IT market of Armenia

2018

Maykor will be connected to the Digital Armenia program

Maykor, the service provider of outsourcing IT and business processes, signed the memorandum of interaction with Digital Armenia fund. The meeting of the parties took place on April 16, 2018 in the city of Yerevan.

Key task of Digital Armenia fund is program implementation of digital transformation of the Republic of Armenia which is directed to stimulation of implementation of IT in all structures of a state administration for increase in efficiency of a state machinery and also for support of the private sector. The signed memorandum approves cooperation of MAYKOR and Digital Armenia fund in solving of tasks for digitalization of the republic within the Digital Transformation of Armenia 2018-2030 project.

2017

Six key directions of digital development of Armenia

Submitting the national digital agenda of the Eurasian Economic Union (EEU) within the forum "The Digital Agenda during a Globalization Era" on February 2 to Almaty (Republic of Kazakhstan), the prime minister of the Republic of Armenia Karen Karapetyan told about information technology development in the country. The annual gain in this area makes about 25% several years. At the end of 2017 it should reach 28-30%. Six key directions of digital development of Armenia are defined: digital government, cyber security, private sector, institutional basis, digital skills and infrastructure. By 2030 in Armenia it is going to reach 100% of digitalization in relationship the state – business, and 80% – through provision of services to citizens.

DPCs for 10 million US dollars create in Armenia

In Armenia the center for collecting and data processing (DPC), created in a format of state-private cooperation and using the international technical standards of security will appear. The project at an initial stage is estimated at 10 million dollars USA^[1].

Submitting the program at a meeting of the Cabinet of Ministers, the Minister of Transport, communication and IT of Armenia Vaan Martirosyan noted that "the center of processing and data storage will allow to create uniform standards and criteria when providing digital services, to effectively implement the newest tools of information system protection".

Construction of DPC will be conducted on the basis of public-private partnership that will bring a considerable economic benefit. According to the minister, the private company will foot the bill on creation of the center, and the state will provide the project with infrastructures and will provide the building. "Creation will provide an additional income for the budget, will raise also a role of Armenia on the international scene in the field of information technologies, having provided permanent inflow of the direct foreign investments to domestic economy", – Martirosyan said.

Also it is expected that creation of the center will become the next stage of carrying out reforms in the system of an electronic state administration. Selection of applicants for a role of the co-investor among private companies will be complete in August, 2018.

Turnover of the ICT companies of Armenia overcame a boundary of $600 million

According to the director of Incubator of the Enterprises fund (EIF) Bagrat Engibaryan, in Armenia turnover of the companies in the field of ICT overcame a boundary of $600 million. It pocherknut that for the country it is an unprecedented indicator. "When 10 years ago we developed strategy on this sphere, it was impossible to dream of such indicators. Nevertheless, it does not mean that we need to be limited to this result", – Engibaryan noted in September, 2017^[2].

Speaking about dynamics of high-quality growth, he also explained that the number of IT specialists in the republic will exceed 15 thousand soon. "Have about 15 thousand specialists when the population of the country makes about 3 million and to solve such problems, are not able to afford 90% of the countries of the world", – the head of EIF emphasized.

Negotiations with Microsoft on implementation of digital strategy

Microsoft can become the partner of the government of Armenia in implementation of digital strategy. In August, 2017 the prime minister of the country Karen Karapetyan who accepted delegation headed by the chief representative of the company in the CIS Ronald Binkovski reported about it.

According to the Armenian prime minister, the main objectives which face the Cabinet of Ministers – development of digital strategy, development of a digital system of a state administration and local government and also increase in providing electronic state services, will be solved using the created Digital Armenia fund and with assistance of Microsoft.

Ronald Binkovski in return stated readiness to support Armenia in development of this direction and noted that the corporation for accomplishment of this mission already carried out a number of discussions with representatives of state departments.

500 thousand dollars on development of IT programs

From the state budget of Armenia in 2017 more than 500 thousand dollars will be selected for development of IT programs.

On November 7, 2016 on discussion of the draft budget by the Armenian parliament for 2017 it was decided to provide state funds on development of IT programs almost in the same volume, as well as in 2016.

So, parliamentarians suggested to deduct 150.5 million dram (about $317 thousand) for support of the technology centers in Gyumri and Vanadzor that makes almost as much how many it was financed from the state in 2016. 98.7 million dram (about $208 thousand are a comment of DR) will be selected for other programs for support of the ICT industry of the country (the amount of financing also did not increase). The number of these programs includes also the presentations of the IT companies of Armenia at foreign exhibitions.

2016: The Armenian telecoms lost 20% of income because of OTT-services

Income of telecommunication companies of Armenia was reduced – in 2016 they paid in the state budget 20% less taxes, than in previous. Experts explain decrease in profit with growth of popularity of OOT-services which entice subscribers at mobile operators^[3].

Telecommunication companies of Armenia in 2016 paid $62.7 million in the state budget – it is 20% less, than in 2015 ($80.5 million). Such data were published by Committee on state income at the government of Armenia. Structure of all taxes paid by three large operators (VivaCell-MTS, Beeline-Armentel, Ucom from Orange Armenia belonging to it) is as follows: $57 million brought together tax authorities, about $5.5 million are customs services.

Most in the budget paid VivaCell-MTS – provider on the 8th place in the top ten of the companies working in the republic. For 2016 the operator transferred in treasury $26.3 million – 31% less, than last year. Beeline-Armentel – the company on the 9th place from $25.5 million follows (in 2015 – $31.7 million). Further, on the 23rd place – Ucom whose payments in the state budget increased by 2.7 times and made $9 million.

2015

Turnover of the IT industry of $550 million

On statistical data for 2015, in Armenia about 500 IT companies work. The information technology sphere grows annually for 20−25%. Its turnover is estimated at $550 million. And according to the strategy of development for the industry, by 2018 turnover is going to increase to $1 billion. In 2019 in the country there will take place the largest action of the IT industry – the World congress on information technologies (WCIT).

Only 57% of the population use the Internet

2010: Turnover of the IT industry of $149 million

According to a research of Incubator of the Enterprises fund, growth of the IT market in Armenia in 2010 was 15.6%. Total income of the IT sphere in 2010 reached $149 million. At the same time income from export of IT products was $58 million in Armenia, i.e.^[4] decreased by 8.5%].

By estimates of analysts of IDC company, in 2010 to Armenia more than 30 thousand desktop PCs are delivered (height of 7.6%) and about 16 thousand mobile PCs (+87.5% to indicators of 2009).

Among features of the PC market in Armenia IDC notes very low popularity of upgrade of desktop computers and also lack of local brands, well-known to users here. Besides, practice of sale of netbooks by cellular operators is widespread in Armenia.

On the market of the printing periphery of Armenia (including printers, the MFP and copiers of A4 and A3 formats) during 2010 30.5 thousand devices are delivered that corresponds to growth in 27% in comparison with 2009. It is interesting that the MFP share in the market of Armenia makes 25% while in Central and Eastern Europe exceeds 60%.

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