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Increase in companies relocating overseas amid instability caused by Hamas war

thedailyposting.comBy thedailyposting.comApril 7, 2024No Comments

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Israeli IT company Aman Group is seeing a surge in the number of companies requesting to use its offshore services and move at least some activities overseas during wartime, said Ben, CEO and owner of the company.・Mr. Pasternak said.

Aman offers offshore, hybrid offshore and Israeli operating options. During the war, the company saw a 25-30% increase in requests from Israeli customers to offshor at least some of its activities.

Pasternak said it’s natural that people would not want to choose to use services based in countries with high instability, and this is true regardless of how people view the country. I explained that there is. He explained that even if you like a country or want to see it succeed, you don’t want to have a central system based there if you’re concerned about stability.

“People don’t buy from conflict zones,” he says. “This is an issue that is starting to have an impact, and we expect that impact to become increasingly severe,” he added.

Aman Group works with companies from various sectors, including banks, credit companies, insurance companies, gaming companies and many start-ups.

Workers in the high-tech industry protested against proposed legal changes in Tel Aviv on Tuesday. (Credit: TOMER NEUBERG/FLASH90)

Aman encourages and supports its employees in the reserves, but the absence of employees during wartime is one of the issues that creates instability for customers, who are encouraged to relocate their operations to Aman’s offshore locations. Mr. Pasternak explained that he had come to make the request.

Judicial reform also caused problems.

Pasternak explained that judicial reform, like the war, created a general atmosphere in which cooperation with Israeli companies was difficult. Investors don’t necessarily pay attention to every detail, Pasternak explained, but are more influenced by the general atmosphere of the country they’re considering investing in.

“For too many years we have created an atmosphere of instability and uncertainty,” he said, noting this was influenced by judicial reform and war. “People don’t want to do business in Israel given the alternatives,” he added.

“We have high technology, we have the talent and the drive,” he said, which gives Israel an advantage, but these are weakened by the disadvantage of Israel’s unstable atmosphere. I explained that there was.

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Pasternak explained that while companies with overseas customers may sympathize with the situation in Israel, there are limits to how much this can influence a company’s business decisions.

“That’s why our ability to combine work in Israel with work in offshore locations is valuable to companies,” he said. “As an Israeli, as a patriot, and as a patriot, my best wishes to this large company headquartered in Israel. The situation will change rapidly immediately after the fighting ends and after a diplomatic agreement is reached.” This could lead to a major recovery for Israeli business because “the talent is here and the capability is here.”





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