TOTAL ANNUAL TURNOVER OF IT-SECTOR IN ARMENIA $84 MILLION

Arminfo Agency
2007-05-03 13:33:00

The annual turnover of IT-sector in Armenia totals $84 million, the
yearly growth for the last five years being 20% in average. Director
of Enterprise Incubator Foundation Bagrat Yengibaryan made the above
statement at the IT Competitiveness Conference that opened in Yerevan,
Thursday.

He said local IT-companies secure about $36 million turnover, while
the remaining is the share of foreign companies. This amount includes
administrative expenses and wages. The real number of operating
IT-companies in Armenia is 160, including 112 local companies, where
the share of the Armenian capital is at least 51%. The USA has the
largest share in the capital of these companies. However, it has
been decreasing recently, while the share of the European capital is
growing, said Mr. Yengibaryan. 63% of the produce of these companies
is exported. As a rule, IT-companies represent small and medium-scale
entrepreneurship. The number of employees in each company is 28 people
in average, he said.

International experts say the gross gain of the IT-enterprises
in Armenia may grow by 2011 to $115 million at worst and to $248
million at best as against $71 million in 2006, says the report on
IT development in Armenia. The report is prepared at request of EIF
and was made public on Thursday.

The experts say the average annual growth of the gain may total 10%-28%
from 2006 to 2011. The number of IT- enterprises may rise from the
present 150 to 224 during the period under review. Employees in
the sphere may grow in number from 4,156 to 9,508 people. Budgetary
tax revenues from IT-sector may grow from $12 million in 2006 to $42
million in 2011 in average and the productivity may rise from $17,140
to $26,100.

The event was initiated by CAPS Project (Competitive Armenian Privet
Sector) and financed by USAID.