How Israeli Tech Drives Remote Revolution

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The world of work is undergoing an accelerated transformation, with more and more companies adopting remote and hybrid work models. New technologies that enable effective collaboration and smooth communication between geographically dispersed employees accelerate this trend. Israel, known for its technological innovation and business flexibility, is at the forefront of this revolution, and many Israeli companies are developing innovative solutions that help organizations worldwide move into the new era of remote work.

The Changing Reality

About 16% of companies are now fully remote, operating without a physical office. These pioneers demonstrate the feasibility of remote work models, paving the way for others. Industry and occupation-specific statistics show widespread acceptance of remote work, especially within knowledge-work organizations, with tech companies leading the way.

Israeli companies have more than once proven their leadership in developing innovative tools for remote collaboration. In this article, I’ll highlight Israeli pioneers and their impact on the global trend.

According to Statista, in 2020, only 20% of employees worked remotely worldwide; in 2023, the number increased to 28%. In the tech industry, the share of remote specialists is the highest: up to 67%. Moreover, 91% of employees globally prefer remote-only or primarily remote work mode. More and more organizations are addressing this need while making a profit.

 Israel Driving the Global Remote

In Israel, known for its adaptability and resilience, businesses were progressive during the pandemic. By July 2020, 43% of citizens worked from home, up from 9% pre-pandemic—a massive increase in just a few months! In 2021, the Labor and Welfare Ministry reported that Israel’s economy is the second most adaptive to remote work globally, with 47% of employees able to work from home.

Israeli companies were not only successful adopters of remote work practices and technologies, but also creators of tools to help businesses worldwide ease the transition to the new era of remote work.

Made in Israel

Solutions developed by Israeli or Israeli-rooted companies contributed much to productivity and efficient operations, from communication tools and digital platforms for hiring, onboarding, and managing talents and projects to advanced cybersecurity services to protect remote teams. Here are some of the ways their inventions can help organizations and individuals succeed worldwide:

Make remote collaboration smoother. Many Israeli companies have developed tools for the efficient work of distributed teams. For example, Radvision created a tool for video conferencing. The platform allows to execute all project-related activities and keep score.

Enable digital transition. For instance, GigaSpaces offers one of the market’s first Digital Integration Hubs (DIH), a solution that simplifies organizations’ digital transformation while reducing legacy systems’ total cost of ownership.

Help with HR and Talent Management tasks. For example, HiBob is an innovative data-driven HR platform. The service makes recruiting, onboarding, engaging, and providing performance reviews for companies of various sizes much easier. The solution was highly recognized and enlisted in the Forbes Cloud 100 in 2022 and 2023 and TIME Magazine’s 100 Best Inventions in 2022. Another example is, an AI-powered platform that can monitor employee wellness. Companies use it to improve collaboration in remote teams.

Attract the right people. In the gig economy, there’s much more than Upwork. Israeli platform Fiverr is a marketplace for freelancers that allows companies to find perfect contractors and pay them on a project-by-project basis. 

Another helpful tool created by an Israeli company is Comeet. It’s an applicant tracking system that makes recruiters’ lives less stressful. 

AI can help save time on hiring. For example, Talent Popcorn AI is an Israeli recruitment platform that uses machine learning to match candidates with job openings. The Xplace platform also does the matchmaking job and provides tools for managing the recruitment process for businesses.

Make working in cyberspace safer. Cybersecurity may become a significant issue for remote teams since they must provide access to resources and share documents. The Israeli company Check Point Software Technologies offers solutions to protect remote employees and teams against all digital threats. IRONSCALES helps companies ensure email security and the Cyberint platform aims to arm cybersecurity teams with a toolset to defend against external cyber threats.

One more example of an Israeli cybersecurity company is Cyberark. It helps prevent data breaches that may occur during remote collaboration.

Increase productivity with AI’s assistance. For example, WalkMe helps teams work more efficiently by eliminating friction and creating a smoother workflow. Next, remote sales teams can use Gong to analyze customer behavior and improve metrics.

Make payments. For example, Remitly helps immigrants working abroad quickly and conveniently send money to their families back in their native countries.

Train employees. The platform allows staff reskilling and upskilling and even training high-potential candidates to become better employees in the future.

Israel Tech Industry Employment Landscape

Interestingly, the remote work trend in the Israeli tech industry presents a considerable restraint. According to Rocks&Gold, remote work comprises only 10.7% of jobs in Israel today compared to 67% global, and another 9.27% represent hybrid job options.

The sector faces significant employment challenges threatening its growth and ability to sustain its competitive edge. The demand for new technological expertise further exacerbates recruitment difficulties. Israeli tech companies report significant challenges in hiring R&D staff, with recruitment rates lagging behind other industries. This shortfall can delay product development and stifle innovation, impacting tech firms’ overall performance.

Despite these challenges, the Israeli tech ecosystem is seeking solutions. Many companies continue to innovate and adapt by leveraging global talent, exploring new work models, and leveraging remote work tools to facilitate straightforward and valuable collaboration efforts.

Facilitating Global Connections

The global demand for tech specialists continues to grow. At the same time, a talent shortage deepens, making it harder for companies worldwide to find skilled employees. Here, IT staff augmentation comes into play. This approach can help bridge the gap between Israeli tech firms and the global talent pool.

IT staff augmentation companies have developed extensive networks of highly skilled professionals worldwide. Hence, they can quickly connect clients with the right talent, regardless of geographic location. 

Another advantage of staff augmentation companies is their streamlined hiring process. They provide a broad range of services, such as recruiting, vetting, and onboarding, and deliver fast results. It allows companies to grow their teams quickly without losing momentum.

Furthermore, IT staff augmentation companies can help Israeli businesses implement more flexible work arrangements while optimizing costs. For instance, use fixed-price agreements with new team members. 

Often, IT staff augmentation companies provide legal and compliance support. They handle employment contracts, tax requirements, and other legal considerations, so the client doesn’t need extra time and effort. 

Staff augmentation companies provide ongoing support, including project management, communication facilitation, and performance monitoring. 

HR Platform That’s Disrupting The Global Market

Since 2021, we have partnered with a dynamic Israeli company to expand their global team, reaping substantial benefits from the staff augmentation model. This forward-thinking client began by hiring senior back-end developers through us, which swiftly addressed critical skill shortages. Following this success, we assembled a dedicated team of highly skilled employees in Ukraine and added further expert team members in Romania.

This strategic expansion enabled the client to harness diverse talents and expertise, driving growth and innovation, maintaining a competitive edge, and pushing the boundaries of technological advancement.

Through staff augmentation, this ambitious Israeli company exemplifies how leveraging global talent can drive remarkable business outcomes, showcasing a model that other firms can emulate for international success.

Seizing the Future

According to Upwork, by 2028, 73% of all departments will have remote employees, leading to significant changes in organizational structures and enabling companies to tap into a vast pool of global talent. This shift presents a unique opportunity for Israeli companies to harness this potential, driving their growth and contributing even more to remote work solutions. With their expertise, Israeli firms are poised to lead the global race in remote work advancements, pushing the boundaries of tech innovation.

About the Author
Andrii Bezruchko, CEO and founder of Newxel company. Newxel stands as a global IT staff augmentation powerhouse, excelling in full-cycle tech recruitment services and R&D center development. Newxel has established a prominent presence across 11 locations worldwide, driving revenue of around $20M. Prior to that, he spent more than 20 years developing software and building and managing development teams and R&D centers worldwide, donning hats as CTI/CIO and Director of R&D across diverse companies.
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