Current State of IT and Software industry in Armenia

• Approximately 400 Armenian Information and Communications Technology companies generated an estimated $300-400 million in revenue from computer hardware, software and services in 2001. 
• Software development companies are the largest employers in the ICT sector, with some 100 indigenous and foreign software companies generated sales of $40-50M in 2001, and now employ some 3,850 software programming, systems engineering and hardware specialists.
• Of these, 42 are foreign firms (26 are US-based) that employ 60% of programmers and pay higher salaries, are essentially labor teams producing inputs for software marketed by head offices 
• Foreign firms are attracted to the low cost and high technical level of software development in Armenia. A recent study concluded that Armenia represented the best value location in the world for IT products, with a quality-price ratio even better than India. 
• Indigenous firms have generally lack international networking and marketing capabilities and have instead tended to fill domestic orders such as government, financial and banking software.