IT tenders in Armenia have become more than a procurement process — they’ve become a battleground.
And unfortunately, this battlefield is far from fair.
Small companies often enter tenders with hope, experience, and real expertise.
But then they face something that isn’t written in any official document:
the silent, powerful influence of large corporations that bend the rules without breaking them — and push smaller players out before the competition even begins.
At SMMHub, working daily with international vendors and participating in tenders across Armenia, we see this problem from inside.
We see how big companies dominate the field, and how small businesses get removed from the game long before the evaluation stage.
This article is an honest look at what’s happening — and what can be done.
1. When “competition” stops being competition
On paper, all bidders have equal rights.
In reality, some players enter the tender with an advantage so large that others don’t stand a chance.
Here are the mechanisms that distort the market:
1. Vendor favoritism disguised as “special terms”
Big corporations negotiate exclusive discounts or benefits from vendors — terms small companies simply cannot access.
It looks legal, but in practice, it destroys fair competition.
2. Technical specifications written for one specific product
Some tenders contain requirements tailored to a certain brand or model.
Small companies are disqualified automatically — not because their solution is bad, but because the tender was never meant for them.
3. Aggressive pricing (dumping)
Large corporations can afford to sell at zero margin or even at a loss — simply to eliminate competition.
Small companies cannot survive such tactics.
4. Vendor monopoly
When global vendors work exclusively with one or two large partners, everyone else becomes a “second-class participant.”
Pricing, support, documentation — everything flows in one direction.
The tender appears open, but in reality — it is closed.
2. Why this is dangerous for the market and the country
When small companies disappear from tender competition, the whole ecosystem suffers.
Prices rise
A monopolist doesn’t compete — it dictates.
Quality drops
No competition means no motivation to improve.
Innovation dies
Small companies bring flexibility, creativity, and new technology. Losing them means losing progress.
The problem is not just economic — it is national.
3. What the law says — and whose side it’s really on
Armenia’s procurement law officially protects fair competition.
Key principles include:
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equal access
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non-discrimination
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transparency
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justified technical requirements
The problem is not the law itself.
The problem is how easily it can be manipulated when big players enter the field with:
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stronger vendor relationships
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legal teams
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financial power
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influence
Small companies are left vulnerable.
But here is the important part:
The law DOES support fair competition — small companies simply need to start using their rights.
Many don’t know how.
4. How small IT companies can protect themselves: practical steps
These are not theoretical recommendations.
These are methods that actually work in Armenian tenders.
Demand transparent and fair technical specifications
If the technical requirements clearly match only one product:
✔ Request clarification
✔ File a formal objection
✔ Ask for broader compatibility
✔ Present alternative equivalent solutions
Tenders can be corrected — but only if someone raises their voice.
Escalate unfair vendor behavior properly
If a vendor is unfairly supporting only one big partner:
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request official justification,
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report discriminatory pricing,
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escalate to regional vendor offices,
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document inconsistencies in partner policies.
Vendors hate reputation risks.
Well-documented escalation can change the situation.
Win through technical superiority, not price
If a big competitor dumps the price — let them.
Small companies can win in ways big ones typically fail:
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clearer architecture
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flexibility
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tailored implementation
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better client understanding
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faster delivery
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deeper technical explanation
In tenders, the smartest solution often beats the cheapest.
Build alliances instead of fighting alone
Small companies can:
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combine expertise,
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share resources,
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form consortiums,
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submit joint offers.
This is common in Europe and the U.S., but underused in Armenia.
Partnering can turn two weak companies into one strong competitor.
Document every irregularity
Evidence matters. Collect:
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emails
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timestamps
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vendor responses
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screenshots of price discrepancies
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changes in tender documents
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any unusual procurement timelines
With proper documentation, even a small company can file a strong and legitimate protest.
5. SMMHub’s role in protecting fair competition
As a company working with international vendors and local enterprises, SMMHub sees these market distortions every day.
We know:
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how to negotiate fair pricing with vendors
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how to secure equal access to conditions
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how to defend our rights
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how to resist pressure from larger competitors
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how to compete based on quality, not size
Our philosophy is simple:
A fair tender market benefits everyone — businesses, customers, and the country.
And small companies deserve a voice.
6. Final conclusion: big companies may be stronger — but not always right
Large corporations can:
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push with price
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push with influence
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push with vendor power
But they cannot:
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rewrite the law
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erase transparency
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override documented evidence
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stop professionals from defending their rights
And they definitely cannot defeat a market that knows how to protect itself.
The future of Armenia’s tender ecosystem depends on companies who refuse to stay silent — and choose to defend fairness.