High-tech companies, venture capital funds, and local municipalities in the Negev are launching an initiative to create hundreds of high-tech jobs in southern Israel, which has been severely affected by the recent war. Led by the social high-tech initiative Place-IL, the project will establish a high-tech office complex in Sderot, with an investment of 15 million shekels.
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The new complex will house international companies such as Google, NVIDIA, Salesforce, Palo Alto, and Cisco, along with Israeli companies like cybersecurity firm Armis, the fintech company Melio, and the HR company Hibob.
Other companies expected to join the project include Imperva, Cadenus, and Axonius. The venture has also gained the partnerships of American venture capital fund Insight Partners, which has been particularly active in Israel in recent years.
The project’s goal, born after Hamas’ October 7 attack, aims to rejuvenate the Negev and bring the presence of high-tech companies to the region. While individual companies may not rush to open branches in the area, the creation of a shared workspace for several companies will establish a foothold in the region, simultaneously providing strength and security for residents returning to their homes.
The plan is expected to create around 400 new high-tech jobs in the Negev within three to four years. Additionally, plans are underway for the construction of another facility in Ashkelon and possibly in one of the communities close to the Gaza border, with plans to reach the employment of 800 new workers.
The primary target population for the plan includes graduates from local colleges such as Sapir Academic College and Sami Shamoon College of Engineering, who have struggled to integrate into positions in the central region where the majority of the high-tech industry is located.
According to a study conducted by Place-IL based on data from the Defense Ministry and Israeli universities, there are currently over 3,000 graduates with relevant degrees for working in high-tech positions, including engineers residing in the Negev, who have entered the job market in the last three years and could integrate the high-tech industry.
As part of the evolving plan, Place-IL will locate promising candidates from the region via its volunteer network, including entrepreneurs, CEOs, CTOs, development team leaders, and recruitment and human resources professionals.
Simultaneously, Place-IL collaborates with high-tech companies to identify specific needs for various job types in the high-tech market. Local municipalities from the Negev regions, as well as the municipalities of Sderot and Ofakim, are also partners in the project.
Southern Israel has historically suffered from underrepresentation in the high-tech industry, despite efforts over the past decade to develop an ecosystem in the area alongside the transfer of some of the IDF’s technological units to the Negev.
Operating in the area today are mainly security industry companies such as Elbit and Rafael, a branch of the Wix internet company, offices of fintech companies, and a branch of the Amdocs software company.