The IT industry in Armenia has grown rapidly in recent years, with 450 companies in 2015, a 12% increase from 2014, generating $560 million in revenue. However, the industry faces challenges in developing sufficient IT talent to sustain its growth. There is an annual shortage of around 2,000 specialists, as only around 45% of the approximately 900 IT graduates each year consider careers in the sector. The government and organizations are working to address this skills gap through educational initiatives and technology centers that provide training programs tailored to industry needs. The startup financing ecosystem in Armenia is also developing through accelerators, incubators, grants and venture funds to support entrepreneurship and innovation in the IT sector.

1. ARMENIAN IT
Mari Barseghyan
Project Manager,
Enterprise Incubator
Foundation
Challenges in IT talent market

2. ▸ Established in 2002, within the framework of the World Bank’s
“Enterprise Incubator” project,
▸ Acting as a cross-point for all entities in the sector - public and
private institutions, international organizations and government
agencies, major multinationals and small startups - and bring
them together to act jointly towards the ultimate goal of ICT
excellence.
ENTERPRISE INCUBATOR FOUNDATION

3. 450 COMPANIES IN 2015
12% increase from 2014
>50 NEW COMPANIES REGISTERED IN 2015
$560mln TOTAL REVENUE IN SOFTWARE & INTERNET SERVICES
17.7% GROWTH FROM 2014
$48,000 PER 1 TECHNICAL EMPLOYEE LABOUR PRODUCTIVITY
IT INDUSTRY OVERVIEW

4. Local
64%
Foreign
36%
COMPANY
OWNERSHIP
USA/CANADA
80%
EUROPE
11%
Russia/CIS
9%
EXPORT
DESTINATIONS
MAJOR
SPECIALIZATIONS
Customized software
and outsourcing
19%
System design and
automation
17%
web design and
development
15%
Networking and system
communications
10%
Other
39%
IT INDUSTRY OVERVIEW

5. EDUCATIONAL
INFRASTRUCTURE

6. Universities with strong IT and High Tech Specialization
State Engineering University of Armenia
Yerevan State University
American University of Armenia
European Regional Academy
Russian-Armenian (Slavonic) University
Yerevan State University of Architecture and Construction
French Higher Institute of Engineering in Armenia
12%
IT/High tech
Others
Structure of students in Higher Education System, 2014-2015
 60 Universities, out of which 15 have strong IT and High Tech Specialization
 In academic year 2014-2015 a total of 9352 students were enrolled in departments related to
informational and high tech specializations, which constitutes 11.71% of total student population
Educational Infrastructure

7. ▸ 60 Universities, out of which 15 have strong IT and High Tech
Specialization
▸ In academic year 2014-2015 a total of 9352 students were enrolled
in departments related to informational and high tech
specializations, which constitutes 11.71% of total student
population.
▸ IT sector has about 15,000 employees and the highest salaries
EDUCATION & WORKFORCE

8. In order to sustain the growth based on the high quality labor force, Armenia
currently faces the issue of providing sufficient supply.
The number of graduates with IT specializations annually closely coincides with
the annual demand in the overall market, but only 45% of the graduates
consider or qualify to be employed in the sector, thus, creating a quantitative
imbalance of workforce (IT Skills assessment report, 2014).
~900
graduates being
employed
~2000 new
specialists demanded
SKILL DEMAND & GAP IN IT

9. AITC provides a specialized infrastructure and high-performance facility for the
delivery of IT-related trainings and R&D programs that create new opportunities for
the development of IT workforce skills in Armenia
ANEL is a center of excellence that hosts 30 state-of-the-art education and research
laboratories. Lab aims to strengthen the educational capabilities and enhance the
research potential of the Armenian engineering sector by upgrading and expanding
the NPUA educational and research facilities to the world standard.
Synopsys is heavily investing in microelectronics education and is engaged in many
successful cooperation programs with major universities of Armenia such as National
Polytechnic University of Armenia (NPUA), Yerevan State University (YSU), Russian-
Armenian (Slavonic) University (RAU), etc.
TUMO is a digital media learning center. Since its opening in 2011, the center has
provided thousands of students aged 12–18 an open environment where they can use
the latest in digital tools, learn from media professionals, and explore the intersection
of technology and art.
With more than 100 engineering laboratories/ clubs established in the schools, the
project aims to promote technological education in all schools of the Armenian
communities, to assist pupils in their early interest emergence in modern high
technology, to promote the development of engineering mindset from early ages, and
to prepare competent students.
UEICT supports implementation of Basics of Telecommunication subject at high
schools. Particularly, introduction of professional subjects such as “Microelectronics”,
“Basics of Telecommunication” and “Information Technologies” is done.
SUCCESSFUL EDUCATIONAL INITIATIVES
Worldwide University program

10. ENTREPRENEURIAL
LANDSCAPE

11. ACCELERATORS, INCUBATORS TECHNOPARKS
INNOVATION ECOSYSTEM

12. ANGEL INVESTORS
GRANTS
VENTURE FUND
HIVE network
FOREIGN
ANGEL
NETWORKS
(DIASPORA,
PROFESSIONAL
INVESTORS)
FOREIGN VENTURE FUNDS
MATCHING GRANTS, GYUMRI AND
VANADZOR MATCHING GRANTS,
SCIENCE AND TECHNOLOGY
ENTRPRENUERHSIP PROGRAM (STEP),
CLEANTECH PROGRAM
STARTUP FINANCING INFRASTRUCTURE

13. THE STARTUPS [SOME OF THEM]

14. INNOVATION ECOSYSTEM

16. WiFi free internet access devices
installed in 344 rural areas with up
to 1,000 residents
- UCOM continues the started
program
Computer for All mechanism is still
operating through the revolving
fund.
- Model replicated by the many
Banks.
GYUMRI TECHNOLOGY CENTER
 100% occupancy rate with local and international
companies
 >2000 people trained in GTC
 >50 companies received business development
consultancy
 Laboratories in filed of Engineering, CleanTech &
Multimedia

17. VANADZOR TECHNOLOGY
CENTER
 >40 companies received business development
consultancy
 >25 teams received Assistance in Establishment
of startup technological teams
 > 600 beneficiaries were involved in the training
programs conducted at VTC

18. MIC/ANEL/ARMINDIA/ISTC
 >5000 training participants annually in the areas of
Programming, Engineering, Mobile,
Business/management
 Centers continue to cooperate with private sector to
provide trainings based on the industry needs

19. INNOVATION CLOUD
Ideas
Expertise
Entrepreneurs
Creativity
Funds
Networks
People
Connections
PartnershipsAdvice
Credibility
Start-ups
Hi Tech
Education
IT

20. EXPERIENCE WITH
MULTINATIONALS

21. ACQUISITIONS
BY MULTINATIONALS

22. MADE IN ARMENIA

23. ARMENIAN IT
INDUSTRY
FAST GROWING INDUSTRY AT A
CRITICAL JUNCTURE

24. THANK YOU!
ENTERPRISE INCUBATOR FOUNDATION
123 Hovsep Emin str, 0051
Yerevan, Armenia
Tel: +374 10219797
E-mail: info@eif.am
www.eif.am