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Lack Of IT Workforce -- Main Impediment For Industry Growth: EIF

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  • Lack Of IT Workforce -- Main Impediment For Industry Growth: EIF

    LACK OF IT WORKFORCE -- MAIN IMPEDIMENT FOR INDUSTRY GROWTH: EIF

    news.am
    Feb 9 2010
    Armenia

    Within last 10 years, the industry saw a sharp increase in the number
    of newly formed companies, both local start-ups and branches of
    foreign companies, reads the report by Enterprise Incubator Foundation
    (EIF). Nearly 90% of the foreign companies were established in
    2000-2009. The number of operating IT companies in 2009 reached 200,
    registering nearly 17% growth in 1998-2009 period. On average, 20 IT
    businesses set up each year in 2000-2009. This sharply contrasts with
    1990s when only 5 companies were founded each year.

    At the peak in 2008, annual number of newly established firms reached
    around 30. These high rates, however, may be difficult to sustain
    due to a shortage of qualified developers, engineers, and project
    managers. So far, size of the workforce has been the primary factor
    limiting industry growth.

    In 2009, the number of foreign companies in Armenia reached 74 entities
    or 38% from the industry total. Armenia's expertise in software
    development has been gaining more and more recognition outside the
    country thus fostering foreign investments in the IT sector. Compared
    to 2006, percentage of firms with Russian/CIS ownership increased by 9%
    reflecting recent acquisitions in telecom and outsourcing areas. More
    companies with U.S. and European ownership were also established during
    the last 3-4 years with the majority of foreign branches today being
    from the U.S.
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