**Brief Overview of Software Market inArmenia**

 

Source:U.S. Embassy, Yerevan

Author:George Isayan, BISNIS Representative

Date:    August 1999

 

Armenia offers attractive investmentopportunities to software developers. There is a growing number of local software companies. Several U.S.firms have already started successful software projects in Yerevan, Armenia'scapital, employing Armenian programmers and using the benefits of qualified andlow cost labor. A number of Armenia-based programmers also work for U.S.companies' headquarters via the Internet. While local Armenian companiesprimarily serve the limited internal market, the American companies haveexploited the export niches, developing software for international markets. Thecountry possesses a significant number of programmers, most of whom aregraduates from the state university of Armenia and the State University ofYerevan and the Yerevan Engineering University. Many of these programmersworked for the defense industry in the past.  The industry currently employs over 300 programmers, ofwhich almost 100 are employed by HPL Armenia, a subsidiary of the SiliconValley-based Heuristics Physics Labs, Inc. HPL has become the largest softwarefirm in Yerevan.   There arealso 10 other large companies engaged in software development. The productsinclude educational, financial, industrial, scientific, management, and othersoftware packages. 

 

**Investment Prospects **

 

The high skill level of Armenianprogrammers and low cost of research and development in Armenia are the maindriving factors for US software developers. Existing subsectors include chiptesting, telecommunications, Internet applications, and stock market dataprocessing.

 

**Internet Connectivity**

 

Internet connectivity is offered bythe following two main Internet providers through cable radio modem channels,or direct satellite connections. 

 

Arminco Global Communications

A. Alexanian, CEO

26 Isahakian St., Yerevan-9, Armenia

Tel: (374-2) 526-326

Fax: (374-2) 285-082

Email: postmaster@ arminco.com

[email protected]

Website: http: //www.arminco.com

 

Infocom 

A.Gabrielaian, CEO

22 Saryan St.,Yerevan-2, Armenia

Tel: (374-2) 530-369

Fax; (374-2) 528-858

E-mail: [email protected]   

 

 

NOTE:

Infocom has become partof the Greek-owned "Armenia Telephone Company" (Armentel), whichholds an exclusive license for almost all types of fixed and mobile services inthe territory of Armenia.  Armentelcan be reached at 2 Aharonyan St., Floor 9, Yerevan-14, Armenia Tel: (374-2)580-123

Fax: (374-2) 151-001   

 

**Key Contacts**

Lsoft

24 Pavstos Byuzand St.,Yerevan, Armenia

Tel: (374-2) 564-517

Fax: (374-2) 151-441

e-mail: [email protected]

Contact: Larisa Lalayan,President

Software Products:

"LSbank" LANbased banking system for the Armenia central bank

"LS Minfin"LAN based database for the Armenian Treasury

"LS Finance"LAN based database for Armenian Airlines

 

CEDIT

Hovhannes Aboyan,Director

5 Hanrapetutian Bldg B,Floor 4, Yerevan-10, Armenia

Tel: (374-2) 529-432

Fax; (374-2) 151-548

E-mail: havoyan@www.cedit.amilink.net

Software Products:

JavaPro, a tool forfinancial trading system

Automated financialtrading system

A system for trading,settlement, and analysys of currency, bonds, and other securities and futurestraded on the Yerevan Stock Exchange

 

 Migma 

Grigor Barseghyan,Director

15 Sayat Nova Street,Yerevan, Armenia

Tel: (374-2) 564-849

Fax: (374-2) 521-356

Software Products:

Multimedia Programs 

 

**Software Development:Promising Leads**

 

Industry: SoftwareDevelopment

Company: Migma L.L.C.

 

Migma was established in1996 in Yerevan as a private company. Migma is a dealer of the Moscow-basedFormoza company which is the distributor of INTEL, Hewlett-Packard, andMicrosoft products in Russia.  The companys' main activities are: sales of Formoza computers,peripherals, and supplies, warranty services, and software development.  The company has supplied computers tothe following organizations: United Nations Development Program Office, theRussian Embassy, Armenergo (Energy Utility), large advertising agencies,  Armenian Railroad Administration, andothers.   The companyregularly advertises its services in the local press. 

 

Migma has developedvarious programs, including: multimedia program which provides information on the history and cultureof Armenia; Universal security system for Windows-95/3x, Dos; a modelingprogram; text editor, etc. Programming languages used are: Visual Basic, C++,Pascal, Borland C++5.x, Borland Delphi 3.   The company has 20 programmers who work on Celeron-366and more powerful PCs.

 

Migma plans to expandits business and looks for cooperation with U.S. software engineering companiesin the areas of joint development of software, its marketing and selling. Thecompany is ready to accept orders for the multimedia system programming.High-quality and low cost services of Migma 's programmers, office space, andsales support within the NIS countries are available. 

 

Contact:   Mr. Grigor Barseghyan, Director

               Migma L.L.C.

               15 Sayat-Nova St., Yerevan, Armenia

               Tel: (374-2) 564-849

               Fax: (374-2) 521-355, 521-356

               E-mail: [email protected]

 

 

Industry: SoftwareDevelopment

Company: Lsoft

 

Lsoft was established in1995 in Yerevan as a limited liability company. The company specializes insoftware development for financial and banking sectors. Among Lsoft's largesoftware products are: "Ls Bank" - lan based banking system for theCentral bank of Armenia, "LS Minfin" - LAN based database for theArmenian Treasury, "Ls Finance" - LAN based database for ArmenianAirlines. Lsoft occupies 1,291 sq.ft. of office space in downtown area ofYerevan, including 646 sq.ft. of leased premises. The company employs 12 people of which 10 areprogrammers.

Lsoft seeks a U.S.partner to expand its customer base for its products including databaseapplication, games, systems for solving various mathematical and engineeringproblems and applications. High-quality and low cost services of Lsoft'sprogrammers and office space are available. 

 

Contact: Larisa Lalayan,President

                Lsoft L.L.C.

 24 Buzandy St., Yerevan, Armenia

             Tel: (374-2) 564-517

             Fax: (374-2) 151-441 (Attn. Larisa Lalayan)

             E-mail: [email protected]