Searching for Available, Affordable Talent, Israeli Tech Companies Look to Ukraine

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 daily updates, subscribe to our newsletter by clicking here.

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.

The report, based on a survey of 362 local and multinational tech companies, details a growing shortage in the talent necessary to keep Israel’s tech industry moving forward. The surveyed companies, which together employ over 82,000 people, report some 15,000 currently unfilled tech positions in the country.

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.