Working efficiency is rather low in Armenia because of the inefficient education system, Armen Abrahamyan, IT Cluster Coordinator, USAID CAPS, told NEWS.am He pointed out that in a good IT company one employee ensures a turnover of U.S. $50,000 against  U.S. $ 22,000 in Armenia. A total of  5,000 to 6,000 people are employed in the Armenian IT sector, ensuring a turnover of U.S. $110m. This means we have serious management problems.

Boosted working efficiency alone can increase the IT sector’s turnover up to U.S. $170-180m. “In Taiwan, management is considered poor if one D-link employee ensures les than U.S. $500,000. To compare each Microsoft Company employee ensures an annual turnover of U.S. $1m,” Abrahamyan said. 

Low working efficiency impedes investments – efficiency less than U.S. $50-60 thousands, even in the case of outsourcing, causes a serious rise in manpower costs.  Armenian programmers’ work is still considered of high quality, but the problem of working efficiency must be resolved. Otherwise Armenia will not have competitive companies in the future, Abrahamyan said.