Cut Costs, Boost Quality: 3 Reasons to Nearshore to Lithuania

As Artificial Intelligence is rewriting the rules of software development, tech companies have to rethink the structure of their tech teams. The rise of artificial intelligence is transforming the way we approach software development. From automated code generation to AI-assisted testing and deployment, development cycles are becoming faster, leaner and more efficient. But as technology accelerates, the need for agile, skilled, and cost-effective teams becomes even more critical—not less.

As AI continues to automate routine tasks, the role of the human developer is evolving. Developers are now expected to focus on system design, strategic integration and software architecture rather than just writing code. Businesses need access to top-tier talent that can work alongside AI tools, adapt quickly and deliver high-impact solutions.

At the same time, global competition, rising costs, and a shortage of tech talent in Western Europe have made it increasingly difficult and expensive to build local teams. We especially see this among our customer base in the Netherlands, Germany and Belgium. We see that our teams in Lithuania bridge the gap by providing:

-        Access to skilled professionals.

-        Operational flexibility.

-        Significant cost savings (avg. 30% - 40% on total employer costs).

-        Cultural and legal alignment with EU standards.

Why Lithuania Is the EU’s Best-Kept Nearshoring Secret?

Among nearshoring destinations in Europe, Lithuania offers a rare combination of advantages that make it ideal for companies looking to scale their development capabilities without compromising on quality or control.

1. Highly Skilled, AI-Savvy Talent Pool

Lithuania has a deep talent pool of software engineers and IT professionals with strong expertise in AI, data science, cloud computing and emerging technologies. The country invests heavily in STEM education and has a mature ecosystem with tech giants such as Microsoft, Google, IBM, Revolut and Cognizant.

2. Cultural Alignment and Proximity

Lithuania shares a strong business culture with Western Europe—collaborative, direct, and results-oriented. With only a 1-hour time difference, real-time communication is seamless. Regular visits and team integration are also easy, thanks to short flights of just over two hours and convenient daily travel connections.

3. EU Legal and Regulatory Compliance

As an EU member state, Lithuania complies fully with GDPR, IP protection laws and European data security standards. This provides peace of mind and removes many of the legal and operational headaches associated with offshoring to non-EU countries.

4. Cost-Effective Without Cutting Corners

Lithuania offers competitive pricing for high-quality development services. For European companies looking to maintain innovation while staying budget-conscious, this balance is key—especially as AI reshapes team sizes and structures.

Conclusion

AI is accelerating the pace of software development, but it also demands smarter ways of building teams. Nearshoring to Lithuania gives companies in Western Europe the flexibility, expertise, and cost-efficiency they need to compete—without compromising on quality, culture or compliance.