In the past 10 years, Lithuania has developed its IT industry and infrastructure. Projects like e-Lithuania, e-residency, and VR Lithuania, among others, transformed the country into a fully digitalized hub in the Baltic region. 

The IT Services sector itself plays an important role in the Lithuanian economy, registering a revenue of almost $500 million in 2025. Also, ~4.0% of the entire Lithuanian workforce is enrolled in the IT industry, for those 4200+ digital companies that export their services in 130 countries. 

Why Work With Lithuanian IT Companies

Essential e-solutions in Lithuania that enable the digital society to function smoothly were all built by local Lithuanian companies. This enhances the reliability of Lithuanian IT companies not only locally but also worldwide - about this, we will relate a bit later. 

The already built digital system in Lithuania already tells a lot about Lithuanian IT companies that perform excellently, and are becoming more and more attractive not only for companies but also for skilled professionals who are enjoying preferential conditions. 

So, after all, why should you work with Lithuanian IT companies?! 

• Skilled workers who provide high-level digital services
• Open market - that facilitates and eases access to IT resources and companies' services
• Low taxes - compared with other European countries, Lithuania helps local IT and tech companies generate sales by cutting taxes, which can reflect a lower price/project for the end customer.
• A healthy business environment and well-established communication between businesses are assured.

What You Should Pay Attention to When Working With Lithuanian IT Companies

However, working with Lithuanian IT companies can also be tricky. Even though the post soviet reminiscences are not visible, you still can hit Russian Lithuanians that are providing the same IT services, but of a relatively lower quality, and in a very specific manner. Roughly, some of the companies are only benefiting from the developed IT environment in Lithuania, but don’t follow the same guidelines as the vast majority of companies do. 

Another challenge is the limited human resources that Lithuanian companies have. The country’s population is just above 2.8 million people, and 6% of it is simply not enough to cover all market demands, so it would be difficult to find an available IT company based in Lithuania to take on a big project or so. 

How Developed is the Lithuanian IT Infrastructure

Lithuania ranks among the top European countries with the highest IT infrastructure. As mentioned previously, its digital transformation made the country one of the regional innovation leaders. But even so, the country is still not done yet with developing its IT capabilities. 

How Does the Lithuanian IT Industry Perform Compared to the Neighboring Countries?

In the Baltics, Lithuania is a detached leader in IT. Latvia and Estonia are behind simply because they focused on developing other sectors. But the Lithuanian performance is also motivated by people’s attachment to digital technologies.  The continuously growing number of digital agencies confirms once again that Lithuania ranks better than neighboring countries. 

But speaking about Lithuania as an extension to Europe’s northern region, the country is in tight competition with Latvia and Estonia, which also find themselves somewhere in the first half of the European IT community. 

Compared with those two countries, Lithuanian companies will rather provide lower prices for their IT and digital services and products, but at the same time, Lithuania has way more limited resources than Estonia or Finland. 

All in all, Lithuania is a great country to consider for digital projects, and local companies' rich experience with digital transformation can make a difference in their projects. 

Lithuania's Tech in 2025 - Update

Considering the progress Lithuania has made throughout the last 3 years, it is no wonder that 2022 will be another good period for the ICT and, especially, local IT companies. Lithuania is abundant with news and tech-related events meant to encourage startups and entrepreneurship. As a direct result of continuous efforts invested in ICT, Lithuania got the #10 global position in FinTech and has over 42K ICT specialists employed in the tech sector as of December 2021. 

In 2025, the tech sector in Lithuania is experiencing major growth with the help of startup funding, with 167.7 million euros raised. The ICT sector contributes 5.4% to GDP through exports, especially to the US and the UK.