Offshore Development or How to Hire Developers in Latvia

Latvia and Its Current Economy

Latvia is a member of the European Union and possesses an open economy in the northern part of Europe. The current economy of Latvia is pretty stable and after the event of Brexit, it did not sustain any major threat. Though several scientists predict that in the long run Brexit may cast an impact upon Latvia’s economy, as there is a good chance that it may decrease the overall economic growth of the entire EU. The current IT industry of Latvia is pretty vibrant even after Brexit. But there is a good chance that it might be sustaining a few damages eventually. Here we are discussing the reasons to hire dedicated developers in Latvia.

Outsourcing Is Hot – Latvia Developers for Hire

Over the past few years, different individuals, as well as companies, have been outsourcing different kinds of IT related projects to people residing in other countries. Baltic countries became a popular destination for software development outsourcing. Many European countries consider as a good idea to hire developers in Lithuania, Estonia and Latvia. Just like the rest of the world, Latvia has also been outsourcing its IT projects to offshore companies for the past few years, but the trends for this country are changing now. Being one of the Soviet countries, Latvia remains quite competitive in terms of offering quality development services to other countries of the European Union at a very affordable rate. Since Latvia joined EU only in 2014, demands from Latvian developers here are not so high. Average salary within the country remains quite low comparing to other European countries, Latvia is currently ranked as #24 (out of 28) in the List of European countries by average wage. At the same time, the average salary grew by 20.77% within last 3 years, which points at steady economics growth.

Latvia’s English Proficiency Index score of 571, signifying “High Proficiency,” underscores the nation’s commendable command of the English language, bolstering its global communication and economic competitiveness.

An Overview of the IT Industry in Latvia

Latvia has a vibrant IT industry that is expanding at a rapid pace. The sector of software development in Latvia is vital to the country’s overall economic development, with an exceptional growth rate of 8.72%. Latvia has roughly 2,200 IT companies, showing an active and competitive business environment. These organizations employ over 39,000 IT experts, demonstrating the sector’s importance in creating job opportunities and the ongoing need to hire backend engineers. Latvia’s technology industry export value is an outstanding $1.94 billion, demonstrating the sector’s significant global presence. 

According to the Latvian programming language market share as of July 2023, PHP has the highest share with 49.59% of clients, making it the most popular language in the country. Microsoft ASP.NET has a 1.52% market share, following PHP, while Python and Perl have 1.15% and 0.21%, respectively. Ruby and Java finish the list with 0.18% and 0.17% of the market share, indicating their growing but still fairly minor presence in Latvian IT companies.

A Look at The Employment Conditions in Latvia

Latvia’s employment conditions reflect a diverse economy. Key sectors are manufacturing, IT and agriculture. The country has fostered a significant focus on international trade. This has contributed to the growth of many different industries and enhanced job prospects. The labor market is characterized by quite a skilled workforce and a growing emphasis on innovation and technology, driving the country’s economic development.

Payroll cycles in Latvia adhere to a monthly payment schedule, with salaries commonly disbursed at the end of each month. Employers must, of course, follow with specific payroll taxes! For example, contributions towards social security, healthcare and other statutory benefits. 

The minimum wage in Latvia’s seen gradual increases in recent years. And, currently, it stands at approximately $660 per month. Overtime pay is overseen by labor laws, ensuring that employees receive additional money for any extra hours worked.

Employee benefits are an essential aspect of the employment framework in Latvia. Many companies offer comprehensive health insurance, paid leave and retirement plans to their workforce.

IT Hubs in Latvia

The salary of software developers in Latvia can vary widely depending on factors such as the developer’s level of expertise, the difficulty of their work, the size of their employer, and the location of Latvia IT companies office.

• Riga: The largest capital city of Latvia, is where software engineers may expect to get the best pay. Average monthly gross salaries are about €2,421 for middle software developers.
• Daugavpils: The country’s second-largest city is home to a thriving IT sector. Software engineers may expect to make between €1,500 and €4,000 per month, on average, in gross pay.
• Liepāja: Acity noted for its cultural and sporting activities. As for the IT sector, for example, web development company Latvia can offer a gross monthly pay of around €2,350 for middle-level specialists.
• Jelgava: Jelgava, located in central Latvia, is home to a great tech-specialized Latvia University of Life Sciences and Technologies, which may impact the local IT job market. Salary ranges for software developers typically range from €981 to €1,431 per month.
• Jūrmala:  Being mostly a vacation destination, Jūrmala may not have as many IT career prospects as the other cities. The salary for software developers in this city is typically €1,519, but the number of vacancies is quite low.

Why Should Companies Choose Latvia Software Development Services?

There are numerous great reasons for companies across the globe to choose nearshoring Latvia software development services. A few very important reasons are listed below:

#1 Highly Qualified Software Developer Pool

Latvia has a highly qualified and skilled pool of thousands of IT professionals and software developers. Top technical institutes are producing over 1300 graduates annually in different disciplines including software developers. Hiring a .Net software development team in Latvia is in high demand nowadays.

#2 Best IT Ecosystem

Latvia is one of the top 10 countries where the internet speed is the best in the world. The country has multi-Gigabit fiber connectivity known as the Baltic electronic highway. Latvia encourages e-government in all domains of government.

#3 Competitive Cost & Quality

The average software developer salary Riga is about €1,840 per month. There are many new kinds of legislation and human resource recruiting laws, which offer financial benefits for the companies to offer reduced prices to global clients. The quality of software development in Latvia is very high.

Major Benefits of Using Latvia Software Development Services

Using Latvia software development services offer many benefits to the clients from major regions like Europe, North America, Asia Pacific, and others as listed below:

• Highly dynamic software teams expert at multi-discipline software development
• Western-style work culture powered by multi-lingual expertise
• Proficient level of English language communication skills
• State of the art IT infrastructure
• A highly skilled and qualified pool of software professionals
• Low-cost internet and telecom services
• Latvia offshore company can always offer high-quality software development
• Competitive development prices
• Easy to travel location from any part of Europe

What Software Projects to Outsource to Latvia?

The software development industry of Latvia is highly diverse in providing multi-discipline software development services powered by expert Riga software developers. But, the major types of project that the Latvian developers can handle include:

• Mobile application development
• Website development
• Database development
• eCommerce websites
• Web-based applications
• Gaming and entertainment applications

Trending Technological Spheres

Building a Dedicated Development Team in Latvia

Numerous Latvia dedicated development teams may easily be found to help you out on a variety of different popular technologies that are trending in the global IT world out there. The most common technologies in this regard include PHP, AJAX, JAVA and ASP.NET. These technologies are considered to be the primary requirements behind setting up any kind of IT infrastructure like a website or any other online system.

In What Industries to Hire Developers in Riga

Several firms have been looking to hire developers in Riga or to create Riga dedicated team to work on a number of different spheres of information technology. These include ecommerce, healthcare facilities, universities and the rest of the education sector, business industry, banking sector, governmental and non-governmental bodies, etc.

Legal and Regulatory Aspects of Hiring and Employment in Latvia

While Latvia and Ukraine have legislative frameworks in place for recruiting processes and intellectual property protection, understanding the particular complexities of these regulations is critical when you want to hire dedicated developers Latvia or Ukraine. 

Hiring Process: Legal Implications in Latvia and Ukraine

Both Latvia and Ukraine have laws in place to guarantee an inclusive and nondiscriminatory hiring environment. While Ukraine is not a member of the European Union, its labor rules generally align with the EU’s.

The Labor Law and the Law on the Prevention of Discrimination govern the hiring process in Latvia. All applicants should be evaluated fairly regarding their experience, education, and other relevant factors. Those not citizens of the European Union need first get a work visa or a residency permit that grants them the ability to work. EU residents often do not need a work permit to work in Latvia. Still, they might have to register their address and follow other laws. Within the first month of employment, the employer must provide the employee with a written employment contract.

The legal framework for the selection process in Ukraine is laid forth in the Constitution and the Labor Code. Like Latvia, Ukraine forbids discrimination based on a person’s race, color, religion, political affiliation, national or ethnic origin, etc. The employment agreement needs to be presented on the first day of work. Foreign nationals may need special authorization to work in Ukraine legally.

Hire developers in other Countries

Expand your team’s capabilities by accessing a vast international pool of skilled developers. Harness the varied perspectives and specialized knowledge they offer to fuel innovation and propel your technology projects forward.

Lithuania

Australia

Ireland

Pakistan

Thailand

IP Protection: Understanding the Legal Framework in Both Countries

Intellectual Property is protected by law in both Latvia and Ukraine.

As a member of the European Union, Latvia has strict regulations to protect the developer’s rights to their work. The Latvian Patent Office ensures these rules are followed so inventors can fully own their works.

Ukraine has its own unique set of rules and regulations. Despite the standards’ existence and the influence of different international organizations, enforcing them can be difficult. However, Ukraine has taken steps to protect intellectual property better, making the country an increasingly secure environment for IT professionals.

How Much Does a Developer Make in Riga, Latvia and Kyiv, Ukraine?

* Ukrainian salaries are provided based on Mobilunity’s Recruitment Team research on the local job markets. All salaries are net and do not include the service fee (in case of hiring on a dedicated team model). The salaries are provided for comparison purposes and could be not entirely accurate. Contact us to know the exact cost of hiring a developer corresponding to the required parameters.

Average Monthly Salaries of Software Engineers in Latvia

There are numerous cities in Latvia where a good deal of work is being carried out in the field of IT. Riga developers are highly known in the entire country as Riga is the biggest Latvian city on account of the IT industry. The salaries offered to these developers are much higher in comparison to those residing in other cities like Jurmala, Jelgava, Daugavpils, etc. Individual software engineers have teamed up to work collectively in order to ensure the mutual benefits of each other. The average salary of Riga developer is equal to  $55,000 per year. Front-end developers in Riga can earn $3,000 monthly while their colleagues in Kyiv have $2,500 for the same skills. Back-end developers in Riga and Kyiv have $7,000 and $2700 accordingly. Middle-level full-stack programmers from Riga have $7,500 in a month. It is still less than developers’ salaries in the USA but Kyiv, Ukraine seems to be the more advantageous city in the terms of costs, which makes hiring SW development engineer in Ukraine advantageous.

Mobilunity as a Reliable Vendor in Ukraine for Outsourcing

Mobilunity.com has established itself as a top authority among IT recruitment agencies offshore Latvia, demonstrating its considerable industry experience. With over ten years in the market, Mobilunity has established itself as a trustworthy and dependable outsourcing partner. Our competence in recruiting and delivering highly skilled developers distinguishes us in the outsourcing market, allowing us to constantly meet their clients’ demands, whether finding a top-notch .net software development team in Latvia or hiring a part-time IOS developer Riga.

Our dedication to quality and deep understanding of the Latvian IT talent pool enable us to handpick the top developers with sufficient knowledge and competency. Mobilunity remains a top choice for companies looking for trustworthy and skilled developers in Latvia because of our tailored solutions and great customer support.

We had the pleasure to cooperate with dozens of companies, including a Swiss InsurTech company esurance, and a Danish trading platform Byg-E, among others. 

Whether you need a Senior software development or hire dotnet developer to enhance your in-house team or are interested in building a dedicated dream team for your project, we at Mobilunity can help you find and hire the experts needed. Get in touch with Mobilunity representatives and let us know your project needs and requirements to get the best team to start working on it shortly.

Our Main Service Models

• Dedicated development team Latvia

Under this model, clients have direct control over a dedicated team of developers working on their projects around the clock. Our clients are fully in charge, but we handle all the paperwork quickly and professionally: from HR processes and accounting to assisting with helpdesk questions. With this framework, our customers can worry less about managing a software development staff and more about their main business.

• Part-time developers – Mobilunity FLEX

Our on demand software experts work with your team part-time. They provide technical insights, guidance, and unique solutions to your business problems. We continue to manage all HR, accounting, and helpdesk inquiries, allowing clients to benefit from our expertise without worrying about administrative details.

• Recruiting services

We also provide Recruiting-as-a-Service, demonstrating our dedication to finding the best personnel for our clients. We have an excellent track record of local hiring in Latvia and finding the top professionals from Eastern Europe. Our recruitment tactics are adaptive to different countries, as proven by our success in difficult markets like Japan. This methodology ensures that we give you the proper personnel, whether locally or globally, whether hiring .net development team Latvia or individual Java developer Riga. Mobilunity is a reliable partner that can assist you in meeting your specific needs and business objectives.

FAQs

• Why is Latvia considered a favorable location for tech investments and hiring developers?

Latvia is a member of the EU and a country with a stable economy and growing IT industry. Additionally, Latvia’s English Proficiency Index score indicates a high proficiency level, enhancing its global communication and economic competitiveness.

• How has the trend of outsourcing evolved in Latvia over the years?

Latvia, being one of the Baltic countries, has become a popular destination for software development outsourcing. The country offers quality development services to other European Union nations at competitive rates.

• Which cities in Latvia are recognized as significant IT centers?

Riga is the capital city and the main IT hub with the most competitive salaries. Other cities like Daugavpils, Liepāja, Jelgava, and Jūrmala also have a growing IT sector, with varying salary scales based on expertise and location.

• What are the primary technological strengths of Latvian developers?

According to the Latvian programming language market share, PHP dominates with a significant share, followed by Microsoft ASP.NET, Python, Perl, Ruby, and Java. These languages reflect the diverse expertise of Latvian IT companies.

• What are the compelling reasons for global companies to opt for software development services in Latvia?

Latvia offers a dynamic pool of IT professionals, a top-tier IT ecosystem with one of the world’s best internet speeds, and competitive cost-quality dynamics. Its IT infrastructure, English proficiency, and skilled professionals at competitive rates make Latvia an attractive outsourcing hub.

Need a dedicated development team in Latvia? Contact us today and we will source you with the top programmers!

Written by:

Anastasia Stefanuk

Market Researcher

Disclaimer: All salaries and prices mentioned within the article are approximate numbers based on the research done by our in-house Marketing Research Team. Please use these numbers as a reference for comparison only. Feel free to use the contact form to inquire on the specific cost of the talent according to your vacancy requirements and chosen model of engagement.