The Palestinian ICT

Sector
Outsourcing Workshop –Tel
Aviv
July 8, 2008
By Ihab Jabari, PITA CEO
 PITA’s Mission
• To promote and defend the
ICT Sector through:

 Advocating
 Promoting
 Developing
PITA Members

Specialties:
Software development, Hardware, IT training and capacity building,
Telecom services, Education , and Outsourcing.
Emerging Market with Hi-Gains

1. 270 ICT Enterprises

2. $0.5 Billion ICT Industry
3. %5 of GDP
4. $10-14 Million Software Exports
(Recent Study)
5. Companies Average Net Profit: 15-
30%
6. Highest productivity value added:
$62,000 per employee
7. Average annual wages = $15,000
 ICT main Indicators

• ICT usage and spread in Palestine is in line (in some

cases better than) with Arab countries, and constantly
improving since 1997.
• 32.8% of households own a computer
• 15.9% have access to the Internet
• About 400,000 Internet Users
• About 62,000 ADSL subscribers
 Tap Into Our Talented Human
Capital
1. 44% of ICT employees have programming
and software engineering skills- 15% with
10+ years of experience
2. 13% of ICT employees have a Master
and/or PH.D degree
3. 35% of ICT companies have at least 11
years of business experience
4. 9% of ICT companies have at least 16
years of business experience
 Talent Pool
• 10-university engineering and IT
faculties.

• About 1100 new engineers and IT

graduates every year - this excludes
diploma graduates.

• About 17,000 enrolled students in

engineering, math and IT fields.

– Source: PITA recent study on ICT workforce in Palestine

 Fields of Competencies
1. Software Development
– Data and Operations Software
– Educational Software
– Accounting, and Financial Software
– Inventory, and Customer Care Management Software
– Health Services Software
2. Software and content Arabization
3. System integration and software conversion
4. Automation testing
5. Data mining
 A Place for Viable
Investment
STRENGTHS OPPORTUNIT
• Proven products & services
• Location & languages
IES
• Growing local and regional markets
• Proximity to Israeli/Arab/ EU
• Skilled workforce & competitive markets
costs • Multinational companies seeking
• Advanced telecom infrastructure investment
• Liberalized telecom market • A pipeline of innovations

WEAKNESSE THREATS
• Absence of VC
S
• Business know-how and
• Political conflict & Perception
• Brain drain
marketing channels
 Competitive Advantages of the
ICT sector
• Cost Advantage:
– Developers rates: 30% of Israeli rates
– Team Leaders rates: 35% of Israeli rates

• Operational Advantages:
– Low turnover of employees
– Excellent command of English
– Proven on time delivery at all times and situations
– Reliable and advanced telecom infrastructure
– Continuous access to fresh and skilled ICT resources
Benefits of Palestinian Outsourcing
• Same time zone
• Same currency
• Reduction of cost
• Software/hardware outsourcing and
management experience
• Proximity and minimal costs for
transportation, accommodations and
communication
• Low churn rate (turn over of employees
within the Palestinian IT company)
• Social and economic dividends
Benefits of Palestinian Outsourcing
• Use of international standards
• Outreach and connection in USA,
Europe, ME & Gulf
• Excellent command of English, some in
Hebrew
• Proven on time delivery at all times and
situations
• Reliable and advanced infrastructure in
telecommunications (All modern telecom
means)
 The Middle East - Emerging
Outsourcing Market
• Region has a yearly growth of 5%+
• Increasing private equity activity
• Outsourcing opportunities:
– Information technology outsourcing: e-learning, e-government,
multimedia, etc
– Business process outsourcing: finance, payroll, telemarketing,
accounting, etc
– Arabization and localization services
• Custom software development
• Web based analysis, design and development
• IT project management
• QA & testing
 Success Stories

Palestinian IT companies have successfully penetrated regional

and international markets via outsourcing or sales of product
and service to the following countries:

• USA • Saudi Arabia

• Israel • UAE
• Germany • Jordan
• Italy • Yemen
• Sweden • Iraq
• Switzerland • Egypt
• UK