Technology and Innovation

 
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The Armenian IT industry has experienced rapid growth throughout the last decade and is one of the most dynamic and internationally competitive sectors of the Armenian economy.   However, the industry, growth of which was spurred mainly by cost-driven outsourcing ("branch outsourcing"), is currently facing maturity and significant competitive pressures, as the local salaries are approaching those of other low cost countries. This may push Armenia into the trap of losing out to other competitiors over the long-run.   EV considers innovation as one of the most important triggers of Armenia's competitiveness. Though Armenia's innovation metrics shows that it lags behind many comparable countries, targeted policies towards creating innovative clusters with the attraction of technology-intensive FDI may boost its innovative capacity and increase competitiveness.


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IT Skills Assessment in Armenia

EV and World Bank Case study 2014
 
 

Due to growing number of IT companies in Armenia, demand in IT specialists will continue to increase. According to the conservative estimation, if the market and productivity continue to grow with an average rate of 18% and 1% respectively, the absorption potential of additional IT specialists will grow at a rate of 17% annually and reach ~15,000 by 2017.

 

The Story of the Emerging IT Cluster in Armenia

EV Case study 2010 

At the beginning of 2000s, local as well as foreign IT companies, recognizing the need for concerted action and collaboration, established industry unions and initiated joint programs with educational institutions. These realities stimulated the government of Armenia to announce the IT sector as a priority at the end of 2000, and establish an IT Development Support Council in 2001.

Industry Growth Model of Armenian IT Sector

EV Case Study | 2007

The competition for getting offshore-outsourced contracts among developing countries will become much more intense. As a result of this severe competition, niche markets for specific types of offshore-outsourced services have emerged based on culture/linguistic similarities, favorable regulations of source markets and capability to develop sophisticated products.