Reported decline in Armenia’s IT sector not quite accurate – specialists

As many as 35 IT companies were launched in Armenia in 2015, the figure being unprecedented against the background of the previous years’ statistics, Director of Enterprise Incubator Foundation Bagrat Yengibaryan said, expressing his disagreement to the reports highlighting a 2.4% decline in the sector.

“We will start our studies soon, in September,” he told our correspondent, pointing out to a 25% and higher growth.

He cited divergent methodologies as the reason behind the pessimistic forecasts, saying that the issue has long been an apple of discord between the foundation and the National Statistical Service.


The latest official statistic revealed a 2.4% decline in Armenia’s IT and telecommunication sector for the first two quarters compared to the same period of 2014. The highest decline - 6% - was reported in the telecommunication industries. As for the IT companies proper, the total decline there was reported to be 1.3% (with the growth in trade and services having dropped by 3%).


Hovik Mikaelyan, Executive Director of Synopsis Armenia, also disagrees to the officially reported figures, attributing the observed decline to the difference in methodologies. He says the 35 companies are start-ups for whom damages in business are absolutely logical in the initial period.

“I don’t know a start-up company that secured profit shortly after its launch. Opening and team-creation take some time, so having a zero income is quite normal for a certain period,” he said.

Mikaelyan added that most of the income comes from transnational companies that implement their profit strategy throughout the year. “So many show a serious profit at the end of the year; hence estimates based on quarterly or bi-quarterly [reports] do not reflect the real situation,” he said, ruling out serious concerns.

“As for the domestic companies that render services or sell computers and software, the decline for them is absolutely natural. The lower purchasing power also reduces the trade volumes, so consumers are seen buying less and less products,” Musaelyan said, adding that he sees a sustainable growth in companies providing major services.

Among the key initiatives planned for 2015, he pointed out to a pilot project for six schools with physico-mathematical bias (to be launched starting from September 1 in cooperation with the Ministry of Education and Science) intended to make micro-electronics, programming and telecommunication compulsory subjects. He added that the target schools’ number is expected to increase to 10 in 2016.

“And for the coming five years, we are planning to make those subject compulsory in 60-70 schools,” Musaelyan said.

Micro-electronics specialists from 24 countries are set to visit Armenia in September to participate in the final round of an annual contest.

According to The Enterprise Incubator director, there is already an unpublished presidential decree for honoring the winner of the Armenian president’s Global Award.