Let‘s talk Lithuania Information Technology · #1 Attraction of talent from non-EU countries 2 month-procedure to bring highly qualified specialists: − Pipeline of 200-300 IT

Let‘s talk LithuaniaInformation Technology

2018

2

Facts and figures

Source 1: Eurostat, 2016

Source 2: European Economic Forecast, Autumn 2016

Source 3: Statistics Lithuania, 2015

in EU for GDP growth since 20001

− in 2016f2: 2.0%

− in 2017f2: 2.7%1st

Population3 2.9 million

Labour Pool3 1.5 million

Unemployment3 9.1%

Languages Lithuanian, English,

Russian, German,

Polish

3

Lithuania – constantly improving and investor oriented

Track record in reinforcing Lithuania’s value proposition:

Blue Card Initiative

Challenge: procedure took 12 weeks

Solution: cut to 3 weeks

Stock Options for Employees

Challenge: 31.18% tax

Solution: decreased to 0%

Funding for IT studies

Challenge: high demand of IT specialists in the future

Solution: funding for IT studies increased by 50 %

Talent attraction

Tax

Education

2018 Doing

Business ranking

2017-2018 Global

Competitiveness

Report

2018 Economic

Freedom Index

2012 2017/2018

26

16

45

41

21

19

4

Success stories – Technology

Technical Office Development / R&D unit

Development Office Development Office

Development OfficeDevelopment / R&D unit

Functions: Adtech solution development, product management

Headcount: 500

Established: 2016, Kaunas

Functions: Product development for Wix.com free website builder

Headcount: 90

Established: 2013, Vilnius

Functions: Critical infrastructure support, DevOps, software

development

Headcount: 40


Functions: R&D and QA for Unity engine

Headcount: 80


Functions: Development of cloud solutions

Headcount: 50


Functions: Development of architecture and engineering software

Headcount: 240

Established: 2013 in Vilnius and Kaunas

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Boaz Inbal, Manager of External Dev. Centres at Wix.com

As advocates of the ‘can-do’ attitude, when we first visited Lithuania we were thoroughly impressed by the creativity, energy and entrepreneurial spirit of the people we met. That’s the Wix way, and so Lithuania seemed like a natural fit for our company.

Wix.com

FTE 90

Established 2013, Vilnius

Products Wix.com applications and strategic Wix projects, IT and

R&D projects

6

Vilnius – One of Eastern Europe’s most upwardly mobile hubs

CNN’s Smart Business has acknowledged Vilnius as one of the Smart Cities of the next generation along with cities in UAE, Malta, Qatar, Mexico and Colombia.

Read more

Lithuania is among Top 5 Entrepreneurial Hubs in Europe

From a major tech investor’s perspective, all eyes remain fixed on London and Berlin, but away from these high profile startup hubs, Europe is nurturing some less well known but fertile innovation hotspots for trailblazing entrepreneurs. Lithuania is among the Top 5.

Read more

Lithuania’s success covered in the global media

http://www.investlithuania.com/news/cnn-vilnius-one-of-eastern-europes-most-upwardly-mobile-hubs/?category=77

http://www.investlithuania.com/news/forbes-lithuania-is-among-top-5-entrepreneurial-hubs-in-europe/?category=77

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Local front-runners

High-profile startup offering a secondhand

marketplace. Secured $25 m from Accel

Partners and Insight Venture Partners.

Highest-valued startup in the Baltics.

Founded in 2015, Oberlo allows

entrepreneurs to search and find products

to sell online. Shopify has acquired Oberlo

in 2017.

Total transaction value is estimated to be

$15 million.

TrackDuck simplifies collaboration on web

development projects by enabling visual

feedback on live websites. Acquired by

Invision in 2017.

Total transaction value is undisclosed.

Public transport app designed to plan

journeys using real-time data. Uses

scientific algorithms and machine learning.

Official travel planning app for Rio Olympic

Games.

$6.5 funding led by Octopus Investments.

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Competence and talent1

Cost-effectiveness2

Infrastructure3

What gives Lithuania the edge?

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Competence and talent

10

#1 Highly skilled population

Source 1: Eurostat, 2015 (age group 25-34)

Source 2: Population Census, 2011

Source 3: Ministry of Education and Science, 2015-2016

53% of population with

higher education11st in EU

80% proficiency in English

among young professionals2

50% speak at least two

foreign languages2

41%

18%

13%

9%

7%

5%

7%

Social sciences, Business and Law

Engineering, Manufacturing andConstruction

Health and Welfare

Humanities and Arts

Science, Mathematics and Computing

Education

Other programmes

Students by study fields in higher education institutions | 2015-20163

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#1 IT talent pool

Source 1: Information Technologies in Lithuania 2016, Statistics Lithuania

Source 2: Ministry of Education and Science, 2016

31,500persons

employed in IT1 50% increase in IT study

funding in 20162

17%increase in IT student

pipeline over 2013-20152

~1,300 graduates in 2016 2

8,883number of students

2016-20172

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#1 Attraction of talent from non-EU countries

2 month-procedure to bring highly qualified specialists:

− Pipeline of 200-300 IT talent in current relocation to Vilnius projects

− 10+ game development and IT companies have already established in Lithuania

Vilnius is the perfect spot for the creative outfits like ours. Our team is a mix of talent from different countries, and Vilnius has the long-standing tradition of being the melting pot of east and west, north and south, tolerant of any and every faith, culture and language.

Sergei Klimov,Founder &Managing Director at Charlie Oscar

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AG Gangadhar

Senior Engineering Director at Uber

Before setting up our engineering hub in Lithuania, the only familiarity we’d had with Lithuania’s engineering talent was through a fellow software engineer based in our offices in San Francisco. This pool rapidly grew once we set up our engineering hub in Vilnius and now also encompasses talent from across the region helping us run our app on a global level. Lithuania houses some of the best global engineering talent and we look forward to further growing our team in Europe’s secret tech powerhouse.

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Cost - effectiveness

15

#2 Top quality to cost ratio

Source 1: Eurostat, World Bank Doing Business

Germany

Ireland

Finland

Belgium

United Kingdom

FranceSweden

NetherlandsAustria

Spain

Luxembourg

Cyprus

MaltaGreece

Estonia

Czech Republic

CroatiaSlovak Republic

Slovenia

PolandHungaryLatvia

Romania

Bulgaria

0

5

10

15

20

25

30

35

40

45

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90

Av

era

ge H

ou

rly W

ag

e (

Eu

r/H

r)

Ease of Doing Business Rank

HOURLY LABOUR COST VS EASE OF DOING BUSINESS

Best Worst

Leaders in quality

Leaders in costs

Lithuania

16

#2 Cost & quality combined

Source 1: National statistics departments, 2016

Gross salary(month in EUR)

Junior (~2 yrs)(not graduate)

Mid (2-5 yrs) Senior (5+ yrs)

From to From to From to

Frontend developer

1 579 € 2 105 € 2 105 € 2 632 € 2 632 € 3 421 €

Backend developer

1 340 € 1 842 € 1 842 € 2 368 € 2 368 € 3 289 €

Support/ Reporting/ Sales

789 € 1 053 € 1 053 € 1 579 € 1 579 € 2 500 €

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#2 Financial incentives

Source 1: Invest Lithuania

Source 2: Ministry of Economy of the Republic of Lithuania

HR Invest 2 +

Up to 50 percent.

Up to EUR 3,000 per employee or up to EUR

500,000 per project.

Eligible costs: trainers’ or trainees’ costs, short term assets, advisory services, travel expenses (excluding

accommodation costs).

Smart Invest2 +

R&D activities

Up to 50-65%.

Up to EUR 3M

Eligible costs: contractual research, material,

supplies, personnel costs, knowledge, patent

depreciation.

Smart Invest2 +

R&D infrastructure

Up to 25%.

Up to EUR 6,5M

Eligible costs: construction,

reconstruction, long-term assets.

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Infrastructure

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#3 Digital infrastructure: fast, reliable and affordable

Source 1: IMD World Competitiveness Yearbook, 2016

Source 2: OpenSignal, 2016

Source 3: European Commission Digital Agenda Scoreboard, 2015

EU and global leader in connectivity and communication technology

globally in fulfilling business

needs for ICT11st

1stin Europe for mobile

4G coverage2

for fixed

broadband price31st in EU2,73%

2,19%

1,85%1,57%

1,25%1,12% 1,06%

0,87%0,71%

% of disposable income | Advertised download speed above 12 and

up to 30 Mbps | 2015

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#3 Office space: modern and affordable

Source 1: Office Market 2015, BNP Paribas Real Estate

Source 2: a2sm architects

One of the lowest office rental prices in the region1

Adform2Barclays GOL2

Danske Group

IT Lithuania2

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#3 Inspiring working environment

The biggest ICT startup hub in the Baltics and Nordics, uniting startups, VCs, accelerators, incubators and ecosystem players under one roof.

Established in historical buildings surrounded by an actual park.

750+

63Innovative

companies

20%reserved for

international startups

working places

Vilnius Tech Park

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#3 Inspiring working environment

Photo source: Vilnius Rise Hub, powered by Barclays

Barclays open innovation programme

http://www.redherring.com/startups/fintech-king-lithuanias-tech-revolution/

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#3 Perfect living pace

Source 1: The New York Times, 2011

Source 2: European Commission, 2016

Source 3: Mercer's 2016 Cost of Living Ranking

Source 4: Rotten Wifi tests, 2016

− According to the Mercer Cost of Living Index 2016, Vilnius is one of the four least expensive EU capitals to live in for expatriates3

Cost of living

Lifestyle− Vilnius is ranked by the New York Times

alongside Copenhagen, Barcelona and Capetown as a hip and well managed place to live1

− 98% of Vilnius inhabitants are satisfied with living here (highest percentage among EU capitals)2

Keeping you

connected with

the fastest

public Wi-Fi

globally4

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Interested? Here’s how Invest Lithuania can help

Invest Lithuania is the official

agency for Foreign Direct

Investment and Business

Development.

We’ll partner with you to get your

business set up and off to the

best start possible.

Decision-making

We’ll help you make the most informed decisions for your new operations:

− Provide tailored in-depth market and industry insights,

− Advice on business costs,

− Give you information concerning the local labour and legal framework.

Business Establishment

We’ll connect you with everyone you need to know to guarantee a soft landing for

your set up:

− Arrange intros and meetings with key market players and relevant

governmental institutions,

− Sourcing of governmental financial support.

Business Development

Once you are up and running we’ll be there with aftercare and support:

− Assistance with one-off problems,

− Lobbying for greater governmental support.

All of our services are free of charge

Contact usInvest Lithuania

T. +370 5 262 7438

E. [email protected]

A. Upes St. 23 / LT-08128

www.investlithuania.com

26

Success stories – Cybersecurity

Development / R&D unit Operations and development office

Development / R&D unit Operations Center

Development OfficeDevelopment / R&D unit

Functions: AI driven Web Application Firewall and DDoS

cybersecurity solutions development, QA

Headcount: 27


Functions: Telemetry based infrastructure defense solution

development

Headcount: 12


Functions: IoT Security solutions, smart firewall development

Headcount: 33


Functions: Cyber security technology consulting, incident response

and applied research

Headcount: 68


Functions: Networking and security solutions, technical consulting

Headcount: 31


Functions: Security software development

Headcount: 36


27

Success stories – Fintech

HQ for Europe and Americas Development and Operations Office

European Office Development Office

Development and Support OfficeEuropean Office

Functions: Fraudless payment processing solution development

and support

Headcount*: 20


Functions: Multi-continental and cross-border lending services

product development

Headcount*: 30


Functions: Money remittance product development and support

Headcount*: 25


Functions: deVere Vault product development and support

Headcount*: 10


Functions: POS solution development

Headcount*: 90


Functions: POS solution development and support

Headcount: 120


* - Headcount planned

28

Success stories – Game Development

Development / R&D unit Game Development Studio

European HQ Game Development Studio

Game Development StudioGame Development Studio

Functions: R&D and QA for Unity engine

Headcount: 80


Functions: Sales, marketing

Headcount: 18


Functions: Game development

Headcount: 25


Functions: Game development, marketing and support

Headcount: 100


Functions: Game development and animation

Headcount: 10


Functions: Game development

Headcount: 15

Established: 2008, Klaipeda

29

Success stories – Custom Software

Development Center Development Center

IT Services Center IT Services Center

Development CentreDevelopment Centre

Functions: IT development and services

Headcount: 277



Headcount: 320


Functions: IT development, e-commerce solutions

Headcount: 220


Functions: IT development and consulting

Headcount: 100



Headcount: 200


Functions: Software development, mobile development

Headcount: 230


30

Success stories – SSC / BPO

Technology & HR Centre Global Operations Center

Shared Service Center Global Operations Center

Excellence CenterGlobal Delivery Center

Functions: IT services center

Languages: English

Headcount: 250 Established: 2005, Vilnius

Functions: F&A, HR, Customer operations, IT, Analytics

Languages: English, Swedish, Danish, Norwegian, German, French


Functions: F&A, HR, IT, Legal

Languages: English, Danish, Norwegian, Swedish, Finnish

Headcount: 2000, 560 IT Established: 2012, Vilnius

Functions: F&A, HR, IT, Customer operations, Procurement, other

Languages: 34 languages


Functions: IT, HR

Languages: English, French, German, Italian, Portuguese, Spanish


Functions: F&A, IT, Engineering, Customer Operations, HR

Languages: English, French, German

Headcount: 280 Established: 2005, Kaunas

Documents

Let‘s talk Lithuania Information Technology · #1 Attraction of talent from non-EU countries 2 month-procedure to bring highly qualified specialists: − Pipeline of 200-300 IT