YEREVAN, OCTOBER 18, NOYAN TAPAN. The production of the Armenian information technologies (IT) sector currently accounts for about 2% of GDP: this index is typical of the countries with a developed IT sector. Ara Hakobian, Advisor to the Armenian Prime Minister on IT issues, said this on October 18 during a joint press conference with Bagrat Yengibarian, Director of the Enterprise Incubator Foundation. Speaking about problems related to development of the IT sector, A. Hakobian noted that the sector has reached a level where new approaches to the development strategy and policy are needed. He linked the sector's development with the formation of the information society, then - the knowledge-based economy in Armenia. It was noted that the information and high technologies have begun to act somewhat as a driving force of the economy. According to A. Hakobian, the strategies of formation of the information society and development of electronic documents circulation are now being worked out. In response to a question of NT correspondent, he said that at the next stage of IT development, we should not only export our expert potential, leaving a considerable part of surplus value to others but also start to solve the issue of competitiveness of Armenian production on the international market. Now the sector is completing the stage when development occurs through outsourcing (when local companies perform foreign orders) and investments made by these companies in IT educational and technological spheres. In the words of B. Yengibarian, particularly the entry of Lycos company into Armenia helped with creation of new companies based on the potential of the company's branch. These companies can implement the operating of web systems by their servers. He explained the importance of importing the culture of labor on the example of Virage Logic company, about 30% of whose production is produced by its Armenian branch by its Armenian servers. According to him, "the Diaspora factor is present in 80% of IT enterprises." Responding to NT correspondent's question, he noted that 30% of 150 companies of Armenia's IT sector operate with foreign capital. These companies produce over 60% of IT sector production. He said that in 2001, about 100 IT enterprises operated in Armenia, and since then there have been no essential cahnges in proportions of the number of enterprises with local and foreign capital and the structure of their production.

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