Israel is known as the “Start-Up Nation” for a reason. With a booming tech scene, a highly educated workforce, and a culture that thrives on innovation, Israel has become a global leader in software development and IT outsourcing. If you’re looking to boost your business with cutting-edge technology, finding the right software outsourcing partner in Israel is a smart move.
Discover the best software outsourcing companies in Israel for 2025
Why Outsource Software Development to Israel?
Israel’s IT services market is experiencing explosive growth. In 2025, the market is expected to reach $8.5 billion, with IT outsourcing alone accounting for $3.2 billion. This growth is driven by:
- A highly skilled tech workforce
- Strong government support for innovation
- A focus on cloud computing, big data, and cybersecurity
- Competitive costs compared to Western Europe and the US
Key Benefits of Outsourcing to Israel:
- Access to world-class engineers and developers
- Fast project kick-off (often within 5-10 business days)
- High-quality, secure, and scalable solutions
- Flexible engagement models (dedicated teams, staff augmentation, project-based)
What Makes Israeli Software Outsourcing Unique?
1. Deep Tech Expertise
Israel’s developers are known for their skills in:
- Artificial Intelligence & Machine Learning
- Cybersecurity
- Blockchain
- Cloud Solutions
- Web & Mobile App Development
2. Agile and Fast-Moving
Israeli companies are used to working in fast-paced environments. This means:
- Shorter time-to-market
- Rapid prototyping and MVP delivery
- Continuous delivery and integration
3. Culture of Innovation
With thousands of startups and a strong entrepreneurial spirit, Israeli teams are proactive problem solvers who bring creative solutions to the table.
Trends Shaping Software Outsourcing in Israel
Cloud and Cybersecurity Dominate
With most companies moving to the cloud, demand for secure, scalable cloud solutions is at an all-time high. Cybersecurity remains a top priority, especially given Israel’s geopolitical environment.
AI and Automation
Israeli firms are at the forefront of AI, machine learning, and automation, helping businesses stay ahead of the curve.
Remote and Hybrid Teams
The shift to remote work has made it easier than ever to access top Israeli talent, no matter where your business is located.
What to Look for in a Software Outsourcing Partner
When choosing a software outsourcing company in Israel, consider these factors:
- Proven Track Record: Look for companies with years of experience and a portfolio of successful projects.
- Technical Expertise: Make sure they have skills in the technologies you need.
- Communication: Clear, responsive communication is key to project success.
- Flexibility: Can they scale your team up or down as needed?
- Security: Ask about their security protocols and certifications.
Best Software Outsourcing Companies in Israel
1) Stanga1 – Best Software Outsourcing Company in Israel
Stanga1 is a premier software engineering and development firm with over 25 years of experience, dedicated to transforming client visions into successful, high-impact products and services. Headquartered in Sofia, Bulgaria, Stanga1 combines Eastern European technical talent with a global outlook, serving clients across the USA, Germany, France, the UK, and beyond. As part of One Software Technologies—a publicly listed group with over 8,000 experts and nearly $1 billion in annual revenue—Stanga1 leverages its robust foundation to deliver cutting-edge solutions. With a team of 300+ skilled professionals, or “tech ninjas,” Stanga1 has successfully completed over 10,000 projects, earning a stellar reputation for innovation, reliability, and client satisfaction.
Services:
- Staff Augmentation
- Managed Projects
- Dedicated Team
- Web Software Development
- Mobile App Development
- Quality Assurance & Testing
- CTO as a Service
- DevOps & Security
- Operation Support
- StartUps & MVP
- System Integration
- UX/UI\
- Digital Content Production
- Blockchain Development
- AI Solutions
Industries:
- FinTech
- Cyber Security
- HealthTech
- FoodTech
- Travel & Hospitality
- E-commerce & Retail
- Energy
- Automotive
Partnering with industry leaders like ServiceNow and Microsoft Dynamics, Stanga1 ensures its solutions are both innovative and reliable.
Portfolio
Stanga1’s impressive portfolio showcases its ability to deliver transformative results across industries:
- Asvoria (FinTech): Streamlined financial operations with custom software.
- Amadeus (Travel & Hospitality): Enhanced travel booking systems for global reach.
- Onex (FinTech): Advanced financial tools for operational efficiency.
- Teva Pharmaceuticals (HealthTech): Optimized healthcare workflows with tech solutions.
- Maccabi (HealthTech): Improved patient care through innovative software.
- Medix (HealthTech): Delivered a user-friendly medical app.
- DCS (Energy): Supported energy management with scalable systems.
- Imperva (Cyber Security): Strengthened cybersecurity infrastructure.
- Wynd (E-commerce & Retail): Boosted e-commerce performance with robust platforms.
- Lucid Motors (Automotive): Pioneered automotive tech solutions.
These projects highlight Stanga1’s versatility and commitment to excellence.
| Company Name | Description |
| Innovecs | Innovecs is a prominent Israeli software development and outsourcing company headquartered in Tel Aviv, with additional offices in the USA, UK, Ukraine, and other locations. Founded with a focus on delivering high-quality, innovative software solutions, Innovecs has established itself as a trusted partner for global businesses. The company specializes in full-cycle software development, including custom software, mobile app development (iOS, Android, and hybrid), web development, and IT consulting. Innovecs leverages cutting-edge technologies such as artificial intelligence (AI), machine learning (ML), blockchain, virtual reality (VR), and big data to create tailored solutions for industries like finance, healthcare, logistics, and retail. With an agile-based development process, Innovecs ensures flexibility and adaptability to changing project requirements. The company employs over 200 skilled professionals, including engineers, architects, designers, and DevOps specialists, who are fluent in English to facilitate seamless communication with international clients. Innovecs has received positive client feedback for its high code quality, result-oriented approach, and ability to deliver projects on time. For example, clients have praised Innovecs for completing complex projects in as little as three months, showcasing their efficiency and expertise. The company also invests in continuous education for its developers, encouraging them to stay updated with emerging technologies. Innovecs’ global outreach and commitment to client satisfaction make it a top choice for outsourcing, particularly for companies seeking cost-effective yet high-quality software solutions. |
| Fayrix | Fayrix is a well-established software development and outsourcing company headquartered in Israel, with eight R&D centers across Eastern Europe. Founded in 2005, Fayrix has completed over 250 projects and employs a robust team of more than 1,500 engineers. The company is known for its expertise in building custom software, mobile apps, websites, and solutions involving big data, machine learning, and AI. Fayrix caters to a wide range of clients, from startups to large enterprises, across industries such as finance, healthcare, and e-commerce. One of Fayrix’s key strengths is its ability to combine Israeli project management expertise with the technical skills of Eastern European developers, resulting in a cost-quality ratio that can save clients up to 40% on development costs. The company offers services like remote software team building, fixed-price project delivery, and AI consulting. Fayrix is particularly noted for its rapid team-building process, typically assembling fully functional software teams in just two weeks. Its focus on affordability and access to world-class talent makes it an attractive option for businesses looking to outsource complex software projects. Fayrix’s global presence and extensive project portfolio underscore its reliability and capability to handle large-scale, sophisticated projects while maintaining high standards of quality and security. |
| Matrix | Matrix is the leading technology services company in Israel, with a workforce of approximately 9,250 employees worldwide. Established in 2001, Matrix has grown through over 80 mergers and acquisitions, positioning it as a powerhouse in the Israeli IT sector. The company specializes in implementing and developing advanced technologies, including custom software development, cloud computing, cybersecurity, and IT consulting. Matrix serves a diverse clientele, including government organizations, financial institutions, and healthcare providers, delivering large-scale IT projects that have significantly impacted Israel’s tech landscape. Its outsourcing services encompass full-cycle software development, from ideation to maintenance, with a strong emphasis on integrating cutting-edge solutions like AI, IoT, and big data analytics. Matrix’s reputation is bolstered by its ability to execute complex projects with precision, leveraging its vast resources and experienced teams. The company’s commitment to innovation and customer satisfaction has made it a preferred partner for businesses seeking reliable outsourcing solutions. Matrix’s extensive industry experience and large talent pool enable it to tackle projects of varying complexity, making it a go-to choice for enterprises requiring robust, scalable software solutions. |
| ThinkSys | ThinkSys is a global software development company with a strong presence in Israel, specializing in software development, quality assurance (QA), and dedicated team-building for Israeli clients. With over 200 software engineers, ThinkSys offers comprehensive outsourcing services, including custom software development, mobile app development (iOS and Android), and blockchain-based solutions for secure transactions. The company is recognized for its professional work environment and adherence to modern development methodologies, ensuring high-quality deliverables. ThinkSys has a proven track record of working with prominent clients, such as Perion, where it served as a trusted partner for QA and development. Client testimonials highlight ThinkSys’s talented team, client-centric approach, and cost-effectiveness. For instance, Josef Mandelbaum, a co-founder at Nili Capital Partners, praised ThinkSys for its high-quality talent and exceptional attitude, noting it as a standout among other outsourcing companies. ThinkSys also excels in advanced automation technologies, including machine learning and deep learning, to enhance business processes and drive sales. Its ability to provide local management in clients’ regional time zones and languages further enhances its appeal, ensuring seamless collaboration and rapid project delivery. |
| TLVTech | TLVTech is a Tel Aviv-based technology solutions firm that provides professional, customer-centric software development and outsourcing services to startups, large companies, and organizations worldwide. Founded with a mission to deliver tailored IT solutions, TLVTech employs experienced engineers proficient in a wide range of technologies, including front-end and back-end development, mobile app development, DevOps, data engineering, and QA automation. The company’s 360° approach ensures comprehensive support throughout the software development lifecycle, from concept to deployment and maintenance. TLVTech is particularly noted for its ability to work with clients across various industries, including telecommunications, healthcare, and finance, delivering customized solutions that align with specific business needs. Its outsourcing services are designed to enhance business efficiency, reduce costs, and drive digital transformation. TLVTech’s commitment to quality and innovation, combined with its focus on building long-term client relationships, makes it a reliable partner for businesses seeking high-quality software outsourcing in Israel. The company’s agile methodologies and proactive project management ensure timely delivery and adaptability to evolving project requirements. |