[slc]

There are already local "franchises" of the large companies like Tietonator and Accenture. The computer science department of the Latvian University, which provides free government funded education in computer science is basically controlled by stock holders of such large offshoring companies. The problem is - the country is very small. About 2 million people. So even taking into account the free education, the absolute number of competent programmers will be quite small. It is already a challenge to find employees for basic web development positions.