Matrix R&D Services

Matrix R&D Services operates as the software engineering and outsourcing division of Matrix IT (TASE: MTRX), an Israeli IT integration and software company founded in 2001. Headquartered in Herzliya, Matrix IT is a subsidiary of Formula Systems. The R&D division provides nearshore and offshore development, quality assurance, and project management for Israeli startups, enterprise clients, and the government and defense sectors.

The division supplies dedicated engineering teams and managed project delivery. Instead of selling a single proprietary software product, the core activity is body-leasing and outsourced software development. The business model involves contracting developers, QA automation engineers, and DevOps specialists to companies that require external R&D capacity.

In the local Israeli IT outsourcing and R&D services market, Matrix competes directly with integrators and outsourcing firms such as Ness Technologies, Malam Team, SQLink, and Aman Group. The company's pricing model is positioned as a cost-effective alternative to the high expenses of in-house hiring in central Israel, utilizing distinct demographic and geographic workforce pools.

Matrix IT employs over 10,000 people, the vast majority located in Israel. A key differentiator for its R&D services is the "Talpiot" project, which operates dedicated development centers in cities such as Modi'in Illit and Beit Shemesh. These centers specifically train and employ ultra-Orthodox (Haredi) women in software engineering and QA roles, creating a domestic nearshore option that operates at different salary tiers compared to the standard Tel Aviv tech ecosystem.