A brief guide for outsourcing to Palestine

Outsourcing has become a critical business strategy if you aim to reduce costs, access specialized talent, and make your operations more efficient. 

While traditional outsourcing destinations like India and the Philippines are widely known, other regions are emerging as competitive alternatives. One such area is Palestine, where a growing pool of talent, particularly in tech and IT, is gaining the attention of global businesses. 

In the 511th episode of the Outsource Accelerator Podcast, Saady Lozon, founder and CEO of BPO ZONES, brings up why Palestine can be a new outsourcing hub.

This guide explores why Palestine is becoming a viable outsourcing destination, the benefits it offers, the services available, and the challenges companies need to consider.

Palestine as an outsourcing destination 

Palestine may not be the first location that comes to mind when considering outsourcing, but it’s quickly emerging as a contender in the global outsourcing market. 

The region boasts a highly educated population, particularly in fields such as IT, engineering, and business services. Cities like Ramallah, Gaza, and Hebron are becoming hubs for technology startups and outsourcing service providers.

Saady’s first company, Unit One, provided data services globally. 

“We had around 160 engineers working as staff augmentation to many multinational companies. [In] our BPO department, we have around 100 employees working with us in many services like AI annotations, digital marketing, data entry, data archiving, data analytics, and data collection.” 

Despite political challenges, Palestine has managed to create a growing and vibrant tech ecosystem. Non-governmental organizations (NGOs), international corporations, and tech incubators have played a significant role in nurturing local talent and improving infrastructure. 

Additionally, Palestine’s time zone is compatible with Europe and North America, making it a convenient partner for businesses in these regions.

Being pioneers in the industry for the country, Unit One stood out.

“We are the large employer because outsourcing is new in the Middle East.” Sandy observed. 

Benefits of outsourcing to Palestine

Outsourcing to Palestine comes with several advantages that can make it an attractive option for businesses:

1. Highly skilled workforce

“Palestine has a good population of educated people, especially in Gaza, [where] there are five universities.” Saady remarks.

Palestine has a young, highly educated population with a strong emphasis on higher education, particularly in Science, Technology, Engineering, and Mathematics (STEM) fields. 

Universities in the West Bank and Gaza are producing graduates who are well-versed in coding, software development, data science, and other technical areas. It makes Palestine a strong contender for outsourcing projects in IT, software development, and data management.

2. Cost-effective labor

The cost of labor in Palestine is significantly lower compared to more established outsourcing destinations. 

This cost advantage is a key factor for businesses looking to maximize their return on investment without sacrificing quality. Palestinian professionals offer highly competitive services at rates that are often much lower than those in Western countries.

3. Growing tech ecosystem

Palestine’s tech ecosystem is rapidly developing and driven by both private sector investments and international aid organizations. 

Tech hubs, accelerators, and incubators are emerging, particularly in cities like Ramallah and Gaza, where startups are beginning to thrive. These initiatives are helping to foster innovation and create new outsourcing opportunities for global businesses.4. Cultural and language compatibility

Palestinians are often multilingual, with many professionals fluent in English and Arabic. This can be advantageous for businesses looking for bilingual customer support or technical teams. 

Saady reiterates this, saying, “The level of English is very good, [and] this supports us to generate more business for outsourcing.” 

The region’s cultural alignment with Western countries also makes it easier for businesses to integrate Palestinian teams into their operations.

Industries and services available for outsourcing to Palestine

Palestine offers a variety of services and industries for outsourcing, making it a versatile option for businesses from different sectors.

These include: 

IT and software development

One of the most prominent outsourcing services in Palestine is IT and software development. 

The region is home to a growing number of developers and engineers skilled in web development, mobile app development, and cloud computing. 

Palestine’s tech talent is capable of delivering high-quality software solutions. The country is an excellent choice for businesses in need of specialized IT services.

Customer support and call centers

The outsourcing of customer support and call center services is another growing area in Palestine. With their multilingual abilities, Palestinians are well-suited to provide customer service for businesses in both Arabic and English-speaking markets. 

Call centers in Palestine offer high-quality communication skills and efficient customer handling. They’re a reliable option for companies that need to outsource their customer service operations.

Back-office support

In addition to tech and customer support, Palestine offers back-office services such as data entry, transcription, and administrative support. 

These services help businesses streamline their operations and reduce the burden on in-house teams, allowing them to focus on core activities.

Saady praises the services offered by the sector. 

“We also have other companies [that] offer high-quality services in Palestine.” 

Outsourcing to Palestine presents a unique opportunity for those looking to tap into a new labor market with growing capabilities. While challenges exist, businesses that take the time to develop strong partnerships can reap the benefits.