UATE explains reduction in the number of IT companies

YEREVAN, February 19. /ARKA/. The downward trend of job cuts in IT companies working on external outsourcing will continue in Armenia, said Sargis Karapetyan, executive director of the Union of Advanced Technology Enterprises (UATE).

“In 2024, the number of jobs in the IT sector has dropped by 2,000,” Karapetyan said at the UATE's annual congress.

According to him, positive dynamics are seen especially in startups working with venture capital funds.

“They will have positive dynamics, there will be positive dynamics in large international companies, but in companies that work on external outsourcing, the negative dynamics will continue,” he said.

He said also that the number of companies has also fallen- from 11,000 to 6,000. The executive director explained this by the appreciation of the dram against the US dollar, which led to an increase in the cost of outsourcing and to a decrease in competitiveness.  

According to the Armenian Statistical Committee, more than 45,000 people were working in the IT and telecommunications industries at the end of 2024. -0-

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