Latvia is one of the most developed countries in the region when it is about information technologies. The main reason for the situation mentioned here is the presence of highly qualified IT experts who have high language skills and adequate level of informatics infrastructure. In addition, factors such as dominant Western-style working culture in Latvia and being close to the Russian and European markets provide high competitiveness to the investors here. The aforementioned situations provided strong communication and logistics infrastructure and high labor productivity for Latvia.
Advanced information technology has made Latvia popular in global business services. Especially companies that are operating in Scandinavian countries show intense interest in Latvia. Cultural compatibility, language skills, cost-effectiveness and accessibility are among the main reasons for this situation. One of the most concrete examples of this situation is that some chemical producers with serious international recognition prefer capital Riga.
Advantages Provided by Latvia in Information Technologies
The fact that Latvia is developed in information technologies provides important advantages for investors here. These mentioned advantages enable companies to achieve their goals more effectively and increase their productivity. The main advantages can be listed as follows:
- >>> An advanced export network
- >>> Highly skilled labor force who can speak more than one foreign language
- >>> Advanced IT infrastructure
- >>> Providing easy access to European countries
- >>> Sufficiency of labor costs
- >>> High performance compared to low cost
- >>> Western-style working system
The basis of Latvia’s development in this area goes back to the 1950s. The Institute of Mathematics and Information Sciences was established in 1959 and right after this, the Institute of Electronics and Information Sciences was established in 1960.
Under favor of these and likes, foundation of information technologies were laid many years ago. In fact, considering the data shared for 2018, this sector constituted approximately 4.5% of the GDP in Latvia.[*] When we look at the IT sector in Latvia, it is seen that micro-enterprises with less than 10 personnel generally operate.
Advantages of Advanced Information Technologies
Developments in information technologies positively affect different fields as well. As a result of this, foreign investors, who come to Latvia, are provided to have great convenience in many areas. For example, internet infrastructure here is extremely advanced. When a worldwide comparison is made, it is understood that Latvia is above the category of countries with the highest internet speed. This situation means high competitive power for investors.
Although internet infrastructure in Latvia is advanced, developments in this area are still going on. An infrastructure that allows high data transfer between countries in the region was created with a study carried out in 2012. Fiber optic infrastructure has completely eliminated the problems in the data field and created great opportunities for companies.
Usage of electronic media, which has now become a state policy in Latvia, has allowed costs to be reduced and time to be saved. The aforementioned policies are not only for companies operating here but also for the public. IT solutions are used in many areas from healthcare to service sector. Thus, efficiency reaches the highest levels.
The mentioned advantages and facilities here, in general, have made many companies prefer Latvia nowadays. Every day, businesses and companies established by new investors in information technology sector start their activities here. These mentioned companies, which start a few steps ahead of their competitors in other countries, have high competitive power.