12 Reasons to Hire Dedicated Software Developers in Lithuania: the Best New Home for Your Project

Reason #1. Location and NATO/EU membership

Lithuania is located in the northeast of Europe and is one of the three Baltic States. This region is very close to many European countries, such as Finland, Sweden, Denmark, Poland, Hungary, Germany, Norway, etc.

Lithuania has a population of 2.7 million and is a member of the United Nations, the Organization for Security and Cooperation in Europe, NATO, the European Union, etc.

Membership of the state in EU and NATO means:

• following the same banking regulations, employee rights, tax, and other legislation aspects as other EU members;
• fewer regulatory and legal issues to address;
• easier and more seamless payment for the services of a dedicated development team due to the Euro as a unified currency;
• compliance with the GDPR, making other data security and intellectual property (IP) concerns less important.

Reason #2. No fuss with time zones in Lithuania

Coordinating time zones is another important aspect of working with dedicated development teams. Effective workflow might be at risk when the time difference is significant.

Eastern Europe is in a convenient time zone. For instance, European countries have almost no time difference (1 to 3 hours). The difference with the East Coast constitutes 6-7 hours.

Time and date service can help you learn more about the time difference between Lithuania and your country.

Reason #3. Stable economic and political situation

Lower costs are one of the main reasons to hire a dedicated development team. However, the political and general economic stability of the vendor’s country is something you should also consider. Threats of terrorism, political relations between the countries, international boycotts, sanctions, etc., can interrupt collaboration with development teams.

Economic situation in Lithuania

Stable economy—controlled growth of gross domestic product (GDP). Managed growth means that the economy has continuous growth without causing inflation, which leads to higher prices and negatively affects companies’ profits.

The country’s economic sustainability to hire a dedicated development team is vital for the success of your business. If the country is not economically stable, the economic benefit is rapidly reduced due to inflation and subsequent increases in developer salaries. In the case of Lithuania, there is nothing to worry about. Lithuania’s economic growth remains stable.

According to Country Economy, Lithuanian GDP fell -0.3% in 2023 compared to 2022. Lithuania ranks 77th in terms of GDP out of 196 countries and 43rd in terms of GDP per capita. Lithuania’s GDP per capita in 2023 was $27,266. This is $2,277 more than in 2022. This data indicates a stable and rapid recovery of the Lithuanian economy from negative impacts.

Lithuania’s robust standing as the 15th country with the highest index of economic freedom out of 161 nations underscores its attractiveness as a destination for hiring developers. This favorable economic environment fosters innovation and entrepreneurship, making Lithuania an ideal choice for businesses seeking reliable and skilled software developers.

Political situation in Lithuania

The state stability index is an indicator that characterizes the authorities’ ability to control the integrity of their territory and neutralize negative external impacts. Negative impacts might include international terrorism, sanctions, political pressure, misinformation, threat of force, etc. Such negative impacts can cause extreme instability in the political system and even destroy it.

Often, outstaffing countries are located in regions with low security. Therefore, a security assessment and political stability, in particular, are essential to avoid unforeseen circumstances. If the dedicated team provider is located in a country with significant instability and conflict, the progress of your project can move slowly or stop completely.

According to the World Bank, Lithuania is politically stable and improving its indices. Additionally, other interesting indicators speaking in favor of stability in Lithuania should be checked.

Reason #4. A high ease of doing business

Business success is determined by its leader and the team, as well as the context and environment of the country’s business and investment climate. To assess the ease of doing business and the overall level of the business climate, study the World Bank Ease of Doing Business Index.

The latest Ease of Doing Business in Lithuania report was published in 2020 and covered 190 countries. According to the World Bank, Lithuania ranks 11th in the world in terms of ease of doing business and is considered a developed country.

Business environment safety is confirmed by the success stories of companies having successfully relocated or expanded their business in Lithuania. There are more than 450 start-ups and offices of 13 of the 20 largest multinational companies in the country: Google, Western Union, IBM, Nasdaq, etc. Over 2,500 technical professionals are engaged in more than 2,500 technicians. Many IT companies in Lithuania develop software and provide services for large European countries.

The IT market is quite mature. Many successful startups entrust Lithuania to develop their own software and achieve the best long-term results.

Reason #5. High level of innovation

So many tech and IT startups are flocking to Lithuania partly due to its high-quality infrastructure and favorable business environment. Lithuania is a technology hub with access to the EU and neighboring countries. 

In terms of innovation, Lithuania is among the European leaders in information technology:

Therefore, outsourcing application development to Lithuania will ensure your project is handled in a highly developed environment with advanced IT infrastructure.

Reason #6. High level of English proficiency

Since English is the language of international communication, fluency is crucial. This is especially true in software development. Almost all the terminology for senior software developers is based on English syntax: libraries, repositories, tutorials, manuals, etc.

Insufficient English can cause communication issues between a client and a dedicated development team. Therefore, team leaders, project managers, and all developers should have advanced knowledge of English.

According to the EF English Proficiency Index, Lithuania ranks 21st with high English proficiency among 113 countries and regions. In addition, almost 50% of the population in Lithuania speaks at least two foreign languages.

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Reason #7. High-quality education

Lithuania is one of the most educated countries with the highest proportion of university graduates among people aged 25-34. 56% percent of the population has higher education. This percentage guarantees hiring not only highly qualified but also educated developers.

Reason #8. Strong technical education

Lithuanian developers possess core skills and expertise for leading projects in artificial intelligence, machine learning, augmented reality, virtual reality, websites, mobile applications, the Internet of Things, and more. Tech-savvy developers make Lithuania a new hub for software development solutions.

The Lithuanian government aims to develop STEM education. Lithuania is the leading country in Central and Eastern Europe in terms of research and development collaboration between universities and businesses.

The Ministry of Economy and Innovation of Lithuania is working hard to expand the pool of local IT professionals. The postgraduate retraining program aims to graduate 2,000 software developers and other IT professionals by the middle of 2023. As a result of this program, software developers who are highly proficient in cybersecurity, cloud computing, artificial intelligence, etc., will become available on the market.

Reason #9. Extensive talent pool

It is challenging to find highly skilled developers in the labor market since they rarely stay unemployed for a long time. Additionally, their rates are high, which doesn’t really align well with the objective to cut costs through IT outstaffing.

Evans Data Corporation report ascertains that there were 26.9 million software developers worldwide at the end of 2023. Experts predict growth in the number of developers, reaching 28,7 million in 2024. Lithuania has an expansive talent pool of IT specialists:

• 42K IT specialists in Lithuania (Source: Government Strategic Analysis Center, 2020)
• 10,100 IT students in the pipeline (Source: Ministry of Education, Science and Sport, 2021-2022)

Lithuanian programmers can develop web and mobile projects, support new and existing projects, test software, design, etc. Invest Lithuania presented the most popular categories of developers in Lithuania. They include:

Reason #10. Variety of expertise

Most applied programming languages in Lithuania demonstrate overall global trends and customer demand for development. The Top six most popular technologies in Lithuania are SQL, NET, JavaScript, Java, C#, and Python.

Reason #11. Cultural compatibility

Although cultural impact is not obvious, it has a lot to do with business in general and the employment of dedicated teams in particular. Cultural orientations are vital to understanding a country and its people. A country’s culture shapes beliefs, norms, and life perceptions in general.

People sharing the same cultural understanding find a common language much easier and faster. Unlike people having different mental archetypes.

Lithuania has roots in European culture and shares common traditions, behavior, and work ethic. This cultural similarity results in affection among European countries. Therefore, communication between Lithuanian developers and customers from other European countries is quite natural and smooth.

The diagram below illustrates Lithuanian culture. The data provided is based on analysis of major studies: ESS, Hof, SVS, WHR, and WVS.

Reason #12. Low rates – High skills

Of course, cutting costs is the core, but not the main advantage of hiring remote developers. Many clients think that all countries and software development outsourcing companies provide the same services at different rates. This is not true. Every country has a different education system, and companies differ in resources and expertise. This means the quality of dedicated development services in different countries varies. Your job is to find the best value-for-money ratio.

Compared to North America or Western and Northern Europe, the rates of developers from Lithuania are much lower, and the talent pool of specialists is large.

The average hourly rate for software development in Lithuania ranges from 45 to 65 euros, while the average software developer’s monthly income is around 5000 euros.

Surely, some countries have even lower rates (Vietnam, India, Africa). However, developers at coastal prices will not provide the same array of IT skills and expertise. The cost of living in Lithuania is considerably low, while the level of education is high. In addition, you get great access to the latest technology stack.

To recap

After examining the various factors to consider when selecting a country for hiring software developers, it’s clear that Lithuania emerges as a favorable choice for collaboration. The decision to engage talent from Lithuania extends beyond mere business strategy; it reflects a comprehensive understanding of cultural, social, economic, and political dynamics.

With our services, including the option to hire individual engineers or assemble customized teams, along with our meticulous screening process to source the best-fit talent, JayDevs stands ready to facilitate successful partnerships and deliver exceptional results for businesses seeking software developers.