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Israeli women to combat Indian BPO
CR Jayachandran (HindustanTimes.com)
The history sheeter »
India’s hegemony in BPO is facing a new
richest Indian »
challenge with Israeli high-tech companies
with children »
with a monthly subsidy of N.I.S.1,000 for
five years, high-tech companies like Matrix
Kiryat Sefer, also known as Modi'in Illit, a
Haredi town located between Tel Aviv and
Jerusalem, has seen more than 250 haredi women hired over the past year.
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"Global high-tech companies such as Comverse and Amdocs outsource today to India and Eastern Europe. This creates a big problem for unemployment
in Israel. This project is a way of keeping work in Israel and one which
provides an alternative to offshore outsourcing," said Ronen Engler, vice
president of sales and marketing of Matrix Talpiot, was quoted by the
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Imagestore Systems, that provides electronic archiving services, opened a
1,000 sqm centre in Kiryat Sefer last month at a cost of $1.2 million while hiring 100 local haredi women, according to the paper. The centres are
designed to exploit a cheap source of quality high-tech labour. Net salaries
at the development centres are around N.I.S 5,500 per month.
"Haredi women have no work experience. We provide them with the know-
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how at a [relatively] low basic income. Our experience has shown that they
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have a lot of potential. They are serious, very motivated to learn and
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The offices of Matrix Talpiot, according to the report, are considerate of the
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needs of Haredi women. Offices have a private room, a separate kitchen,
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and employment hours that are limited to 8 am to 4 pm.
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"An Indian programmer may cost a little less per hour but the turnover rate
is very high. When employing Indians, the customers have to factor in costs
for travel and time for teams to supervise the work. Here they get the same
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work at a fraction of the ultimate cost, without language barriers or long flights," Engler was quoted by the paper.
Besides India and China, Israel is one of the other big players in the BPO space. Other countries include South Africa, Northern Ireland, Southern Ireland, Philippines, Czech Republic, Poland, Hungary and Russia. Of late Pakistan is also wishing to enter into this field.
Despite political stability being an issue, Israel is emerging as a BPO destination.
By far India is the leader with 60 per cent of the IT and BPO business outsourced by the West. Preliminary estimate indicate that India in 2004 exported about $11 billion worth of software and $5 billion worth of BPO services to the West.
According to former investment strategies analyst Hari Sud if Israel steps forward for IT outsourcing, it will win hands down. This happens primarily due to strong influence, which Israel has on western psyche, and influence of highly successful Jewish population of America.
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