Expectation of digital market transformation grow cross-country cooperation
Digitization is the driving force behind many industries. The digital economy offers many economic opportunities, and cross-border data flows remain an essential part of modern digital commerce, driven by cross-border cooperation.
International cooperation has become part of the search for solutions to the immediate challenges. A Lithuanian developer of customized information systems and IT solutions, “Novian Systems,” was noticed in Sweden when cross-country cooperation and solution co-creation was indispensable.
It was the case of the IVL Swedish Environmental Research Institute, which came up with a need for a common solution to manage waste cordially in 8 Baltic region countries. The Institute and Lithuanian IT professionals have developed the WAMPS information system to help plan, model, and implement various waste management scenarios. This tool allowed the eight Baltic Sea States organizations to compare different waste management scenarios and choose the most cost-effective one.
“The IT industry is also moving towards maximizing the efficiency of the systems themselves, thus contributing to sustainable development,” said Paulius Skamarakas, Director of Commerce at Novian Systems.
The salvation of the Nordic countries – IT talents from the Baltics
Global Forecast indicates that the Digital transformation market is expected to grow from USD 469.8 billion in 2020 to USD 1009.8 billion by 2025. While Nordic market, with over 40% of Sweden’s share alone, will increase to $29.5 billion in 2023. However, this kind of scale, topped with COVID-19 pandemic challenges, inevitably comes with a workforce shortage. Global as well.
The salvation Nordic countries have come up with to fill the pool of qualified IT specialists was nearshoring, mostly from Baltic Countries. The IT outsourcing services market revenue in Sweden alone is expected to amount to approximately 3,978.4 million US Dollars by the end of 2021, according to International Data Corporation report.
By now, nearshoring in some cases turned out to become rewarding acquisitions, primarily because of the cooperative and co-creative approach from both parties. An example of this kind of case is Boozt, a Nordic E-Commerce Company, which has acquired the Lithuanian IT company after 10 years of constant cooperation. “It turned out Scandinavians and Lithuanians share a similar mindset – we focus on achieving goals, having ownership and responsibility for what we do. Besides, Lithuanians are great professionals. We trusted them to be responsible for some of our main functions from the first day”, said Jesper Brøndum, Boozt Co-founder & CTO.
One of the fastest-growing economy
The Lithuanian Information Technology Sector takes an important place in the Lithuanian economy and is one of the fastest-growing. The sector’s strengths are the high qualification of Lithuanian IT specialists and extensive experience in providing outsourced programming services to foreign clients and public sector institutions.
Lithuania has become a regional center of excellence for global technology companies looking to harness the quality competencies the country has to offer – whether it’s in the fields of software engineering, AI-driven solutions, fintech product development, or compliance & AML. And the sector is not only rich in expertise but also a hub of innovation. Lithuania has one of the fastest-growing start-up ecosystems in the region. The number of start-ups has more than doubled over the last decade to 1000, and there are now over 200 Fintechs operating here, making it the 2nd largest Fintech hub in Europe by the number of licensed companies.
Sweden is one of the TOP IT export markets for Lithuania, along with Germany, USA, and UK UK.
Lithuania’s life sciences sector has been rising to prominence internationally for the past decade. Boosted by world-leading biotechnology research and strong educational institutions that supply businesses with top-notch talent, the sector is accelerating faster than almost anywhere else in Europe. Growing by a record 87% in 2020, Lithuania’s robust life sciences ecosystem, which includes both established players and up-and-coming startups, contributes an impressive 2.5% to Lithuania‘s GDP.