Information Technology and Global Business Services (including SSC, BPO and data centres)

Latvia’s IT sector provides substantial competitive advantages to investors, mainly through the highly skilled IT professionals, language skills and a combination of western-style working culture with proximity to and knowledge of the Russian market. A highly developed communications and logistics infrastructure and government support further contribute to the sector’s appeal.

Key Advantages

  • Well-developed export market
  • Knowledge of foreign languages among IT professionals
  • Western-style working culture
  • Highly developed logistics and telecommunications infrastructure
  • Very cost-competitive world class fiber optic network performance
  • Supportive government policies
  • Skilled labour force and high investment in tangible assets contribute to productivity

The Latvian IT sector began to evolve back in late 1950s with important institutes being established, including the Institute of Mathematics and Computer Science in 1959 and the Institute of Electronics and Computer Science in 1960. Today, the sector accounts for around 4.8% of GDP. Many new businesses have been created in the IT sector, mainly micro enterprises employing staff of less than ten.

Proximity to Russia and knowledge of foreign languages among Latvian IT professionals, combined with a Western work ethic adds to the sector’s appeal.

A highly developed logistics and communications infrastructure supports the development of Latvia’s IT sector. Today, Latvia ranks among the top ten countries globally by average measured internet connection speed. High investment in tangible assets contribute further to the competitiveness of the IT sector in Latvia.

In 2012, the so called Baltic Highway was launched. It is a superior fiber-optic infrastructure that allows transmission of data from Russia and Asia via the Baltic States, Poland, and Germany at n*10 Gbps data rates and can be increased further. This high capacity infrastructure offers investment opportunities for data-intensive companies in Latvia.

Currently all (100%) businesses must have access to computers as exchange of information with State Revenue Service (submission of annual reports) must be done electronically.

Government policies promote the use of IT solutions by businesses and the general public and are aimed at utilizing IT solutions to improve efficiency, be it by implementing e-government solutions in the public sector or by employing e-health solutions to reduce rising costs and improve service quality in the health care sector.

Business process support functions are a rapidly growing niche industry. Key functional coverage includes fields of finance & control, IT and customer service / help-desk, secondary functions include procurement, HR, CRM and market research services.

There are 13 SSCs and approximately 26 BPOs operate in Latvia, mostly in Riga, employing about 7 600 employees, which translates to 0.8% of the active workforce, so new entrants are welcomed without significant impact to existing players.

You may also want to see:

Exim catalogue/search: information and communication
Business incentives
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Additional information at:

Latvian Information and Communications Technology Association: www.likta.lv
Latvian Computer Technology Association: www.itnet.lv
Latvian Telecommunications Association: www.telecom.lv
Latvian Internet Association: www.lia.lv
Institute of Mathematics and Computer Science: www.lumii.lv
Institute of Electronics and Computer Science: www.edi.lv