The rapid pace of information communication technologies (ICT) in the last ten years have transformed developed countries into "information societies". Consequently, new technologies are at the center of debate in developing countries, who also aim at profiting from its advantages. Technology transfer is unprecedented, where electronic commerce, largely due to modern semi-conductors, now allows substantial price, and operational cost reductions. Similarly, the emerging industrial enterprises, mainly small and medium scale, are competitively grouped along complementary activities. In parallel to this ICT penetration in all sectors of the economy, the information content of industrial activity, and productivity is enhanced. This paper looks at the crucial elements to develop ICTs in Algeria, suggesting its transition towards an information economy, requires an economic diversification, and competitiveness strength vis-e-vis international markets. This in turn requires the development of new sources of economic growth. To this end, a strong political will should be in place to achieve political consensus for the implementation of new regulatory frameworks and sector reforms, to establish modern information infrastructures, with the support of the private sector. In addition, it is stipulated human capital should be updated to grasp this information infrastructure and services. However, challenges to overcome are the absence of a strategic development, unfavorable economic conditions, inadequate institutional framework, and most importantly, the vanishing of young educated professionals, particularly within the ICT field.