Share of Armenian companies decreased by 38% in IT sphere. At the same time, average revenue per company for locals increased by nearly 25% and only by 9% for the foreign branches, Enterprise Incubator Foundation (EIF) report reads.

In 2009, the turnover of Armenian software and services sector reached around $130m resulting in 27% CAGR in 1998-2009. This turnover figure constitutes 1.1% of Armenia’s $11.9 bn nominal GDP in 2008. It is close to the share of IT sector in GDP for such countries as India (1.4%) and Germany (1.3%)

In 2006-2009, industry showed compound annual growth of 24%. Industry’s contribution to the total exports rose from 3.6% in 2003 to 5.6% in 2009 proving the growing importance of the software sector for Armenia’s landlocked economy focused on the expansion of export oriented businesses.

33 largest companies (with turnover $1m and over) comprising 17% of all IT firms generating 60% of all industry revenue. Today, there are 13 more companies with revenue ranging $1m and over compared to 2006.

Number of small firms with less than $100,000 in revenue also increased by 4%, although these firms do not have any visible impact on the industry. Rising operating costs and low effectiveness of small companies make it highly difficult for companies with less than 10 employees to operate in the long term.