How Top Global Tech Companies are Expanding in Armenia

Can you ever imagine Armenia as the new technology hub of the world? Fast becoming a favorite destination, Armenia has been in the spotlight of tech companies worldwide.

In this article, we at Milies, highlight how Armenia is attracting international tech companies, boosting the economy, and creating opportunities for software developers.

For the past 10+ years, the Armenian technology market has seen at annual growth of around 23%. Competitive salary, active startup scene, perfect living conditions, and low cost of living have shaped Armenia as an ideal destination for international software development companies.

International tech companies have started to realize the country's potential in recent years and have begun developing their teams and operations in Armenian territory. This is not only to change the local economy but also to open many vacancies for the Armenian tech workforce.

The companies developing and designing websites, mobile apps, e-commerce apps, API integrations, and more, are helping this growth surge tremendously. In this article, we will touch upon:

• What makes Armenia an attractive destination for international tech companies?
• How do global tech giants boost Armenia’s local economy and the tech workforce?
• Which world-famous international tech companies are present in Armenia?

What makes Armenia an attractive destination for international tech companies

Despite Armenia's modest size, there are plenty of IT networking opportunities there. According to StartupBlink’s Global Startup Ecosystem Report 2024, Armenia stands out in the tech sphere within the Caucasus region, reflecting strong performance in key areas such as quality, quantity, and the business environment.

While local companies quickly enter the foreign market and become fierce competitors, international companies open branches and offices in Armenia. No surprise why. There are several reasons for that.

Armenian tech ecosystem’s top 5 competitive advantages in the region

• High-quality and talented specialists

  A highly qualified labor force with a great deal of background in science, technology, engineering, and mathematics (STEM) represents an enormous share of the population in Armenia. This is obvious from the number of universities turning out highly educated graduates, such as the American University of Armenia and Yerevan State University, ready to meet global tech industry requirements.

• Cost-effective labor and low operating costs

  There is a steady supply of qualified professionals in Armenia’s education system as it is well rooted in IT and related fields. This is because its labor costs are noticeably lower compared to Western Europe and North America.

• Government support and investment opportunities

  The Armenian Government has implemented various policies and incentives to support the Armenian tech sector and attract foreign investment. These include tax breaks, grants, and simplified business regulations. One way through which innovation in startups is promoted is by entities such as the Enterprise Incubator Foundation.

• International and local conferences

  Armenia also becomes a platform for international tech events, conferences, and hackathons, which lead to the emergence of new ideas from the exchange among experts, further establishing its position as a technology hub. WCIT 2019 was held in Armenia. This year, Armenia is again the host of WCIT 2024. This world congress on innovation and technology has always been accompanied by such speakers as Bill Gates (Microsoft), Vint Cerf (Father of the Internet), Jenny Bofinger-Schuster (Siemens), Alexis Ohanian (Reddit), and more.

• Legal framework for intellectual property protection

  Armenia had enacted a legal framework that conformed to the global standards of intellectual property protection allowing organizations to secure their creativity’s rights. This means that companies’ innovations and intangible assets can be effectively safeguarded.

How Global Tech Giants Boost Armenia’s Local Economy And Tech Workforce

Global tech giants play major roles in boosting Armenia’s economy in different impactful ways. They make a key contribution by attracting substantial international direct investments. Armenian tech start-ups raised $47 million in total investment in 2023 with a significant flair for attracting the attention of investors from all over the world. Such crucial investments offer capital that is essential for local enterprises, thereby enabling them to expand and employ the latest technology, benefiting the tech workforce.Another important aspect in this respect is that international tech giants have opened their research and development (R&D) facilities in Armenia. Such establishments help to provide good working positions that support local economic growth at the same time. It offers opportunities for Armenian software developers to engage in high technologies and professionally advanced projects.

According to Modex report, the number of employees working in the IT sphere increased from 20,988 in January 2022 to 33,980 in December 2023, which makes up 61.9%. Among those employed, the absolute majority are foreign workers who relocated from Russia and changed the share of foreign employees from 4.1% to 27.3%.

During this period, the number of Armenian citizens employed in this very sector increased by around 3,700. On the other end, at the end of 2022, the sphere had 2,653 sole proprietors, and at the end of 2023, it increased to 4,834. According to the data, there is overall robust growth in the IT sector in Armenia, driven by foreign workers and an influx of local employment with a boost in entrepreneurial activity.

Top 12 World-Famous International Tech Companies

Armenia hosts several world-famous international software development companies, each contributing uniquely to the global tech landscape. In this article, we are presenting the top 12 of them.

1. Synopsys

   Synopsys Armenia opened its first office in Yerevan back in 2004. Today it’s almost 20 years. In 2010, they further extended their presence after the acquisitions of HPLA and Virage Logic. It is now the largest employer in the IT sphere in Armenia, with more than 1000 workers. Today Synopsys Armenia has branches in Yerevan and Gyumri.

2. Yandex

   Yandex is a cutting-edge company, which has developed smart products plus services utilizing machine learning. The company operates internationally with more than thirty offices located in Russia, Serbia, Kazakhstan, and Armenia among some other countries. The company expanded its office in Armenia to coordinate its activities in the CIS countries, reflecting its growing presence in the region. It currently has around 400 employees.

3. Cisco

   Originally founded in the United States, Cisco Systems, Inc. is an international company with a focus on network equipment design, manufacturing, and marketing. The company was created in 1984 by experts in the field of technology, and it currently employs over 80,000 people worldwide. In late 2014, Cisco Systems opened an office in Armenia after purchasing Memoir Systems – an Armenian enterprise engaged in embedded memory technology.

4. VMware

   Established in the United States, VMware is a leader in the field of software development with an emphasis on advanced technology. After acquiring Integrien Corporation, the pioneer in real-time performance analytics, in 2010, it opened its research and development facility in Armenia (VMware Eastern Europe LLC). It is developing three company products and employs more than 200 people at the moment.

5. EPAM Systems

   Software engineering and technological solutions are the areas of expertise of EPAM Systems, a well-known worldwide provider of IT services and consulting. EPAM Systems has made a big impact since opening its first engineering hub in Yerevan in 2014 and its second hub in Gyumri. For more than 280 clients, EPAM drives innovation through global, multidisciplinary projects with over 900 talented technology specialists working from Armenia, both in their offices and remotely. The organization fosters future technology experts through its training center, contributing to the expansion of Armenia's IT industry.

6. Miro

   Miro represents an online collaborative whiteboard platform that allows for the effective running of distributed teams. They run their business in 8 countries, having 12 offices across the world, with co-headquarters in San Francisco and Amsterdam. International IT company Miro has also expanded its business to Yerevan and now has worldwide.

7. Oracle

   With hundreds of thousands of employees spread across 184 locations, Oracle is a major supplier of a full range of cloud applications as well as platform services. In 2014, the company declared about establishing an office in Armenia by acquiring LiveLook, a local company. LiveLook offered cutting-edge co-browsing and screen-sharing technology along with cloud-based and real-time collaboration. LiveLook is now a part of the Oracle Service Cloud and the company's first R&D center in Yerevan, comprising of 20-50 people.

8. Adobe

   Adobe established its office in Armenia through the acquisition of Workfront in 2020. However, Workfront itself was founded in 2008, before being acquired by Adobe. This office focuses on providing a single system to support planning, collaboration, and governance, helping companies enhance productivity and create exceptional experiences. At the moment, they have over 500 employees. The company's values, which are to be genuine, exceptional innovative, and involved, are in line with the company's emphasis on creativity, inclusion, and innovation.

9. DataArt

   The worldwide DataArt network, which was established in 1997, includes the DataArt Armenia office. This software engineering company is well-known for its proficiency in creating and developing cloud-native, data-driven solutions. About 400 employees work at the Armenian office, playing a significant role in the company's operations, especially in software development and IT consultancy.
   DataArt Armenia is actively engaged in several social and educational projects. For instance, to assist women from Artsakh in integrating into the IT sector, they set up free IT courses. They are renowned for cultivating a welcoming and inclusive workplace that gives team members the flexibility to do their responsibilities with excellence.

10. NVIDIA

    As a part of its larger worldwide activities, NVIDIA has a branch in Armenia that specializes in machine learning and artificial intelligence (AI). The office is well-known for its efforts to uplift local IT talent and enhance Armenia's IT scene. They often collaborate with local universities and tech communities, providing opportunities for internships and research projects. It has around 200 employees in the Armenian office.

11. Semrush

    SEMrush focuses on various aspects of digital marketing and SEO tools development with its Armenian branch contributing to SEMrush’s product development, research, and support services. The Armenian team is known for working on advanced analytics, software development, and UX design. Currently, the Armenian team consists of around 300 people.

12. Manychat

    With an office in Yerevan, Armenia, ManyChat is well-known for its chatbot and message automation platform. With over 100 local talent, this office is a component of ManyChat's worldwide operations and works on different parts of product development, engineering, and support.

    The Yerevan team works on enhancing ManyChat's platform features, developing new functionalities, and providing technical support. The office also plays a role in expanding ManyChat's presence in the region and engaging with the local tech community.

Wrapping up, Armenia’s transformation into a technology hub is truly remarkable. With its competitive salaries, booming start-up environment, and low living expenses, it’s no wonder that international tech giants are focusing on this developing market. These companies not only have brought new life into the country’s economy, but they have also presented exciting chances for Armenian tech experts. Their existence in Armenia shows that Armenia is becoming high in the techno global market since such big players as Synopsys, Yandex, Cisco, VMware, EPEM, Miro, Oracle, and others are located here.

The future is what we look toward, and the tech sector in Armenia is therefore poised for exponential growth. For investors hunting for new prospects, techies pursuing new careers, or just simple technology buffs, this is a country you need to keep an eye on. Watch out for Armenia as it continues to leave its footprint on the world’s tech map.

In case you are looking for a local Armenian tech company working big within the international market, you can explore th services at Milies and send a message of interest for a free IT consultation.