Israeli Senior Developers Earn Triple Compared to Poland Amid Rising Offshore Hiring
According to data from the Growth Forum and Group 107, the average monthly salary for a senior software developer in Israel is about 48,000 shekels, compared to 15,000 shekels in Poland and even less in countries like Ukraine, Argentina, and Cyprus. This wage disparity, combined with a low dollar exchange rate and the rise of AI technologies, is prompting Israeli tech companies to increasingly consider hiring development teams abroad to reduce costs.
The cost of employing a developer in Israel is approximately 8.2% higher than in the United States, with parity only reached at a dollar-shekel exchange rate of about 3.21. Since Israeli tech firms raise funds and generate revenue in dollars but pay salaries in shekels, a strengthening shekel makes local labor more expensive in dollar terms, pressuring companies to rethink hiring strategies.
Group 107 co-founder Guy Amar explained that the decision to build teams overseas is influenced not only by cost but also by the normalization of remote work and the realization that high-quality development can be managed internationally. AI developers command a premium salary, with senior AI developers in Israel earning around 62,000 shekels monthly, significantly higher than their counterparts abroad.
Despite ongoing conflict, Ukraine remains an attractive destination for Israeli companies due to its skilled engineers and flexible employment models. Other countries gaining interest include Poland, Cyprus, and Argentina, each offering different advantages such as geographic proximity or lower costs.
Rinat Buchholz, CEO of Global Teams, noted a recent surge in demand for overseas hires in development, product, QA, and operations roles, driven by the strengthened shekel and global tech industry cost-cutting. She emphasized that companies are now evaluating every new position with a global perspective, often opting for hybrid models combining core teams in Israel with development units abroad.
This shift is seen as a lasting change in how Israeli tech firms structure their workforce, balancing innovation and cost efficiency to sustain growth amid economic pressures and technological advancements.
