bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Saturday 25.03.2017 | Name days: Māra, Marita, Mārīte
LatviaLatvia

TestDevLab: Baltics States are no longer a place to search for cheap IT workers

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Globally speaking, the Baltic States can no longer be considered a place where it is possible to find cheap IT workers. It has become a place where professional IT specialists can be found. It’s an important factor that helps service and product companies on the global market, said TestDevLab board member Ervins Grinfelds in his interview to BNN.

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe main service provided by TestDevLab is professional software testing. Among the company’s clients are Microsoft, Skype, Orange Group and other large enterprises from USA, Western Europe and Scandinavian countries. TestDevLab offers software testing services, IT technologies development services and its own unique products. One example is NotifyUs smartphone app developed for Latvia’s market free of charge. The point of this app is making the search for real estate properties or car purchase deals easier with a special search engine filter and notification system.

What are some of the most notable recent events in your sector?

First of all, demand for quality IT specialists is on a rise. It is worth mentioning that Latvia and the Baltic region as a whole are no longer considered a region where it is possible to find cheap IT workers. It is now considered a place where it is possible to find skilled professionals. Change of attitude is one of the main benefits of our industry.

In addition, I would like to mention that software testing is TestDevLab’s speciality. More and more companies around the world are taking notice that it is far more effective and cheaper to invest in quality and professional software testing than it is to combat consequences that may surface as a result of a product rushed out of development.

Can you say economic conditions are improving and there is a lot of potential for economic growth in the market?

Yes, the IT industry is developing globally at the moment. It affects Latvia’s market and us. The industry continues to develop and we see clear signs of improvements and market growth.

How would you describe the government’s economy policy aimed at improving the economic situation in the country?

We welcome the government’s support programmes for emerging companies, including the Business Incubator and Latvian Development and Investments Agency’s programmes for export and brand recognition development. We have used some of those support programmes as well. They have helped us develop, especially in the first years of starting business.

I would also like to mention that companies are not always open to using such support initiatives. One major counter-argument to that is the bureaucratic burden. Sometimes services of the Business Incubator and LIAA are too complicated to understand or the bureaucratic burden is too hard and time-consuming for companies to see any economic benefits in using it.

How is the industry affected by Latvia’s policy? What changes to legislation would you like to see? What helps? What makes things more complicated?

I would definitely like to see Latvia follow Estonia’s example – when the state applies 0% on a company’s re-invested revenue. Feedback from companies in Estonia is 100% positive about this system. This tax model helps companies develop and invest revenue in development of products and services. In a long-term perspective, this model secures a larger volume of employment, which means larger revenue for the state budget. It would be logical for Latvia to adopt this system as well.

I would also like to mention that constant change of the tax policy makes Latvia’s business environment very unstable. It makes it difficult for companies to plan their business because it is impossible to plan for any unexpected tax policy changes.

How would you describe the industry’s position in the Baltics? What about competition with Estonia and Lithuania?

I would like to say once again that the Baltic region is no longer seen globally as a place where it is possible to find cheap IT workers – it is a place where professional IT specialists can be found. This factor helps the IT industry, service and product companies on the global market.

From the perspective of TestDevLab, we don’t see any competition when it comes to clients, because we provide a very specific service. The main competition is seen in terms of searching for qualified workers, but this mostly applies to Latvian companies’ internal competition.

What can you can your ‘trump card’? What is your ‘Achilles’ heel’?

Our trump card is our strong team. Qualified and motivated workers whose work helps increase the number of clients, service quality and general company development.

Our Achilles’ heel is linked to our biggest trump. We feel the lack of professionals in IT sales. It is very hard for a company to develop without skilled workers in this field.

Can you say there is a lack of skilled workers in Latvia?

Yes, unfortunately. We feel the lack of professionals very well. Even though there are many universities that train IT specialists, there is a very small percentage of graduates that are actually prepared to work in companies and with real projects.

What do you predict for the next five years? Will the situation in the industry improve, worsen or remain the same?

Looking back at the trends of the past twenty years, the IT industry has definitely come a long way. It has also influenced the development of this industry in Latvia. We don’t see any indications that this situation may change drastically in the near future. With that, we hope the industry will continue developing in the next five years.

Ref: 102.109.109.0927


Leave a reply

BNN summary of the week: 5G in Latvia, fight against Lembergs, foreign trade balance deficit

BNN offers a summary of this week’s topical news in a variety of categories: Change; Business; Fight; Decline and Growth.

CC: restoration of trust – way out for cartel participants

This year, Competition Council provided positive conclusion in regards to recovery of trust to two companies previously punished for cartel agreement.

Kristovskis: coalition with Lembergs in Ventspils City Council is not possible

«If the party’s list enters the city council, our candidates will definitely not work with Lembergs,» said Girts Valdis Kristovskis in an interview to Latvijas Radio.

Sadales tīkls: energy industry enjoys stable growth in Baltics

Although the company does not experience the lack of quality labour force, when announcing vacancies it becomes clear that population density in regions continues to decline, and this makes it harder to find young specialists for work in regions, said Andis Pinkulis, CEO of Sadales tīkls, in an interview to BNN.

Airline Nordica not to ban tablets and lap-tops from being brought on passenger cabin

Estonia’s national airline Nordica has stated it would not follow the recent U.S. and British ban on such computer devices as tablets and lap-tops from being brought onto passenger cabin on flights.

Rinkevics invites Canadian companies to use Latvia’s transit and logistics infrastructure

«We’re hoping for more intensive economic cooperation and diversification of exports of Latvian goods, as well as attraction of investments from Canada. Canadian investors are awaited in Latvia,» says Latvian Foreign Affairs Minister Edgars Rinkevics.

Rimsevics: tax changes may increase lending volumes in Latvia

Lending volumes in Latvia may increase because of changes to the country’s tax system, says governor of the Bank of Latvia Ilmars Rimsevics.

Latvian authorities deport 19 Vietnamese citizens

19 Vietnamese citizens caught trying to cross the border of the Republic of Latvia last year have been deported from the country.

Latvia’s export and import volume was the lowest in January

Latvia’s export and import volume this January was below what was noted in Lithuania and Estonia. The largest foreign trade balance deficit among Baltic States was noted in Estonia.

Lithuanian population continues to shrink, some glint may be ahead

The shrinkage of Lithuanian population is nowhere close to a halt. In fact, the recent numbers by the Lithuanian Statistics and Eurostat, the European Union‘s statistics agency, purport the opposite: exodus has picked up last year - 50,000 Lithuanian citizens left the country for a better life abroad, up from 44,500 in the previous year.

Over 200 people could have died in Mediterranean

It is assumed that over 200 migrants might have drowned this week in the Mediterranean, off the coast of Libya, a Spanish humanitarian aid organisation feared.

Proportion of HIV-infected tuberculosis patients in Latvia is 17.4% - the highest in EU

The proportion of HIV-infected tuberculosis patients in Latvia is 17.4%, which is the highest not only among Baltic States, but also Europe, as mentioned by Jurijs Perescikovs, director of Disease Prevention and Control Centre’s Infection Risk Analysis Department in a discussion dedicated to the World Tuberculosis Day.

British police names London terrorist

British police has stated that the March 22 terror attack in London was committed by British-born Khalid Masood. Another of his victims has died.

Air temperature in Latvia to remain largely unchanged in coming days

On Friday, 24 March, high atmospheric pressure will remain in the country. Because of that, some clouds will be seen in the sky, wind speed will stay moderate, and air temperature will rise to +3° C…+8° C, as reported by the State Environmental, Geology and Meteorology Centre.

Kucinskis hopes to find a new director for State Chancellery within two weeks

Latvian Prime Minister Maris Kucinskis hopes to find a new manager for the State Chancellery within the next two weeks.

InnoEnergy business opens an office in Latvia

International business accelerator company InnoEnergy has opened an office in Latvia. This objective of this company is preparing new and innovative technologies developers for attraction of investments as part of InnoEnergy accelerator.

Bank of Latvia increases inflation outlook for 2017 to 2.7%

The Bank of Latvia has increased its inflation outlook for 2017 from 1.6% to 2.7%, as reported by the bank’s press-service.

CC permits Lithuanian company to acquire decisive influence over Latvian businesses

Latvia’s Competition Council has permitted two mutually associated deals to be performed by W.P.Carey and Kesko, allowing the two concerns to acquire decisive influence over Lithuanian Baltic Retail Properties and three companies registered in Latvia – K Prof, Polo LS and Daugavkrasts M.

Estonian military transport firm co-operates with leading Norwegian and British companies

Estonian military transport manufacturer Milrem has made a joint product with Norwegian weapon-maker Kongsberg and British remote system producer Qinetiq North America.

Welfare Ministry opposes diverting part of social budget to healthcare

Experts view Finance Ministry’s proposal to divert certain parts of the social budget to pay for certain healthcare services. Welfare Ministry is especially cautious about this proposal.

Saeima agrees to publish names of disciplinary punished judges

Publication of information about disciplinary penalties applied to judges, their names and surnames will no longer be prohibited, as stated by amendments to the Judicial Disciplinary Liability Law supported by the Saeima in the first reading on Thursday, 23 March.

Experts: internet users open up 30% of fraudulent e-mail letters

Cyber criminals are becoming more and more cunning and their fraudulent e-mails – harder and harder to differentiate from real ones. Internet users open up to 30% of fraudulent e-mail letters, explains eScan antivirus developers.

Minister: Latvia supports International Coalition’s fight against Daesh

«The fight of the International Coalition against Daesh has become a very effective instrument to help reduce Daesh military, financial and recruitment capabilities,» said Latvian Foreign Affairs Minister Edgars Rinkevics.

New pulp factory planned in Estonia

Estonian entrepreneurs have envisaged building a high-tech pulp-making plant near the city of Tartu and have submitted the plan for confirmation from Estonian national special planning authorities.

Ventspils Freeport Authority announces procurement

Procurement has been announced for the construction of an access road in Ventspils, Talsu Street 200 and landscaping of nearby territories so that one of the land tenants can commence construction of their building there, as reported by Ventspils Freeport.