hourly salary in our new article).

 

The Average Rates of Outsourcing Companies in Armenia by Specialization

Although the salaries of Armenia developers are higher than in, say, the Philippines, the country offers services of better quality. Let’s take a look at the average wages of Armenian tech specialists based on their tech stacks:

Front-end $28,356
Back-end $36,000
Full-stack $38,400

 

  • The average front-end software developer salary in Armenia is around $28,356 per year
  • A mid-level back-end developer in Armenia is paid approximately $36,000 per annum
  • The salary of an average full-stack developer in Armenia is about $38,400 yearly

 

Outsourcing Development to Armenia with Qubit Labs 

Qubit Labs is a fast-developing outstaffing company that helps businesses find the right specialists for their teams. We focus on hiring top-notch employees that can reinforce our clients’ teams and take their products to another level. 

You don’t have to handle all the recruitment and hiring tasks yourself because we’ll take care of them. Grow your business while we make sure your team has everything it needs to provide top-rated results. 

Don’t hesitate to schedule a call if you have any questions left. We’ll be glad to address all your concerns during a free consultation call. 

 

 

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Vlada Sirosh
Research Specialist
Vlada Sirosh is a research specialist at Qubit Labs with 5+ years of experience working in the information technology and analytics industry.