Modern businesses have a difficult balancing act to perfect – optimizing their business development processes while still keeping their costs in check. For many organizations, it can be difficult to manage this process while staying within their own local markets, let alone expanding their operations overseas.
However, there are more cost-effective development opportunities overseas that many US business owners may realize. Lithuania, for example, has gained recognition over the years for being a highly attractive option for businesses looking to expand their capabilities – especially in tech-related fields – while still positioning themselves for long-term profitability and sustainable growth.
The Rising Cost of US-Based Development
The United States has been a global leader in the development of newer technologies. However, in order for US-based businesses to continue this trend, it can come with a steep price point.
Below are several factors that contribute to the escalating cost of development in the US:
- High Developer Salaries – The demand for skilled developers in the US continues to be a challenge as the demand for new technologies across various industry sectors continues to grow. This high level of demand often creates a bidding war between organizations in the same sector that use the same talent pools to source their staff members. When this happens, it creates much higher salary expectations, with even junior-level professionals being able to command six-figure salaries.
- Increased Demand for Tech Talent – It’s not just tech companies that need developers anymore. All businesses are now becoming increasingly reliant on new technologies to streamline operations, improve their customer experiences, and gain new marketing advantages. This ongoing need has left a mark on the budgets of many businesses while they try to source IT professionals, software development teams, engineers, and other tech professionals.
- Cost of Living in Major Tech Hubs – Many of the major tech hubs in the US, such as Silicon Valley, New York, and Seattle, are known for their extremely high costs of living. This not only impacts salaries but also increases overhead costs for businesses. Rent for office space, utilities, and other operational expenses are significantly higher in these locations than in other areas in or even outside the US.
- Competitive Market – Technology markets are fast-moving and fiercely competitive, with well-established giants and innovative startups regularly pushing their timelines to deliver new solutions. This pressure can result in additional internal pressure, which often leads to overtime work or increased staffing needs.
Why Lithuania Offers Significant Value to US Businesses
US businesses have a number of opportunities when leveraging Lithuania’s fast-growing economy and talent availability.
Below are some of the reasons why expanding tech partnerships overseas is a great idea:
Cost-Effectiveness
One of the primary cost benefits of creating a Lithuania partnership is that the country hosts an extensive, highly skilled workforce capable of working at a fraction of the cost typically seen in Western European tech hubs. This allows companies to maximize their budgets while still achieving superior quality results from their staff.
Lithuania also offers a very business-friendly tax system, securing its position and ranking fifth overall on the 2024 International Tax Competitiveness Index. The country also ranks as one of the freest economies in Europe, making Lithuania a highly sustainable location for creating new startups or expanding marketing opportunities.
Skilled Workforces and Governmental Support
Lithuania has the highest proportion of young ICT specialists in the EU aged between 15 and 34, giving its economy a significant advantage in digital skills availability. Lithuania’s pool of IT talent is also steadily growing at an average annual rate of 13%.
The increased availability of specialized professionals in the country is partly due to strong support from local governments and an extensive network of over 500 universities and research institutions. A recent example of Lithuania’s governmental support was in the June 2024 launch of the National Reskilling/Upskilling Programme by the Lithuanian Public Employment Service. This initiative’s goal is to reskill/upskill 20,000 new specialists in ICT, engineering, and life sciences by 2026.
This ongoing support of developing and training available workforces can add significant value to businesses looking to establish overseas operations in areas well-structured to support their growth initiatives.
How Innovation Hub Creates More Seamless Transatlantic Partnerships
While there are many reasons why exploring transatlantic partnerships can be beneficial to US-based organizations, knowing where to start the process can be challenging.
InnoHub Lithuania helps to bridge this experience gap by facilitating more seamless connections between US and Lithuania-based businesses and investors. By offering essential resources, expert industry guidance, and access to extensive professional networks, InnoHub makes international expansion efforts much more approachable.
InnoHub Lithuania provides programs designed to help Lithuanian businesses connect with US industry leaders and top academics. Through knowledge-sharing, mentorship, and consultations InnoHub can help Lithuanian businesses understand and navigate any complexities associated with establishing operations overseas.
InnoHub Lithuania also maintains an active calendar of networking events and workshops, bringing together local Lithuanian businesses and international leaders.
Creating Long-Term, Cost-Effective Partnerships
Lithuania offers a variety of benefits for US-based organizations looking to maximize their growth potential while controlling their costs. By leveraging a highly capable workforce and making use of InnoHub Lithuania to help expedite strategic partnership development, US companies can significantly improve their development processes.
Author Information
Author Name:
Diana Placiakiene
Author Bio:
Diana, the Business Community Manager at InnoHub Lithuania, brings over a decade of experience in marketing, sales, events, and community building. Her career spans work with early-stage startups, government initiatives, and small businesses.
From 2013 to 2015, Diana represented Innovation Agency Lithuania in Silicon Valley, acting as a bridge between Lithuanian tech companies and the dynamic Silicon Valley ecosystem. She also led the San Francisco American Lithuanian community for over three years, launching innovative programs and initiatives to connect and empower professionals.
Diana holds an MBA from Mills College in Oakland, California.
LinkedIn: https://www.linkedin.com/in/dianaplaciakiene/
