In this episode, Jacob sits down with KapTek co-founder Andrew Lott to unpack how his team is rethinking offshore software development. Instead of competing on rock-bottom pricing, KapTek hires exclusively from Armenia and focuses on quality, culture fit, and long-term integration with client teams. Andrew explains why Armenia has become a quiet hub for world-class engineering talent, how they vet both developers and clients, and what they’ve learned about using AI in the hiring process. Along the way, they explore what it really takes to build a “family-like” culture across borders and time zones.
What we cover
* Why Armenia for software development – how a small country with a booming tech sector became KapTek’s sole talent market.
* Competing on quality, not price – why KapTek chose a boutique positioning instead of racing to the bottom on rates.
* How they vet developers – from technical tests to a “vibe check” and final client interviews focused on mutual fit.
* Culture fit in small vs large teams – the different ways startups and bigger companies approach bringing on international developers.
* Using AI in the hiring pipeline – how KapTek leans on AI to generate and grade domain-specific technical tests.
* Developers’ relationship with AI – why many Armenian engineers use AI as a speed boost, not a crutch, and how that affects quality.
* From contractors to true teammates – practices that help clients see Armenian engineers as integral team members, not disposable resources.
* Selecting the right clients – how KapTek now screens out companies that view offshore developers as purely transactional.
* Scaling a “family-like” culture – why Andrew believes a strong, human culture can scale and what they’re doing to protect it as they grow.
* Where KapTek is headed next – hints at in-house product lines and continued focus on long-term, high-trust partnerships.
