Overview
The IT labor market in Latvia is in its infancy. Both the Latvian and Estonian people are extremely literate and trainable in new technologies. In Estonia, the traditional rural identity of its people has been replaced by the identities of success and professionalism. These new found identities have the power of uniting the rich and poor of the country as well as Estonians and non-Estonians for which often times there is a real level of conflict. For those citizens with lower skill levels, unemployment is a problem. Therefore, differences will emerge between those in high-level jobs and low-level jobs (labor conditions, pay, and prestige) as the information technology sector develops. However, as the technology sector develops, so will the employment opportunities of those lower skilled individuals for the traditional industries will be reorganized and will create new and improved jobs bringing along those workers. Estonia's educational system has been reorganized and has been a key component to the success of the country technologically. Education is very much valued in the country as it is in Latvia and IT services professionals are further along than those in Latvia. Computerization of schools has been in effect since 1992 and the government, through the Ministry of Education, launched a country-wide program called Tiger Leap National Program in 1996 committed to the modernization of the Estonian Education System. Visit Tiger Leap National Program for more information.
The following briefing outlines information on the developing IT professional population, language, literacy, and education of Latvians all having an impact on the IT services sector and progress of this sector nationally as well as globally.
Literacy
In 1993, the adult literacy rate in Latvia was 99%. This statistic certainly indicates that IT development is a sure bet for those willing to invest in this unripe region.
Language
Seventy to seventy five percent of the Latvian population speaks Latvian. The second dominant language is Russian and is understood by most of the Latvian population. Business language is English and interest in the language across the population as well as other languages is growing. The younger population is especially interested in speaking multiple languages including the Nordic languages. The elderly speak German for the most part.
Education at the University is primarily taught in Latvian, however there are 3 famous schools that teach in English: Stockholm School of Economics, Riga Business Institute, and Riga Law School. At the primary school level, language is taught primarily in Latvian. There are some schools that pay special attention to the study of foreign languages. The renewal of the minority cultural infrastructure became a priority after the restoration of independence. Latvians can acquire an education in eight different minority languages in Latvia.
Computer Literacy
The Latvian Education Informatization System (LEIS) project, spearheaded by the Ministry of Education and Science and the University of Latvia, manage computer training programs and computer literacy standards. Computer literacy courses are mandatory in Latvian schools today. From an introduction to PCs to the study of operating systems to the use of CD-ROMS and networking with an emphasis on the Internet, Latvians are taking computer literacy very seriously. Due to lack of adequate funding for hardware and software, computer centers have been created to service regions of the country with education spread over a number of years (17).
Latvia has one of the most advanced IT infrastructures in the former Soviet Union which means the labor market is qualified to in computing. There are over 3,000 workers in the IT services sector employed by approximately 500 companies. A new generation of computer science graduates is joining the Latvian IT workforce (18).
Education
Outside of the state provided educational institutions, there are other private schools and higher education universities (42 private comprehensive schools and 15 private universities). Riga Technical University is the oldest and largest educational institution in Latvia. The university delivers computer science and engineering programs and technology and architecture (19).
Technology faculty come from the following concentration areas:
Computer Engineering
Information Technology
Applied Computer Systems
Engineering Mathematics
Environment Modeling Center
Technology studies include:
Bachelor
Engineering
Masters
Doctors
2-year collge studies
Technology education is primarily supported by the state-owned institutions. Over 1,200 IT and engineering science students graduated in 1998. IT enrollees on the other hand was 1,900. Due to the need to work and finance studies, less than 50% of students graduate on time. Interest in IT is high and approximately only 70% of the students interested in IT can be admitted to programs (18).
Number of Applicants and Enrollees in Computer Sciences in Latvian
Universities (18)
| Number of applicants | New enrollees | |
| University of Latvia | 402 | 191 |
| Riga Technical University | 758 | 617 |
| Liepaja Pedagogical Higher School | 34 | 28 |
| Rezekne Higher School | 35 | 25 |
| Riga Aviation University | 100 | 78 |
| Total | 1329 | 939 |
| Source: Investment Opportunities in IT Services Sector in Latvia 1999 |
Software professionals per 1,000 were not found in our research. The major costs in software development are obviously human resource costs. However, the cost is low compared to other countries in the World. Software development has become a core competence of several Latvian companies with Western clients enjoying high quality and cost efficient development (18).
Latvia experienced a sharp increase in enrollees from 1996 through 1998 with over 77,000 students attending universities in 27,000 new enrollees and 9,400 graduates all in 1998.
“Latvia has very cost-effective people capable of high-level project design and management as well as programming,” said John Freivalds in March 1999 Software Developer & Publisher. “A company needs to be proactive, use industry colleagues, use the Internet, read articles in a company magazine and keep a file of literature.”(20)
There are a number of professional and industry associations/organizations designed to support the development and progress of IT professionals and IT infrastructure in Latvia. They include:
The Latvian IT&T Association – This association coordinates the cooperation of IT companies engaged in the design and maintenance of information technology systems including training programs and other infrastructure issues.
The Latvian Association of Hardware Producers – Hardware producers.
The Baltic IT&T Conference – A yearly show with over 3,000 exhibitors and 30,000 visitors
Latvian Technology Park - Created in an effort to promote commercialization of science through technology. However, to date this program has not facilitated growth in IT services companies.
Latvian Computer Manufacturers Association - The association is a manufacturer's union, which is independent, voluntary, non-governmental and non-political. The purpose is to stabilize and organize the manufacturing and informative technologies market.
Source: Investment Opportunities in IT Services Sector in Latvia 1999
This site was created by MBA students at the American University in
Washington, DC.
Fall 1999
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