Armenia's IT sector attracts foreign companies
The IT industry is growing steadily in Armenia. Services offered by the software branch seem to attract foreign companies the most. One third of the approximately 600 ICT companies are subsidiaries or branches of foreign companies. The start-up scene is also quite promising.
The Armenian ICT sector is developing dynamically: While only around 200 companies were active in the sector in 2010, they were already 600 in 2017. During the same period, their revenues increased by more than $ 500 million (US $) to approximately $ 700 million. Almost 200 companies are foreign-owned, with investors coming mainly from the USA, some Western European countries and Russia. According to the Enterprise Incubator Foundation, software and IT service providers have been increasing their revenue by more than 20 percent annually for years.
About eight-tenths of all Armenian ICT companies are located in the capital city of Yerevan, including several in the IT Park Business Center and the Viasphere Technopark as well as in the Free Zone Alliance. The second most important IT location in the country is the northern Armenian city of Gyumri. So far, about 20 domestic and foreign IT companies have settled in the Gyumri Technology Center.
In Armenia there is also a clear upward trend in the re-establishment of IT start-ups. While there were only 16 projects in 2014, in 2015-2017 there were already 150 companies. The 2017 extension of tax holidays from three to five years for all newly founded IT start-ups with up to 15 employees should further boost development. Many start-ups cooperate successfully with foreign partners.