The rapid pace of informationcommunication technologies (ICT) in the last ten years havetransformed developed countries into "informationsocieties". Consequently, new technologies are at thecenter of debate in developing countries, who also aim atprofiting from its advantages. Technology transfer isunprecedented, where electronic commerce, largely due tomodern semi-conductors, now allows substantial price, andoperational cost reductions. Similarly, the emergingindustrial enterprises, mainly small and medium scale, arecompetitively grouped along complementary activities. Inparallel to this ICT penetration in all sectors of theeconomy, the information content of industrial activity, andproductivity is enhanced. This paper looks at the crucialelements to develop ICTs in Algeria, suggesting itstransition towards an information economy, requires aneconomic diversification, and competitiveness strengthvis-e-vis international markets. This in turn requires thedevelopment of new sources of economic growth. To this end,a strong political will should be in place to achievepolitical consensus for the implementation of new regulatoryframeworks and sector reforms, to establish moderninformation infrastructures, with the support of the privatesector. In addition, it is stipulated human capital shouldbe updated to grasp this information infrastructure andservices. However, challenges to overcome are the absence ofa strategic development, unfavorable economic conditions,inadequate institutional framework, and most importantly,the vanishing of young educated professionals, particularlywithin the ICT field.