This research explores the critical role of the ICT sector in the economic growth of developing economies, focusing specifically on Armenia. Despite substantial global evidence supporting the positive impact of ICT on economic performance, the mechanisms by which ICT contributes to growth in the context of developing countries remain insufficiently understood. Through a comprehensive literature review and econometric analysis, this research examines the dynamics of Armenia’s ICT sector, highlighting its rapid growth, significant contributions to GDP, and the challenges it faces. The research empirically assesses the impact of the recent influx of IT specialists from Russia and the sector’s impact and its transition mechanisms on the macroeconomy. The authors also argue that while the initial substantial wage gap in the IT sector of Armenia and advanced countries has been shrinking with convergence, after breaching the turning point, it is already containing the sector’s growth. The findings emphasize the importance of targeted policy measures to harness the full potential of ICT for sustainable economic development in Armenia and provide insights applicable to other developing nations.