Smart Economy, Armenia's future.

Advanced Technologies, National Advantages.

Nov 29, 2020

For every nation to get developed, the application of both science and technology has to go hand in hand. The information technology (IT) industry is one of the most dynamically developing industries in Armenia, in many ways, it’s our only hope.

Being the Soviet Union’s main hub for software development, industrial computing, electronics, and the production of semiconductors, Armenia has kept its huge potential for the development of technologies and continues to be the regional leader in the IT and high-tech industries. Armenia has an attractive technology market with tremendous potential, competitive labor, and a business environment that offers great opportunities for both established and start-up entrepreneurs, investors, & diasporans.

The Armenian Technology sector, reached 922.3 million USD in 2018, a 20.5 percent increase from 2017. The revenue generated in this sector represents 7.4 percent of Armenia’s GDP (12.4 billion USD). Major governmental changes, different local and international initiatives, and collaborations have been contributing to the continuous growth of the Technology sector in the country.

Most of the tech companies operating in Armenia specialize in software development, with the dominant specializations by a number of companies being customized software and outsourcing and system design and automatization. Customized software and outsourcing accounts for 24% of total IT segment turnover.

Foreign companies predominate in exports, accounting for about 76% of exports. The key export destinations are the USA, Canada, and Europe, which are important markets with increasing and changing demand for technological solutions. This is an important challenge and opportunity for the Armenian IT sector to further boost the development of IT products and services and secure global demand for local solutions.

Successful investments and acquisitions in the Armenian IT sector by multinational companies in recent years indicate that Armenia is a preferred destination for many global players. Armenia caters to large corporations’ research and development needs, bringing to bear the capabilities of its workforce and large innovative potential.

Synopsis Inc.
National Instruments
VM ware
Oracle
Mentor Graphics
Microsoft Corporation
IBM
Monitis (GFI)

Considering the quick development of the IT sector, Armenia' has already proven to be an established start-up ecosystem-with enlarged research labs, impactful inventions, and successful products. Click this link to discover over 300 Armenian Technology businesses and service providers. OVER 500!

Today, a large proportion of students prefer the IT industry, as it is becoming one of the most desired spheres. However, universities alone are unable to provide students with enough experience to obtain a job in this industry. To help resolve this, many companies are organizing special training, courses, and internship programs for students. These include the following:

Microsoft Innovation Center Armenia (MIC)
IBM Innovative Solutions and Technologies Center in Armenia (ISTC)
Armenian National Engineering Laboratories (ANEL)
Gyumri Technology Center (GTC):
Vanadzor Technology Center (VTC)
TUMO Center

Currently, cooperation between the IT industry and universities is growing. The most striking examples of this include the following:

Interdepartmental Chair of Microelectronic Circuits and Systems, established by LEDA Systems (acquired in 2004 by Synopsys Inc.) and NPUA, and now part of the Synopsys University Program, supplies more than 60 high-quality VLSI and EDA specialists each year (Synopsys has expanded this initiative by opening interdepartmental chairs at YSU and RAU)
Gyumri IT Center (GITC), the first IT training center in the city of Gyumri, established by the Fund For Armenian Relief (FAR) and EIF in 2006 — Academic Initiative launched in 2013 jointly with IBM and IBM Innovative Solutions and Technologies Centre, established in 2015.
Samsung Learning Center, formed at YSU in 2014 through joint efforts by Samsung and YSU

Government support and well-formed infrastructure create a solid basis for implementing new and ambitious IT projects in Armenia. The market is currently open to accepting new players and projects, and the Government is ready to support the new initiatives to further boost the sector.

If you’re thinking of building a technology business in Armenia here 5 reasons why!

Extensive experience, with large multinational IT companies having operations in Armenia (Microsoft, IBM, Synopsys, Oracle, Cisco, Ericsson, Huawei, D-Link, etc.)
Well-protected intellectual property rights under Armenia’s legal and regulatory framework (existence of laws and regulations that meet international standards)
Solid government support for the sector and commitment to improving the investment climate in the IT sector, including tax incentives and free economic zones (Alliance FEZ and Meridian FEZ)
Productivity per employee in the sector equaling USD 40,000, significantly higher than other sectors in the country
Targeted 40% annual growth of technology employment in the sector.

If you’re interested in learning more, feel free to leave a comment!

Armand is a Masters Student at Johns Hopkins University focused on Government & National Security. He has worked as an investment analyst and technology project manager for the last 5 years. Prior to Grüv & Illuria Security, Armand spent 2 years with NASA Jet Propulsion Laboratory, where he was responsible for budgeting, marketing, and overseeing business deliverables for NASA’s “Juno” spacecraft. Fun fact: Juno now orbits Jupiter. Most recently, Armand spent his time working as a Derivatives Analyst at the TCW Group - an asset management firm with over $200 Billion under management. He was in charge of trading documentation, onboarding assets in excess of $1B via Future and OTC Clearing, and servicing over 200 clients while negotiating over 50 successful trading documents with broker-dealers.

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