IT Services Market Booming in Israel: Billion Dollar Growth on the Horizon
The IT Services market worldwide is poised for significant expansion, with revenue expected to reach a staggering US$7.1 billion in 2024.
This growth is fueled by a rising demand for IT expertise, with organisations increasingly relying on external services to manage and optimise their technology infrastructure.
IT Outsourcing reigns supreme within the IT Services market, capturing a projected market share of US$2.88 billion in 2024.
Companies recognise the cost-effectiveness and efficiency of outsourcing IT functions, which allows them to focus on core business activities.
The future looks bright for the IT Services market, with a projected Compound Annual Growth Rate (CAGR) of 6.46% between 2024 and 2029. This translates to a market volume exceeding US$9.7 billion by 2029, signifying a sustained period of expansion.
Statista shows that revenue from outsourcing IT services is growing compared to the other types, most likely due to current global political events.
However, Statista’s global IT services market forecasts slightly differ from other agencies, as we can see in the graph:
Israel: A Hub for Cutting-Edge IT Solutions
Israel’s “Start-Up Nation” reputation fuels its booming IT services market. Customer preference leans heavily towards cloud computing, big data analytics, and robust cybersecurity.
This isn’t surprising, as the government is dedicated to fostering a vibrant start-up scene.
The market itself is undergoing a fascinating shift. Companies are ditching traditional on-premise setups and embracing the agility and cost-efficiency of cloud-based solutions.
Security remains paramount, driving a surge in the cybersecurity sector – a natural consequence of Israel’s unique geopolitical environment.
But Israel’s advantages extend beyond its situation. The country boasts a highly educated workforce concentrated in a relatively small area, making it easy for companies to tap into this talent pool.
Strong ties with the US also allow IT companies in Israel to expand into the vast American market.
Selecting the Leaders: Principles for Choosing the Best Software Development Companies in Israel
The following key principles guided us in compiling our list of the top 20 software development companies in Israel:
1. Broad range of services
We considered companies offering various solutions, including mobile and web application development, custom software, artificial intelligence (AI), cloud solutions, and IT consulting.
2. Industry specialisation
The list included companies focused on specific industries, such as healthcare, finance, gaming, education software development, and e-commerce. These companies offer specialised solutions tailored to each sector.
3. Innovation and technology
An important selection factor was the active use of advanced technologies such as AI, Internet of Things (IoT), blockchain, augmented reality (AR)/virtual reality (VR) and cybersecurity to create modern and effective solutions.
4. Customer centricity
We looked at top software companies in Israel that prioritise customer satisfaction. These companies offer customised solutions, ongoing support, and close customer cooperation.
5. Global reach and local expertise
The list includes companies with an international presence as well as those with deep expertise in Israeli IT.
6. Quality and certification
The selection process considered the companies’ compliance with international standards and certifications, such as ISO, as well as their high ratings and awards from clients.
7. Flexibility and adaptability
We paid attention to companies offering flexible development methods, extension of the customer’s IT staff and dedicated development teams to maximise customer satisfaction.
Top Software Development Companies in Israel
1. Computools
Computools, a leading IT Consulting and Software Solutions Development company founded in 2013, is on a mission to ‘Unlock Tomorrow’ for its clients.
Computools operates globally in countries such as Israel, Poland, the United Kingdom, Austria, and Sweden, specialising in designing retail, banking software solutions, logistics, healthcare, and consumer services solutions.
It offers digital optimisation and transformation services, including data analysis, CX strategy and design, process automation, digital workplace solutions, modernisation, and sustainability initiatives.
The company has expertise in platforms and product engineering, including solution architecture, web development services, DevOps, UX/UI design, mobile app development, project management, software testing, and performance optimisation.
It also offers customised software development services for startups and technology advice.
It provides CTO as a Service with technology estate audits and software reengineering.
Additionally, Computools provides dedicated delivery teams like solution delivery teams, agile delivery squads, flexible team extensions, and IT staff augmentation services.
The company is ISO 9001:2015 and ISO 27001:2013 certified.
In 2024, it was honoured with the IAOP 2024 award in the category “Best Software Development Company for Medium-Sized Enterprises.”
Looking for custom software solutions?
Contact us →2. Dofinity
Dofinity is a well-regarded software development company based in Tel Aviv-Yafo, Israel.
Founded in 2007, It has built a reputation for its deep expertise in creative design, software development, cloud technology, and artificial intelligence.
Its services cater primarily to large-scale businesses, offering comprehensive solutions beyond website development.
With projects typically between $200,000 and $999,999, Dofinity’s pricing charges between $100 and $149 per hour. Its core service areas include web development, custom software development, graphic design, cloud consulting and systems integration, AI consulting, and AI development.
Dofinity’s services have benefited clients from diverse industries, including healthcare, manufacturing, gaming, energy, education, food and beverages.
3. SchultzCode Technologies
SchultzCode Technologies is a tech company based in Haifa, Israel, specialising in mobile app development services and digital projects.
Founded in 2020, SchultzCode Technologies has quickly established itself as a versatile player in the tech industry, catering primarily to small and medium-sized businesses. Their services include mobile app development, digital marketing, web development, AR & VR development, and IoT development.
It emphasises professionalism, quick service, and a motivated approach to project management services. This dedication is reflected in its competitive pricing model, offering services for less than $25 per hour, making it an attractive option for businesses looking for high-quality tech solutions on a budget.
SchultzCode Technologies serves a diverse array of industries, with a particular focus on advertising and marketing, healthcare and medical, and startups. Their client-centric approach has garnered positive feedback, as evidenced by their perfect review rating.
4. KitRUM
Established in 2016, KitRUM has rapidly grown to offer various services including software development, mobile app development, web development, and artificial intelligence solutions.
The company’s portfolio showcases a diverse array of projects across various industries. Notable examples include educational AR applications, recruitment agency platforms, Unity3D-based games, EHR systems, and large-scale data handling solutions for companies like Google.
Positive client feedback underpins KitRUM’s success. It consistently earns high ratings for quality, schedule adherence, and communication.
5. Ebryx Tech
Ebryx Tech is a well-established company boasting over 15 years of experience. They specialise in cybersecurity solutions and offer various services such as mobile app and web development, cybersecurity, application testing, BI and Big Data consulting, IoT development, and IT staff augmentation.
Serving clients across financial services, social networking, logistics, and other industries, Ebryx Tech demonstrates versatility and expertise in delivering tailored solutions.
Ebryx Tech has consistently received recognition on platforms like Clutch for their exceptional work in software development and cybersecurity services, highlighting their industry expertise and client satisfaction.
6. Fayrix
Fayrix is among the well-known software development agencies in Israel. Its headquarters are in Israel, but it also has offices in Eastern Europe.
Founded in 2005, Fayrix has completed over 250 projects. It has a large team of engineers with expertise in many areas of software development, including Big Data.
Fayrix can build mobile apps, websites, and other software. It works with both small businesses and large companies.
Fayrix focuses on providing affordable services and finding the best talent worldwide. Fayrix is a great choice for companies that need custom software solutions.
7. MonkeyTech
MonkeyTech is a software development company founded in 2012 by talented computer science and film graduates in Tel Aviv, Israel.
It specialises in building powerful and user-friendly mobile apps and websites. MonkeyTech works with startups, investors, and businesses of all sizes worldwide.
MonkeyTech offers various services, including custom software development, IT staffing, and app and web development. This allows them to tackle projects for clients in many different industries.
8. ZUZEX
ZUZEX is dedicated to a responsible approach to developing complex web, mobile, and desktop software. Its development process ensures that its software developers in Israel work full-time on-site, which allows for complete control and good coordination of team members.
Its services are competitively priced at $25 – $49 per hour. The team size ranges from 50 to 249 employees.
ZUZEX specialises in several key areas: mobile app development, web development, software development, web designing (UI/UX), and e-commerce development.
They focus primarily on medium businesses, followed by large businesses and small businesses. Their industry expertise includes healthcare software development, education, and information technology, among other sectors.
9. Loovatech
Loovatech helps startups and businesses create successful software products. Founders and management rely on them for critical projects such as digital transformation, product development, cloud infrastructure, and IT security consulting.
Loovatech’s portfolio includes successful software development, web development, mobile app development, and IT strategy consulting projects.
They serve a wide range of industries and help clients achieve significant business outcomes.
10. Moblers
Moblers, founded in 2007 and based in Israel, is an award-winning boutique specialising in software, mobile, web, and IoT development. Its core services include mobile app, web, and software development, comprising 15% of its service portfolio.
Moblers also provides e-commerce development, maintenance and support, and related services. Its clientele spans small, medium, and large businesses, particularly focusing on startups, consumer products, and e-commerce ventures.
The company has excelled in diverse projects, such as creating a restaurant supply app for MarketMan and a mobile app for HopOn ticket orders. Clients appreciate Moblers’ responsiveness, efficiency, and delivery of high-quality solutions.
11. Strivemindz
Strivemindz is a renowned full-stack mobile app design and development company. Established in 2016, Strivemindz boasts a team of over 100 developers with over a decade of industry experience.
The company specialises in providing full-cycle development services for tech startups and enterprises aiming to lead their industries.
The services excel in mobile app development, custom software development, web development, AI development, DevOps managed services, and IT staff augmentation.
This wide range of services enables them to cater to businesses, financial institutions, consumer products, education, and Israeli IT services.
12. Sensiedge
SensiEDGE is a forward-thinking company dedicated to simplifying and accelerating the development of IoT products. Established in 2015, SensiEDGE aims to lower developers’ barriers by providing 80% ready IoT products complemented by its open-source SDK.
This approach streamlines the creation of IoT solutions, making it accessible for developers to bring their innovations to life more efficiently.
Located in Petah Tikva, Israel, SensiEDGE focuses on OEM manufacturing, offering “Hardware Ready” solutions for various applications.
Their products integrate many sensors, including BLE, SubGiga, LoRA, accelerometers, gyros, magnetometers, humidity, temperature, light, pressure, microphones, UV, and proximity sensors.
This comprehensive sensor suite allows developers to build versatile and functional IoT devices tailored to specific needs.
13. Specno
Specno is a dynamic company specialising in validating, designing, and building world-class digital products, including native mobile and web applications. Specno has established itself as a trusted partner for over 150 companies worldwide.
Specno’s portfolio features projects like the PEP e-commerce solution, the SparUK loyalty app, the Wellness Warehouse loyalty app, Old Mutual’s e-commerce solution, and the Pinter mobile brewing app. Each project showcases Specno’s ability to deliver high-quality, functional, and aesthetically pleasing digital solutions.
14. NAVINES
Navines is a progressive software company established in 2019 and located in Petakh Tiqwa, Israel. It offers various services, including web development, software development, digital marketing, web design (UI/UX), and e-commerce development.
Navines’ comprehensive approach ensures that clients receive holistic solutions that integrate seamlessly with their existing business processes and goals.
Navines stands out as a dynamic and client-focused software company. Their commitment to innovation and tailored solutions has enabled them to deliver outstanding results for small businesses, particularly in the e-commerce sector.
15. Rgbcode
Rgbcode is a dynamic software development company established in 2013, headquartered in Tel Aviv-Yafo, Israel. Specialising in custom software development, web development, and e-commerce development, rgbcode delivers functional, aesthetically pleasing, and user-friendly software solutions.
The firm’s clientele primarily consists of small to medium-sized businesses, with project budgets typically ranging from $50,000 to $199,999. rgbcode serves various industries, including software, gambling, media, advertising and marketing, and IT services, showcasing their versatility and deep understanding of different business sectors.
16. ISRAEL IT
Israel IT, established in 2020 and located in Tel Aviv-Jaffa, is a premier offshore software development company.
The firm is dedicated to fostering the growth of startups and large projects through innovative technologies, intelligent solutions, and a proactive, can-do attitude.
Israel IT offers a broad spectrum of services, focusing primarily on mobile app development, IT services, web development, software development, and app designing (UI/UX).
Their expertise spans from creating user-friendly mobile applications to developing robust web platforms and sophisticated software solutions.
Additionally, their IT services encompass comprehensive support and infrastructure management, ensuring smooth and efficient operations for their clients. The client focus of Israel IT is predominantly on small and medium-sized businesses.
17. TLVTech
TLVTech, based in Herzliya, Tel Aviv, is a full-service technology solutions firm operational since 2017. The company provides comprehensive and customer-centric software development solutions to startups, large companies, and organisations worldwide.
Emphasising a 360° approach to technology, TLVTech ensures its services cover all software development and IT needs.
TLVTech focuses on several key areas: software development, mobile app development, web development, cloud computing services, and IoT development. It is a versatile and capable technology partner for businesses of all sizes.
18. Linkup Studio
LinkUp Studio is well-known for AI software solutions that greatly improve business performance. Founded in 2013, the company has completed over 160 projects.
They’ve partnered with top B2B and B2C brands and earned awards for software development, AI solutions, UX/UI design, branding, social media marketing, and video production.
19. Publex
Publex is a distinguished game development studio famous for creating high-quality mobile, desktop, and web games.
Established in 2019 and headquartered in Netanya, Israel, Publex has rapidly gained a reputation for its meticulous attention to detail, superior craftsmanship, and cost-effective services.
The studio excels in using advanced development tools and technologies such as Unity 3D with C#, Unreal Engine with C++ and Blueprints, and various platforms including Android, iOS, HTML, WebGL, Windows, and MacOS.
Publex also explores innovative fields like Metaverse, NFTs, AR/VR, game design, UX, 2D and 3D art, VFX, SFX, and animations.
20. abra Web & Mobile
Abra Web & Mobile, formerly known as Herolo, is recognised as Israel’s premier front-end development company. Specialising in cutting-edge technologies, they create innovative web and mobile platforms for leading corporations and dynamic startups.
While their core expertise lies in front-end development, they offer top-quality back-end development, UX/UI design, and manual and automated QA services.
Abra Web & Mobile has an impressive portfolio with projects for notable clients such as El Al, Matrix, and Radware.
Final Words
In today’s competitive IT landscape, finding the right software development company is crucial for businesses of all sizes.
Our software development company offers services from custom software development to mobile app development and cloud solutions.
We are experts in various industries, including healthcare, finance, retail, and manufacturing. Our case studies showcase our ability to deliver innovative and effective solutions.
Client testimonials speak to our commitment to providing exceptional customer service. We are proud of the relationships we have built with our clients and are always looking for ways to improve our services.
If you are looking for a reliable and experienced software development company, contact us at info@computools.com to learn more.
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