Would you consider outsourcing to Israel? Some will have you believe Israel is the best place to go when quality is more important than cost.

Perhaps. But cost savings is the number one reason for outsourcing in the first place in the vast majority of situations. So why bother with Israel?

Outsourcing to Israel makes sense if you need the special expertise that exists in the highly educated Israeli engineering and scientific community. For example, advanced algorithm work in security, image processing and innovative embedded software design should cause you to seriously look at Israel.

But then again, if you are looking for this kind of talent then you are more likely to want to hire these experts as employees rather than contractors. That’s why software developed in Israel for U.S. companies is mostly done in company-owned operations there. Sometimes the U.S. operation is owned by the Israeli company. And these companies have Israelis on the management team in both locations.

If you are looking for low-cost software development of your .NET or Java web application then Israel will probably not be the first place you consider for your offshore software development.

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