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LET’S TALK LITHUANIA.
Tomas VasilevskisLithuanian Business Representation
3 June | 2015
ICT AND BUSINESS SERVICES
2
31%
15%
13%
12%
9%
20%
Fdi projects by activity1 / 2010-2014
Manufacturing
Business Services
IT
Shared Services Centre
Sales, Marketing & Support
Other
FDI Projects overview
Source 1: The Financial Times FDI monitoring database and Invest Lithuania data
13%
10%
9%
9%
8%7%7%
37%
Top investing countries by number of projects1 / 2010-2014
United States
Sweden
Norway
UK
Finland
Denmark
Germany
Other
Let’s talk Lithuania
2SSC & Business Services
ICT
A
1
PRIORITY SECTORS FOR INVESTMENT
Let’s talk Lithuania#1 IT Talent Pool
Source 1: Ministry of Education and Science of the Republic of Lithuania, 2014Source 2: Information Technologies in Lithuania, 2014
Student pool1
7,150 IT students at 7 universities and 14 colleges
5,800 IT students in Vilnius and Kaunas cluster
~3,500 in software systems and programming
Experienced professionals
26,000 experienced IT professionals and 2,380 IT enterprises2
11,200 developers in total
~2,000 skilled in mobile application development2
Key competences:
Java , Oracle, Microsoft (C#, C/C++, Visual Basic, ASP), Web Based (HTML, PHP, JavaScript, CSS, XML).
30%
17%17%
16%
5%2%
14%
IT students in 2013-20141Informatics
Software system and programming
Information systems
Computer engineering
Computer network management
IT management
Other
58%24%
12%6%
Distribution of IT employees by enterprise, 20141
ICT Services
Telecommunications
ICT Wholesale
ICT Manufacturing
4
Functions: IT services centerHeadcount: 250Established in: 2005, Vilnius
Let’s talk Lithuania#1 IT case studies
SSC/BPO Center
Functions: IT development and supportHeadcount: 350Established in: 2007, Vilnius
Global Delivery Center
IT Services Center
Functions: IT development and servicesHeadcount: 340Established in: 2008, Vilnius
IT Development Center
IT Services Center
Functions: IT development and consulting Headcount: 140Established in: 1999, Vilnius
Functions: IT development and servicesHeadcount: 220Established in: 2004, Vilnius
5
Technology Center
Functions: IT infrastructure, developmentHeadcount: 1,330Established in: 2009, Vilnius
“In Vilnius I can breathe easier in every sense: it is a green, clean city with lots of happy and like-minded people. Here I even run into my colleagues accidentally – many of them work close by. All the stories that I heard about the IT hub in Vilnius are true!”
Alexey Davydov, Founder of Flazm
#1 Hotspot for GameDevLet’s talk Lithuania
#2 Global SSC & Business Service Overview
Source 1: Annual Shared Services and BPO Conference 2013, DeloitteSource 2: Offshore, Nearshore, Re-shore?, 2014, JLLSource 3: Invest Lithuania, 2015Source 3: The Financial Times FDI monitoring database, 2014 7
Let’s talk Lithuania
12,000+ professionals employed in 54 SSC/BPOs
82% growth of the SSC industry in the past 3 years1
Among Top 10 destinations globally for FDI in SSC2
TOP Countries Investing in SSC3
#1 DK 10 SSC/BPO’s
#2 US / UK 9 SSC/BPO’s
#3 NO 7 SSC/BPO’s
#4 SE 6 SSC/BPO’s
#5 FI 5 SSC/BPO’s
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
10
20
30
40
50
60Number of SSB/BPO in Lithuania
30%
28%
20%
13%
6%4%
SSC & BPO presence in Lithuania by function
F&AITMultifunctionCall CentreAnalyticsOther
8
Functions: 24/7 Global Processing Center: Accounting Accounts payable Settlement Credit & risk Anti-money laundering Compliance IT support
FTE: 1,300+
Languages: 26 languages
Est.: 2010, Vilnius
Lithuania:Western Union’s Global Operations Centre
9
#2 Global SSC & Business Service in Lithuania
Technology & HR Centre
Let’s talk Lithuania
Global Operations Centre
Shared Service Centre Shared Service Centre
BPO Centre
BPO Center
Functions: IT development and supportHeadcount: 1,300Established in: 2009, Vilnius
Functions: IT, Accounting, ComplianceHeadcount: 1,300+Established in: 2010, Vilnius
Functions: IT and support, F&A, HR operationsHeadcount: 520Established in: 2008, Vilnius
Functions: F&A services Headcount: 650Established in: 2012, Vilnius
Functions: Accounting and legal servicesHeadcount: 230+Established in: 2007, Vilnius
Functions: IT development and supportHeadcount: 350Established: 2007, Vilnius
Business friendly environment
4Cost & quality combined
32Fast to connect infrastructure
Young competence & talent
B
1Perfect living pace
5
LITHUANIA’S QUALITIES
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#1 Young competence & talent
Source 1: Eurostat, 2013Source 2: Eurostat, 2013 (age group 25-64)Source 3: Eurostat, 2012 (age group 20-29)Source 4: Eurostat, 2012 (age group 25-29) Source 5: Ministry of Education and Science, 2015
Lithuania’s qualities
Top 5 in the EU with the highest ratio of young people1
Ambitious young professionals
#1 in the EU or 93% of our population have higher or secondary education2
#1 in the EU for mathematics, science and technology graduates per capita3
16% of Lithuania’s young professionals specializes in engineering, manufacturing and construction (x2 EU average)4
50% of all student population study fields applicable for services industry5
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#1 Young competence & talent
Source 1: Population Census, 2011Source 2: Europeans and their languages, 2012 Source 3: Ministry of Education and Science
Lithuania’s qualities
Language
80% proficiency in English among young professionals1
50% speak at least 2 foreign languages2
Main languages: English, Russian, German, Polish, Scandinavian and Romanic languages
43%
18%
12%
9%
7%6%
6%
Structure of Students at higher education 2014-20153
Social sciences, business and law
Engineering, manufacturing and construction
Health and welfare
Humanities and Arts
Science
Education
Other
13
#2 Fast to connect infrastructure - communications
Source 1: Ookla Net Index, 2014Source 2: Rotten Wifi tests, 2014Source 3: Fibre to the Home Council, 2013Source 4: IMD World Competitiveness Yearbook, 2014
Leading broadband speed in the EU and globally1
Fastest public Wi-Fi in the world2
#1 in the EU for fibre-to-home penetration3
#4 globally in fulfilling business needs for ICT4
#3 most affordable internet in the EU1
Lithuania’s qualities
14
#3 Cost & quality combined
Source 1: National Statistics Departments, 2013Source 2: Alliance for Recruitment, 2014
Lithuania’s qualities
PositionAverage Monthly Gross
Salary2, EUR
Production Technologist
870
Technical Supervision Engineer
1,010
Project Manager 1,160
Technical Director 1,740
5,2
88
5,2
51
4,5
96
3,5
38
3,5
29
3,4
49
2,7
02
1,5
98
1,0
48
96
7
94
9
92
4
82
4
77
7
71
6
646
50
7
41
3
Average monthly gross wages (EUR), 20131
x8.2more than Lithuania
x5.3
x2.5
x1
15
#4 Business friendly environment
Source 1: Ministry of Finance of the Republic of LithuaniaSource 2: Sorainen Tax Card 2014
Lithuania’s qualities
LT LV PL DE SE
Corporate profit tax 0 - 15% 15% 19% < 33% 22%
VAT 21% 21% 23% 19% 25%
Dividends 0-15% 0% 0-19% 0-25% 0-30%
Personal income
tax15% 24% < 32% < 45% < 57%
Social security
tax
9% employee
30.98% employer
10.5% employee
23.59% employer
Total 35%
Total ~40%
7% employee
< 31.42% employer
16
Perfect living pace
Source 1: Mercer's 2014 Cost of Living Ranking, 2014Source 2: The New York Times, 2011
Easy access to Europe
Regular flights to all major European destinations, with flight-times of only 2-3 hours.
Cost of living:
According to the Mercer Cost of Living Index 2014, Vilnius is one of the five least expensive EU capitals to live in for expatriates.1
Lifestyle:
Vilnius is ranked by the New York Times alongside Copenhagen, Barcelona and Capetown as a hip and well managed place to live.2
Lithuania’s qualities
We are a government agency that provides free investment advice, contacts and data.
Let’s talk if you need someone to:
INFORM you on business costs, labour, tax & legal settings and other business areas.
CONNECT you to partners and organise your business meetings in Lithuania.
FACILITATE the set up and launch of your company, access the government financial support and a range of training schemes.
SUPPORT your investment by lobbying for more business friendly laws and assisting in one-off problems.
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