Business Process Outsourcing - Lithuania

Lithuania

Revenue in the Business Process Outsourcing market is projected to reach US$131.20m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.19%, resulting in a market volume of US$169.00m by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$85.22 in 2024.
In global comparison, most revenue will be generated in the United States (US$146.30bn in 2024).

Key regions: United Kingdom, United States, Brazil, Japan, Netherlands

Market

Region

Region comparison

Currency

Analyst Opinion

Lithuania has become a popular destination for Business Process Outsourcing (BPO) due to its highly skilled workforce, competitive labor costs, and favorable business environment.

Customer preferences: Companies prefer outsourcing their non-core business processes to Lithuania due to the country's highly skilled and multilingual workforce. The Lithuanian workforce is known for its proficiency in English, German, and Scandinavian languages, making it an ideal location for companies looking to provide customer support services to European customers. Additionally, Lithuanian BPO providers offer a range of services, including IT outsourcing, finance and accounting, HR services, and data entry.

Trends in the market: Lithuania's BPO market is growing rapidly, with a focus on providing high-quality services at competitive prices. The country's BPO providers are investing in new technologies such as artificial intelligence and machine learning to improve their service offerings and reduce costs. This has led to an increase in the number of companies outsourcing their business processes to Lithuania, particularly in the IT and finance sectors. Additionally, the COVID-19 pandemic has accelerated the trend towards remote work, making Lithuania an attractive location for companies looking to outsource their business processes to a remote location.

Local special circumstances: Lithuania's government has implemented several initiatives to attract foreign investment in the BPO sector. The country offers a favorable business environment with low taxes, streamlined regulations, and a highly skilled workforce. Additionally, the government has invested in developing the country's IT infrastructure, making it easier for BPO providers to operate in Lithuania. The country's strategic location in Europe also makes it an attractive location for companies looking to outsource their business processes to a location that is close to their target markets.

Underlying macroeconomic factors: Lithuania's economy has been growing steadily in recent years, with a focus on developing a knowledge-based economy. The country's education system is highly regarded, with a focus on STEM subjects, which has led to a highly skilled workforce. Additionally, Lithuania's labor costs are highly competitive compared to other European countries, making it an attractive location for companies looking to reduce their operational costs. The country's membership in the European Union also provides companies with access to a large market of over 500 million consumers.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.