Recent concerns have emerged in the information space suggesting that the offices of giants like EPAM and Wargaming in Lithuania are "melting," taking millions of euros in taxes with them. However, a deep dive into the data paints a completely different, far more optimistic picture. Lithuania's IT sector is not only not shrinking, but is demonstrating impressive growth, solidifying its position as one of the most dynamic and innovative in the region.
What's Really Happening with EPAM and Wargaming?
Let's break down each company individually.
Wargaming: Restructuring, Not Leaving Lithuania
Claims of Wargaming "melting" in Lithuania have proven to be largely inaccurate. The company's major structural changes occurred in 2022, when Wargaming made a strategic decision to fully exit Russia and Belarus due to geopolitical reasons. This was a significant move that resulted in substantial losses for the company, but it
did not involve Lithuania.
On the contrary, Wargaming maintains an active and competitive presence in Vilnius. This is evidenced by data on average salaries at "Wargaming Vilnius," which stood at €5,521 in December 2024 and €5,249 in December 2023. Globally, the company is showing employee growth (up 6% last year ) and is actively expanding its presence in the mobile gaming market, as well as engaging in strategic wargaming projects for defense analysis. This indicates that Wargaming is a healthy, evolving company, and any local adjustments are part of its global strategic adaptation.
EPAM: Global Optimization and AI Focus
As for EPAM, its global strategy for 2023-2024 is focused on significant cost optimization and a strategic pivot towards generative Artificial Intelligence (AI) solutions. The company has also benefited substantially from government research and development (R&D) incentives in Poland, which has influenced its operational footprint and profitability.
While specific data on EPAM's operations in Lithuania (employee numbers or financial performance) were not extensively available in the provided sources, there is no direct evidence to support the claim of a significant "melting" of its presence here. Rather, any changes are likely part of a broader global strategy of optimization and adaptation to evolving market demands, rather than a sign of local decline.
Lithuania's IT Sector: A Success Story
Most importantly, the overall picture of Lithuania's IT sector is not just stable, but impressively dynamic and growing.
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Tax Contributions Doubled: The direct tax contribution of the ICT sector to Lithuania's economy has doubled between 2020 and 2024, increasing from €428 million to €804 million. This directly refutes the notion of millions of euros in taxes "melting away."
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Rapid Startup Growth: Lithuania's startup ecosystem has become the fastest-growing in the Baltic region, demonstrating an impressive 7.1-fold increase in combined enterprise value between 2018 and 2023. In 2023, Lithuanian startups successfully raised €292 million in venture capital investments, ranking second among Central and Eastern European countries for venture capital investment per capita.
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Fintech Leadership: Lithuania is actively strengthening its position as a high value-added European fintech hub, enshrined in its 2023-2028 Fintech Strategy. Fintech funding significantly rebounded in 2024, reclaiming its leadership as the most funded startup sector.
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Export and Workforce Expansion: The ICT sector's export volume has grown nearly fivefold over the last six years, reaching €2.56 billion in 2024. The number of ICT professionals in Lithuania has increased by over 50%, and the number of foreign specialists has grown fivefold, surpassing 8,000 employees in 2024.
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Innovation Hub: Lithuania ranks 35th among 133 economies in the Global Innovation Index 2024 and demonstrates the highest innovation growth rate in the EU.
Challenges and Outlook
Of course, challenges exist. The global tech industry has experienced waves of layoffs , and Lithuania, like other countries, faces the impact of AI on the labor market and the need for reskilling. Geopolitical risks and cybersecurity threats also remain present.
However, Lithuania is actively responding to these challenges. The government is proactively investing in AI development, allocating €15 million to support AI startups and an additional €110 million for the digitalization of public services. The country demonstrates a firm commitment to cybersecurity, assuming the chairmanship of the EU Cyber Rapid Response Force Council in 2024.
Overall, Lithuania's IT sector demonstrates remarkable resilience and adaptability. The government is actively supporting its growth through strategic initiatives, investment attraction, and talent development.
Thus, instead of "melting," Lithuania's IT sector is thriving, making a significant contribution to the country's economy, and confidently looking towards the future despite global challenges. This is a success story built on innovation, strategic planning, and a growing pool of talent.
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