Tech companies in Israel eyeing India and other locations to relocate, if war persists
Major tech companies including Microsoft, Intel, and Google, as well as Indian firms like Wipro and TCS, operate in Israel and employ over 100,000 people.
As the battle between Israel and Hamas intensifies, global tech companies, in Israel, are considering a shift in their operations to other locations. Among the potential destinations is India, alongside other regions like the Middle East and Eastern Europe. The decision depends upon the intensity of the conflict and its potential escalation as per the Economic Times report.
Hosting over 500 global giants like Microsoft, Intel, and Google, tech industry is a significant global player. Indian companies such as Wipro and TCS also operate within the country, collectively employing over 100,000 people. However, ongoing conflict threatens these businesses, potentially leading to their relocation.
The Impact on Israel’s Tech Industry
Considered as Israel’s fastest-growing sector is the high-tech industry. Reuters cited investors and analysts stating the possible disruptions that these industries face due to escalating tensions leading to a full-scale invasion of the Gaza Strip by the military.
“Workloads will shift in the short run to offset risk. India and eastern Europe would benefit if there is a material impact,” – Peter Bendor-Samuel, CEO of Everest Group as cited by the Economic Times.
Intel, a major stakeholder in the market, has also registered its concerns. The company stated that it is closely watching the developments into safeguard and support its workers. A decrease in Intel’s share by 0.5 percent was recorded, following a surprise attack from the Hamas militants which resulted in the death of several Israelis.
The Israel-Hamas Conflict and Consequence
The ongoing conflict between Israel and Hamas is already in its sixth day, with expectations of further escalation. Current reports indicate a death toll exceeding 2,300 on both sides and numerous displacements.
“We saw boys and girls bound, who were shot in the head. Men and women burned alive. Young women who were raped and slaughtered. Soldiers who were beheaded,” – Israeli Prime Minister Benjamin Netanyahu.
Amidst these tensions, tech companies within may see a business shift to India and other regions with similar time zones and talent capacity. However, industry experts also note the very niche nature of talents, which might put off a permanent shift.
The Cybersecurity Question
With global customers demanding a tightened cybersecurity infrastructure, Israel’s standing as a major cybersecurity hub is under the spotlight. An escalation of the safety conditions may lead these corporations to shift roles out for business continuity, also potentially affecting supply chains.
You might also be interested in – Biden administration refutes claims linking $6 billion in Iran prisoner swap to Hamas attack
