Israel: Strong Technology Sector Creates Alternative IT Hub

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Israel remains one of the most attractive global contingent labor markets based on tax incentives for employers and less onerous labor laws.

While relatively small compared to many other industrialized nations, Israel’s contingent labor pool remains highly attractive as a source of educated, English-proficient employees with IT skills.

Israel’s desirable contingent labor force has helped create a strong technology sector that is beginning to see the buy-out of several local IT firms. These transactions have resulted in job cuts and the subsequent trend toward unionization in Israel’s technology industry. A growing number of Israeli technology workers have signed up with Histadrut, Israel’s organization of trade unions and organized workers’ committees that have been negotiating collective bargaining agreements with several Israeli technology employers.

This year the number of workers considering unionization is very small, and the impact is not significant enough to merit consideration in the CWI rankings; however, future activity will be monitored. While increased unionization could particularly impact technology industry employers, they can continue to leverage the Israeli contingent workforce moving forward. Future IT industry acquisitions that may result in job reductions will ultimately increase the number of skilled workers available to employers seeking contingent labor-pool talent. Many global employers have already begun to tap the technology workforce available to them in Israel as an alternative to some more established IT hubs.