IT Services - Armenia

Armenia

Revenue in the IT Services market is projected to reach US$131.30m in 2024.
IT Outsourcing dominates the market with a projected market volume of US$43.91m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.00%, resulting in a market volume of US$192.90m by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$94.76 in 2024.
In global comparison, most revenue will be generated in the United States (US$522.00bn in 2024).

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Cognizant, Hewlett Packard Enterprise, and TCS.

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Market

Region

Region comparison

Currency

Analyst Opinion

Armenia, a country known for its ancient monasteries and rich cultural heritage, is also making strides in the IT services market.

Customer preferences: Armenia's IT services market is primarily driven by the demand for software development and outsourcing services. The country's educated and skilled workforce, coupled with its comparatively low labor costs, make it an attractive destination for businesses looking to outsource their IT needs. Additionally, there is a growing demand for cloud-based services and cybersecurity solutions as more companies shift towards a digital-first approach.

Trends in the market: One of the major trends in the Armenian IT services market is the rise of startups and small and medium-sized enterprises (SMEs) that are leveraging technology to disrupt traditional industries. These companies are driving demand for software development services, particularly in the fintech and e-commerce sectors. Another trend is the emergence of Armenia as a hub for blockchain technology, with several companies specializing in blockchain development and consulting.

Local special circumstances: Armenia's strategic location at the crossroads of Europe and Asia, as well as its membership in the Eurasian Economic Union, make it an ideal location for businesses looking to expand into the region. Additionally, the country's government has been actively promoting the development of the IT sector, with initiatives such as the establishment of the Armenian National Engineering Laboratories and the launch of the "Armenia Startup Academy" program.

Underlying macroeconomic factors: Armenia's economy has been growing steadily over the past few years, with a focus on developing the IT sector as a key driver of growth. The country's membership in the Eurasian Economic Union has also provided it with access to a larger market and increased trade opportunities. However, Armenia still faces challenges such as a lack of access to venture capital and limited infrastructure, which could hinder the growth of its IT services market in the long run.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.