Overview of the Outsourcing Market in Europe: Why Lithuania Is a Good Location
As businesses seek cost-effective, efficient ways to operate, outsourcing has become popular across Europe — from IT and software development to customer support and BPO. Within this competitive landscape, Lithuania has emerged as a prime location.
The European outsourcing market
Europe mixes nearshore and offshore destinations. Poland, Ukraine, Romania and the Baltic states are key players thanks to skilled workforces, competitive costs and favourable business environments. Demand for IT outsourcing has surged as companies pursue digital transformation. Key drivers: cost savings, access to talent, flexibility and scalability, and focus on core activities.
Why choose Lithuania?
- Skilled workforce — many STEM graduates in IT and engineering.
- Competitive costs — well below Western Europe and the US while keeping quality high.
- Favourable business environment — EU-aligned legal framework and supportive policies.
- Strategic location — excellent connectivity and time-zone alignment with Europe.
- Advanced infrastructure — among the fastest internet speeds in the world.
- Multilingual talent — English plus German, Russian and Polish.
- Innovation & tech ecosystem — a growing startup and tech-hub scene.
A European fintech chose Lithuania for a new platform, tapping local fintech expertise to cut development cost by 35% and accelerate the timeline — launching successfully thanks to close collaboration and cultural alignment.