The delocalization of israeli IT companies, according to some of their leaders

The war in Israel has forced some local IT companies to move part of their operations abroad to ensure business continuity. Among the IT specialists targeted by Israeli firms are those from Romania. Below are the opinions of some representatives of Israeli companies, as reported in the Calcalist publication, regarding this phenomenon.

"Since the beginning of the war in Ukraine, the preferred destinations for foreign talent have been Romania, Bulgaria, and Poland (with Poland being relatively expensive). In Romania and Bulgaria, salaries are about 40% of those of Israeli IT workers," says Rami Nahum, co-founder of AppGreat.

(AppGreat is a company that provides outsourcing and IT development services for high-tech companies, especially in Eastern Europe. Through these services, companies benefit from teams of IT specialists who are recruited and managed outside Israel.)

Gal Ziton, Vice President of the Information Systems Department and co-founder of Octopai, mentions that requirements related to business continuity plans have become a crucial aspect of business discussions, as companies need to be prepared for crises, such as war, to maintain the trust of clients and investors: "In the past, we wouldn't have been asked for these things, but today they are an integral part of business discussions."

(Octopai is a company specializing in the automation and analysis of metadata for business intelligence solutions and data management.)

"Unfortunately, they've gotten used to this situation, they've seen that the costs are lower, so in my opinion, this will continue even after the war," says Ben Pasternak, CEO and owner of the Aman Group.

(The Aman Group provides IT outsourcing and technological solutions, including offshore services, for companies in various industries.)

"The transfer of start-up companies' activities abroad affects Israel's economy in two ways. First, it affects the state's tax revenues," says Erez Shahar, founding partner of Kumara Capital.

(Kumara Capital is an investment fund focused on supporting technological start-ups and innovative companies in various industries.)