IT Skills Assessment in Armenia
The IT and high-technology sector is one of the fastest growing sectors in the Armenian economy. Since 2006, the sector, excluding Internet service providers, has grown with a CAGR of 22% reaching a total output of US$294 million in 2013. The numbe...
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| Format: | Knowledge Economy Study |
| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/06/19903109/skills-assessment-armenia http://hdl.handle.net/10986/20019 |
| Summary: | The IT and high-technology sector is
one of the fastest growing sectors in the Armenian economy.
Since 2006, the sector, excluding Internet service
providers, has grown with a CAGR of 22% reaching a total
output of US$294 million in 2013. The number of companies
operating in the sector is 380, the number of employees
8,000. About 13% of the companies operate in the
high-technology domain, while the rest are IT companies.
One of the driving factors of sector growth was its
attractiveness for foreign companies to establish branches
in Armenia. The prime competitiveness factor was the
availability of relatively cheap and competitive human
resources in Armenia. Currently, Armenia seems to be on the
verge of losing this competitive advantage. Due to the
growing number of IT companies in Armenia, demand for IT
specialists will continue to increase. According to
conservative estimates, if the market and productivity
continue to grow with an average rate of 18% and 1%
respectively, the absorption potential of additional IT
specialists will grow at a rate of 17% annually and reach
15,000 by 2017. The sector is currently undergoing a major
transformation: there is an increasing shift from the
outsourcing model to the model of own product development
and entrepreneurship in the sector. This model of growth
requires a higher level of knowledge, new skills (such as
sales and entrepreneurship skills), and entrepreneurial knowledge. |
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