Why You Should Outsource IT Services to Lithuania

Published on June 14, 2023
Why You Should Outsource IT Services to Lithuania

Many consider IT outsourcing in Lithuania because it’s a country with many opportunities for international businesses that are looking to stay at the top with their performance. Finding the right place to delegate your tasks to is crucial if a business wants to stay productive and, most importantly, competitive. Compared to other affordable countries for outsourcing, the Baltic nations entered the field quite early. They have subsequently managed to gain significant IT achievements in a relatively short period of time. Lithuania is one of those countries which is both influential and stable when it comes to providing IT outsourcing services. The other benefits include cost-efficiency, convenience, and an increased potential for growth.

However, if you are still doubting what country to choose, try learning more about Lithuania. In this post, we’ll do an overview of what this country has in store when it comes to outsourcing and what your business should expect.

State of the IT industry in Lithuania

Lithuania, a small country in the Baltic region of Europe, has emerged as a lucrative hub for IT outsourcing. The country steadily positions itself in the Top 10 in the Global Fintech Index Ranking. Lithuania’s information and communications technology (ICT) industry is rapidly advancing and presents enticing prospects for foreign entrepreneurs.

Lithuania is a stable country when it comes to IT. Software development companies in Lithuania also successfully overcame the pandemic’s detrimental effects and quickly recovered. The country was able to save its spirit as the GDP of Lithuania increased by 4.9% in 2021 compared to 2020. And the economy only continues to grow. The GDP per person in Lithuania grew to 26,750.60 USD in Dec 2022, compared with the previous year’s 23,662.83 USD in Dec 2021.

Lithuania is ranked 42nd in terms of GDP per person and 77th overall out of 196 nations. The Software Development industry in Lithuania is worth €677.6 million. With a startup ecosystem that’s among the fastest-growing in the region, Lithuania is now home to over 1,000 startups. This is more than double the number from a decade ago. With more than 200 Fintechs operating here, Lithuania has become the second-largest Fintech hub in Europe, measured by the number of licensed companies.

There are nearly 77,000 professionals who work in the Information, Communications and Technology industry. And 14,000 experts in IT here focus on software development. Information and Technology can be counted as the largest sector in the country, which still keeps on growing.

Mini-Boom in IT Sector

Following the 2008 economic crisis, the IT mini-boom began. Lithuania began to emerge as a hotspot for affordable and high-quality IT sector labor. This can be proven by large corporations such as Barclays, Google, Nasdaq, AIG, and others jumping on board and establishing remote offices or outright building IT service centers.

The Lithuania IT industry has experienced significant growth in recent years, with the sector now accounting for around 5.3% of the country’s GDP. According to statistics, the IT sector annual average growth of the industry is 14%. The share of ICT( Information and Communications Technology) services in the total export of services is 91%. That’s why it remains an attractive path for businesses trying to partner with software companies in Lithuania that can help them stay at the forefront of their industry.

Who Outsources in Lithuania?

A wide range of companies are outsourcing IT services to Lithuania, including both small startups and large multinational corporations. The types of IT services that are outsourced to Lithuania vary, but the most common include software development, cybersecurity, and data analysis. is an example of the business that is outsourced in Lithuania. This Israeli company that provides a website building platform has outsourced some of its software development work to a Lithuanian software development company. With its help, the business was able to develop the key features for’s platform, including a website builder and an e-commerce platform.

Another one that outsources in Lithuania is the popular financial service Western Union. It has built its Operations Center in Vilnius with over 2,000 workers. This approach greatly contributed to the enhancement of Western Union business. The facility is one of the largest WU sites in the world. Numerous procedures, including F&A, HR, IT, procurement, analytics, anti-money laundering, and compliance, are covered by specialists here.
The majority of foreign investment in Lithuania’s private sector comes from:

  • The United States of America (15 percent)
  • The United Kingdom (11.5 percent)
  • Germany (11.5 percent)
  • Sweden (around 8 percent)

These countries are the most active investors in the Lithuanian market, seeing it as an excellent opportunity to implement some of their supply management, distribution, or IT solutions. Lithuania outsourcing allows them to access talented professionals at a more competitive price point than other European countries.

Why Do Companies Outsource in Lithuania?

There are a number of reasons why companies choose to outsource IT services to Lithuania. One of the main reasons is saving on expenses. Lithuania offers high-quality solutions and good project results at a lower price point than other European countries, making it an attractive destination for businesses looking to reduce their operating costs.

A bonus is Lithuania being a member of the European Union. It provides businesses with access to a large and lucrative market. What also attracts businesses is well-educated people that have excellent knowledge of English. 80% of the people speak English here freely. This makes collaboration easier than it could ever be.

The Lithuanian government is constantly welcoming businesses to order services by implementing a number of policies designed to support the growth of the IT sector, including tax incentives for those operating in the sector. This, coupled with a low corporate tax rate, makes Lithuania an attractive destination for businesses looking to reduce their operating costs.

With a highly skilled workforce, favourable business environment, and strong IT infrastructure, Lithuania is becoming an increasingly attractive destination for businesses looking to do their IT outsourcing as many businesses are relocating their staff and operations to Lithuania.

Outsourcing IT Trends in Lithuania in 2023

Lithuania is quickly becoming one of the go-to destinations for outsourcing IT services. As we move into 2023, we can expect to see many trends emerge in the outsourcing IT industry in Lithuania.

Increased Focus on Cybersecurity
As businesses continue to operate in an increasingly digital world, cybersecurity has become a top priority nowadays. In IT outsourcing Lithuania is expected to make an increased focus on cybersecurity as businesses look to protect their data and systems from cyber threats. With its highly skilled people in the area of cybersecurity, Lithuania is well-positioned to provide businesses with the IT services they need to protect their digital assets.

Emphasis on Artificial Intelligence
Artificial Intelligence (AI) is rapidly changing the way businesses operate, and this trend is expected to continue in 2023. There will surely be more focus on AI as businesses look for ways to streamline their operations in more effective ways. With its skilled workforce in the area of data analysis and machine learning, Lithuania is well-positioned to provide businesses with the AI solutions they need to stay ahead in the market.

Outsourcing IT Trends in Lithuania in 2023

When it comes to IT outsourcing, Lithuania offers several incredible advantages. Businesses can easily reduce their operating costs while still accessing high-quality IT services.

Highly Skilled Workforce
Lithuania has a well-educated population, with a high percentage of the population holding a university degree. Eastern Europe is known for its strong STEM education; 30 of the world’s best institutions are located here, according to the QS World University Ranking. This means that businesses operating in Lithuania can access a pool of talented professionals with a wide range of skills, including software development, cybersecurity, and data analysis. This highly skilled workforce can help businesses stay ahead of the curve and drive innovation within their industry.

Favorable Business Environment
Lithuania’s favorable business environment is another key advantage of outsourcing IT services to the country. The economical and political stability in this country is a bonus. With a low corporate tax rate of just 15%, businesses can reduce their operating costs while still accessing high-quality IT services. The Lithuanian government has also implemented some policies designed to support the growth of the IT sector, including tax incentives for businesses operating in the sector.

Access to Cutting-Edge Technology
Businesses also outsource Lithuania because it allows them to access cutting-edge technology and stay ahead of the curve in their industry. With its commitment to innovation and entrepreneurship, Lithuania is home to many innovative startups and companies that are at the forefront of their industry. This means that businesses outsourcing IT services to Lithuania can access the latest technology and stay competitive in their market.

Affordable Prices
Mostly due to the low cost of high-quality labor. Because the median wage in Lithuania is only around $1,037 USD. However, salaries in the IT sector are typically slightly higher, hovering around $1,000-3,000 USD. Overall, when compared to the United States or Western Europe, this is still a small number.

Outsourcing IT Trends in Lithuania in 2023

Using online resources to benefit from another country at a distance has become a proven way of optimizing IT processes and acquiring a competitive edge while also cutting down on expenses. As the IT outsourcing industry is constantly flourishing, it’s worth taking a chance to discover this strategy for your business. Lithuania has a lot to offer when it comes to outsourcing.

Its professional approach, talented tech experts, and affordable prices could assist any business with IT questions and open the doors for extensive growth. It’s an awesome option to consider if your business is also looking for a suitable environment and cutting-edge technology.

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