and Project  Outsource2Lithuania” Baltics ICT:  Lithuania – Aiming the Europe

2 Agenda  General information about Lithuania  Lithuania government support  Lithuania ICT industry and infrastructure  Lithuania ICT industry export  Association Infobalt  Project “Outsource2Lithuania” outsource2Lithuania

3 GENERAL INFORMATION ABOUT LITHUANIA  Population: 3.5 mln.  Area: 65,300 sq. km  Language: Lithuanian  Neighbouring with:  Latvia  Poland  Belarus  Russia

4 LITHUANIA: KEY FACTS AND FIGURES  Lithuania – the largest economy in the Baltics:  Lithuania GDP increased by 8,9% in 2003  Deflation in 2003 was 1,3%  FDI inflow in Lithuania was 500 mill. US $ in 2003  Lithuania will join ES and NATO in 2004  European Commission declare Lithuania as market economy country outsource2Lithuania

5 Government support  National agreement: all political parties have reached consensus on knowledge economy as priority for country development  Long term strategy for economy development: knowledge economy priority(government declared knowledge economy as priority for country development)  Information society development committee under government of Lithuania  Lithuanian development agency outsource2Lithuania

6 Legal information  Law on electronic signatures  Law on Copyright and Related Rights  Law on Personal data protection  Law on electronic communications  Telecommunication market de-monopolized since 2003 outsource2Lithuania

7 Lithuanian ICT sector  In 2003, the sector of information and other new technologies compounded 7.5 percent of the Lithuanian GDP  About 500 of ICT and electronics companies  ITT wholesale market increased by 8%, to 153 million Eur  There are of high qualification specialists employed in the sphere of the information technologies alone. outsource2Lithuania

8 Lithuanian ICT sector  Their competence gained the international recognition as well – in 2003 more than 40 Lithuanian ICT companies exported their products and solutions to the EU, USA, Asian and CIS countries.  During 2002–2003, Lithuanian ICT market has not only been growing 27-30%, but also creating new quality and cheaper products for its users. outsource2Lithuania

9 Lithuania ICT Market Trends 2003 year Lithuanian ICT market size In total – appr million Eur. Note: Data on communication equipment and complex IT solutions market are tentative and approximate.

year Lithuanian ICT market size outsource2Lithuania In 2003, the sector of information and other new technologies compounded 7.5 percent of the Lithuanian GDP

11 Lithuania ICT industry export  General Lithuanian export in 2003 increased by 8.7 percent  Volume of Lithuanian ICT companies export is on the average 7 percent  Lithuanian TOP 10 IT companies exports increased from 40 to 80 percent in 2003  Export of IT services in 2003 – about 45 million Euros  The main Lithuanian ITT export markets: Germany, Russia, Belarus, Finland, Denmark, USA, and Latvia outsource2Lithuania

12 Lithuania R&D  In 2003, about 1950 ICT specialists studied in five Lithuanian Universities; 1000 Masters of Science  About 500 ICT specialists are employed in Lithuanian or foreign ICT companies every year  Lithuania’s ICT businesses and the Government have initiated a program of investment into R&D seeking to achieve that by 2008 up to percent of State budget funds is allocated for R&D projects and enlargement of the related scope of work outsource2Lithuania

13 Lithuania ICT industry strengths  The strongest ICT association Infobalt in the region Knowledge economy forum(cooperation between science and High - tech industry)  Private - public partnership (alliance “Window to the future”, clusters)  Copyright agencies to protect IPR outsource2Lithuania

14 Lithuania ICT infrastructure  Location between the EU, Nordics, Belarus & Russia  Modern telecom infrastructure with a digitalization ratio of 100% and mobile penetration of 60%  In 2003, the penetration of mobile telecommunications reached 62 percent of Lithuanian population  National broadband program 2004 – 2007  Internet penetration growth >100% in 2003  1000 public internet access points in rural areas outsource2Lithuania

15 Lithuania ICT infrastructure  89% of business have web pages  Government has an initiative to train 10% of total population to use internet  Government employees have a ECDL certificate  3 international airports, direct connection with major cities in Europe. The same or close time zone. Relatively short geographical distance outsource2Lithuania

16 Data and IP security in Lithuania  IPR law  Data protection law  Active copyright agencies to enforce IPR protection outsource2Lithuania

17  Most educated population in Europe (source  Well – developed ICT universities producing over 2000 specialist in ICT disciplines annually Education in Lithuania outsource2Lithuania

18  Northern Europe culture  European business ethics  Very quality conscious  Versatile in English, Russian, German and Polish  Good understanding of eastern neighbors culture mentality(Russia, Ukraine, Belarus) Cultural compatibility and languages outsource2Lithuania

19  Over employees in ICT software and services industry  Well-trained & low-cost human resources available  Annual average programmer salary – Eur. Labour cost outsource2Lithuania

20  Mission - enable the Lithuanian ICT sector to fulfill its potential on global markets Association INFOBALT outsource2Lithuania

21  Uniting Lithuania – based companies of ICT, office equipment and electronic industry for the common activity (nearly 200 members)  Member of major international ICT associations (EICTA, WITSA)  The Association Infobalt members employed around 15 thousand highly-qualified specialist About Association INFOBALT outsource2Lithuania

22  Mission – to become number one choice for near-shore outsourcing in Europe Project “Outsource2Lithuania” outsource2Lithuania

23  “Bentley System Inc.”  “Deutsche Bank”  LHS (Former SchlumbergerSema) Lithuanian IT companies have experience with: outsource2Lithuania

24  Stable economy  Strong government support for knowledge economy and developing the domestic ICT industry  Solid infrastructure  Strong ICT association  Extremely well educated and cost competitive labour  Fast growing economy and favorable legal environment Why outsource2Lithuania? outsource2Lithuania

25  Enterprice applications  Development services  IT infrastructure and solution  ICT enabled services Areas of outsourcing outsource2Lithuania

26  Web site  Association Infobalt office: Vokiecių g. 28/17-16 LT Vilnius, Lithuania More information and contacts