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Israeli technology companies turn to West Bank for outsourcing

West Bank and Gaza, March 15, 2011

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Gwen Ackerman

Bloomberg News
March, 2011

Military roadblocks, nine-meter- high barriers and six decades of Israeli-Palestinian hostility didn’t deter Mellanox Technologies Ltd. (MLNX) from picking the West Bank for a new software design center.

“Israelis and Palestinians are in the same time zone and are pretty similar culturally,” said Eyal Waldman, chief executive officer of the Israeli maker of chips for data-center adapters. He chose the Palestinian city of Ramallah after considering India and China because of lower costs and the proximity to the Mellanox headquarters in Yokneam Elit...

...About 32 percent of Palestinian technology companies are working with Israeli partners through outsourcing and sales agreements, according to a 2010 report by relief and development organization Mercy Corps...