Thursday, 10 June 2010
The IT sphere as a motive force behind the economy
Over the past few days, there was no lack in high-tech industry-related social events in Armenia.
One language and a single font on the web
At last Sunday’s meeting of IT sector participants and blogers, Tigran Sargsyan was handed in a letter signed by 200 people who asked the Prime Minister to tackle the issue of having an easily accessible Unicode-based Armenian medium on the web. By the way, earlier this problem was raised on Tigran Sargsyan’s personal blog. The response did not keep waiting. At the cabinet sitting held four days later, Prime Minister Tigran Sargsyan referred to young people’s concern. As a result, the Government amended one of its previous government decisions to ensure unified application of Unicode font in State agency-circulated paperwork. Unicode was said to be the only font licensed by the RA Ministry of Economy in harmony with the Armenian standards. It was stressed that all State agencies and the Government in the first place must abide by the established criteria.
During two consecutive days, “DigiTec Business” exposition-forum introduced part of Armenian IT businesses
Another major event involving representatives of international organizations was held on June 9-10. It brought together about 40 out of those 230-240 IT companies operational in Armenia (including 2 international associations). On display were digital products, business and scientific achievements. One can anticipate possible changes in everyday life only after a product is applied in practice. For the time being, most of exhibits are intended for export.
In general, half of Armenian high-tech companies export 60% of their produce toward the United States. 30 % of total output goes to European countries. There is growing demand for Armenian high-tech products in Russia and the Middle East.
Noteworthy is the role of the IT sector in Armenia’s economic development as stated by the Prime Minister of Armenia in attendance of the exposition-forum: “This sector is characterized by a USD 130mn worth of annual receipts of which 70 million dollars come from exports. There are over 5000 jobs available this area and, in this respect, the IT sphere is getting comparable to the mining industry. 4200 out of the aforementioned 5000 jobs are of technical character. Either those 6000 students involved in Armenia’s recently modernized system of higher education provide a proof of sustained development in this field. This is meant to ensure a proper linkage between business and research. It is important that the number of forum participants has increased by some 20% this year. A special highlight is the Start Up section which represents 10 newborn entities.”
Specific action gives prominence to any sphere
The Prime Minister tried to answer the question: what is the Government undertaking to improve the IT sphere? He stated in part: “We have a long list of proposals and queries raised by the IT experts, and the public council by the Prime Minister discusses them on a regular basis. Improving legislation on the export of dual-purpose goods and services is a topical issue for us. A task force has been established to formulate proposals on ways of export facilitation.”
The members of the IT Development Support Council by the Prime Minister assure that the words will be turned into reality. The tackling of these issues will bring about expansion in a sector which is supposed to lead the way in economic development.
From the perspective of new incentives, as much important is the implementation of ambitious projects by the IT companies. They have everything to do so – outreach and support facilities. What they need is single-mindedness and strong will in this matter. Private companies themselves confess that any problem may be tackled through private-public sector cooperation and the government’s thoughtfulness. Therefore, any proposed target can be reached in the IT sector.
The Government holds “ArmTech” annual exposition-forums on a regular basis
Exports are especially important to the high-tech sector which implies first of all permanent presence and sustained demand in other countries. State is just what we need in this area. Experts from the Armenian Diaspora may be instrumental in this respect. Local companies are supposed to get additional capacity and open overseas branches thanks to the Armtech-2009 forum held in the Silicon Valley, Prime Minister Tigran Sargsyan’s visits to key organizations and educational institutions, as well as thoughtfulness of venture capital-related issues.
Life and information technologies set to go hand in hand
Both the experts and the public-at-large are closely following developments in the IT sphere. Digital technologies-induced everyday conveniences are increasingly appreciated worldwide. Experts in banking and financial sectors, small and medium-size enterprises, travel agencies, trading and building entities, transport and communications, pharmaceutical-producers are well aware of the true value of information technologies as the pledge of luck and progress. This means that market demand for this type of products is set to grow ahead resulting in increased supply.
See details
June 10, 2010, RA government session
“The Government is mindful of IT challenges,” the Prime Minister stated
Challenges and responses discussed at the ITDSC sitting
Information Technology Development Support Council
“Arm Tech” as a possibility for reinvigorating and revising IT projects in Armenia
RA Prime Minister Tigran Sargsyan’s Speech at Gala Reception at ArmTech - 2009 Forum
Tigran Sargsyan’s blog