Hire Developers in Israel
Israel has become a center of technical innovation and is home to a thriving community of talented programmers, earning the nickname “startup nation.” Knowing how to efficiently outsource and hire developers in Israel can open up vast possibilities for your organization, whether you’re a startup searching for a competitive advantage or an established firm trying to boost your digital skills. Come along as we investigate the ever-changing Israeli tech scene, the ins and outs of outsourcing, and the realities of incorporating the services of these technological geniuses into your business.
IT Market in Israel
Outsourcing to Israel comes with another crucial consideration — the state of the country’s IT market.
There are several factors contributing to its success:
- Exponential growth. Following Statista, the Israel IT industry expands by 7.79% each year, projecting a consistent growth that will last from 2023 to 2028.
- Abundance of IT companies. With approximately 9,000 IT companies operating in the country, Israel offers a diverse landscape for businesses of all sizes.
- Abundance of IT professionals. As of 2021, Israel is home to about 182,000 experts in computer programming and related fields within the IT sector.
- Growing tech export. Israel’s high-tech export value has reached unprecedented heights, as revealed by World Bank data. It skyrocketed to $16.09 billion in 2021 from $12.96 billion in 2020.
- Programming languages. Hire an Israeli developer with knowledge of foundational programming languages, with PHP, .NET, Node.js, Java, and Python being the most popular in the country.
- English Proficiency Index. With score of 483, denoting “Low Proficiency,” Israel faces a challenge in improving its English language skills to enhance international communication and global opportunities.
Given the above stats, it’s evident that Israel boasts an evolving IT ecosystem suitable for small, medium, and large tech companies.
A Detailed Look at Israel’s Employment Conditions
Israel has quite a vibrant tech sector at its core, with job opportunities ranging from high-tech innovation to agriculture and tourism. The country’s employment landscape is marked by a strong entrepreneurial spirit and a culture that values innovation. This has led to a strong startup ecosystem that supports a culture of creativity.
The labor laws in Israel are known for striking a balance between protecting employees and encouraging entrepreneurial growth. The standard work week in Israel is typically set at 42 hours. And the minimum wage is around $1,500 per month. Employees are entitled to paid annual leave, sick leave and maternity leave, ensuring that workers can maintain a wonderfully healthy work-life balance. Additionally, the country’s progressive policies promote gender equality. This ensures women receive equal pay for equal work, and working mothers get support through many different maternity benefits and childcare services.
Israel’s comprehensive social security system plays a vital role in ensuring the well-being of its workforce. The system provides many different benefits! This includes health insurance, pension plans and unemployment benefits, offering a safety net to employees in times of need. And, moreover, the country has implemented measures to encourage the employment of people with disabilities, emphasizing inclusivity and diversity in the workplace.
Despite these strengths, Israel faces certain challenges within its job landscape. Income inequality remains a pressing concern. Furthermore, the competitive job market and the high cost of living in major cities like Tel Aviv pose problems for many individuals.
IT Hubs in Israel: Salaries and Developer Landscape
Let’s now explore Israel’s IT landscape in even greater depth. Look at the main cities that offer professional developers:
- Tel Aviv. Nicknamed the “Silicon Wadi,” inspired by the American high-tech region Silicon Valley, Tel Aviv is the beating heart of Israel’s tech industry. It’s also the top city for startups in Israel, scoring 56.77 points in total and welcoming 1,363 emerging companies in 2021. With salaries averaging around $68,840 per year, software developers in this region enjoy some of the highest compensation in the country.
- Jerusalem. This second-best city for startups in Israel boasts a growing community of IT professionals. The average annual salary of a software developer Jerusalem is competitive and accounts for about $67,694 annually.
- Haifa. Hosting numerous international high-tech companies like Apple, Intel, IBM, Google, Microsoft, and more, Haifa is one of the major technology centers in Israel. It also holds third place for fostering innovations and startups. A software developer here earns $66,697 per year.
- Petah Tikva. With a thriving industrial sector, this city has become a magnet for startups and tech giants like IBM, Intel, and Oracle Corporation. Petah Tikva also proudly hosts the largest data center in Israel, managed by TripleC. The average yearly salary of software developers here is around $47,461.
- Rishon LeZion. Located south of Tel Aviv, this city combines a rich cultural heritage with a growing IT sector. A software developer here makes about $67,013 per year.
Team of Israel Developers for Hire
If you want to hire developers in Israel, it is necessary to know the main factors of successful teamwork:
- Clear statement of goals and objectives;
- Correct selection and the composition of the team;
- Well thought-out system for the members of the team;
- Team members’ ability to work collectively.
Check Profiles of Available Developers in Israel
We have several consultants in Israel available for hire right now – check their profiles below and inquire for more!
3 years of experience
Avi is a dedicated backend developer with a strong foundation in Go. Working within Israel’s tech-driven ecosystem, he’s honed his skills in developing scalable microservices and optimizing server performance. Avi’s adeptness with containerization and orchestration tools like Docker and Kubernetes ensures the robustness and scalability of the backend systems he builds.
4.5 years of experience
Noa is a talented frontend developer who specializes in Angular-based applications. With a penchant for creating intuitive and dynamic UIs, she has been instrumental in numerous projects across Israel’s tech sector. Noa’s deep understanding of reactive programming with RxJS and her meticulous approach to frontend architecture results in top-notch web applications
4 years of experience
Yotam is a versatile full-stack developer well-versed in the MERN stack. His balanced expertise, from managing databases in MongoDB to crafting interactive UIs with React, has been crucial for various startups in Israel. Yotam’s holistic approach ensures the delivery of cohesive and efficient web applications tailored to user needs.
3.5 years of experience
Lior is a mobile developer with a keen interest in iOS application development. Being part of Israel’s innovative tech scene, he has played pivotal roles in the development of apps that integrate augmented reality using ARKit. Lior’s dedication to user experience, combined with his proficiency in Swift and Objective-C, results in apps that are both feature-rich and user-friendly.
- iOS SDK
Outsourcing Software Development from Israel: Factors to Consider
If, as an Israeli company manager, you struggle to fill tech openings, consider hiring a dedicated team. To make sure your global collaboration is fruitful and results in a high-quality project, take the following factors into account as you learn how to hire dedicated team developers:
- Location. An important rule of how to hire a remote team goes this way – the closer the main office is to the dedicated team, the easier it is to schedule and arrange face-to-face meetings. Geographical proximity ensures there are cultural similarities between the teams, removing misunderstanding and communication bottleneck.
- Language. Make sure there are no communication barriers between the vendor and the main office. Establish an official communication language of the team and find a dedicated team that speaks it well enough to freely discuss the specs of the project.
- Time zones. A time zone difference complicates running meetings and prolongs the feedback circle. With that in mind, think of how to find a remote developer team that shares a time zone with the main office or a company with a minimal time zone difference.
- Project management experience. Thinking how to hire a remote team, make sure the team lead, as well as the software developers, has enough technical and domain knowledge to handle your project. Also, make sure you are on the same page regarding project management methodologies and the technology stack.
Building a Tech Team in Israel: Hiring Challenges
It is natural for Israeli entrepreneurs to aim for starting a tech team in-house. However, the country is facing a huge tech employee shortage – according to the Innovation Authority report, Israel is 10,000 engineers and software developers short to fill all the openings on the job market.
Israel developers shortage is not the only challenge of software development companies in Israel – here the challenges companies struggle with when hiring in-house:
- Tech talent pool is not very diverce. Israel is under the heavy influence of brain drain – the country’s top college graduates find job offers in Silicon Valley and other major tech hubs – Tokyo, London, and Berlin. As a result, Israel struggles to retain its tech talent and compete with six-digit salaries top-tier companies offer software engineers.
- A challenging immigration policy. The country’s immigration policy is guided by the Law of Return that grants foreigners citizenship in case they have Jewish relatives. As a result, there’s little-to-no selectivity in who gets inside the country. As opposed to Canada’s credit-based immigration policy, Israel does not encourage talented people with no Jewish blood to integrate into the country. That’s why business managers have to know how to find remote specialists.
- Lack of coding boot camps. The country does not have a way for people in their 30s and 40s to start a career in tech. The government plans to launch hundreds of tech boot camps around the country to solve the talent shortage in the next 5 years.
- A large number of employers. IBM, Microsoft, and other major companies all have R&D centers in Israel. Naturally, spots in these companies are more lucrative for most professionals than working for a young and ambitious startup.
Outsourcing Development: Most Popular Destinations
Facing a shortage of local tech talent, a fair share of Israeli business owners turned to outsourcing software development firms. As the vendor’s location is a crucial point in ensuring productive collaboration, most company managers look for software developers in UAE or in Europe.
Most businesses outsource research and development. Around 5 percent of companies hire vendors for QA only, 30% hire a dedicated team both for software development and quality assurance.
Legal and Regulatory Aspects of Outsourcing to Israel and Ukraine
Let’s now explore how software outsourcing Israel and Ukraine takes place. Here are the insights on the hiring process and intellectual property protection in both countries:
Hiring Process: Legal Implications in Israel and Ukraine
When you outsource developer Israel, the hiring process involves complying with several labor laws. One specific legislation to pay attention to is the Israel Employment Law of 1988, which prohibits all sorts of discrimination against employees. The salary in Israel must meet or surpass the current minimum wage of $1,460 per month. Weekly working hours shouldn’t exceed 45 hours. You should also adhere to regulations related to taxes and social security.
Ukraine poses similar legal considerations as a software development company Israel. You should draft an employment agreement and adhere to the labor laws and tax regulations. The minimum wage here is $204 per month, yet, there’s a huge gap between the actual developer’s salary. Working time extends to 50 hours per week, following the new labor regulations under martial law.
IP Protection: Understanding the Legal Framework in Both Countries
Intellectual property protection is another critical concern before hiring web development companies in Israel or Ukraine. It’s a way to secure your innovations and eliminate the leakage of sensitive information.
Israel has a robust legal framework for IP rights protection. Here, you can leverage non-disclosure agreements, patents, trademarks, and copyrights to safeguard your software solutions.
When outsourcing to Ukraine, you can obtain a patent for your IP through the Ukrainian Intellectual Property Institute. Other means of protection include copyright registration and NDAs.
Salaries of Ukrainian and Israeli Dedicated Team
To persuade you of the benefits of cooperation with a Ukrainian outsourcing company, we prepared a comparison table that shows how much it costs to hire developers in Israel compared to hiring programmers with the same expertise in Ukraine. Hiring Israel dedicated team will cost approximately $4,500 per member, depending on the requirements of the project and technologies used, which can include PHP, .Net, Java, Angular, Laravel, Magento, and others. While the average developers’ salary in Ukraine is only $2,500 monthly.
* Ukrainian salaries are provided based on Mobilunity’s Recruitment Team research on the local job markets. All salaries are net and do not include the service fee (in case of hiring on a dedicated team model). The salaries are provided for comparison purposes and could be not entirely accurate. Contact us to know the exact cost of hiring a developer corresponding to the required parameters.
It is also reasonable to compare developers’ salaries with different skills. For example, if you want to hire developers in Jerusalem, Tel Aviv, or Haifa, be ready for the different prices. A middle front-end developer in Israel earns approximately $4,050/per month, a full-stack developer will ask for his work for $5,130/per month on average, and the services of a mobile app developer are the most expensive and estimated at $6,100/per month.
The wages of developers in Ukraine are different. A front-end developer receives up to $2,500 for his work monthly. The average monthly salary of a full-stack developer is $2,800. Mobile app developer’s price is not so high and equals $3,000/month. As we can see, Ukrainian developers are more profitable specialists in terms of costs.
Prices for IT outstaffing services provided by Kyiv differ much from the above-mentioned city. We can see that the prices of Israel developers for hire are rather high no matter whether you would like to hire web developers Ashdod or web developer Haifa.
Ukraine — an Alternative to Offshore Software Development Israel
Hiring a software engineer in Israel is a decent idea because of the geographic and cultural proximity. Yet, keeping up with high salaries and talent scarcity may become a real challenge and frustration.
Backed up with our 10-year experience and successful projects for clients worldwide, you can leverage the full potential of Mobilunity’s dedicated teams, remote R&D centers, and expertise in both markets, Ukrainian and Israeli, to engage a perfect match for your business.
Here are the main benefits of cooperating with Mobilunity outsourcing company:
- Reduction of IT staff costs;
- Improving service quality and minimizing downtime;
- Predictability of IT expenditures;
- High level of responsibility and guarantee to the customer;
- Transparent reporting system;
- A unified approach for solving all problems arising in the course of work.
Find out more about:
- How to find the best mobile app development company in Israel?
Main Service Models Offered by Mobilunity
If you choose Ukrainian experts over front end developer Tel Aviv or any other Israeli city, Mobilunity offers several cooperation models. Let’s look at each of them in greater depth:
- Dedicated development teams. These are the backbone of our service offerings. In this approach, you directly manage a full-time team while we remove numerous administrative burdens. Let Mobilunity cover HR, accounting, and help desk questions to free your time for core, development-related tasks.
- Consultancy services. This cooperation model offers flexibility and expert guidance, providing you with direct management of part-time resources while enjoying comprehensive support from our team. Allow Mobilunity to handle administrative tasks and fill in the gaps in your current personnel.
- Recruiting services. Our recruiting-as-a-service approach helps you attract top talent by leveraging our extensive networks both locally in Israel and Eastern Europe. Mobilunity has a profound background even in the most distant and complex markets, as demonstrated in our local hiring services in Japan.
- Is it cheaper to recruit coders in Israel than in other countries?
While hiring engineers in Israel may be more expensive than in other nations, it does provide a highly competent and inventive IT workforce. While salaries are somewhat pricey, the quality of work, knowledge, and access to cutting-edge technologies can more than compensate for the investment.
- What are the benefits of hiring Israeli developers?
There are various advantages to hiring developers in Israel. The country is well-known for its robust IT sector, world-class colleges, and innovative culture. Israeli developers are highly experienced in a variety of technologies and are fluent in English, making it simple for international clients to collaborate.
- Are there any legal or bureaucratic issues when employing developers in Israel?
Hiring developers in Israel entails a number of legal and administrative procedures, such as contracts, work permits for international personnel, and tax requirements. To handle these obligations, it’s best to consult with local legal and HR specialists or use professional employer organizations (PEOs).
- Can I hire remote developers from Israel for my projects?
Yes, you can engage remote developers from Israel for your projects. Many Israeli engineers are receptive to remote work arrangements, and you can identify suitable workers using online platforms and talent marketplaces. This adaptability helps enterprises all over the world to benefit from Israel’s technological talent.
- What are the most used programming languages and technologies in which Israeli engineers thrive?