IT Outsourcing Latvia: A Smart Choice for Tech Companies

Offshoring or nearshoring Latvia is a valid, often smart choice. Its stable economy, steadily growing digital space, and favorable business environment provides a flexible and cost-effective option for sourcing IT talent without compromising quality.

If you’re considering to hire developers in Eastern Europe, this article reviews this destination from different angles, offering a comprehensive country guide to support your decision-making process.

Why Choose Software Development in Latvia?

Here are some of the key reasons businesses may benefit from partnering with a Latvia offshore company.

EU Membership and Legal Transparency

Latvia is part of the European Union. It joined the EU on 1 May 2004 and is also part of the Schengen Area and the Eurozone and adopted the euro in 2014.

This means that Latvian companies operate under the same transparent regulatory frameworks as the rest of the member states. These include laws like the GDPR, strong intellectual property protection, and digital governance that creates a safe and trusted environment for long-term cooperation.

International businesses can expect that every contract and data-processing agreement will follow a reliable and stable standard.

Strategic Location Between Western Europe and CIS

One of Latvia’s strategic advantages is its position as a bridge between Western and Eastern Europe, and further to the Caucasus and Asia. Latvia is 41st on the Global Innovation Index 2025, surpassing most CIS countries. At the same time, it has a lower cost of living compared to many Western European states, yet choosing a software development company Latvia offers the same high-level business standards, legislation system, and technology support.

Competitive Costs With High Technical Quality

When you hire developers in Latvia, you’re not trading cost for quality. The lower workforce prices comes from differences in the cost of living, which is, for example, 21.5% lower than that in the United Kingdom, on average. The rent here is also 62.7% lower than in the UK. And even more so compared to US.

Political and Economic Stability

As a member of the European Union, NATO, and the Eurozone, Latvia offers a safe, predictable, and low-risk environment for long-term cooperation. Its democratic institutions are strong, its economy is diversified, and its digital infrastructure is among the most advanced in the region. For companies looking to build sustainable partnerships, Latvia provides a stable, secure base from which innovation can grow.

Overview of the IT Industry and Software Developers Latvia

Here we get into the specifics of Latvia’s tech industry and how the government supports its development.

Availability of Skilled Software Developers

Thanks to strong STEM education, the country’s engineering talent offers technical depth, discipline, and language proficiency. The country has over 35K tech professionals and about 2,300 IT companies offering a wide pool of experts and services to choose from.

Growth of the Tech Sector in Riga and Other Cities

Riga is the country’s key tech hub, home to some major software development Latvia agencies, fintech innovators, and global service centers. As well as Latvia’s leading STEM institutions, such as the Riga Technical University, University of Latvia, and Transport and Telecommunications Institute.

Cities like Liepāja, Ventspils, Daugavpils, and Valmiera are also emerging as technology parks. Together, they form an ecosystem where startups, outsourcing companies, and international R&D teams can thrive.

Government and EU Support for Innovation

Latvia has a solid plan for becoming a digital nation. The country’s StartUp Law, R&D tax incentives, innovation vouchers, and co-financing schemes all encourage high-tech development and make it easier for companies to launch and scale.

The EU Recovery and Resilience Facility along with its €4.2 million investment helps grow the ICT talent pool thanks to a self-directed and flexible learning approach.

On top of that, Latvia has access to EU incentives, such as Horizon Europe, Digital Europe, and the European Regional Development Fund, which fund digital infrastructure, university research, AI and cybersecurity initiatives, and the upskilling of the workforce.

IT Talent in Latvia: What You Can Expect

IT recruitment vendors and custom software development Latvia agencies have a steady flow of well-educated IT professionals that stay aligned with the European engineering standards. This is possible thanks to the country’s participation in EU-wide recognition of certifications and the Erasmus+ program and many other factors.

Education, Skills, and Language Proficiency

Latvia’s developers typically have solid foundations in algorithms, systems design, and applied mathematics. This is partly due to EU standards integrated in university programs, focused on practical skills. Latvia also ranks 16th globally on the EF English Proficiency Index, so you shouldn’t have communicating with specialists.

Popular Technologies and Frameworks Used

Latvia’s developers are fluent in modern technologies, keeping pace with global trends. Core proficiencies include:

• Java
• .NET
• Python
• PHP
• React
• Angular
• Vue

There’s also a growing adoption of Go, Rust, and TypeScript for high-performance or cloud-native solutions.

Cloud technologies are also widespread. AWS, Azure, and Google Cloud are used routinely, with many teams certified in DevOps and security practices.

Work Ethic and Cultural Compatibility

Latvians are typically reserved and straightforward, which is well aligned with many European cultures. The business communication style is clear, direct, and responsible. Teams take ownership of their work, follow deadlines reliably, and adopt Agile methodologies as a default practice.

Culturally, Latvia blends Northern European precision with Eastern European adaptability, producing a working style that is both structured and flexible, both quality-driven and pragmatic.

Beyond technical skill, Latvia stands out for its work ethic, professionalism, and cultural compatibility with Western clients. On the other hand, US entrepreneurs may find Latvians rather cold. But, this in no way describes their working style.

Popular IT Outsourcing Models in Latvia

Software development services Latvia offer typical cooperation models. These include:

Dedicated Development Team

This model provides a full, long-term engineering team working exclusively on your product or platform. You can hire developers, QA engineers, DevOps, and team leads who integrate into your workflows, follow your roadmap, and operate like an extension of your in-house organisation. It’s a good option for scaling capacity quickly while maintaining consistent team continuity and domain knowledge.

Staff Augmentation

Staff augmentation allows you to add individual specialists to strengthen your internal team. IT recruitment in Latvia is often used to fill skill gaps, accelerate delivery, or provide niche expertise without long hiring cycles. This model gives a great deal of flexibility and direct control over day-to-day management.

Project-Based Outsourcing

In this model, vendor delivers a complete solution: from planning and design to development, testing, and deployment. The vendor manages the process, the team, and the timeline, while you focus on requirements and business outcomes. This is best for well-scoped products, MVPs, system integrations, or fixed-budget initiatives.

Hybrid Models

Hybrid outsourcing combines multiple approaches. For example, a small dedicated team supplemented by augmented specialists, or an internal team supported by a Latvian vendor handling specific modules. This model works well for complex, evolving projects where you need stability in core areas and flexibility in others.

Average IT Developer Salaries in Latvia

Junior, Middle, and Senior Developer Rates

According to Mamble, the average hourly rates for software developers across the country range well under a hundred.

Comparison With Western Europe and the USA

If we compare figures for the same categories of developers, Latvia’s hourly rates are slightly lower than that of the Czech Republic and Hungry. But, they are similar to Bosnia and Herzogovina, Poland, and Croatia. As for the USA, its prices are almost double that.

Total Cost of Ownership (TCO) Considerations

Beyond hourly rates, you need to consider how much time and money it takes to find the right developers. If you want a lower hiring overhead, you need to look for tech partners with a bases of vetted professionals. TCO also includes:

• Retention and turnover
• Team management and collaboration tools
• Infrastructure and equipment
• HR support and taxes
• Code fixes and maintenance

How to Partner with an Outsourcing Software Development Company Latvia

Ready to get started and choose an IT vendor? Here are a few things to consider.

Choosing the Right Partner or Vendor

Evaluate vendors based on their technical expertise, client references, communication style, and ability to scale. It’s important to look for partners with experience in your industry and clear delivery processes. For example, if you’re developing a platform that manages the flow of goods or services, look for companies with experience in logistics software development Latvia.

Testimonials and company review on resources like Clutch, TrustPilot, and Goodfirms can help you validate quality, cultural fit, and responsiveness before committing to any engagements.

Legal and Operational Setup

Most Latvian vendors use familiar agreements such as NDAs, MSAs, and DPAs that comply with GDPR. It’s key that your contracts are aligned with EU standards.

Define ownership of intellectual property from day one and agree on communication channels, reporting structure, and development methodologies. Set up shared tools for project management, version control, and documentation to ensure seamless integration between your team and Latvian developers.

Challenges to Be Aware of and How to Overcome Them

Why Choose Mobilunity for IT Outsourcing in Latvia

Mobilunity has over 15 years of experience building dedicated teams and hiring top-quality developers. Our approach to delivering work is based on strong, empowering relationships, tried and tested recruiting workflow, and best practices in retaining talent.

Our Talent Sourcing Process

Mobilunity maintains a large pool of pre-vetted software developers which means we can quickly match your needs with qualified talent. With a streamlined sourcing process and clear multi-step hiring flow, we assemble a dedicated development team Latvia within 3–6 weeks.

Success Stories and Case Studies

We helped international businesses in different industries from fintech and e-commerce to logistics and enterprise-level software. We helped over 150 companies to build strong, relevant teams, including for a Swiss insurtech company and a Danish trading platform.

This success with diverse clients offers confidence that with can handle different hiring needs and scales. Whether you’re looking for a remote software development team Latvia or anywhere else.

End-to-End Support for Global Clients

We hire dedicated teams and part-time FLEX experts, as well as provide staff augmentation services and even CTO-as-a-Service. You get a full-service package:

• Sourcing
• Technical interviewing
• Onboarding
• Retention support

This reduces administrative burden and complexity, especially if you’re looking for nearshore or offshore developers.

Final Thoughts on Outsourcing IT to Latvia

Latvia offers a good mix of great technical talent and a safe, transparent business environment. As an EU country, it follows clear rules, strong data-protection standards, and stable governance. This means fewer surprises for you. And because costs are still very reasonable compared to the UK or Western Europe, you get high-quality work without overstretching your budget.

At the same time, Latvia’s tech scene is growing fast. Riga and other cities are full of skilled developers who work with modern technologies, speak excellent English, and understand how international teams operate.

Latvia is a great fit if you want reliable, long-term technology partners who are easy to communicate with and who can deliver strong results from day one. The country’s time zone, culture, and working style make collaboration feel natural, and travel is quick if you ever want to meet face to face.

Whether you’re a startup looking to grow or an established business needing steady engineering support, Latvia offers a smart and straightforward way to get things done.

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.