Turnover in Armenia’s IT sector made over USD 500 million in 2016, and the sector’s effect on GDP showed about 6%. There are nearly 540 IT companies in Armenia, and 16 000 specialists are involved in the sector.

This information was provided today by Director of Enterprise Incubator Foundation (EIF) Bagrat Yengibaryan, who concluded the 2016 tech year.

According to him, 2016 will register around 20% growth.

“The year was difficult, but unprecedented from the point of newly founded companies, ideas, investments. You could say that this year the number of newly registered enterprises was unprecedented,” EIF Director said.

He singled out realization of these two projects for the next year – Engineering city and Cyber security center.

Bagrat Yengibaryan stressed that EIF was the first technological incubator formed in Armenia, which became a model of development in IT sector not only in Armenia, but several other countries as well.

“This model proved we are self-sustained. Moreover, 65% of expenses are covered by non-state means. Such indicators are considered a big success both in developing and advanced countries,” EIF Director noted.

He informed that more than 70% of IT companies today cooperate with EIF in some way. The number of beneficiary companies per year exceeds 200. The volume of the foundation’s investments in the sector exceeds USD 10 million.

EIF provides support in IT sector development to governments of several countries (Moldova, Montenegro, Bahrain, and Jamaica), as well as over 30 tech companies in Taiwan and a number of Latin American countries.

“Owing to EIF, since 2012 over 20 000 pupils, university students, disabled persons, experts and teachers received retraining, and 500 teams and companies were given support,” he said.

Bagrat Yengibaryan stated that EIF’s most important achievement was foundation of technological centers in marzes. It allows equal development for the IT sector, without gathering all resources in Yerevan.

At the moment about 25 companies operate in Gyumri Technopark. EIF helped retrain more than 5600 young people, created 500 jobs, and supported over 50 companies, 12 out of which received further financing.