How fast is growing the tech sector in Armenia

What are the trends in Armenian technology business?

In independent Armenia, the IT sector gained momentum again in the late 1990s, and most companies were founded in the 2000s. Initially, most of the products were made with the Outsourcing model․ In 2008-2009 the Outsourcing index decreased, giving way to Product Development.

In 2000 On December 28, the Government of the Republic of Armenia recognized the information technology industry as a priority sector of economic development.

in 2021 there was a 17.8% real increase in output in the field of information technologies, which is more than 3 times higher than the total economic activity of the year. This is mentioned in the 2021 report of the Republic of Armenia Government.

According to the report, within the framework of the 17th measure to neutralize the economic consequences of the coronavirus, in 2021, newly established technology companies were provided with state assistance in the form of grants of about 1 billion drams. In addition, about 429 million AMD grants were provided to 40 startups at different stages of product development within the framework of the 3 components of the “From Idea to Business” grant program.

2021 was full of offline and online events, meetups, new educational programs, active investments, and more. It can be considered a year of investments in Armenian IT.  Many startups with Armenian founders and offices here have announced venture investments. For example Krisp, SoloLearn, SuperAnnotate, 10Web,  Podcastle, FoodStruck, Cognize, etc. There are also many Armenian startups that are still growing and great developments await them in the future.

Also, last year PicsArt became a Unicorn. This is the first company established in Armenia, the value of which exceeds $ 1 billion. There are many companies that have not announced the closing of investment rounds.

Competitive advantages of Armenia

Armenia has competitive advantages over other countries in the region in this field:

• The ability to carry out research and experimental work in accordance with international standards;

• High-quality and talented specialists,

• Basic university programs in IT and other related specialties, and cheap labor force with a high level of competition and also low operating costs,

• Tangible state support to the sector and willingness to improve the investment field,

• Progressive development of the IT sector,

• Strong Diaspora in Europe and North America;

• Extensive experience in cooperation with large transnational companies,

• A legal framework that meets the best international standards for the protection of intellectual property.

The above-mentioned advantages have become the basis for relocation to Armenia. The flow of Russian citizens to Armenia started on February 24, 2022.

Over the past couple of months, 100,000+ accounts opened in Armenian banks for non-residents, according to the Internet Without Borders platform.