Why is Armenia the best outsourcing destination for MENA region?

In September 2023, startups in the Middle East and North Africa (MENA) raised $36 million in funding, marking a key turning point in the dynamic landscape of the region’s entrepreneurial ecosystem.

The ICT sector in the MENA is expanding at a phenomenal rate and has a promising future. The UAE has established itself as a top destination for tech companies and investors due to the government’s investments in innovation and efforts to foster a positive business climate in the region. Being at the intersection of Europe, Asia, and Africa, the region's advantageous geography also contributes significantly to its ability to attract technology companies.

MENA is in the era of a tech boom, however, simultaneously it has a bunch of tech challenges to be solved. Software outsourcing is one of the approaches MENA-based companies prefer.

In this article, I will walk you through:

1. What challenges the MENA-based companies have in the tech ecosystem
2. How the MENA startups solve their tech challenges through outsourcing
3. Why Armenia is an attractive software outsourcing destination for MENA startups
4. Steps to choose the right tech partner for MENA-based business
5. Top 5 Armenian software development companies to choose from

Tech Challenges in the MENA region

1. Talent Shortage

   Despite a remarkable 61% increase in IT hiring, the market is unable to keep up with the growing demand for IT expertise, especially in areas such as AI, blockchain, and cybersecurity. There is a serious shortage of highly qualified IT workers.

2. Fierce Competition

   The IT job market in the UAE specifically is one of the most competitive in the world. Tech enthusiasts frequently have an abundance of offers and must decide between several attractive options.

3. Cybersecurity Concerns

   Cybersecurity risks have a chance to increase in tandem with a surge in technology usage. To address and mitigate these threats, continued efforts are necessary to improve cybersecurity competence, regulations, and structures.

How MENA-based startups solve their tech challenges through outsourcing

Many MENA-based companies, which are striving for digitalization but have difficulties finding essential tech experts, started to take actions outside the country by going global and considering worldwide software outsourcing. Here are a few reasons why Middle Eastern and North African startups consider software development outsourcing rather than hiring on-site.

• Saving time

  Depending on the nature of the project, its complexity, workload, and requirements, outsourcing helps many companies save costs, regardless of the chosen destination. Saving time and finishing the task at hand have priceless advantages.

• Smooth communication

  It might be difficult to manage staff members or freelancers since they frequently need your continuous attention and thorough guidance for each task. On the other hand, hiring an experienced outsourcing company to handle your software development requests might simplify things.

• Flexibility and speed

  If you want assistance with a new custom API integration, web and smartphone application, or system modernization, software development firms can assist you quickly. As it might cause delays in your project's timeframe, hiring in-house developers might not be feasible.

• Full responsibility

  Excellent software outsourcing service providers take the burden off your shoulders and guarantee high-quality delivery by holding themselves accountable rather than waiting for your input. Internal teams, on the other hand, frequently find it difficult to be held accountable as they are overwhelmed with handling multiple projects at once.

• Advice and consultations to improve the approach

  Collaborating with a skilled software development team can offer insightful evaluations and assist you in questioning your methodology. We at Milies, oftentimes hold advice and feedback sessions with our clients to bring to life the potential of their product quickly and efficiently.

• Access to a wider technology stack

  If in the case of in-house hiring, you must hire specialists of different expertise and tech stack to work on your complex project, you don’t have to do this while outsourcing. The software partner usually has a variety of technology stacks and can offer you the needed resources in a short time.

• Proven experience and verified testimonials

  The fastest way to success is to collaborate with a team of software development specialists who have demonstrated success. By requesting a portfolio of their case studies and reading client feedback in IT directories, you can verify their experience.

Why Armenia is an attractive software outsourcing destination for the MENA region

For the last decade, the name of Armenia as a global software outsourcing destination has been booming worldwide. The number of IT projects outsourced to Armenia is rising day by day. We at Milies, have especially felt the rise of software development requests from UAE-, Qatar-, and Saidi Arabia-based startups. There are several reasons for that:

Strategic location

Tech businesses are attracted to Armenia significantly because of its convenient location. Situated at the intersection of Europe, Asia, and Africa, this location offers a competitive edge and simple access to global markets.

Time zone

The time zones of Armenia and the UAE are the same. With Saudi Arabia and Qatar, we have only 1 hour time difference. Companies with recent outsourcing experience understand how crucial time zone compatibility is. Startups in the MENA region can work together with their tech partner from Armenia in real time without having to worry about scheduling conflicts or missing deadlines.

Cost efficiency

Compared to the UAE’s, Saudi Arabia’s, or Qatar’s local software development prices, Armenia provides reliable quality at affordable costs. It positions the country as an attractive destination for businesses looking to optimize their development budgets while guaranteeing excellent outcomes.

Frequent visits

Armenia is only a 3-hour flight away from the UAE and Qatar, both countries requiring no visa. This strategic location makes outsourcing even more attractive due to the possibility of organizing quick face-to-face meetings with the team and ensuring everyone is on the same wave.

Steps to Choose the Right Tech Partner for MENA-based Business

Let’s understand the criteria that should be considered when choosing a tech partner for your MENA-based company.

1. Identify Your Business Needs

   By evaluating your current challenges and future goals, you will figure out the type of service you lack. If it is about software outsourcing, the first thing you would want to do is identify specific technology requirements and make a scope of work if possible. It would greatly simplify the estimation process for your project.

2. Research Software Providers

   Evaluate potential tech partners based on expertise and experience. To learn more about their previous case studies, review their portfolio and client testimonials.

3. Check Compatibility and Alignment

   Ensure alignment with your company's values and objectives. Evaluating communication styles and cultural fit will help you better understand your potential partnership.

4. Ensure Scalability and Flexibility

   Examine how well your partner can scale solutions to match the growing needs of your company. Ensure flexibility to adapt to evolving technological landscapes. If you require a team scale-up, make sure the software provider will be able to.

5. Analyze Collaboration and Communication

   Emphasize the importance of effective communication channels. By highlighting the significance of a collaborative working relationship, you will ensure your partner’s communication style goes hand in hand with yours.

Top 5 Software Development Companies from Armenia

Milies

Milies is a seasoned and trustworthy IT partner, offering web and mobile development services to businesses worldwide. With its expertise and multiple case studies in the MENA region, Milies offers software solutions tailored to each business' requirements and budget.

It is a team of youthful, driven, quality-focused people, ready to go above and beyond to make sure your tech product succeeds - even under the toughest deadlines. From back-end and front-end developers to DevOps engineers, UI/UX designers, QAs, and PMs, the team can provide a comprehensive solution.

Milies team is more than a team of engineers, but rather collaborators, thinkers, and executors, dedicated to connecting, sharing ideas, and executing strategies with you.

To get in touch with the software outsourcing team of Milies, you can use the contact form or simply send your request to business@milies.net.

V-Mobile

V-Mobile is a team of engineers, tech transformers, and design-thinkers helping to speed up, improve, and sustain the transition to digital business. As a true mobile always team, they will delight with a B2B or B2C grade app with their end-to-end mobile development services.

V-Mobile's cross-functional team structure fosters a collaborative environment where developers work with designers and product owners at every stage, making sure that their code is based on the business needs.

ARLOOPA

ARLOOPA is an augmented reality (AR) and virtual reality (VR) app and game development company that provides advanced AR and VR services, such as cloud-based augmented reality, custom-branded augmented reality app and game development, virtual reality app and game development, 2D and 3D content creation.

ARLOOPA uses augmented reality, image recognition, and computer vision technology to convert the real world into a content-rich, interactive experience.

Tesvan

Tesvan is a team of professionals providing well-designed and structured software testing solutions and developing extensive quality test systems for international customers from different industries to ensure the highest quality models.

Tesvan team defines, executes, and documents manual tests, test data, and test results, implements Automated Testing to further enhance the product’s growth.

Metric

Metric is a leading Enterprise AI solution provider. From startups to Fortune 100 companies, they help to uncover their hidden potential and achieve more with their deep expertise in machine learning, data analytics, deep learning, NLP, and computer vision.

Metric offers Automated solutions for such machine learning problems as Automated time series analysis, Automated data structuring and feature engineering, Automated event classification, Automated pattern mining, insight detection and extraction, Automated AI bias detection, extraction and correction, and Automated AI model deployment.

There are a lot more software companies in Armenia with a diverse spectrum of services and solutions in the tech sphere. All you need to do is understand your project needs and filter the companies that match your requirements the most.

At Milies, we offer free IT consulting to understand your tech challenges and advise you on the best IT solutions you can implement to boost your business. Grab your chance and send a meeting request to discuss your needs.