The challenges of globalization are the reason why the EU countries are looking for the ways to make the provision of social services most effective and best fitted to the customer’s needs. In 1960s, deinstitutionalization processes started to take place in many developed countries with the aim to reduce the inpatient care and to develop the community-based services. Deinstitutionalization is replacement of inpatient care with the services that are more in line with the individual interests of each customer. Currently, it is essential in Lithuania, where institutional care is widespread, and the services, provided in the institutions, are ineffective due to their depersonalization, strict procedure, and work with a group of the customers. They are not adapted to individual needs of a person, however, the main services that have no alternatives and are required for long-term care of the persons with intellectual disabilities, mental disorders, and for children, left without parental care, remain. The following research methods were applied: analysis of scientific literature and documents, expert interview, analysis and interpretation of the research results. The review of literature and the research data, presented in the article, reveal the issues of deinstitutionalization process of the organizations, providing social services, as well as the challenges faced in reorganization of children’s care homes.