The growth of IT has become a synonym for Armenia’s development in the last decades. Given that the country has had a rather strong position in the IT sector since the collapse of the Soviet Union, it appears to be natural to observe the industry flourishing. In the 2000s, the primary agents of change were the branches of multinational companies, such as Synopsys Armenia and others. In recent years, the focus has shifted towards establishing a vibrant and thriving start-up ecosystem. Not even the economic slowdown in 2014-2016, the political upheavals of 2018, the Covid-19 Pandemic, and the 2020 war in Nagorno Karabakh did stop the growth of the IT sector in Armenia.
The growing number of IT companies in Armenia has created an opportunity for the younger generation to have a more significant influence and earn higher salaries, considering that the current average net monthly salary in Armenia is around $400. Today, a coder with basic knowledge earns between $1200 and $2000 per month, while salaries for senior developers in the sector have started to reach $5000 a month. It is also essential to note that Armenia’s IT sector does not employ just coders. Designers, content writers, project managers, graphic designers, lawyers, marketers, and accountants work in IT companies. While their salaries are often lower than those of coders, they are still relatively high compared to other sectors.
However, not everything shines in the Armenian IT sector. The number one problem is the shortage of qualified professionals. At the same time, Armenia still faces brain drain, and the most successful start-ups usually leave the country and register themselves in the US to access Western Venture Capital. The latest example is Picsart, the first unicorn with Armenian roots. Some other famous IT companies are being named Armenian only because their founders are Armenians, although they were established outside the country and only have branches in Armenia, like ServiceTitan.
The Russian invasion of Ukraine has triggered a significant exodus of Russians; some left Russia for political reasons, as they were against the war, and many did not want to compromise their lives. Armenia became one of the primary destinations for Russian migrants due to several reasons. Armenia and Russia enjoy a visa-free regime, and there are many daily flights to Yerevan from multiple Russian cities. Armenia and Russia are members of the Eurasian Economic Union, allowing tariff-free export and import. Perhaps, most importantly, many Armenians have favorable views on Russians. Despite the growing criticism of Russia in Armenia due to its actions or inaction during the 2020 Nagorno-Karabakh war, Azerbaijani incursions into Armenia in 2021 and 2022, and the military takeover of Nagorno-Karabakh by Azerbaijan in September 2023, this has not turned into resentment against Russians, as it has focused on the Russian state.
According to different estimates, up to 100,000 Russians have entered Armenia since February 2022, with two big waves, one in March-April and one in late September-October 2022, immediately after mobilization was declared in Russia. As of October 2023, up to 60,000 Russians remain in Armenia, primarily located in the capital, Yerevan, though a few Russians also live in Gyumri, the second biggest city of Armenia. Most Russians who migrated to Armenia are specialists in the IT sphere. The robust growth of the IT sector in Armenia played a role in influencing their choice, as Armenia can offer them developed infrastructure, including IT business centers and IT parks.
In early March, when the first large wave of Russians arrived, the local tech community quickly organized events and online groups to integrate the newly arrived tech professionals moving to the country. One telegram group, set up to help those relocating, quickly reached tens of thousands of members.
Several Russian companies have also opened offices or expanded their current presence in the country. One notable example is Miro, an online whiteboard tool valued at $17.5 billion after closing its $400 million Series C round. Yandex, the Russian tech giant, also opened a new office in Armenia earlier this year. It can be assumed that most of the workforce of these offices are relocated Russians. However, their presence will create future employment opportunities for Armenian tech sector workers as well.
Meanwhile, it should be noted that not all newcomers started to work in Armenian companies. Some Russian specialists later found opportunities to immigrate to other countries in Europe and North America. Some are still in Armenia working remotely for global companies, and others are working for the Armenia branch of their employers.
In general, the influx of Russian IT specialists has played a positive role in the further development of the already booming IT sector in Armenia, and, in the long term, it will contribute to the overall economic recovery of Armenia.