Searching for Available, Affordable Talent, Israeli Tech Companies Look to Ukraine
A new report on the Israeli tech industry shows that talent shortage is increasingly pushing local tech companies to establish research and development operations offshore
More and more Israeli tech companies are establishing research and development centers outside Israel, according to a new report published Sunday by Tel Aviv-based non-profit organization Start-Up Nation Central (SNC) in collaboration with Israel’s government innovation investment arm, the Israel Innovation Authority (IIA).
For Israeli companies looking for available and affordable tech talent, Ukraine is becoming a major draw, with 45% of the surveyed companies having a presence there. Other popular destinations are the U.S., with 16%, Russia and India, both with 10% of Israeli offshore activity.
Out of 274 local tech companies asked about their offshoring strategies, 60, or 22%, reported operating a “significant” presence abroad. 50% of these companies established their offshore presence in the past two years. Companies with an offshore presence on average have 25% of their employees work abroad.