Hire Developers in Israel Effortlessly with Qubit Labs

Israel is known for its advanced tech ecosystem and hubs, which encourage innovation and advanced development. Besides, Israel has the greatest rate of startups per population worldwide. Thus, this country is often dubbed the “Startup Nation.”

Many startups and established organizations choose Israel as their outsourcing destination for its skilled workforce, government incentives, and perfect cultural affinity with Western clients. Besides, Israel can boast a thriving JavaScript community and many Python developers that more than 60% of Israeli tech companies want to get their hands on.

So, the Israeli tech scene is booming, and many businesses, especially startups, are hunting for Israel developers for hire. As an experienced outstaffing company, Qubit Labs knows all the ins and outs of outsourcing to Israel and hiring local tech professionals. This article will outline the main trends in the Israeli IT market and explain what you should watch for when outsourcing software development and landing a tech team. Besides, we will comprehensively analyze Israel and its sought-after competitor — Eastern Europe.

Overview of the IT Market in Israel

IT outsourcing is the dominating market segment in the IT landscape. The local market in Israel is known for the following characteristics.

• The country has become a global leader in raising tech capital, ranking as the world’s sixth-largest hub.
• Israel’s tech sector contributes 18% of the GDP and employs around 12% of the labor force.
• Regarding R&D investment as a proportion of GDP, Israel is the global leader.
• Israel boasts one of the most outstanding per-capita rates of university degrees.
• Israeli government offers various R&D grants, bi-national funds, and investment support. This investment program provides a four-year grant scheme that covers, on average, 25% of the salary costs incurred by the firm for each new hire.
• Artificial intelligence (AI), machine learning (ML), cloud technologies, IoT, and big data are the main trends in the Israeli IT sector.
• In 2023, Israel exported high-tech industry services worth around $48.6 billion.

A Detailed Look at Israel’s Employment Conditions

Israel is a flourishing business destination with economic potential due to its talented local workforce in various industries, including cybersecurity, financial technology, automotive, aerospace, and food technology. Under Israeli labor law, employers can establish fixed working hours, overtime compensation rules, and specific benefits. Non-Israeli citizens can be hired without restriction and should have a B-1 visa.

Here are the primary labor rights:

• Working hours are 42 hours per five-day working week.
• There are nine paid public holidays in Israel. Furthermore, employees of other religions may choose alternate holidays.
• The maternity leave is 15-26 weeks.
• New workers can expect a paid vacation of 10 days. The annual paid leave for long-serving employees is 24 paid days.
• In Israel, one and a half days are accrued for every month of employment toward paid sick leave.
• Israel supports inclusivity and diversity in tech companies. So, women receive equal compensation for their work.
• The minimum wage in Israel is ₪5,880.02 or $1,552 per month.
• The income tax is progressive, ranging from 10 to 50%.
• The Social Security tax rate ranges from 3.55% to 7.60% for employers and from 0.4% to 7.00% for employees.

IT Hubs in Israel: Salaries and Developer Landscape

Israel has its own Silicon Valley, also known as Silicon Wadi, a sophisticated technology center. The leading tech hubs are the following:

Tel Aviv

Tel Aviv is a powerhouse of innovation and ambitious startups. Tel Aviv ranks fifth in the rating of the world’s most attractive ecosystems for innovation and startups. It features 43% of investment entities, R&D centers (38%), and 11% of accelerators or incubators. The average salary in Tel Aviv is $7,896.

Jerusalem

The Holy City is one of the best 30 tech cities in the world. It is home to prominent companies, including Mobileye, which creates sophisticated driver-assistance technologies and autonomous vehicles. The average software developer’s salary is $6,259.

Petah Tikva

This city is ranked eighth in Israel for launching a business or startup. It is home to various companies operating in multiple sectors, including biotechnology, cybersecurity, and software development. The average salary of a software engineer in Petah Tikva is $7,108.

Haifa

Haifa is a complete package for any startup. It boasts Technion, Israel Institute of Technology, Matam, the most prominent and oldest business park with advanced technology, and offices of Google and Microsoft. Usually, an Israeli developer can make $7,371 per month in Haifa.

Factors to Consider When Outsourcing Software Development from Israel

Qubit Labs’ recent research, “Hiring and Team Management Challenges of On-Site VS Remote Tech Teams Survey Report 2024, shows that 37.8% of companies close 60% of open tech vacancies, whereas only 11.1% close all open jobs by 100%. If you are an Israeli company with a shortage of specialists, you can leverage staff augmentation services or hire a dedicated team. Our experience proves it will help you streamline operations, drive innovation, and cut costs.

Qubit Labs’ Case Study

Obscure Games, an Israeli company, needed talented 3D artists to work on indie games. Our company matched this client with experienced experts who became an indispensable part of the team. You can read more of our success stories here.

Thus, having extensive experience building tech teams for international clients, we advise you to consider the following factors if you outsource.

Geographical Location and Time Zone Proximity

Most Eastern Europe and Israel countries share the same time zone (UTC +2), so real-time collaboration and communication are effective. Also, compared to other outsourcing locations, Eastern Europe is close to Israel, making communication and face-to-face meetings more straightforward.

Language

English is the language of international communication, and most software engineers in Eastern Europe know it at an intermediate level and above. Here is the classification of countries according to the EF English Proficiency Index.

Project Management Experience

Domain expertise and extensive experience in your niche are paramount for successful software development. Your vendor’s project management experience is crucial because it ensures a project is successful and meets client requirements. It guarantees efficient resource use, clear communication, effective risk management, high-quality standards, timely project delivery, and satisfied clients. Additionally, it helps resolve conflicts, coordinates efforts smoothly, strategically plans, and effectively manages cultural and time zone differences. Qubit Labs has impeccable project management experience backed by our clients’ reviews. You can read them on Clutch.

Hire Developers Israel: Challenges

Companies that want to hire developers Israel may face specific difficulties, primarily a talent shortage. Here are the main issues Israeli entrepreneurs and companies face when finding in-house employees.

Talent Shortage

This issue is a global problem, according to the Global Talent Shortage Report 2024. Seventy-five percent of companies find it hard to fill tech positions. In Israel, the talent shortage is 82%, which is higher than the global average.

Limited Scale

Israel ranks 98th in the world in terms of population size. Its size is 9,402,617. This figure is relatively low, especially compared to India, Vietnam, and Eastern European countries, such as Poland, Romania, Azerbaijan, and Ukraine. Also, the Eastern European region has a tech talent pool of over 128,0000 specialists, according to Qubit Labs’ comprehensive report, “Outsourcing to Latin America vs Eastern Europe.” Therefore, the Israeli workforce is limited, and some outsourcing services may not be available; specific skill gaps and scalability issues may exist.

High Costs

Israel’s high cost of living impacts outsourcing services, resulting in higher labor and operating costs than other outsourcing locations. For instance, a senior Java developer in Israel earns $109,000 annually, whereas in Romania, this specialist makes $73,300 a year. Also, junior Ruby software engineers earn $45,000 in Israel, but their Romanian colleagues earn $26,000 annually. Moreover, Polish Android developers at the middle level make $52,000 a year, which is significantly lower compared to Israel, which has an annual salary of $80,000. Therefore, if you are an ambitious startup with a limited budget but crave tech specialists, consider Eastern Europe as your outsourcing spot.

Geopolitical Instability

Israel has a complex history and an unstable political landscape. New conflicts in the region and their further escalation could negatively impact the continuity of business operations, the stability of the area, and the viability of IT outsourcing in the region as a whole.

A Complicated Immigration Law

Israeli immigration law primarily revolves around the Law of Return (1950), which gives Jews and their descendants the right to move to Israel and obtain citizenship. There are no special conditions to attract top talent without Jewish blood in the country, so Israel is not a popular place for talent immigration.

Cultural and Language Barriers

While many specialists speak English, there may still be specific issues. Israel is ranked 54th in the Global English Proficiency Index. This figure is less than that of Eastern European countries, many of which are ranked in the top 20. Besides, the Israeli business culture encourages experimentation and open communication, which can be an issue for companies that prefer a more formal and hierarchical business culture.

Outsourcing Development: Most Popular Destinations

Due to a talent shortage, many Israeli businesses hire remote specialists overseas and outsource software development to other countries. The most popular destination is Eastern Europe.

Legal and Regulatory Aspects of Outsourcing to Israel and Eastern Europe (Poland)

Two significant aspects of outsourcing are the hiring process and intellectual property protection. Let’s compare Israel and Poland in terms of these factors.

Salaries of Developers in Israel and Eastern Europe

The salary of a developer depends on the skill set and their experience. Junior software engineers usually earn less than middle and senior specialists. However, junior jobs offer various career prospects. Let’s compare some wages of junior specialists in Israel and Poland.

So, specialists’ salaries in Israel are, on average, twice as high as in Poland. Speaking of Romania, another popular Eastern European country for outsourcing, the prices differ even more dramatically. For example, a senior Java specialist earns $109,000 per year in Israel, while in Romania, the salary of the same expert is $73,300. Senior Android developer salaries in the two countries differ by $37,000 annually — $105,000 in Israel versus $68,000 in Romania. Therefore, if you want to hire developers in Israel, be prepared to increase your budget. However, partner with Eastern European dedicated developers if you want excellent value for money.

Eastern Europe Is An Alternative to Offshore Software Development Israel

Eastern Europe is known for its vast talent pool, excellent cultural proximity, and strategic geographic location. Poland offers 607,000 tech specialists proficient in Java, JavaScript, Ruby, Shell, Python, PHP, and Typescript. Romanian developers are well-versed in Angular, Java, PHP, C#, Python, and React. In Bulgaria, 110,000 tech specialists demonstrate robust technical skills: SQL, PHP, Java, JavaScript, C#, PHP, and .NET.

Qubit Labs can source exceptional talent in Eastern Europe. With our 10-year experience and over 450 filled tech vacancies for our clients, we guarantee that our developers will be a perfect fit for your company. We offer staff augmentation services, which allow you to fill specific skill gaps and increase your in-house capabilities for certain projects. This approach enables scaling your team up or down based on project requirements.

A dedicated team is perfect for long-term projects. We assemble a team of top-notch specialists who will work on your project. It will ensure the highest level of commitment and perfect goal alignment with your company’s goals. You can control the work of developers, while Qubit Labs will manage all administrative tasks.

FAQs on Israeli Developers

How Many Software Developers Are There in Israel?

In 2024, there are over 182,000 developers in Israel.

What Are the Benefits of Hiring Israeli Developers?

Israel has a talented and skilled workforce in software engineering, databases, and security engineering. This country has premium tech education that ensures all specialists are highly professional and innovative. Besides, Israel’s geopolitical difficulties have developed a resilient and adaptive society that perfectly aligns with Western business practices.

Is It Cheaper to Recruit Coders in Israel than in other Countries?

Hiring Israeli programmers is pricey. The cost of living in Israel is high. For instance, the cost of living in Tel Aviv is 50% more expensive than in Buenos Aires, 33% more expensive than in Madrid, and 100% more expensive than in Baku. Consequently, the developer’s salary is much higher compared to Eastern European countries. Our latest average software developer salary comparison shows that middle Python developers in Israel earn 1.6 times more than in Romania.

Qubit Labs’ Tip:

Based on our experience, we recommend hiring software developers in Eastern Europe. This region boasts a vast pool of experts well-versed in Python, TypeScript, PHP, JavaScript, C++, and HTML. They also demonstrate perfect English knowledge, excellent remote team management skills, and attractive taxes. We can land a pro tech team that will meet your business needs.

Can I hire Remote Developers from Israel for my Project?

Israeli engineers are flexible regarding working conditions, so that you can collaborate with them online. However, according to our latest survey report, 77.4% of tech companies hire remote employees in Eastern Europe due to programmers’ cost-efficiency and exceptional flexibility.

Find Israel Developers for Hire with Qubit Labs

Hence, Israeli developers demonstrate perfect technical skills, cultural affinity with the West, and excellent business practices. However, talent shortage, geopolitical instability, and high costs force many high-tech companies Israel to hire remote developers in other locations. If you are looking for programmers with robust tech education, hands-on experience with popular and rare programming languages, excellent command of English, and exceptional skills in managing remote teams, choose Eastern European developers. Qubit Labs can land highly professional tech teams to meet your business needs. Book a free consultation call to discuss all the advantages of collaborating with Eastern European developers and learn more about Qubit Labs’ services.