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Armenian Companies' Share In IT Decreased By 38%

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  • Armenian Companies' Share In IT Decreased By 38%

    ARMENIAN COMPANIES' SHARE IN IT DECREASED BY 38%

    news.am
    Feb 9 2010
    Armenia

    Share of Armenian companies decreased by 38% in IT sphere. At the
    same time, average revenue per company for locals increased by nearly
    25% and only by 9% for the foreign branches, Enterprise Incubator
    Foundation (EIF) report reads.

    In 2009, the turnover of Armenian software and services sector reached
    around $130m resulting in 27% CAGR in 1998-2009. This turnover figure
    constitutes 1.1% of Armenia's $11.9 bn nominal GDP in 2008. It is
    close to the share of IT sector in GDP for such countries as India
    (1.4%) and Germany (1.3%)

    In 2006-2009, industry showed compound annual growth of 24%.

    Industry's contribution to the total exports rose from 3.6% in 2003
    to 5.6% in 2009 proving the growing importance of the software sector
    for Armenia's landlocked economy focused on the expansion of export
    oriented businesses.

    33 largest companies (with turnover $1m and over) comprising 17% of
    all IT firms generating 60% of all industry revenue. Today, there are
    13 more companies with revenue ranging $1m and over compared to 2006.

    Number of small firms with less than $100,000 in revenue also increased
    by 4%, although these firms do not have any visible impact on the
    industry. Rising operating costs and low effectiveness of small
    companies make it highly difficult for companies with less than 10
    employees to operate in the long term.
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