Complete Guide To Outsourcing Software Development To Eastern Europe: Armenia, Czech Republic, Poland and Moldova Overviewed

7/20/23, 9:11 PM Complete Guide to Outsourcing Software Development to Eastern Europe: Armenia, Czech Republic, Poland and Moldova
Moldova Overvi…
(https://www.developway.org/)
Home (https://www.developway.org/) Services (https://www.developway.org/services/)

About (https://www.developway.org/it-consulting-and-software-development-company-in-
armenia/)
News and Insights (https://www.developway.org/news-and-insights-into-the-software-
industry/)
Contact (https://www.developway.org/contact-us/)
Home (https://www.developway.org/) » News and Insights

(https://www.developway.org/news-and-insights-into-the-software-industry/) » Blog
(https://www.developway.org/category/blog/) » Complete Guide to Outsourcing
Software Development to Eastern Europe: Armenia, Czech Republic, Poland and Moldova
Overviewed
B L O G ( H T T P S : // W W W . D E V E L O P W A Y . O R G / C A T E G O R Y / B L O G / )
Complete Guide to Outsourcing

Software Development to Eastern
Europe: Armenia, Czech Republic,
Poland and Moldova Overviewed
POSTED MARCH 20, 2023 (HTTPS://WWW.DEVELOPWAY.ORG/BLOG/OUTSOURCING-SOFTWARE-
DEVELOPMENT-TO-EASTERN-EUROPE/)
https://www.developway.org/blog/outsourcing-software-development-to-eastern-europe/ 1/30
7/20/23, 9:11 PM Complete Guide to Outsourcing Software Development to Eastern Europe: Armenia, Czech Republic, Poland and Moldova Overvi…

armenia/)
industry/)
What is IT Outsourcing?
IT outsourcing is the practice of hiring a third-party company or individual to perform IT-
related functions that are typically performed in-house. These functions can include
software development, application maintenance and support, web development, and
database management, among others.
Major Benefits of IT Outsourcing
There are many reasons why companies outsource IT functions. Some of the most
significant benefits of outsourcing include access to a broader talent pool, cost savings,
and increased efficiency. Other reasons include the ability to tap into expertise that may
not be available in-house, the ability to focus on core business functions, and the ability
to scale up or down as needed.
Forms of Outsourcing
There are several forms of outsourcing. We will discuss offshore, nearshore, onshore,
and multisourcing types of outsourcing
Nearshore Outsourcing
In nearshore(https:/
outsourcing,
/www.developway.org/)
a business hires a service provider from a neighboring country
or region, such as Canada or Mexico for businesses in the United States. The primary
benefit of nearshore outsourcing is that businesses can benefit from the lower costs of
outsourcing while still maintaining a relatively similar time zone, language, and cultural
environment.
armenia/)
News and Insights
Onshore (https://www.developway.org/news-and-insights-into-the-software-
Outsourcing
industry/)
Onshore(https:/
Contact outsourcing is a business strategy that involves contracting a service provider
/www.developway.org/contact-us/)
within the same country. This service provider can either be a specialized outsourcing
company or a freelance professional based locally. Onshore outsourcing typically carries
higher costs compared to offshore or nearshore outsourcing.
Multisourcing/Multishore Outsourcing
It’s when a business hires multiple service providers from different locations to handle
various tasks or projects. This approach enables the business to benefit from the
strengths of various providers and reduces the risk of depending solely on one provider.
Multisourcing can combine various forms of outsourcing like offshore, onshore, etc. In
conclusion, outsourcing can take different forms based on the geography of the
workforce. Companies must evaluate the advantages and disadvantages of each model
to find the ideal balance between costs, quality, and service delivery.

armenia/)
industry/)
Models of outsourcing
Staff Augmentation
Staff augmentation is a model where a company hires additional staff to augment their
existing team for short-term or long-term projects. The outsourcing company is
responsible for finding qualified candidates, screening them, and providing them with
the necessary training to integrate into the client’s team. The client company maintains
control over the project, while the outsourcing company manages the staff. Augmented
staff can work either onsite or remotely, depending on client preferences.
Project Based Outsourcing
Project-based outsourcing is a model where a company outsources an entire project or

a portion of it, with the outsourcing company taking full responsibility for the project’s
execution. This type of outsourcing often involves a fixed contract, payment structure,
and timeline. The outsourcing company provides a team of experts to complete the
project, including project managers, designers, developers, and quality assurance
testers. After completion of the project, the outsourcing company hands over the
finished product to the client, who assumes all ongoing maintenance.
Dedicated Development Center
The Dedicated Development

(https:/ Center (DDC) model is a business strategy where
companies establish a team of dedicated developers either offshore or onshore to work
on their software products. In this model, the outsourcing company provides a team of
Home (https://www.developway.org/)
professionals to work exclusively with theServices (https:/
client, who /www.developway.org/services/)
maintains complete control over
About (https:/ /www.developway.org/it-consulting-and-software-development-company-in-
the development process. The DDC model (https://developway.org/blog/software-
armenia/)
development-engagement-models-and-billing-plans/) offers greater transparency,
News and and
flexibility, Insights (https://www.developway.org/news-and-insights-into-the-software-
cost-savings compared to building an in-house team. The outsourcing
industry/)
company provides infrastructure, equipment, and necessary support to manage the
team effectively. This model is suitable for long-term software development projects,
offering clients the option to scale up or down as required.
In contrast, the Project-based outsourcing model involves outsourcing either an entire

project or a portion of it, with the outsourcing company taking full accountability for
executing the project. This type of outsourcing typically includes a fixed contract,
payment structure, and timeline, with the outsourcing company assembling a team of
professionals, including project managers, designers, developers, and quality assurance
testers, to deliver the project. Upon completion, the outsourcing company delivers the
finished product to the client, who is responsible for ongoing maintenance.
What are the Most Usually Outsourced IT Services?

Help Desk Support
Help desk support is one of the most common IT services that businesses outsource. It
involves providing technical assistance to end-users when they encounter issues with
their software or hardware. Outsourcing help desk support can provide businesses with
access to 24/7 support, reduce response times, and save costs associated with hiring
and training in-house staff.
Network and Infrastructure Management
Outsourcing network and infrastructure management is the delegation of managing and

maintaining an organization’s IT infrastructure, which includes servers, routers, and
switches, to a third-party service provider. This service is essential for businesses looking
to improve their network performance, minimize downtime, and safeguard data security.
By partnering with a reputable service provider, companies can focus on their core
competencies and strategic goals while leaving the technical aspects of network and
infrastructure management to a specialized team. This can lead to significant cost
savings, improved efficiency, and enhanced reliability, as the service provider has the
necessary tools and expertise to ensure optimal performance and security of the
network and(https:/ /www.developway.org/)
infrastructure. Outsourcing network and infrastructure management also
provides access to the latest technologies without significant investments in IT
resources
Home and
(https:/ training, enabling organizations
/www.developway.org/) to achieve
Services their objectives more
(https://www.developway.org/services/)
effectively
About and
(https:/ efficiently.
/www.developway.org/it-consulting-and-software-development-company-in-
armenia/)
Application Development
industry/)
Application development refers to the process of designing, developing, and
Contact (https:/
maintaining /www.developway.org/contact-us/)
custom software applications. Outsourcing this service is a strategic move
for businesses looking to access specialized skills, reduce development costs, and
accelerate the time to market for their software products. By partnering with an expert
service provider, companies can leverage their technical proficiency and experience to
ensure that their software applications are developed with precision and efficiency. This
results in significant cost savings, improved quality, and faster delivery times.
Outsourcing application development also enables organizations to focus on their core
competencies and strategic goals while leaving the technical aspects to a specialized
team. In conclusion, outsourcing application development is an essential service that
can help businesses improve their software development process, access specialized
skills, and speed up the time to market for their software products.
Cloud Computing Services
This type involves the deployment and management of cloud-based IT resources, such
as servers, storage, and applications. Outsourcing cloud computing services can provide
businesses with access to scalable and cost-effective IT resources, improve business
agility, and reduce the burden of managing IT infrastructure.
Cybersecurity Services
Outsourcing cybersecurity services is essential for businesses to protect their IT assets

from cyber threats such as hacking, malware, and phishing. This service provides access
to specialized skills, resulting in improved threat detection and response times while
reducing the risk of data breaches.
Data Analytics and Business Intelligence Services
Outsourcing data analysis services enhances business decision-making through

specialized skills in data collection, analysis, and interpretation. This service improves
accuracy and speed while reducing costs associated with hiring and training in-house
staff.
(https:/
Web design and /www.developway.org/)
development
Web design and development services are often outsourced to specialized service
Home (https:/
providers. /www.developway.org/)
Outsourcing Services (https:/
web design and development /www.developway.org/services/)
services can help companies
About
create(https://www.developway.org/it-consulting-and-software-development-company-in-
and maintain a professional and effective online presence without the added
armenia/)
costs of hiring and maintaining an in-house team. Service providers can provide
News and Insights
companies (https:/
with access to/www.developway.org/news-and-insights-into-the-software-
specialized expertise and technologies, including website
industry/)
design, development, and maintenance.
Mobile app development
Mobile app development is another commonly outsourced IT service. Developing a

mobile app can be complex and time-consuming, and may require specialized
expertise and technologies. Outsourcing mobile app development can help companies
reduce costs and increase efficiency by leveraging the expertise of service providers.
Service providers can provide companies with access to specialized expertise and
technologies, including mobile app design, development, and testing.
Quality assurance and testing
Quality assurance and testing are essential for ensuring the functionality, reliability, and
security of IT systems and applications. Outsourcing quality assurance and testing
services can help companies reduce costs and increase efficiency by leveraging the
expertise of service providers. Service providers can provide companies with access to
specialized expertise and technologies, including testing and quality assurance
methodologies, tools, and techniques.
IT project management and consulting
IT project management and consulting services are often outsourced to specialized

service providers. Outsourcing IT project management and consulting services can help
companies manage complex IT projects and initiatives without the added costs of hiring
and maintaining an in-house team. Service providers can provide companies with
access to specialized expertise and technologies,

armenia/)
industry/)
In-House Development vs Offshore Outsourcing: Real Cost

Comparison
Before deciding to outsource, it is important to conduct a real cost comparison between
in-house development and offshore outsourcing. Let’s explore the real costs of in-house
development vs offshore outsourcing.
In-House Development Costs
When it comes to in-house development, there are several costs that must be
considered. First and foremost, companies must hire and maintain a team of developers,
which can be a significant expense. In addition to salaries, companies must also pay for
employee benefits, such as healthcare and retirement plans.
In-house development also requires companies to invest in IT infrastructure, including

hardware, software, and office space. These costs can quickly add up, especially for
companies that need to purchase specialized equipment or software.
Another cost to consider is the time it takes to develop software. In-house development
projects can take months or even years to complete, which can result in significant
opportunity costs for the company.
Offshore Outsourcing Costs
Offshore outsourcing
can provide significant cost savings for companies, but it is
important to carefully consider all of the costs involved. When outsourcing, companies
must pay for the services of the offshore provider, which can include hourly rates,
project fees, and other costs.
armenia/)
In addition to the cost of the services themselves, companies must also consider the
News and
cost of Insights the
managing (https://www.developway.org/news-and-insights-into-the-software-
outsourcing relationship. This includes time spent communicating
industry/)
with the offshore provider, monitoring the progress of the project, and resolving any
Contact (https:/
issues that /www.developway.org/contact-us/)
arise.
Offshore outsourcing may also require companies to invest in additional IT infrastructure,

such as secure communication systems or software to facilitate collaboration between
the in-house team and the offshore provider.
Real Cost Comparison
To conduct a real cost comparison between in-house development and offshore

outsourcing, it is important to consider all of the costs involved. In some cases,
outsourcing may provide significant cost savings, especially for companies that need to
develop complex software or need access to specialized expertise. However, in other
cases, in-house development may be more cost-effective, especially for smaller
projects or projects that require close collaboration between the in-house team and the
offshore provider.
In addition to cost considerations, companies must also consider other factors, such as
the quality of the services provided, the security of their data, and the potential risks
associated with outsourcing.

armenia/)
industry/)
IT Outsourcing Risks and Major challenges

IT outsourcing can help businesses take advantage of cost-effective, quality IT services.
However, there are also several risks and challenges associated with IT outsourcing that
businesses should be aware of.
Communication Barrier
One of the biggest risks associated with IT outsourcing is the communication barrier that
can exist between the company and the outsourced service provider. Language barriers,
cultural differences, and time zone differences can all contribute to miscommunications
and misunderstandings. This can lead to delays, errors, and quality issues, as well as
damage to the relationship between the company and the service provider.
Quality That Doesn’t Match Standards
Another risk associated with IT outsourcing is the potential for quality issues. Companies
may outsource IT services in order to access specialized expertise or to reduce costs,
but if the quality of the services provided does not match the company’s standards, then
the outsourcing relationship can quickly become a liability. Quality issues can arise due
to a variety of factors, including miscommunications, lack of expertise, or poor project
management.
Time Zone Differences
Time zone differences

can also present a challenge when outsourcing IT services. If the
company and the service provider are located in different time zones, it can be difficult
to coordinate schedules and communicate in real time. This can lead to delays in project
completion and can make it difficult to resolve issues quickly.
armenia/)
Compliance Issues
Finally, outsourcing IT services can also present compliance issues. Depending on the
industry/)
nature of
Contact the services
(https:/ being outsourced, companies may be required to comply with
certain regulations and standards, such as HIPAA or GDPR. If the outsourced service
provider does not comply with these regulations, it can result in legal and financial
liabilities for the company.
To mitigate IT outsourcing risks (https://developway.org/blog/benefits-and-challenges-

of-software-outsourcing/), companies should carefully vet potential service providers,
establish clear communication protocols, and closely monitor the quality of the services
provided. With careful planning and management, outsourcing IT services can be a
valuable tool for companies looking to reduce costs and access specialized expertise.
Factors that Define Outsourcing Rates

When it comes to outsourcing rates, many factors come into play. Let’s explore the
factors that define outsourcing rates.
Length of the Project
The length of the project is one of the primary factors that determine outsourcing rates.
Longer projects typically require more resources and time commitments from the
outsourced service provider, which can drive up the cost of the project. Shorter projects,
on the other hand, can be completed more quickly and efficiently, and may therefore be
less expensive.
Scope of Projects
The scope of the project is another important factor in determining outsourcing rates.
Projects with a broader scope typically require more resources and expertise, which can
drive up costs. More specific or narrowly defined projects, on the other hand, can be
completed more quickly and efficiently, and may therefore be less expensive.
Size of the Team
The size of the

(https:/
team/www.developway.org/)
required to complete the project is also a significant factor in
outsourcing rates. Larger teams require more resources, including staff and
infrastructure, which can increase the overall cost of the project.
QA Included or Not
armenia/)
Quality
News andassurance (QA) is/www.developway.org/news-and-insights-into-the-software-
Insights (https:/ another factor that can impact outsourcing rates. If the
outsourced service provider includes QA as part of their services, it can increase the
industry/)
overall cost
Contact of /www.developway.org/contact-us/)
(https:/the project. However, it can also ensure higher-quality work and reduce
the likelihood of costly errors.
Level of Expertise
The level of expertise required to complete the project is also a key factor in
determining outsourcing rates. Projects that require highly specialized expertise, such as
in artificial intelligence or machine learning, can be more expensive to outsource.
Infrastructure
Infrastructure is another important factor that can impact outsourcing rates. The cost of
hardware, software, and other infrastructure needed to complete the project can drive
up the overall cost of outsourcing.
Communication
Effective communication between the company and the outsourced service provider is
critical to the success of the project. Poor communication can lead to
misunderstandings and errors, which can drive up costs. Therefore, the quality and
frequency of communication should also be considered when determining outsourcing
rates.
Understanding these factors can help companies make informed decisions when
choosing an outsourcing partner and negotiate outsourcing rates that are both fair and
competitive.

armenia/)
industry/)
Best IT Outsourcing Destinations

One of the most significant factors in outsourcing IT services is the cost, which is
typically lower than hiring local IT professionals. However, outsourcing rates can vary
greatly depending on the region and the specific services needed.
It’s essential for businesses to understand the current IT outsourcing rates per region to
make informed decisions about outsourcing services. Let’s take a closer look at the
outsourcing rates in different regions around the world.
IT Outsourcing Rates per region in Y2023

Central, Western, and Northern Europe
Central, Western, and Northern Europe are known for their high standards of living and
advanced economies, making it an ideal region for outsourcing IT services. However, the
cost of outsourcing in this region is relatively high compared to other regions. The
average hourly rate for IT outsourcing in this region is around $80-$120, depending on
the specific services needed.
Eastern Europe
Eastern Europe
(https:/
has/www.developway.org/)
become a popular outsourcing destination due to its well-educated
workforce, lower cost of living, and convenient location. The hourly rates for IT
outsourcing in Eastern Europe are generally lower than in Central, Western, and
Northern Europe, with an average of $35-$55 per hour. Eastern Europe has a convenient
time zone, which can be an advantage for businesses that require 24/7 technical
armenia/)
support. Moreover, the region has a good level of IT infrastructure and a robust security
system, which can be essential for businesses that require data security.
industry/)
Asian Region (Asia and the Middle East)
The Asian region, including countries such as India, China, and the Philippines, is known
for its competitive IT outsourcing rates. The region has a large pool of talented IT
professionals, which keeps the cost of outsourcing services low. The average hourly rate
for IT outsourcing in the Asian region is around $20-$40 per hour, making it an attractive
destination for companies looking to reduce costs.
Latin America
Latin America is becoming an increasingly popular outsourcing destination due to its

proximity to North America, cultural similarities, and relatively low costs. The hourly rates
for outsourcing software development to Brazil
(https://www.revelo.com/blog/outsourcing-software-development-brazil) are similar to
those in Eastern Europe, with an average of $35-$55 per hour.
Businesses should consider their specific needs and requirements when choosing an
outsourcing destination. They should also evaluate the quality of services,
communication, cultural fit, and security measures in addition to the cost of outsourcing
services. By doing so, they can make an informed decision and choose the best
outsourcing destination for their business.

armenia/)
industry/)
Source: Accelerance Analysis 2022
Criteria to Determine when Choosing an Outsourcing

Destination for Software Development
When it comes to outsourcing software development, choosing the right destination is

crucial to ensure success. There are several factors to consider when selecting an
outsourcing destination, including the innovation ecosystem and ICT sector, technology
expertise and talent pool, education and science, business environment, economic and
political factors, language skills, cultural similarity, time and location, and software
development rates.
The innovation ecosystem and ICT sector
The innovation ecosystem and ICT sector play a significant role in determining the
outsourcing destination. The destination’s innovation ecosystem and ICT sector should
be robust and constantly evolving. The presence of technology parks, incubators, and
accelerators can signify a strong innovation ecosystem. The country should also have a
strong ICT infrastructure and technological advancements to support software
development. Therefore, it is essential to select a country with a robust innovation
ecosystem and ICT sector for outsourcing software development.
The technology expertise and talent pool
The technology(https:/
expertise
and talent pool of the outsourcing destination is also crucial.
The country should have a strong pool of skilled developers who can deliver quality
software development services. The technical expertise of the developers should be in
line with the project requirements. A strong talent pool ensures that the project is
completed on time and within budget, while maintaining high quality.
armenia/)
News and Insights
Education (https://www.developway.org/news-and-insights-into-the-software-
and Science
industry/)
The quality
Contact of software
(https:/ development services offered by an outsourcing destination is
significantly influenced by the state of education and science in the country. A robust
education system that produces skilled professionals in technology is essential for the
success of software development services. The presence of research institutions and
universities signals a strong education and science ecosystem, demonstrating the
country’s commitment to technology advancement. As such, businesses seeking to
outsource software development services should prioritize destinations with a strong
focus on education and science.
The Business Environment
The business environment of the outsourcing destination is also essential. The country
should have a friendly business environment that encourages entrepreneurship and
innovation. The presence of supportive government policies and tax incentives can
indicate a favorable business environment.
Economic and political factors
Economic and political factors can significantly impact the outsourcing destination. The
country’s economic stability, political stability, and legal framework should be
considered when choosing a destination. A stable economic and political environment
ensures continuity of the project and protects the intellectual property rights of the
client.
Language skills
Language skills are crucial when outsourcing software development. The destination
country should have a significant number of professionals who are proficient in the
client’s preferred language. This ensures effective communication between the client
and the development team, which is crucial for the success of the project.
Cultural similarity
For outsourcing
(https:/
to be
successful, cultural similarity is a vital consideration. The
destination country should share a similar culture to the client’s, promoting effective
communication and understanding of the client’s requirements. This cultural alignment
enables the development team to deliver services that meet the client’s expectations
and fosters a productive working relationship. Therefore, businesses seeking to
armenia/)
outsource should carefully evaluate potential destinations to ensure that their cultural
environment is a good match.
industry/)
Contact (https:/
Time and /www.developway.org/contact-us/)
location
Effective outsourcing requires consideration of various factors, including time and

location. Choosing a destination country in a convenient time zone for the client and
with good connectivity is crucial to ensure effective communication and timely delivery
of projects. The location should also be easily accessible to facilitate regular
communication and collaboration between the outsourcing team and the client. Proper
consideration of time and location factors can help to ensure outsourcing success and
achieve project goals efficiently.
Software development rates
Finally, software development rates are a crucial factor to consider when selecting an
outsourcing destination. The rates should be competitive, and the quality of services
should be maintained. Therefore, it is essential to choose a destination with reasonable
software development rates.

armenia/)
industry/)
Source: Accelerance Analysis 2022
4 East European Unique Destinations for Offshore

Software Development: Czech Republic, Moldova, Poland,
and Armenia
In recent years, Eastern Europe has become a hub for offshore software development,
attracting businesses from around the world. With its skilled workforce, lower cost of
living, and favorable business climate, the region offers a compelling alternative to other
outsourcing destinations. Among the many countries in the region, the Czech Republic,
Moldova, Poland, and Armenia stand out as unique and promising destinations for
offshore software development.
Czech Republic
The Czech Republic has a well-established and thriving technology industry, with a high
concentration of tech startups and established companies in Prague and other cities.
The country has a skilled workforce with a strong engineering and technical
background, making it an attractive destination for software development. Additionally,

the country has a favorable business climate, with low corporate taxes and a stable
political environment.
Moldova
About (https:/
Moldova is a /www.developway.org/it-consulting-and-software-development-company-in-
hidden gem in Eastern Europe, offering a cost-effective and skilled
armenia/)
workforce for software development. The country has a strong educational system,
News and Insights
producing a large (https:/
number /www.developway.org/news-and-insights-into-the-software-
of IT graduates each year. Furthermore, the country has a low
industry/)
cost of living, making it an affordable destination for businesses looking to outsource
Contact
software(https:/ /www.developway.org/contact-us/)
development. Moldova also has a favorable business climate, with a simplified
taxation system and a growing startup ecosystem.
Poland
Poland has become a popular destination for offshore software development in recent
years, thanks to its large pool of highly skilled IT professionals. The country is home to
many established software development companies, as well as a growing number of
tech startups. Poland has a favorable business climate, with low taxes and a supportive
government. Additionally, the country has a strategic location in the heart of Europe,
making it easily accessible to businesses across the continent.
Armenia
Armenia is an up-and-coming destination for offshore software development, with a

highly educated workforce and a growing technology sector. The country has a strong
tradition of science and engineering, with a large number of IT graduates each year.
Additionally, Armenia has a favorable business climate, with low taxes and a supportive
government. The country is also home to a growing number of tech startups, creating a
vibrant ecosystem for software development.
Eastern Europe offers a range of unique and promising destinations for offshore software
development. The Czech Republic, Moldova, Poland, and Armenia are just a few of the
countries in the region that stand out for their skilled workforce, favorable business
climate, and strategic location. By partnering with a reputable software development
company in one of these countries, businesses can access high-quality software
development services at a lower cost, while also benefiting from the expertise and
innovation of these dynamic and growing tech ecosystems.
Comparing Software Development Hourly Rates in Eastern European Countries
Country Junior Developer Mid-Level Developer Senior Developer

Ukraine
armenia/) $10-$25 $25-$45 $45-$80
Poland
industry/) $20-$40 $40-$70 $70-$120
Romania $10-$25 $25-$40 $40-$80
Bulgaria $10-$25 $25-$45 $45-$80
Hungary $10-$25 $25-$45 $45-$80
Czech Republic $15-$35 $35-$60 $60-$100
Estonia $15-$30 $30-$60 $60-$90
Latvia $10-$25 $25-$45 $45-$80
Armenia $10-$25 $25-$40 $40-$75
It’s important to note that these rates are just a general guide and can vary depending
on the specific project requirements, level of expertise, and other factors. However,
overall, Eastern European countries offer competitive rates compared to other
outsourcing destinations, while still providing high-quality software development
services. Additionally, the region offers a skilled workforce, favorable business climate,
and strategic location, making it an attractive destination for businesses looking to
outsource their software development.
Why choose Armenia to Outsource Software Development

In recent years, Armenia has become an increasingly popular destination for
outsourcing software development. Located in the heart of the Caucasus region,
Armenia
Home offers
(https:/ a unique blend of skilled talent,
/www.developway.org/) favorable
Services (https:/business environment, and
/www.developway.org/services/)
cultural
About diversity,
(https:/ making it an attractive option for businesses looking to outsource their
software development needs. In this article, we’ll explore some of the reasons why you
armenia/)
should
News andconsider
Insightschoosing Armenia as your outsourcing destination.
(https://www.developway.org/news-and-insights-into-the-software-
industry/)
Education
Armenia has a strong tradition of education, with a literacy rate of over 99%. The country
boasts a number of prestigious universities, including the Yerevan State University, the
Armenian National Agrarian University, and the American University of Armenia. These
institutions produce a steady stream of highly skilled graduates, many of whom go on to
work in the technology sector.
Language Skills
One of the key advantages of outsourcing to Armenia is the country’s multilingual

workforce. The official language of Armenia is Armenian, but many Armenians are also
fluent in Russian and English. This makes communication with software developers in
Armenia much easier and more efficient than with developers in some other outsourcing
destinations. In addition to being multilingual, Armenians are also highly proficient in
English. In fact, English is the most widely spoken foreign language in Armenia, with
many Armenians having received their education in English. This makes communication
with clients in English much easier and ensures that there are no misunderstandings or
communication barriers between the development team and the client.
Time Zone
Another advantage of outsourcing to Armenia is the time difference. Armenia is located

in the GMT+4 time zone, which means that it is 4 hours ahead of Coordinated Universal
Time (UTC+0). This time difference can be very beneficial for businesses in Europe and
the United States, as it allows for 24-hour development cycles and ensures that work is
completed faster and more efficiently.
Diversity and Tolerance in Armenia
Armenia is a(https:/
diverse/www.developway.org/)
and tolerant country that welcomes people from all over the world.
The country has a rich cultural heritage, and its people are known for their hospitality
and openness to new ideas. This makes Armenia an attractive destination for businesses
that are looking to work with a diverse and tolerant workforce.
armenia/)
Business Environment
Armenia has a favorable business environment that is conducive to entrepreneurship
industry/)
and innovation.
Contact The government of Armenia has implemented a number of measures to
(https://www.developway.org/contact-us/)
support the growth of the tech sector, including tax breaks and other incentives for tech
companies. The country also has a strong legal system and a business-friendly
regulatory environment, which makes it easy for companies to set up and operate in
Armenia.
Armenia as a Tech Hub

Armenia has a vibrant and rapidly growing tech environment that is attracting the
attention of businesses and investors from around the world. With a highly skilled and
talented workforce, Armenia is quickly becoming a hub for innovation and technology
(https://mathewzein.com/my-blog/f/what-tens-of-ceos-said-about-opening-back-
offices-in-armenia).
The ICT sector in Armenia is one of the fastest-growing industries in the country. The
government of Armenia has made a significant investment in the sector, and this has led
to the development of a strong and dynamic ecosystem of tech companies.
Armath Laboratories
About
Armath(https://www.developway.org/it-consulting-and-software-development-company-in-
Laboratories is a unique program that was developed in Armenia to promote
armenia/)
News
STEMand Insightsand
education (https:/ /www.developway.org/news-and-insights-into-the-software-
innovation. The program provides students with the opportunity to
industry/)
learn coding and robotics, and it has been very successful in promoting innovation and
entrepreneurship among young people in Armenia.
TUMO centers for Creative Technologies
TUMO is a network of learning centers that was developed in Armenia to promote

creativity and innovation among young people. The centers provide students with
access to state-of-the-art technology and resources, and they have been very
successful in promoting innovation and entrepreneurship in Armenia.
How Many Software Developers are There in Armenia?
Armenia has a rapidly growing tech industry, with more than 20,000 IT professionals
working in the country. The government of Armenia has made a significant investment in
the tech sector, and this has led to a surge in the number of software developers in the
country.
What are the Top Programming Languages in Armenia?
The most popular programming languages in Armenia are Java, Python, C++, and
JavaScript. These languages are widely used by software developers in Armenia and are
in high demand by companies looking to outsource their software development needs.
Growing Community of Tech Best Companies
Armenia is fast becoming a hub for international brands, thanks to its thriving IT
economy. The country is home to several highly respected companies, including Picsart,
a mobile photo editing app with over 150 million active users. This app alone employs
more than 350 people in Armenia, highlighting the country’s strong pool of tech talent.
One of the world’s leading technology companies, NVIDIA, has also recognized
Armenia’s potential and established a physical presence in the country. With an annual
(https:/
revenue of $27 /www.developway.org/)
billion and a workforce of over 20,000, NVIDIA’s Armenian branch is led
by Rev Lebaredian, Vice President of Omniverse and Simulation Technologies.
Another major IT employer in Armenia is Synopsys Armenia, which conducts research
and development while offering product support for semiconductor IP solutions, design
armenia/)
for manufacturing
News solutions,
and Insights (https:/ and electronic design automation (EDA) tools. With over
/www.developway.org/news-and-insights-into-the-software-
850 employees, the company is a significant player in the Armenian tech industry.
industry/)
Synopsys
Contact Armenia
(https:/ has three offices in the country, including two in Yerevan and one in
Gyumri, making it a prominent outpost for the company.
Armenia’s growing IT economy and the presence of such renowned international brands
highlight the country’s potential for software development outsourcing partnerships. At
DevelopWay, we have a deep understanding of the Armenian IT industry and the talent
that drives it. Contact us today to explore how our software development services can
help your business succeed in the digital age.
IT Startup Ecosystem in the Republic of Armenia
Armenia’s IT industry has also spawned a thriving startup culture, with numerous
startups emerging in recent years and attracting venture capital funding from around
the world. The ecosystem is supported by leading technology incubators and
accelerators, such as the Enterprise Incubator Foundation, Armenian National
Engineering Labs (ANEL), the ISTC Innovative Solutions and Technologies Center, UITE
Innovative Center, Epic Incubator, SmartGateVC and ImpactAim Accelerator.
One of the most notable startups is SoloLearn, a mobile learning platform that teaches
coding and computer science to beginners. Since its launch in 2014, SoloLearn has
attracted over 21 million users worldwide and raised $5.6 million in funding. The
company’s success is indicative of Armenia’s talented pool of software developers and
engineers, who are behind many of the country’s most successful startups.
PicsArt: As mentioned earlier, PicsArt is a popular mobile photo editing app with over 150
million active users. The company has raised $45 million in funding and is
headquartered in San Francisco, with a major office in Yerevan, Armenia.
Krisp: An AI-powered noise cancelling app that mutes background noise during calls.
Krisp has raised $65 million in funding and counts companies such as Hubspot and
GitLab among its clients.
Renderforest: A platform that allows users to create professional-quality videos,

animations, and websites without any technical skills. Renderforest has over 10 million
(https:/
users and has /www.developway.org/)
raised $7 million in funding.
Chessify:
Home A mobile
(https:/ app that uses computer
/www.developway.org/) vision to(https:/
Services analyze chess positions and provide
/www.developway.org/services/)
users (https:/
About with optimal moves. Chessify has over 1 million downloads and has raised
$560,000 in funding.
armenia/)
CodeSignal: A platform for technical assessment and interview management that helps
industry/)
companies hire top software engineers. CodeSignal has raised $87.5 million in funding
to date and boasts clients such as Dropbox and Robinhood.
In conclusion, Armenia is an excellent outsourcing destination

(https://mamble.com/blog/outsourcing-to-armenia-benefits-and-rates) for businesses
looking for high-quality software development services. With a skilled workforce,
favorable business environment, and cultural diversity, Armenia has everything that
businesses need to succeed in today’s fast-paced global economy. So if you’re looking
for a reliable and cost-effective outsourcing partner, consider choosing Armenia for your
software development needs.
Thank you for reading our article. We hope you found it informative and helpful in your
search for a software development outsourcing partner.
At DevelopWay (https://developway.org/it-consulting-and-software-development-
company-in-armenia/), we are a team of experienced software developers specialized
in providing (https://www.developway.org/)
high-quality software development services to businesses of all sizes and
across a variety of industries.
Link: https://developway.org/it-consulting-and-software-development-company-in-
armenia/
armenia/)
If you are looking for a reliable software development outsourcing partner, we would be
industry/)
happy to discuss how we can help your business achieve its goals. Contact us
(https://developway.org/contact-us/) today to learn more about our services and how
we can assist you in your software development needs!
OFFSHORE SOFTWARE DEVELOPMENT OUTSOURCING

(HTTPS://WWW.DEVELOPWAY.ORG/TAG/OFFSHORE-SOFTWARE-DEVELOPMENT-
OUTSOURCING/)
OUTSOURCING DEVELOPMENT TO ARMENIA

(HTTPS://WWW.DEVELOPWAY.ORG/TAG/OUTSOURCING-DEVELOPMENT-TO-ARMENIA/)
OUTSOURCING SOFTWARE DEVELOPMENT

(HTTPS://WWW.DEVELOPWAY.ORG/TAG/OUTSOURCING-SOFTWARE-DEVELOPMENT/)
SOFTWARE DEVELOPMENT OUTSOURCING SERVICES

(HTTPS://WWW.DEVELOPWAY.ORG/TAG/SOFTWARE-DEVELOPMENT-OUTSOURCING-
SERVICES/)
SOFTWARE OUTSOURCING (HTTPS://WWW.DEVELOPWAY.ORG/TAG/SOFTWARE-

OUTSOURCING/)
SOFTWARE OUTSOURCING ARMENIA (HTTPS://WWW.DEVELOPWAY.ORG/TAG/SOFTWARE-

OUTSOURCING-ARMENIA/)
SOFTWARE OUTSOURCING COMPANY ARMENIA

(HTTPS://WWW.DEVELOPWAY.ORG/TAG/SOFTWARE-OUTSOURCING-COMPANY-ARMENIA/)
⟵ DevelopWay CJSC is Y 2022 Award- Innovate and Thrive: IT Outsourcing

Winning Company in Armenia for its Industry Trends in 2023
Custom Software Development, UX/UI (https://www.developway.org/blog/it-
Design, and Web Design Services outsourcing-industry-trends/) ⟶
(https://www.developway.org/blog/top-
custom-software-development-
company-armenia/)

News
armenia/)
Innovate
News and Thrive:
and Insights IT/www.developway.org/news-and-insights-into-the-software-
(https:/ Outsourcing Industry Trends in 2023
(https://www.developway.org/blog/it-outsourcing-industry-trends/)
industry/)
Contact
May 30,(https:/
2023 /www.developway.org/contact-us/)
Complete Guide to Outsourcing Software Development to Eastern Europe: Armenia,

Czech Republic, Poland and Moldova Overviewed
(https://www.developway.org/blog/outsourcing-software-development-to-eastern-
europe/)
March 20, 2023
DevelopWay CJSC is Y 2022 Award-Winning Company in Armenia for its Custom

Software Development, UX/UI Design, and Web Design Services
(https://www.developway.org/blog/top-custom-software-development-company-
armenia/)
February 11, 2023
Benefits and Challenges of Outsourcing Software Development: (With a Guide to

Manage Offshore Development Teams Successfully)
(https://www.developway.org/blog/benefits-and-challenges-of-software-
outsourcing/)
January 14, 2023
Happy New 2023 Year!!! (https://www.developway.org/team/happy-new-year/)

December 31, 2022
GoodFirms Validates DevelopWay as the Top Software Development Company in

Armenia (https://www.developway.org/blog/top-software-development-company-in-
armenia/)
December 8, 2022
Software
Home Development
(https:/ Estimation Process
/www.developway.org/) Services (https://www.developway.org/services/)
(https://www.developway.org/blog/software-development-estimation-process/)
armenia/)
December 7, 2022
industry/)
CEO’s Interview
Contact With GoodFirms (https://www.developway.org/blog/interview-to-
(https://www.developway.org/contact-us/)
goodfirms-software-outsourcing-services-in-armenia/)
December 2, 2022
Celebrating the “Company of the Month in Armenia” Award

(https://www.developway.org/competition/celebrating-the-company-of-the-month-in-
armenia-award/)
September 5, 2022
Team Building and Inspiration (https://www.developway.org/team/team-building-and-

inspiration/)
August 9, 2022
Software Development Tools and Technologies

(https://www.developway.org/blog/software-development-tools-and-technologies/)
August 3, 2022
How to Choose the Right Outsourcing Partner for Your Software Project
(https://www.developway.org/global/choosing-the-right-outsourcing-partner-for-your-
software-project/)
July 18, 2022
Armenia’s Presence in Major International Tech Events in June 2022

(https://www.developway.org/summit/armenias-presence-in-major-international-tech-
events-in-june/)
June 29, 2022
Software Development Engagement Models and Billing Plans
(https://www.developway.org/blog/software-development-engagement-models-and-
billing-plans/)
June 24, 2022
armenia/)
industry/)
What is Software Development (https://www.developway.org/blog/what-is-software-
development/)
March 30, 2022
Happy New 2022 Year (https://www.developway.org/global/happy-new-2022-year/)

December 24, 2021
Benefits of Swift over Objective-C (https://www.developway.org/global/benefits-of-

swift-over-objective-c/)
December 17, 2021
It’s an exciting time to join DevelopWay! (https://www.developway.org/career/its-an-

exciting-time-to-join-developway/)
September 15, 2021
Mobile dev team is enlarging! (https://www.developway.org/career/mobile-dev-team-

is-enlarging/)
August 12, 2021
New partnership with NCP (https://www.developway.org/cooperation/new-

partnership-with-ncp/)
September 16, 2020

armenia/)
industry/)
WORK WITH/www.developway.org/contact-us/)
Contact (https:/ US
Start scaling your business with technologies.
Get started on your next project with us.
CONTACT US
105 Teryan Sreet, Yerevan 0009, Armenia
+374 93 219784
contact@developway.am (mailto:contact@developway.am)
Copyright © 2009 - 2023 DevelopWay CJSC. All rights reserved

Complete Guide To Outsourcing Software Development To Eastern Europe: Armenia, Czech Republic, Poland and Moldova Overviewed

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Complete Guide To Outsourcing Software Development To Eastern Europe: Armenia, Czech Republic, Poland and Moldova Overviewed

Uploaded by

Copyright:

Available Formats

7/20/23, 9:11 PM Complete Guide to Outsourcing Software Development to Eastern Europe: Armenia, Czech Republic, Poland and Moldova

Home (https://www.developway.org/) Services (https://www.developway.org/services/)

Home (https://www.developway.org/) » News and Insights