US IT giants invest in Israeli-Palestinian high-tech ventures

USAID's Scott Kleinberg said that over the past year, "There is a rise in cooperation between the Israeli and Palestinian high-tech sectors.

The "Technology without borders" panel at the "Globes" Israel Business Conference discussed business cooperation between the Israeli and Palestinian high-tech sectors and the opportunities that exist.

The vision of Israel's leading edge high-tech working with the relatively cheap work force offered by the Palestinian advanced technology sector is almost as big as the vision of regional peace.

A range of bodies are attempting to transform the vision into reality - some of them are voluntary, while others see the business potential of such cooperation. The most notable company that is promoting this concept is Cisco Systems Inc. (Nasdaq: CSCO), which is operating three development projects in Ramallah in the Palestinian Authority with three selected local companies.

Cisco's public benefits investment manager for Europe, the Middle East and Africa Zika Abzuk told the panel that, "Cisco Israel's employees see the local center in three years time as being a large development center with a branch in Ramallah that has 200 employees."

This is a far larger number than the several dozens employees Cisco has in Ramallah today.

Cisco's involvement with Ramallah began following the visit of CEO John Chambers at the start of 2008. Chambers pledged to invest $10 million in the Palestinian economy as part of the company's social support - in other words more of a charitable contribution than business investment.

However, Abzuk said, "What began as an activity in the field of social responsibility became a real investment."

Cisco announced during the panel that two of the Palestinian companies with which it began working under the definition of social responsibility have now been switched over to the business activities budget.

Following the successful experiences of Cisco, HP Israel is also expected to invest in a similar project in the coming weeks.

Research conducted by the humanitarian organization MercyCorps on potential cooperation between the Israeli and Palestinian IT sectors found that the software languages, development and mobile software platforms required by Israel were suited to the capabilities of the Palestinians.

USAID private enterprise officer for the West Bank and Gaza Scott Kleinberg said that over the past year, "There is a rise in cooperation between the Israeli and Palestinian high-tech sectors. Things are beginning to happen."

One Israeli company that has opened a development center in Ramallah is G.ho.st Inc.. The company provides infrastructures for remote access to computer resources. G.ho.st CEO Zvi Schreiber told the panel that the company has 20 employees at its Palestinian center. He said, "We have found interest talent as well as software development.

Published by Globes [online], Israel business news - www.globes-online.com - on December 14, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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