ICT field overview

We want to tell you that Armenia is one of the leading information technology nations among the neighboring CIS and Middle East countries. The growth of the present day IT industry in Armenia can be traced back to the Soviet era during which time Armenia was a key science, R&D, and high-tech manufacturing center of the former USSR. At the peak of its growth in 1987, the science and technology sector in Armenia employed, according to various estimates, around 100,000 specialists. Independence in 1991 opened up new opportunities for the industry and particularly for entrepreneurs and IT professionals. The focus of the industry shifted from major manufacturing operations to the software and services segment, which has witnessed substantial growth during the period from 1998-2006. Today, Armenian IT industry is one of the most dynamic and promising sectors of the economy. In 2006, the share of the sector in Armenia's GDP was 1.3%, which is comparable to that of India (1.4%) and Germany (1.3%)1.

In recent years, the sector has witnessed a major inflow of foreign investors who have located in Armenia to capitalize on the young and highly qualified workforce. Around 63% of the industry's output is exported to over 20 countries, mainly USA, Europe, and CIS. The major specializations include embedded software and semiconductor design, custom software development and outsourcing, financial applications, multimedia design, Internet applications, web development, MIS and system integration. In particular, Armenia has outstanding achievements in semiconductor design software and IP solutions. Foreign companies specialized in chip design place their R&D facilities in Armenia to benefit from the talented and creative workforce pool and highly competitive wage rates.