To develop Armenian IT companies should shift from outsourcing to product generation – minister

YEREVAN, May 19. /ARKA/. Armenia's IT companies should switch from outsourcing to generating products, Armenian Minister of High-Tech Industry Robert Khachatryan told ARKA news agency.

"If we want this sector to develop, the outsourcing companies should gradually become product-generating companies," he said.

The minister stressed that business has its own laws and decides where to sell its products. He said if no switch is made Armenia may become gradually uninteresting for outsourcing countries.

"I'm not saying it will happen tomorrow or the day after, but in our long-term programs we see that the day may come," he said.

The minister stressed that he does not assess that prospect negatively because it will happen as a result of growth and development of the sector, which is positive.

Asked whether steps should be taken to push companies to move from outsourcing to product generation, Khachatryan said a case-by-case approach is needed in this context.

The turnover of Armenia's IT companies in the first 3 months of 2023 grew by 87% compared to last year's figure, Economy Minister Vahan Kerobyan said.

"All over the world the IT sector is in recession.  The growth that Armenian or Armenian-registered companies are experiencing shows that the industry is feeling good here. There are problems, and we are following them, discussing with companies the mechanisms for modernizing the environment to ensure a long-term stable atmosphere for growth and competitiveness," the minister said at a press briefing on the sidelines of the Yerevan Tech Forum 2023.

According to the Armenian government, in 2022, the turnover of the IT sector reached AMD 570bln, a 65% increase compared to 2021. As of that date, 3,385 companies with over 20,600 employees were operating in the sector. ($1 - 387.03 drams).--0--

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18:31 05/19/2023