In this article, I want to introduce the most important factors that make Armenia a very attractive outsourcing country.
Key Competitive Advantages of Outsourcing to Armenia
The Republic of Armenia has maintained its immense potential for the growth of technology and continues to be the regional leader in this sphere owing to a number of competitive advantages such as low labor cost, constant growth of businesses and the total turnover. Now to sum up the topic let’s mention those key advantages that make Armenia a favorable country in terms of web development outsourcing services.
• Low labor costs due to the country’s geographic location and economic condition
• High education level in IT and the related fields
• Government initiatives to support the IT sector and attract foreign investment
• Stable growth of the IT sector
• Huge experience with global technology brands
• Good communication skill and English level proficiency
During the recent years, the Government of Armenia started to implement an “open door policy” to encourage foreign business investments. The legislation makes it easy to establish and grow an IT startup in Armenia, and enterprises with less than 30 employees enjoy great tax benefits.
For a small country like Armenia, with almost no natural resources and a non-beneficial geographic location, it is crucial to invest more in education, science, research and development. Hence, in the year of 2000, the Government recognized the growing value of Armenian IT industry and declared ICT as one of the priority sectors of the country’s economy.
In 2013, the Government of Armenia and IBM signed Memorandum of Understanding. Thus they started cooperation in education and research and development, establishing Innovative Solutions and Technologies Center.
A very prominent IT project is Gyumri TechnoPark- technological center for IT development. In Armenia, we also have one of the most original schools of its kind – TUMO center for creative technologies, a free digital learning center for teenagers.
With online business registration, e-governance, e-taxation and accounting methods, Armenia is ranked among the best places in Europe to start a business. Here dozens of startups are being registered each year. A number of incubators, accelerators, angel investors, venture funds and other institutions have been springing up across the city to support Armenian startups. World-known Granatus Ventures is Armenia’s first-ever Venture Capital fund. The HIVE Seed Fund invests in and partners with early-stage startups worldwide, from Silicon Valley to Armenia. The Roda Group is a seed stage venture capital firm, based in Berkeley, California focusing on Armenian startups among others.