Armenia has retained its huge potential for technology development, and is regarded as a hub for software development, industrial computing, electronics, and production of semiconductors, even under the Soviet Union. It continues to be the regional leader in IT and high-tech industry, due to its competitive labor, its share in GDP, as well as the constant growth in the number of companies and total turnover. It is already a widely accepted fact that information and high technologies, as well as their commercialization in different industries, are the main factors driving growth in the world economy in the last decades.
The industry's total revenue, which consists of the Software and Services sector and the Internet Service Provider sector, reached $559.1 million USD in 2015, an increase of 17.7% over 2014's total of $474.9 million.
Armenia's competitive technical workforce creates a favorable investment climate for large ICT companies and multinationals. These specialists ensure annual productivity estimated at $48,000 USD for their companies.
Armenian ICT companies specialize in embedded software development, semiconductor design, customized software, outsourcing, financial software, multimedia, web design, information systems, and system integration. Armenia has made significant gains in semiconductor design and the creation of related intellectual property.
Today, about 450 ICT companies operate in Armenia, generating an average annual growth of 10%. The majority of these companies are Yerevan-based (about 88%), but we have to mention that the number of companies operating in other regions of Armenia is growing from year to year, due to the development of educational and scientific infrastructure, particularly in the Shirak and Lori regions.
In 2015, 70 new companies were established, creating nearly 400 new jobs. In addition, the workforce in the ICT sector increased by around 1200.
The Survey of Armenia’s Information and Communications Technology industry has been implemented since 2002, both to follow up on the ICT developments and to address the identified issues, using tailored measures.
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