The economic and cultural aspects that make eastern Europe and the Baltic states favourable for handling outsourced jobs are discussed. The labor costs in many of the Baltic States are around one third of Western Europe and the US is a strong, which makes outsourcing economically viable. For northern european companies, there are significant benefits to be derived from the fact that the Baltic States are nearby in terms of both geography and time zones. Since English is the main language in the areas, the language barriers are also eliminated.