High Technology in Palestine
With the Middle East generally looking less secure it is a little ironic that Palestine looks quite stable and is becoming a location for ICT outsourcing work. The development of the ICT industry is imperative for Palestine; the sector’s internal growth and development is important to the overall economy, increasing competitiveness and supporting access to social services. Of equal importance is the international development of the sector, providing much needed export revenues as well as building international commerce with both Israel and the wider world.
Economically, ICT offers real advantages to the Territory. The average salary of people in ICT is somewhere around 4 times that of the average wage; increasing ICT employment develops internal demand and creates new jobs internally. It also provides around $15 million in export income to the Territory, small in comparison to a country like Jordan, but significant and growing.
ICT, and software and services in particular, have the benefit of overcoming the restrictions on the movement of goods across the Palestinian borders. The value is created in soft deliverables and can be transferred digitally over networks, an important consideration for the West Bank but even more so for the isolated Gaza Strip.
Palestine has long since realized that its position as an ICT outsource center has to be won. Over the last 3 years much effort has been put into development and the client list for the region boasts some of the largest international ICT companies including, Cisco, HP, Intel and Google. In addition Israeli companies are important customers for Palestinian outsourced services.
How has this success been achieved? A number of fundamental factors have led to these developments. Firstly the education system is good and highly valued, some 2500 ICT students graduate annually – many more than the industry can currently absorb. The overall education system is good and develops high levels of literacy and numeracy as well as good English language skills.
Experience shows that the business culture is in line with international organizations, indeed, many of the larger Palestinian ICT companies are run by directors who have worked outside of the territory. This factor makes working with Palestinian companies easier than many other low cost locations; it reduces the amount of client management required on day to day management and training.
The industry itself has realized the international opportunity. It has embraced support to help keep up to date and capacity build in both technologies and commercial skills. This is actively supported by international donors and NGOs.
The development path is not straight forward; the ICT companies need to grow and the movement restrictions make international business development more challenging. Support from external agencies, companies and individuals have the potential to remove barriers and help build on the success.
ICT is an important element in breaking down international barriers, creating solid economic growth thus benefitting the overall economy and building the confidence of Palestinians.
See additional opportunities in Palestine on our Resources page.
Author: Nick White, Director, CIMS
Consulting & Interim Management Solutions Ltd (CIMS Ltd)
Yateley, UK
February 2012
CIMS is a UK-based consultancy that specializes in ICT strategies for developing countries.